STOCK MARKET WATCH -- Tuesday, 23 April 2013

[Demeter]

4. Bradley Manning and the Deepwater Horizon By Greg Palast

http://www.nationofchange.org/bradley-manning-and-deepwater-horizon-1365342892

Three years ago this month, on the 20th of April, 2010, the BP Deepwater Horizon drilling rig blew itself to kingdom come.

Soon thereafter, a message came in to our office's chief of investigations, Ms Badpenny, from a person I dare not name, who was floating somewhere in the Caspian Sea along the coast of Baku, Central Asia.

The source was in mortal fear he'd be identified – and with good reason. Once we agreed on a safe method of communication, he revealed this: 17 months before BP's Deepwater Horizon blew out and exploded in the Gulf of Mexico, another BP rig suffered an identical blow-out in the Caspian Sea.

Crucially, both the Gulf and Caspian Sea blow-outs had the same identical cause: the failure of the cement "plug".

To prevent blow-outs, drilled wells must be capped with cement. BP insisted on lacing its cement with nitrogen gas – the same stuff used in laughing gas – because it speeds up drying.

Time is money, and mixing some nitrogen gas into the cement saves a lot of money.

However, because BP's penny-pinching method is so damn dangerous, they are nearly alone in using it in deep, high-pressure offshore wells.

The reason: nitrogen gas can create gaps in the cement, allow methane gas to go up the borehole, fill the drilling platform with explosive gas – and boom, you're dead.

So, when its Caspian Sea rig blew out in 2008, rather than change its ways, BP simply covered it up.

Our investigators discovered that the company hid the information from its own shareholders, from British regulators and from the US Securities Exchange Commission. The Vice-President of BP USA, David Rainey, withheld the information from the US Senate in a testimony he gave six months before the Gulf deaths. (Rainey was later charged with obstruction of justice on a spill-related matter.)

Britain's Channel 4 agreed to send me to the benighted nation of Azerbaijan, whose waters the earlier BP blow-out occurred in, to locate witnesses who would be willing to talk to me without getting "disappeared". (They didn't talk, but they still disappeared.)

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