Post Macondo Oil Spill Opportunity

OTC Update Day 2: After two days of very interesting panels on the affects of the Deepwater Horizon and Gulf Oil spill in the Macondo play. The Overall take away….I was impressed with OTC management bringing parties from all sides to the table.  We heard from heads of state, VP of Chevron, US chamber of commerce, a feisty little lady from Louisiana fighting for local businesses (Gulf Economic Survival Team) the Department of Interior and the Department of Energy and envoronmentalists. Only 12 deepwater permits have been issued since the lift of the moratorium and the start of the “permitorium”. Department of Interior says its 100% a lack of availability of containment systems that meet the new requirements (of which there are only two approved companies the non profit consortoum of majors (MWCC Marine Well Containment Company) and Helix. 

It was repeatably stated, while Obama’s long term goal is to reduce dependance on oil and move toward Altnative, his short term goal (ten years) is to reduce our dependance on foriegn oil and develop it domestically. Bottom line….Much opportunity for services and products in new era of increased safety, retrofitting, decommissioning….etc…and this will create a lot of activity once the permits start flying.

We heard from the governor of Mississippi and representatives from governors of four other coastal states about the new Outer Continental Shelf Coalition.  20 states in all will be invited.  VP of Chevron talked about the need to raise standards and for all operators, contractors and majors to hold each other accountable, since our neighbor (obviously) can give our industry a black eye, by not following safety procedures and best practices.  The environmentalist studying the long term affect of the Macando incident don’t really know the overall impact of the oil and just as potentially detrimental, the dispersant.

By Greg Bright
Houston, Texas
May 3rd, 2011