Recent Headlines Regarding the Transocean Rig Explosion in the Gulf of Mexico

There have been thousands of news articles written this past week regarding the Transocean oil rig explosion in the Gulf of Mexico. Some of these reports have contradicted one another regarding the details of the rig accident, but there have been facts that everyone seems to agree on. Men were injured in this tragic offshore rig explosion and the industry is now facing a lot of scrutiny.

Below is a summary of the recent news topics relating to the devastating explosion:

Eleven Workers Were Never Found
At the time of the Gulf of Mexico rig explosion, there were 126 people aboard the vessel. 115 of them have been accounted for, although many were critically injured, according to the Associated Press. CNN reported that rescue crews searched more than 5,200 square miles, but the workers were never located. A Coast Guard representative stated that it is believed that they did not survive.

Efforts Made to Stop Oil Spill
As oil continues to leak into the Gulf of Mexico, crews have been struggling to contain the spill. The United Press International stated that robotic submarines were used to try to shut off the oil flow from the seabed, but officials are worried about the environmental damage. The oil has been drifting toward the Louisiana coastline, which has brought huge concern. A decision was made to burn the oil spill in a confined area. According to the New York Times, the group of industry and government officials overseeing the burn said that the oil will be consolidated “into a fire resistant boom approximately 500 feet long; this oil will then be towed to a more remote area, where it will be ignited and burned in a controlled manner.”

USA Today reported that the weather allowed emergency cleanup crews to start the controlled burns on Wednesday, April 28, 2010.

Congress Investigating the Rig Explosion
Lawmakers are started to investigate the rig explosion and have asked for documents from the owner and operator of the rig, according to ABC News. Homeland Security Secretary Janet Napolitano and Interior Secretary Ken Salazar stated that they would focus every possible resource to a complete investigation of the explosion. The Coast Guard and the Minerals Management Service will be involved in the probe.

Big Losses Expected
Hannover Re AG made a statement that the oil rig explosion is anticipated to cause about a $52.7 million loss for the reinsurer. Businessweek reported that it would cost as much as $700 million to replace the Deepwater Horizon, the rig involved in the blast. BP said that it has spent about $6 million a day to contain the oil spill and that it is expecting to pay another $100 million to drill the relief well.

Expansion of Offshore Drilling Could Be Impacted
Businessweek has reported that the Transocean rig explosion could impact President Barack Obama’s plan to expand offshore drilling. Tom Moskitis, a spokesman for the American Gas Association, told reporters, “there’s no question that this complicates things a little bit because this plays into the argument from those that oppose offshore drilling.”

Just last month, Obama proposed drilling for oil and gas off the U.S. East Coast and in the Gulf of Mexico, about 125 miles off the Florida coast. Officials believe that this offshore rig accident could create additional political complications for the push for energy and climate change legislation, according to the New York Times.

Oil Companies Often Feel Pressure to Put Production First
Maritime attorney Brian Beckcom was interviewed by the Huffington Post regarding his view on the industry’s safety. “The industry preaches safety, that’s what comes out of their corporate mouths, but I know for a fact that is not always the way things go,” said Mr. Beckcom. He has represented numerous Transocean employees who have been injured.