Deepwater Commission: “Complex Systems Almost Always Fail In Complex Ways”

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By Douglas A. McIntyre Published
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The seven members of The National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling might as well have stayed at home instead of venturing out to examine why the well exploded and sent millions of gallons of oil into the Gulf. They made a number of conclusions in their final report. All of these conclusions were among those which nearly any oil executive, regulator of the industry, or scientist who studies drilling and its effects on the environment already know.

The central statement made by the Commission is that “Complex Systems Almost Always Fail In Complex Ways” FAA investigators who examine airplane crashes and members of Congress who reviewed the credit crisis could have told them about complex systems. Many moving “parts” have many points which can and do break.

The Commission reported several other findings which are obvious. “The explosive loss of the Macondo well could have been prevented.”  That’s old news.

“Deepwater energy exploration and production, particularly at the frontiers of experience, involve risks for which neither industry nor government has been adequately prepared, but for which they can and must be prepared in the future.” The federal government’s regulation and inspection services for almost every industry are stretched to the breaking point. Austerity measures about to be taken by Congress and the Administration will only make that problem worse.

“Because regulatory oversight alone will not be enough to ensure adequate safety, the oil and gas industry will need to take its own, unilateral steps to increase dramatically safety throughout the industry, including self-policing mechanisms that supplement governmental enforcement.” BP’s cost to clean-up the aftermath of the explosion and the damage done to its balance sheet and reputation assures the industry has already begun to take those measures.

“Scientific understanding of environmental conditions in sensitive environments in deep Gulf waters, along the region’s coastal habitats, and in areas proposed for more drilling, such as the Arctic, is inadequate.  The same is true of the human and natural impacts of oil spills.” The inability of the world’s best academics who studied the movement of the slick caused by the leak to chart its course and the inability of drilling experts to cap the well quickly prove those conclusions.  Moreover, the limits of the ability of these most ingenious experts is a sign that the human capacity to understand the effects of large disasters underscore the limits of science.

The Commission’s failure to pass anything meaningful from its analysis to the government, the oil industry, and probably most important the public hurts the reputation of blue chip committees. They are appointed with a great deal of PR and their goals are set very high. When they do not clear that bar, they increase the skepticism of what facts “experts” can gather and analyze effectively.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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