Running Government Like A Business

Back during the age of Reagan, I was working on a story about the popular meme of “running government like a business.” I interviewed one management consultant who explained to me an important difference between government and the private sector. He said that business was focused on getting something out to market that was “good enough” quickly, something they could improve later. He said that government’s priority wasn’t speed or cost, but compliance with federal regulations, and everything else came second – not a bad thing when dealing with safety issues.

That’s why he confidently told me that “no one in their right mind” would ever apply “just get it done” business mentality to safety regulation:

An examination by The New York Times highlights the chasm between the oil industry’s assertions about the reliability of its blowout preventers and a more complex reality. It reveals that the federal agency charged with regulating offshore drilling, the Minerals Management Service, repeatedly declined to act on advice from its own experts on how it could minimize the risk of a blind shear ram failure.

It also shows that the Obama administration failed to grapple with either the well-known weaknesses of blowout preventers or the sufficiency of the nation’s drilling regulations even as it made plans this spring to expand offshore oil exploration.

“What happened to all the stakeholders — Congress, environmental groups, industry, the government — all stakeholders involved were lulled into a sense of what has turned out to be false security,” David J. Hayes, the deputy interior secretary, said in an interview.

Even in one significant instance where the Minerals Management Service did act, it appears to have neglected to enforce a rule that required oil companies to submit proof that their blind shear rams would in fact work.

As it turns out, records and interviews show, blind shear rams can be surprisingly vulnerable. There are many ways for them to fail, some unavoidable, some exacerbated by the stunning water depths at which oil companies have begun to explore.

But they also can be rendered powerless by the failure of a single part, a point underscored in a confidential report that scrutinized the reliability of the Deepwater Horizon’s blowout preventer. The report, from 2000, concluded that the greatest vulnerability by far on the entire blowout preventer was one of the small shuttle valves leading to the blind shear ram. If this valve jammed or leaked, the report warned, the ram’s blades would not budge.

This sort of “single-point failure” figures prominently in an emerging theory of what went wrong with the Deepwater Horizon’s blind shear ram, according to interviews and documents. Some evidence suggests that when the crew activated the blind shear ram, its blades tried to cut the drill pipe, but then failed to finish the job because one or more of its shuttle valves leaked hydraulic fluid.

These kinds of weaknesses were understood inside the oil industry, documents and interviews show. And given the critical importance of the blind shear ram, offshore drillers began adding a layer of redundancy by equipping their blowout preventers with two blind shear rams.

Shorter version: For eight years, we had conservatives doing what conservatives do — namely, ignoring regulations, taking businesses at their word and doing everything possible to help them maximize profits at the expense of the public good. But appointing Ken Salazar was highly unlikely to reverse that trend.