6/17/2010
By Conley Turner, Research Analyst

Amid the copious amount of information being relayed about the devastating impact of the oil spill on the Gulf region, relatively little attention has been given about the nature the ongoing operation.  From the onset of the incident on April 20, 2010, there has been a massive mobilization by government and industry.  The Gulf region is now the epicenter for the gathering of an impressive number of personnel and equipment to deal with the growing crisis.

The growing cleanup operation currently involves over 100 companies and other governmental agencies.  It is now is a well established fact that BP is financially responsible for the spill and clean up.  However, under the 1990 Oil Pollution Act, the U.S. Coast Guard is the legal authority in the matter.  The national incident commander of the entire operation is Coast Guard Commandant Admiral Thad Allen. The involvement of the Coast Guard has been sustained since the inception of the crisis and mirrors the evolving scope and complexity of the spill itself.  The Guard currently has a presence at every level in the current theater of operations with personnel working with stake holders across the broad.  These range from local government leaders to officials at BP.

In terms of physical assets deployed, there are over 3,000 ships and other vessels involved in the effort.  Included are approximately 2,500 government and other contract vessels, 500 barges, and approximately 400 skimmers.  These figures are likely to be revised upward as the size and nature of spill evolves.  To this end, other assets are being directed or already en route to the Gulf region from as far away as Alaska and oil producing Norway.

From the air, the campaign is being untaken by a squadron of aircraft of varying capabilities and missions.  Notable among these is a modified 747-200 commercial airliner owned by a company called Evergreen International Aviation, Inc. The primary purpose of Evergreen Supertanker as the plane is more commonly known is among other things, to fight forest fires.  It is currently, the largest firefighting aircraft in the world with the capability of carrying a 20,000 gallon payload.  The aircraft is spreading the oil dispersant in the Gulf at a width of up to 200 feet for up to 300 miles at a time. The U.S. Air Force is also using C-130 aircraft in spreading the oil dispersant.  NASA's contribution is in the form of providing daily images of the spill from both its unmanned aircraft and satellites.

As it stands, both old and new technologies are being employed in the Gulf.  These include the old school use of hundreds of miles of containment booms used at least impede the progress of the various slicks. As it pertains to the new, cutting edge virtual imaging technology is being used to predict the likely path that the oil slick may take.  With this data, assets can be deployed in a more efficient manner.

The situation has been the catalyst for the coming together of the some of the best minds in the oil industry and science world.  This aspect of the effort is being spearheaded by Energy Secretary Steven Chu who also happened to be the 1977 winner of the Nobel Prize for Physics.  The experts include just o name a few, veterans of the Exxon Valdez spill, experts in assessing the damage spill may pose on sensitive geographical areas, and experts in aerial imaging who analyze and interpret the character of the oil in the water.  

All together, there are over 30,000 personnel working in some capacity to address this disaster. These numbers too are likely to increase since the broken well at the bottom of the ocean is not expected to be sealed until August at the earliest.  In the meantime between 35,000 and 60,000 barrels of oil a day is being spewed into the Gulf.

In the final analysis, the response to the containment and cleanup effort has been impressive and continues to unfold.   The situation is very dynamic to this point and the numbers quoted thus far are apt to be revised as the extent and character of the spill evolves.  The marshalling of all these resources bears similar characteristics to a war effort.  Indeed, in this case, it is a war.

Conley Turner
Wall Street Strategies