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Article reprint - March/April 2003
Terrorism in the Offshore Oilfield
By - Neal Adams


On September 11, 2001, terrorists proved they could deliver a devastating blow to a global heavyweight-the United States of America. The resulting economic downturn and fear has affected the role that energy abundance plays on the world stage. But even with the devastating events of 9-11 still so much a part of industry's psyche, nothing could deliver a knock-out blow to industrialized nations like pulling the plug on their economic lifeblood: oil. In this exclusive interview, Neal Adams discusses his new book, Terrorism & Oil, and just how vulnerable our offshore oil and gas infrastructure really is.

Neal Adams's book, Terrorism & Oil (Penwell), relates the critical role that oil plays in every American's daily life. For example, a disruption in the oil supply would cause a job reduction of 10 million - an economic disaster unimaginable in scope.

Beginning with the economic impact of oil and OPEC's potential to use oil as a weapon, Adams educates readers on:

  • The world's oil supply choke points,
  • How and where terrorists will attack the world's oil supplies,
  • How the US and global economies could suffer long-term damage from oil supply disruptions or a war with Iraq,
  • Which oilfields and interests will be targets, and effective steps that can be taken to prevent attacks.

The overall conclusion Adams draws is a frightening one: a knowledgeable terrorist can bring the world to its knees and hit us where it hurts the most - our oil supply.

In researching and writing the book, Adams drew upon his expertise as an oil industry firefighter, blowout control specialist, engineer, and consultant. His career took him to 35 countries, including all the oil-producing regions. Adams was instrumental in extinguishing the fires set by Saddam Hussein in the Kuwaiti oilfields during the Gulf War, and was honored with a plaque from the Kingdom of Kuwait in appreciation for his efforts.

Adams has held top-secret clearance with the CIA, consulting on the Russian oil economy and its relationship to military issues. He conducts courses and has consulted for numerous international regulatory groups (including Lloyd's of London) on issues of safety, security, and terrorism. He was also the technical advisor to Steven Seagal on the Warner Brothers movie, On Deadly Ground.

Adams is the author of five books, 60 journal publications, and numerous technical research reports. He has been featured by many local, national, and international media outlets, including the BBC and Forbes Magazine. A black belt and eight-time karate world champion, Adams lives in Houston, Texas, with his wife. He was gracious enough to answer our questions regarding the underwater aspects of a possible terrorist strike.

UW: What would be the general impact of significant terrorist strikes against oil-related targets, both on and offshore?
NA: The US is an oil-addicted society and the addiction is growing. Americans flip on a light switch without considering the source of the electricity. Americans take for granted that they will always have toothpaste, soft drinks, golf balls, and water hoses - all existent because of oil. A reduction in the industrialized world's oil supply will lead to a crippling change in its citizens' standard of living. Are you prepared to go back to 19th century living?

UW: We are familiar with the "terrorists take rig workers hostage" scenario. Is this ploy still used by terrorist groups, or are they focusing more on the rigs and vessels themselves, rather than the workers?
NA: Seizure of rigs and offshore structures is becoming a commonplace event. We saw this more in 2002 in Nigeria.
Also, in Colombia, terrorists are moving away from bombing pipelines toward attacking rigs and refineries. Pipeline attacks were reduced from about 200 to 45, while a number of rigs, supply depots, refineries, and loading terminals have been attacked. This coincides with terrorist statements that they would begin to focus on the larger infrastructure facilities.
The same is true in Indonesia. ExxonMobil has been targeted, particularly in the Aceh region in northern Indonesia. The same holds true for the Indonesian oil fields, but to a smaller degree thus far.

UW: Can you describe the ways offshore oil rigs are specifically vulnerable to the threat of terrorism?
NA: Offshore rigs (platforms, etc.) are the largest industrial complexes in the world that are void of security measures. This includes security systems, personnel, and any means of repelling an attack. This anamoly in the industrial community is due largely to the prior absence of a real need for security, save perhaps for the forementioned countries of Nigeria, Colombia, and Indonesia.
The vulnerability begins with the jumping-off points where crew and supply boats have their docks and heliports have loading terminals. These sites have no security measures, are manned by non-security trained personnel, and provide little or no means of equipment inspections for items to be sent offshore.
At the rig or platform, security and surveillance capabilities are non-existent.
Further, offshore structures contain large quantities of industrial materials suitable for making devastating bombs, so ordinary explosives are not required.
A greater threat may be the simple commandeering of a heavily loaded workboat as it nears the rig or platform, and then ramming the platform while under maximum throttle.

UW: Can you detail some past instances of terrorism in the offshore oilfield that Americans may not be aware of?
NA: Some have been touched upon in my earlier comments. Seizure of jackup rigs and platforms are common in the aforementioned countries.
Also, it is becoming more common in Angola, Gabon, Ivory Coast, and, to a lesser degree, in South Africa.
Remember that this is often terrorism-for-profit and not necessarily terrorism for political ends. As such, it is likely to continue long after Al-Qaeda fades into the history books. Also, it is more likely to spread worldwide, as many groups will see the financial benefit even though they may have no political motives.

UW: Incredibly, some radical environmentalists may actually be secretly in favor of sabotaging offshore oil rigs. What are some of the trickle-down consequences of oil rig terrorism that the average citizen might not think of, but would affect them significantly?
NA: The offshore industry, as well as other industries, is based on a precept often overlooked. Companies are willing to invest billions of dollars only when that risk can be spread to others via insurance.
Since these offshore structures cost billions of dollars, a terrorist attack on only a few sites could cause a formidable rise in insurance premiums.
Further, cancellation of terrorist coverage altogether is a topic being considered by some of the world's leading underwriters. I attended a private retreat of underwriters at Lillehammer, Norway, in February where this topic was discussed.

UW: What are the tools and techniques commercial and military divers can use to thwart terrorist threats to a rig? Would the same tools and techniques apply to protecting a floating vessel (FPSO, tanker, etc.)?
NA: As we know the industry today, terrorists can't be stopped. Our doors are open and will likely stay open until we have several attacks.
Prevention must begin at the loading docks. We need personnel and equipment screening. Also, prior background checks on personnel will probably become common in the next two or three years. Remember that our industry is a difficult work environment, so many of our good workers are tough characters that, often, are hard to distinguish from potential terrorists.
Again, this personnel and equipment screening needs to extend to workboats, work vessels, and helicopter pilots.

UW: How can the various underwater vehicles - manned submarines, remotely-operated vehicles (ROVs), and autonomous underwater vehicles (AUVs) - be used to prevent terrorist activities on rigs and pipelines? Are military agencies and companies already utilizing these tools in the war on terror?
NA: This technology is not being used at present. Further, many law enforcement agencies are currently concerned about the application for small submarines loaded with explosives being used by terrorists.
Although seemingly far-fetched, these submarines are now becoming a mainstay in the drug trafficking business and are available for a purchase cost of about $600,000.
ROVs are not likely to be used since they require a tether of a modest length that is attached to a surface vessel.

UW: We heard of a brother of bin Laden's trying to purchase a one-man sub a few years ago. Have you heard of instances where some or all of these tools and techniques have been employed by the "bad guys?"
NA: Not to date... but the day isn't over. I hope this conveys my opinion that it is only a matter of time.

UW: You have described the considerable threat to rigs and pipelines, but what about subsea power cables - are they a target, why or why not?
NA: My opinion is that they are a target, but to a lesser degree than oil facilities. If I were planning an attack on a power transmission apparatus, land-based targets are more accessible and have a greater impact.
In conclusion, my view is that a well-coordinated attack on the oil industry will occur in the very near future. The time and place will be selected to achieve a maximum impact.
My concern is this: two petroleum engineers of average intelligence and about $20,000 in funding could bring the American oil industry to a halt over the course of several days with a disruption that could last four-to-six weeks. If timed during a blast of arctic air, thousands to tens of thousands would probably perish before energy could be restored. UW
For more on Neal Adams or his books, email nealadams@terrorismandoil.net.




UnderWater Magazine is the quarterly journal of the Association of Diving Contractors International, Inc.
It is published by Doyle Publishing Company for the commercial diving, ROV, and underwater industries.
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