After much anticipation, BP (NYSE:BP) has verified that they have been successful in installing the sealing cap onto the leaking Macondo well in the Gulf. Testing is the next phase of the process. Over the next 48 hours the integrity test will be preformed. If successful, no oil will be released into the ocean.
BP stated that a sealing cap like what they have installed, has never before been used at such depths as a mile below the surface. It is unsure if the cap will be able to contain the oil and gas. Once all the information is gathered from the testing, it will get forwarded to different U.S. Government agencies for review.
They will than be able to determine "the way forward" which may include such options as continued testing beyond the 48 hours, or the reinstatement of prior containment. Everything is still up in the air, even though there's success of the placement of the sealing cap, it could end up being no better then the previous containment cap.
BP trading shares have seen an incline again today of 2.5 percent. This is caused by speculation of the continued negotiations to sell $10 billion worth of their Alaskan assets to Apache Corporation. It leaves one wondering though, if the cap is a failure will the futures trading see another massive decline ?
Showing posts with label BP Update. Show all posts
Showing posts with label BP Update. Show all posts
Tuesday, July 13, 2010
Monday, July 12, 2010
BP (NYSE:BP) Accident Compensation Cut On 40,000 Claims
BP (NYSE:BP) is reducing accident compensation on over 40,000 legal claims submitted to them, spawned from the disaster that's said to be the worst oil spill in U.S. history. As if BP isn't unpopular enough, this isn't going to help give people a restored confidence in the company.
The reasoning for this cut is because of lack of paperwork that was supposed to be submitted with the claims. BP's solution, significantly reduce the payments to those individuals impacted by the the disaster who failed to meet these requirements. Kenneth Feinberg, federal BP claims administrator verified this, saying that there would be less paid out to "individuals whose claims filed were incomplete."
Louisiana's Department of Children and Family Services secretary, Kristy Nicholas, said a BP representative told her that of the 99,508 claims filed, over 40,000 people be getting less on their checks. Because many people didn't have the acceptable records according to BP. "It is crucial that BP not continue to penalize these individuals and instead accept alternative forms of documentation, such as records held by the Louisiana Department of Wildlife and Fisheries, said Nicholas."
The reasoning for this cut is because of lack of paperwork that was supposed to be submitted with the claims. BP's solution, significantly reduce the payments to those individuals impacted by the the disaster who failed to meet these requirements. Kenneth Feinberg, federal BP claims administrator verified this, saying that there would be less paid out to "individuals whose claims filed were incomplete."
Louisiana's Department of Children and Family Services secretary, Kristy Nicholas, said a BP representative told her that of the 99,508 claims filed, over 40,000 people be getting less on their checks. Because many people didn't have the acceptable records according to BP. "It is crucial that BP not continue to penalize these individuals and instead accept alternative forms of documentation, such as records held by the Louisiana Department of Wildlife and Fisheries, said Nicholas."
BP (NYSE:BP) Update: Secondary Containment Cap: Removing and Replacing
BP (NYSE:BP) started the process on Saturday, of removing the containment cap from the well. Their plan is to replace it with one that is a tighter fit which will funnel more oil to the ships on the surface. This is very delicate work and there are several robotic submersibles surrounding the well.
Senior Vice President of BP, Kent Wells said, "Over the next four to seven days, depending on how things go, we should get that sealing cap on. That's our plan." If everything goes as planned, all of the oil could be being collected as soon as Monday. It is only another temporary solution until the relief wells are completed, but if successful it would cut the oil that is leaking into the Gulf way down.
The process involves engineers removing a bolted flange below the dome. The flange has to be removed so another piece called the flange spool can be put over the pipe where the sealing cap will be connected. The flange was successfully removed Saturday. BP officials said they are behind schedule for the placement of the sealing cap but are still optimistic.
"Everything done at that site is very much harder than anyone expects, is replacing the cap going to do more damage than leaving it in place, or are you going to cause problems that you can't take care of," said Ed Overton, a Louisiana State University environmental sciences professor.
Senior Vice President of BP, Kent Wells said, "Over the next four to seven days, depending on how things go, we should get that sealing cap on. That's our plan." If everything goes as planned, all of the oil could be being collected as soon as Monday. It is only another temporary solution until the relief wells are completed, but if successful it would cut the oil that is leaking into the Gulf way down.
The process involves engineers removing a bolted flange below the dome. The flange has to be removed so another piece called the flange spool can be put over the pipe where the sealing cap will be connected. The flange was successfully removed Saturday. BP officials said they are behind schedule for the placement of the sealing cap but are still optimistic.
"Everything done at that site is very much harder than anyone expects, is replacing the cap going to do more damage than leaving it in place, or are you going to cause problems that you can't take care of," said Ed Overton, a Louisiana State University environmental sciences professor.
Saturday, July 3, 2010
BP (NYSE:BP) Gulf Oil Leak Update: Containment Cap Loosens
As BP (NYSE:BP) continues on with their efforts to get control of the Gulf oil leak, the oil containment cap is coming loose. By observing the live oil spill feed, the oil is flowing out stronger than ever. The cap appears to be wobbling and bouncing around in the water.
Officials are saying that less oil has been captured over the last couple of days. The cause of which is being blamed on the high winds of Hurricane Alex. It doesn't appear that the weather is going to get any better. All weekend around the Gulf region thunderstorms are expected. There is also another tropical storm forming over the oil leak area.
Meanwhile, on Thursday the House of Representatives removed the damages award limit. This will greatly effect BP. It opens the door for the families of the 11 deceased workers, among others, to sue for pain and suffering. Prior to this action, the amount of money that was able to be recovered for damages was significantly lower.
Tar balls continue to be spotted in new areas around the Gulf Coast. In Pensacola Beach, Florida there have been several sightings of tar balls the size of plates. With the Fourth of July holiday weekend, this has dampened the spirits of many that were looking forward to relaxing days on the beach.
Officials are saying that less oil has been captured over the last couple of days. The cause of which is being blamed on the high winds of Hurricane Alex. It doesn't appear that the weather is going to get any better. All weekend around the Gulf region thunderstorms are expected. There is also another tropical storm forming over the oil leak area.
Meanwhile, on Thursday the House of Representatives removed the damages award limit. This will greatly effect BP. It opens the door for the families of the 11 deceased workers, among others, to sue for pain and suffering. Prior to this action, the amount of money that was able to be recovered for damages was significantly lower.
Tar balls continue to be spotted in new areas around the Gulf Coast. In Pensacola Beach, Florida there have been several sightings of tar balls the size of plates. With the Fourth of July holiday weekend, this has dampened the spirits of many that were looking forward to relaxing days on the beach.
Monday, June 21, 2010
BP (NYSE:BP) UPDATE: Fuel Spill containment
A group of reporters were able to tour the BP (NYSE:BP) oil rig on Saturday and see how the fuel spill containment was progressing. They flew along the Mississippi River Delta above the wetlands. They saw the ineffective boom floating as well as the skimmers. About 40 miles off the coast, they reach their destination which has a 200 foot derrick.
Wendell Guidry, the Transocean drilling superintendent that was on the rig said," its always, always on our mind." Work continues to press on around the clock. There are eight thrusters in place that keep the rig positioned correctly over the well. In the distance another rig is visible, it is siphoning oil and gas from the well and burning it. It appears the flames are coming down like a shower. There are ships surrounding this rig, their purpose is to hose of the deck to keep the heat from building.
Thad Allen, Coast Guard Administrator said that the drilling and construction of the relief wells is still ahead of schedule. Of course there can always be delays. Like on Saturday, a set of tongs which are used to hold the casings in place broke.
BP is still maintaining their drilling of the relief well should be completed sometime in August, of course there are no guarantees. Currently, they are close to 11,000 feet below the sea floor.
Wendell Guidry, the Transocean drilling superintendent that was on the rig said," its always, always on our mind." Work continues to press on around the clock. There are eight thrusters in place that keep the rig positioned correctly over the well. In the distance another rig is visible, it is siphoning oil and gas from the well and burning it. It appears the flames are coming down like a shower. There are ships surrounding this rig, their purpose is to hose of the deck to keep the heat from building.
Thad Allen, Coast Guard Administrator said that the drilling and construction of the relief wells is still ahead of schedule. Of course there can always be delays. Like on Saturday, a set of tongs which are used to hold the casings in place broke.
BP is still maintaining their drilling of the relief well should be completed sometime in August, of course there are no guarantees. Currently, they are close to 11,000 feet below the sea floor.
Wednesday, June 16, 2010
BP (NYSE:BP) UPDATE: Legal Claim Process, Compensation Claims
BP (NYSE:BP) and President Obama reached an agreement on they will handle the company's compensation claim and claim process. A $20 billion fund will be set up to compensate the victims of the oil spill.
After a four hour meeting with BP officials, Obama made the announcement of the agreement. BP has also said they will set up an additional $100 million fund which sole purpose would be to be used to compensate oil rig workers that will lose six months pay due being laid off because of Obama's moratorium on deepwater drilling.
"The structure we are establishing today is an important step toward making the people of the Gulf coast whole again, but it will not turn things around overnight. This is about accountability. At the end of the day that's what every American wants and expects. The people of the Gulf have my commitment that BP will meet its obligations to them. This $20 billion amount will provide substantial assurance that the claims people and businesses have will be honored," said Obama. He ensured that the $20 million is not a cap on BP's liabilities and will pay more if needed
The claim process fund will be run by Kenneth Feinberg, who was in charge on the September 11th compensation claims process and overseeing payments to families of victims. There will be a three member panel who will be in charge of the claims that are turned down. This setup helps setup a formal process instead of vague promises by BP.
After a four hour meeting with BP officials, Obama made the announcement of the agreement. BP has also said they will set up an additional $100 million fund which sole purpose would be to be used to compensate oil rig workers that will lose six months pay due being laid off because of Obama's moratorium on deepwater drilling.
"The structure we are establishing today is an important step toward making the people of the Gulf coast whole again, but it will not turn things around overnight. This is about accountability. At the end of the day that's what every American wants and expects. The people of the Gulf have my commitment that BP will meet its obligations to them. This $20 billion amount will provide substantial assurance that the claims people and businesses have will be honored," said Obama. He ensured that the $20 million is not a cap on BP's liabilities and will pay more if needed
The claim process fund will be run by Kenneth Feinberg, who was in charge on the September 11th compensation claims process and overseeing payments to families of victims. There will be a three member panel who will be in charge of the claims that are turned down. This setup helps setup a formal process instead of vague promises by BP.
Wednesday, June 9, 2010
BP (NYSE:BP) UPDATE: Oil Being Contained, Secondary Spill Containment
It seems that BP's (NYSE:BP) efforts on their oil spill containment are proving quite successful. After the success of the cap being put into place last week, the questions been how much crude is being captured. As well as when is the secondary spill containment cap attempt is going to be completed. BP didn't have an exact date, but did say that they are going to attempt to put the second cap into place next week.
BP said Tuesday that a ship on the surface is collecting the oil that is being captured. On Monday, 620,000 gallons of oil was contained. On Tuesday, between midnight and noon there was already 330,000 gallons collected. So based on the governments estimate of 600,000 to 1.2 million gallons being lost daily, that would be over half the crude being captured and contained.
Whatever the actual amount of oil being deposited into the ocean is, the bottom line is it still has to end up somewhere. BP is planning on bringing in a storage vessel and floating production, which officials are saying may be the answer. "It's being brought in because it can handle far more oil than this well is producing," said BP spokesman Robert Wine. Although he does not know when its planned arrival is or where it is going to be coming from.
BP said Tuesday that a ship on the surface is collecting the oil that is being captured. On Monday, 620,000 gallons of oil was contained. On Tuesday, between midnight and noon there was already 330,000 gallons collected. So based on the governments estimate of 600,000 to 1.2 million gallons being lost daily, that would be over half the crude being captured and contained.
Whatever the actual amount of oil being deposited into the ocean is, the bottom line is it still has to end up somewhere. BP is planning on bringing in a storage vessel and floating production, which officials are saying may be the answer. "It's being brought in because it can handle far more oil than this well is producing," said BP spokesman Robert Wine. Although he does not know when its planned arrival is or where it is going to be coming from.
Monday, June 7, 2010
BP (NYSE:BP) Update: Containment Berms and Oil Skimming
Although there is optimism over BP'S (NYSE:BP) containment cap that was successful placed on Thursday, the harmful effects of the estimated 23 million to 50 million gallons that have already polluted the ocean and now our shorelines despite placing containment berms, cannot be denied. Not to mention in an already bad economy oil stocks and investments have plummeted. These are just a couple of the constant reminders of just the beginning effects of the oil spill tragedy.
Kelcey Forrestier, a biology graduate visiting Florida's Okaloosa area said, "oil doesn't just go away, oil doesn't disappear. It has to go somewhere and its going to come to the Gulf beaches." He said its obvious that this oil damage will go on for years to come.
The oil is also making its appearance in Texas. Government officials stated Sunday that for the first time, oiled and dead birds are being seen there. The governments wildlife report did not go into any details on the circumstances. Jim Suydam, Texas General Land Office spokesman, said he hadn't heard about the birds and the oil was still around 100 miles away from the border. It's also reported that the oil sheen is around 150 miles from Tampa, Florida.
Alabama's coastlines continue to get hammered with oil as well. Thad Allen, the Coast Guard Administrator for the government, has ordered more oil cleanup crews for oil skimming and additional containment berms, after surveying the area by air. "It's so widespread, and its intermittent. That's what is so challenging about this. Everyone wants certainty. With an oil spill like this, there isn't any," said Allen.
BP stated that they are planning a $360 million plan to put up six sand berms. This effort is being done with the intention to prevent oil from spreading, thus protecting the Louisiana wetlands. Although this is a grand gesture, it may be to little to late.
Kelcey Forrestier, a biology graduate visiting Florida's Okaloosa area said, "oil doesn't just go away, oil doesn't disappear. It has to go somewhere and its going to come to the Gulf beaches." He said its obvious that this oil damage will go on for years to come.
The oil is also making its appearance in Texas. Government officials stated Sunday that for the first time, oiled and dead birds are being seen there. The governments wildlife report did not go into any details on the circumstances. Jim Suydam, Texas General Land Office spokesman, said he hadn't heard about the birds and the oil was still around 100 miles away from the border. It's also reported that the oil sheen is around 150 miles from Tampa, Florida.
Alabama's coastlines continue to get hammered with oil as well. Thad Allen, the Coast Guard Administrator for the government, has ordered more oil cleanup crews for oil skimming and additional containment berms, after surveying the area by air. "It's so widespread, and its intermittent. That's what is so challenging about this. Everyone wants certainty. With an oil spill like this, there isn't any," said Allen.
BP stated that they are planning a $360 million plan to put up six sand berms. This effort is being done with the intention to prevent oil from spreading, thus protecting the Louisiana wetlands. Although this is a grand gesture, it may be to little to late.
Thursday, June 3, 2010
BP (NYSE:BP) Pipe Cut Irregular, May Not Trap Most of Oil
BP (NYSE:BP) finally had some good news from their attempt to stem the oil flow in the Gulf of Mexico, as they did successfully cut the pipe they needed to in order to place a cap over it to siphon oil to tankers on the surface.
The problem is the cut in the pipe was found to be irregular, and that could pose problems as to how tight it will fit when the cap is placed on the pipe.
Two challenges emerge from this. One, it will be harder to cap the pipe in the first place, and two, if it is capped, like mentioned above, it isn't certain as to how strong the seal would be and how much oil would continue escaping.
Of course any improvement is welcome, but it casts a shadow over the possible success of the capping if it doesn't capture near the amount of oil as hoped.
Later in the day BP will attempt to lower the cap in the attempt to place it on the pipe.
The problem is the cut in the pipe was found to be irregular, and that could pose problems as to how tight it will fit when the cap is placed on the pipe.
Two challenges emerge from this. One, it will be harder to cap the pipe in the first place, and two, if it is capped, like mentioned above, it isn't certain as to how strong the seal would be and how much oil would continue escaping.
Of course any improvement is welcome, but it casts a shadow over the possible success of the capping if it doesn't capture near the amount of oil as hoped.
Later in the day BP will attempt to lower the cap in the attempt to place it on the pipe.
Tuesday, June 1, 2010
BP (NYSE:BP) UPDATE: Oil Spill Containment, Live Oil Spill Video
Many are keeping a close watch on BP's (NYSE:BP) live oil spill video and the progress of the oil spill containment. Bob Dudley, BP's Managing Director said on NBC'S the Today Show, "we are well into the operation to put this cap on the well now." As well as their current spill containment operation, which includes attempting to attach another pipe on the blowout preventer, just in a different opening, there is a secondary spill containment effort being considered.
BP is also wanting to construct a new free standing riser, the purpose of which would be to carry the oil to surface, making it more efficient. Plus, with hurricane season already started, the new riser would make it very easy to connect and disconnect the containment pipes as needed due to bad weather. This will not start until well into June.
Watching BP's live oil spill video on Tuesday, it shows robot submarines using circular diamond saws cutting the pipe. The government is estimating 20 million and 44 million gallons of oil already lost, there's no telling what the final numbers will be.
"I don't want to put odds on it, we want to get this thing contained," said Carol Browner, Obama's energy czar, on ABC's Good Morning America. President Obama's administration is closely watching all aspects of the process from temporary fixes, to the oil cleanup efforts, as well as the progress of the relief wells.
BP is also wanting to construct a new free standing riser, the purpose of which would be to carry the oil to surface, making it more efficient. Plus, with hurricane season already started, the new riser would make it very easy to connect and disconnect the containment pipes as needed due to bad weather. This will not start until well into June.
Watching BP's live oil spill video on Tuesday, it shows robot submarines using circular diamond saws cutting the pipe. The government is estimating 20 million and 44 million gallons of oil already lost, there's no telling what the final numbers will be.
"I don't want to put odds on it, we want to get this thing contained," said Carol Browner, Obama's energy czar, on ABC's Good Morning America. President Obama's administration is closely watching all aspects of the process from temporary fixes, to the oil cleanup efforts, as well as the progress of the relief wells.
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