Deepwater Horizon disaster’s controversial legacy
Monday was the 10th anniversary of the start of the landmark Deepwater Horizon disaster, which saw millions of gallons of crude oil leak into the Gulf of Mexico. The massive spill resulted in the deaths of 11 people, affected large stretches of US coastline, and killed or harmed many thousands of birds, sea turtles and marine mammals.
The disaster received massive global attention, and the subsequent regulatory and political backlash was, in some respects, a watershed moment for the industry. Soon afterwards, for example, several countries, including the US, Canada and Norway, declared moratoriums on deepwater drilling. A decade on, significant concerns continue to be voiced about the safety of deepwater drilling, while the political legacy of Deepwater Horizon remains intensely controversial.
This month, for instance, the US National Wildlife Federation released a report asserting that the Gulf still hasn’t fully recovered from the environmental disaster. Take the example of dolphins — it is estimated it will take decades for local populations to fully recover, as they struggle with issues like worsened lung disease, abnormal stress responses, anemia, and weight loss.
Voices of discontent continue to be raised about the safety of oil drilling, with significant spills occurring on a relatively regular basis. But it is on deepwater drilling where the worries of most environmentalists are particularly focused. Last June, several such groups sued the Trump administration for what they asserted were decisions to weaken the critical safety rules created after Deepwater Horizon.
Part of the reason so much concern remains specifically focused on deepwater drilling locations is that, over the last decade, a significant portion of new international hydrocarbon reserves have been discovered in these areas. Critics assert that, despite ongoing reviews to safety measures, and better technology, the prospect of future disasters remains significant, in part due to the remoteness and depth of some locations and the resulting challenges posed by the recovery of oil.
While scientific and technological innovation can enable greater safety in the future, “riskfree” drilling is unrealistic. Moreover, modern technology can be a double-edged sword for oil companies. This was emphasized in a 2014 report that asserted that too much of the energy sector at that time had no insurance against major cyberattacks and that could threaten “a major energy catastrophe on the same scale as … Exxon Valdez or Deepwater Horizon.” Another key reason why offshore drilling may continue apace is the resilience of leading oil firms to wide-ranging international risks. The scale and profitability of these giants, despite fluctuations in oil prices, typically equips them to respond quickly to new opportunities, as well as withstand major setbacks, and this will continue — especially if energy demand picks up robustly after the coronavirus crisis subsides.
While the legacy of Deepwater Horizon therefore remains controversial, deepwater drilling could well — in the absence of any further major industry debacles in the near future — remain a key part of the global political and economic landscape for years to come.