BU Now » Deepwater Horizon oil spill

Americans and oil

Dick Taffe — Thu, 24 Jun 2010 21:00:58 +0000

A new poll reports reports that Americans are “deeply concerned” about energy but “unwilling to pay higher gasoline prices to help develop new fuel sources.” Professor Cutler Cleveland, director of the Center for Energy and Environmental Studies, says this attitude defies our experience since 1970 as we’ve gone to war over oil, experienced major oil spills, suffered recessions triggered by oil price hikes, and watched the global political landscape be reshaped by energy issues. From his blog, The Energy Watch, he poses and asks a question — then offers a conclusion:

“How have American habits changed in light of these events? Here is what has happened from 1970 to 2007 in regards to our most oil-intensive activity: Percentage of people who commute alone in car, 25% increase; Number of miles driven per car, 23% increase; Percentage of households with three or more cars, 65% increase; Miles driven per household, 50% increase; Average size of household, 17% decrease.

“BP and government regulators must be held accountable for the Deepwater Horizon disaster. But make no mistake about it: the ultimate driving force behind our predicament is the American appetite for oil and our apparent unwillingness to change our behavior in the face of enormous human and environmental costs.”

Contact Cutler Cleveland, 617-353-3083, cutler@bu.edu

BP faces Congress

Dick Taffe — Tue, 15 Jun 2010 16:16:56 +0000

It’s all BP all the time in Washington this week. After President Obama addresses the nation Wednesday on the BP oil spill situation, company executives on Thursday face a Congressional hearing on the matter. Visiting law Professor Elizabeth Nowicki, both a former SEC and Wall Street attorney, says BP CEO Tony Hayward would be well-served to remember what empirical research shows about the economic value of apologies.

“My advice to Hayward is to remember what behavioral research has shown: Corporations with senior management who willing and sincerely apologize are (a) less likely to get sued and (b) more likely to settle inevitable lawsuits more cheaply.”

Meantime, political science Prof. Graham Wilson, author of “Business and Politics,” wonders when other companies involved in the Deepwater Horizon disaster and its aftermath will be put in the spotlight that thus far has swamped BP.

“It will be interesting to see if the American companies involved, such as Transocean and Haliburton, are also asked to set aside funds [for clean-up]. Only eight of the people on the rig when the well failed were employed by BP.”

Contact Elizabeth Nowicki, 518-867-5355, enowicki@bu.edu; or Graham Wilson, 617-353-2540, gkwilson@bu.edu

Gulf spill and global oil production

Dick Taffe — Thu, 10 Jun 2010 16:47:11 +0000

The International Energy Agency, in its monthly Oil Market Report, says the Gulf of Mexico spill is a potential “game changer” for oil supply, possibly restricting figure sub-sea oil development and limiting supply. But Professor Cutler Cleveland, director of the BU Center for Energy and Environmental Studies and editor-in-chief of the Encyclopedia of Earth, see it differently — noting that loss production from the Gulf of Mexico would be at best point-4-percent of global oil production or “dust in the wind.”

“As important as the GOM is to U.S. oil production and to Gulf state economies, it is a pittance in the world market. U.S. production decisions have negligible impacts on world oil markets, and Middle East producers could easily offset the projected shortfall.”

Contact Cutler Cleveland, 617-353-3083, cutler@bu.edu

BP tries (again) to plug leak

Dick Taffe — Tue, 01 Jun 2010 16:52:46 +0000

Embattled oil company BP is again trying to divert the six-week-old Gulf oil leak by smothering the gushing flow under yet another dome. Geology Professor Cutler Cleveland, director of the BU Center for Energy and Environmental Studies, has updated his entry on the Deepwater Horizon saga in the BU-born Encyclopedia of Earth to discuss the myth that this catastrophe is no different that the oil seeps that release large volumes of oil to the ocean naturally.

“The Deepwater Horizon site releases 3 to 12 times the oil per day compared to that released by natural seeps across the entire Gulf of Mexico … A sudden, concentrated and massive pulse of oil from an event such as the Deepwater Horizon disaster presents a fundamentally more acute stress to marine and coastal systems.”

Contact Cutler Cleveland, 617-353-3083, cutler@bu.edu