The scars of the Deepwater Horizon oil spill are fresh for many along the Gulf Coast. But BP, the company that was at the center of what was one of the largest environmental catastrophes in American history, is dipping its toe back into oil extraction. The company is investing $9 billion in the Mad Dog Oil Field, roughly 200 miles off the Louisiana coast.
The peak capacity of the project will reach up to 140,000 barrels per day upon development. For comparison, the spill rate from Deepwater Horizon was estimated to release between 35,000 to 60,000 barrels per day – totaling 4.9 million barrels of oil spilled into the water.
“They understand they cannot afford to screw up in the Gulf ever again, or else the entire industry would be kicked out,” Steffy says.
What you’ll hear in this segment:
–BP’s oil extraction strategy in the Gulf of Mexico
–The mistakes that BP has learned since the Deepwater Horizon oil spill
–The effect of price collapse and stability on the oil extraction business
Post by George Economos.