William K. Reilly, who co-chairs the presidential panel investigating the Gulf oil spill, said BP (NYSE:BP) is not the only company responsible for the accident.
Also cited by Reilly as contributing to the incident were Transocean (NYSE:RIG) and Halliburton (NYSE:HAL), both of which were said to have made questionable decisions leading to the explosion on the Deepwater Horizon oil rig.
There is still the ongoing investigation of the blowout preventer provided by Cameron International (NYSE:CAM) as to whether or not that had a role in the disaster as well. It didn't work properly, and the question as to why hasn't been discovered or settled yet.
This seems to imply BP could have grounds to have the companies pay them for some of their culpability in the situation, as they've largely born the brunt of the costs so far.
The panel will issue a report on their conclusions sometime in January.
Showing posts with label Blowout Preventer. Show all posts
Showing posts with label Blowout Preventer. Show all posts
Thursday, December 2, 2010
Monday, October 25, 2010
BP (NYSE:BP) Needs These 5 Things to Happen to Resume Growth
Although there have been some foreign deals forged and implemented by BP (NYSE:BP), which is good news for them and their shareholders, they're still, for the most part, in a holding mold until four major things are handled and resolved.
Only one of the four things needed to be done are under the direct control of BP, and that is the divesting of parts of the company to raise capital to pay for liabilities associated with the Gulf of Mexico oil spill.
The other three things that need to happen are the completed examination of the blowout preventer, determination of whether or not they are found in gross negligence over the accident, and how much, if any, shared liability with partners they'll participate in.
The last thing, which will be mostly determined by the four mentioned above, is the reinstatement of the dividend by BP.
As far as the blowout preventer, that will probably take longer than the rest, and is just starting the process of examination. It's important in whether or not Cameron International, which developed it, will be liable for part of the costs of the spill.
In the largest liability remaining to be determined, BP is awaiting the decision on whether or not they're going to be designated as being grossly negligent in the ordeal. If they are, it could cost them over $17 billion more in fines, above and beyond all existing and future payouts.
That also is connected to the next element, which is shared liability. If they aren't found grossly negligent, their partners in the Macondo well: Anadarko (NYSE:APC) and MOEX, via their majority owned Mitsui (Nasdaq:MITSY), would have to pay out some significant capital for their part in the failure.
Selling of their assets, as mentioned, is under the control of BP, and that will give shareholders and potential investors more confidence in the company, which would ultimately be crowned with the reinstatement of their dividend, which mounting pressure is being asserted on the company to do.
If and when all these happened and/or are concluded, we'll see a much clearer picture of the future of BP, which remains tenuous at best.
Depending on the outcomes of the mentioned events that need to happen, will determine whether BP will be split up or taken over by a larger competitor, or continue on as a leaner but competitive energy firm.
Only one of the four things needed to be done are under the direct control of BP, and that is the divesting of parts of the company to raise capital to pay for liabilities associated with the Gulf of Mexico oil spill.
The other three things that need to happen are the completed examination of the blowout preventer, determination of whether or not they are found in gross negligence over the accident, and how much, if any, shared liability with partners they'll participate in.
The last thing, which will be mostly determined by the four mentioned above, is the reinstatement of the dividend by BP.
As far as the blowout preventer, that will probably take longer than the rest, and is just starting the process of examination. It's important in whether or not Cameron International, which developed it, will be liable for part of the costs of the spill.
In the largest liability remaining to be determined, BP is awaiting the decision on whether or not they're going to be designated as being grossly negligent in the ordeal. If they are, it could cost them over $17 billion more in fines, above and beyond all existing and future payouts.
That also is connected to the next element, which is shared liability. If they aren't found grossly negligent, their partners in the Macondo well: Anadarko (NYSE:APC) and MOEX, via their majority owned Mitsui (Nasdaq:MITSY), would have to pay out some significant capital for their part in the failure.
Selling of their assets, as mentioned, is under the control of BP, and that will give shareholders and potential investors more confidence in the company, which would ultimately be crowned with the reinstatement of their dividend, which mounting pressure is being asserted on the company to do.
If and when all these happened and/or are concluded, we'll see a much clearer picture of the future of BP, which remains tenuous at best.
Depending on the outcomes of the mentioned events that need to happen, will determine whether BP will be split up or taken over by a larger competitor, or continue on as a leaner but competitive energy firm.
Friday, October 8, 2010
BP (NYSE:BP), Halliburton (NYSE:HAL), Cameron (NYSE:CAM) Get Trial Date Extension
U.S. District Judge Carl Barbier granted a motion to have the trial concerning "limitation and liability allocation issues" rescheduled for a later date, as BP Plc (NYSE:BP), Halliburton Energy Services (NYSE:HAL), Cameron International (NYSE:CAM), and others, said they needed more time to prepare.
The new trial date is set to begin on February 27, 2012, about four months later than the original trial date.
Barbier wrote, "While the court intends to expedite this complex litigation to the extent possible, it appears to the court that the defendants' motion has merit, and that there is good cause to reset the limitation trial date."
Much of this was in connection to the government dragging their feet on the investigation into what caused the failure of the blowout preventer from Cameron International.
The Feds have had it for a month and are already a week past the October 1 date they said they were going to begin their investigation on, and it'll take a lot longer before they begin, as they wait for the go ahead on how to proceed with the examination of the device.
Now the testing on the blowout preventer isn't expected to be finished until sometime in February 2011, according to Barbier.
Some attorneys for plaintiffs are complaining that they won't go to trial until sometime during 2013. Maybe they should have went the route of going through the claims process in connection with the BP compensation fund rather than pay huge fees to lawyers, along with the several years it'll take to get a trial, with no guarantee of winning.
Attorneys say this is also a stalling tactic by the companies. But that's not too believable, as it's the U.S. government which is holding things up with their usual incompetence concerning the blowout preventer, not the oil companies or the suppliers.
The new trial date is set to begin on February 27, 2012, about four months later than the original trial date.
Barbier wrote, "While the court intends to expedite this complex litigation to the extent possible, it appears to the court that the defendants' motion has merit, and that there is good cause to reset the limitation trial date."
Much of this was in connection to the government dragging their feet on the investigation into what caused the failure of the blowout preventer from Cameron International.
The Feds have had it for a month and are already a week past the October 1 date they said they were going to begin their investigation on, and it'll take a lot longer before they begin, as they wait for the go ahead on how to proceed with the examination of the device.
Now the testing on the blowout preventer isn't expected to be finished until sometime in February 2011, according to Barbier.
Some attorneys for plaintiffs are complaining that they won't go to trial until sometime during 2013. Maybe they should have went the route of going through the claims process in connection with the BP compensation fund rather than pay huge fees to lawyers, along with the several years it'll take to get a trial, with no guarantee of winning.
Attorneys say this is also a stalling tactic by the companies. But that's not too believable, as it's the U.S. government which is holding things up with their usual incompetence concerning the blowout preventer, not the oil companies or the suppliers.
Blowout Preventer from BP (NYSE:BP) Oil Spill Still Sitting Around
One of the key pieces of evidence related to the BP (NYSE:BP) oil spill, the blowout preventer, is still sitting around after being lifted from the bottom of the Gulf of Mexico after the explosion on the Deepwater Horizon oil rig.
Cameron International (NYSE:CAM) produced the blowout preventer which failed to stem the flow of oil and gas as it was supposed to do in these types of situations.
It has been a month since the device was moved to a government facility to be examined, but in its usual incompetence, has done nothing to examine the causes of the failure of the device which is one of the main pieces of evidence in how fines and/or distribution of liabilities will be assessed.
So you have all these lawsuits and claims being made without the blowout preventer having even been examined.
The reason for the delay according to federal officials, is they are waiting for the approval of the procedures they'll use to do the testing. Court records reveal a multi-agency team will make that determination. How long can it take these "brains" to determine something as simple as that?
Testing on the blowout preventer was supposed to have began by October 1, and it's uncertain as to how much more time will be wasted before a determination as to the procedures used will be made.
The device is sitting in a NASA facility in New Orleans.
Cameron International (NYSE:CAM) produced the blowout preventer which failed to stem the flow of oil and gas as it was supposed to do in these types of situations.
It has been a month since the device was moved to a government facility to be examined, but in its usual incompetence, has done nothing to examine the causes of the failure of the device which is one of the main pieces of evidence in how fines and/or distribution of liabilities will be assessed.
So you have all these lawsuits and claims being made without the blowout preventer having even been examined.
The reason for the delay according to federal officials, is they are waiting for the approval of the procedures they'll use to do the testing. Court records reveal a multi-agency team will make that determination. How long can it take these "brains" to determine something as simple as that?
Testing on the blowout preventer was supposed to have began by October 1, and it's uncertain as to how much more time will be wasted before a determination as to the procedures used will be made.
The device is sitting in a NASA facility in New Orleans.
Tuesday, October 5, 2010
Contractor Claims BP (NYSE:BP) Got in the Way of Important Operations
BP was accused of interfering in operations which were considered a vital part of attempting to shut down the oil spill leaking into the Gulf by the president of Smit Salvage Americas, Doug Martin.
After the explosion the Deepwater Horizon oil rig, Smit Salvage was hired in an attempt to save the rig.
"When they wanted to calculate the heat load on the boat, I said, 'How do you know how hot the fire is?'" Martin asserted to the joint U.S. Coast Guard-Bureau of Energy Management, Regulation and Enforcement investigative panel. "I had a hard time believing there was data available at that time to do that. That's why I felt it was better just to keep the boat cool and use common sense tools to get the ROV in the water."
BP said through a spokesman that the reason for their actions was to ensure the safety of the people on the rig.
The dispute was over lowering a underwater robot which was going to be used to close the blowout preventer, the last line of defense against oil spilling into the Gulf.
When lawyers questioned Martin he wilted and wasn't as confident in his assertions when he had the floor to himself.
After the explosion the Deepwater Horizon oil rig, Smit Salvage was hired in an attempt to save the rig.
"When they wanted to calculate the heat load on the boat, I said, 'How do you know how hot the fire is?'" Martin asserted to the joint U.S. Coast Guard-Bureau of Energy Management, Regulation and Enforcement investigative panel. "I had a hard time believing there was data available at that time to do that. That's why I felt it was better just to keep the boat cool and use common sense tools to get the ROV in the water."
BP said through a spokesman that the reason for their actions was to ensure the safety of the people on the rig.
The dispute was over lowering a underwater robot which was going to be used to close the blowout preventer, the last line of defense against oil spilling into the Gulf.
When lawyers questioned Martin he wilted and wasn't as confident in his assertions when he had the floor to himself.
Tuesday, September 21, 2010
Beyond BP (NYSE:BP) Oil Spill, Kevin Costner Lays Out His Future Disaster Plan
Kevin Costner, who co-founded 'Ocean Therapy,' who developed a centrifuge system to separate oil and water which was deployed in helping to clean up the Gulf of Mexico, has now proposed a disaster plan for possible future oil spills in the Gulf.
The actor has been peddling his proposal to Gulf governors, members of Congress, and most recently to the Bureau of Ocean Energy Management, Regulation and Enforcement Director Michael Bromwich.
Costner's suggestion is to create what he called "coastal response facilities," which would be placed in several strategic cities on the Gulf coast, including Corpus Christi, Texas; Gulfport, Miss.; Pensacola, Fla., or Mobile, Ala.; Key West, Fla, and Port Fourchon and Lake Charles,
Costs to implement the plan would be about $895 million, and would entail a scattered fleet of 190 vessels which would be prepared for future accidents.
Oil giants Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP) and Shell (NYSE:RDS-A) earlier in the year said they wanted to put together a rapid-response system, which would focus primarily making a better-designed blowout preventer which would to capture the oil better if there were a disaster.
Coster's plan focuses instead on oil which has reached the surface. That of course coincides with the types of equipment his company uses, which cleans the oil from the surface.
The actor has been peddling his proposal to Gulf governors, members of Congress, and most recently to the Bureau of Ocean Energy Management, Regulation and Enforcement Director Michael Bromwich.
Costner's suggestion is to create what he called "coastal response facilities," which would be placed in several strategic cities on the Gulf coast, including Corpus Christi, Texas; Gulfport, Miss.; Pensacola, Fla., or Mobile, Ala.; Key West, Fla, and Port Fourchon and Lake Charles,
Costs to implement the plan would be about $895 million, and would entail a scattered fleet of 190 vessels which would be prepared for future accidents.
Oil giants Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP) and Shell (NYSE:RDS-A) earlier in the year said they wanted to put together a rapid-response system, which would focus primarily making a better-designed blowout preventer which would to capture the oil better if there were a disaster.
Coster's plan focuses instead on oil which has reached the surface. That of course coincides with the types of equipment his company uses, which cleans the oil from the surface.
Thursday, September 9, 2010
BP (NYSE:BP) Report Puts Pressure on Halliburton (NYSE:HAL), Transocean (NYSE:RIG)
While there are other players in the game, including Cameron International (NYSE:CAM), who provided the blowout preventer which failed to function properly, the report released by BP (NYSE:BP) mostly targeted Halliburton (NYSE:HAL) and Transocean (NYSE:RIG) as being significant parts in the series of failures leading to the explosion on the Deepwater Horizon.
Cameron International isn't a real focus because the evidence there should be easy to determine and conclude as to what went wrong, making it a waste of time to pursue on the part of BP. Whatever happened, Cameron should be held mostly responsible and liable for it.
The major failures according to the BP report were the cement job by Halliburton, and the failure of Transocean to implement safety measures in response to the pressure buildup from the failed cement barrier.
Once the cement barrier failed, gases went up inside the well which ultimately led to the explosion on the oil rig.
Incoming BP CEO Bob Dudley said, "We have said from the beginning that the explosion on the Deepwater Horizon was a shared responsibility among many entities."
Other investigations will be performed to substantiate or refute the findings of the BP report.
Cameron International isn't a real focus because the evidence there should be easy to determine and conclude as to what went wrong, making it a waste of time to pursue on the part of BP. Whatever happened, Cameron should be held mostly responsible and liable for it.
The major failures according to the BP report were the cement job by Halliburton, and the failure of Transocean to implement safety measures in response to the pressure buildup from the failed cement barrier.
Once the cement barrier failed, gases went up inside the well which ultimately led to the explosion on the oil rig.
Incoming BP CEO Bob Dudley said, "We have said from the beginning that the explosion on the Deepwater Horizon was a shared responsibility among many entities."
Other investigations will be performed to substantiate or refute the findings of the BP report.
Tuesday, September 7, 2010
Transocean (NYSE:RIG) Wants Say with Blowout Preventer
After Cameron International Corp. (NYSE:CAM) was denied by a judge when they asked for a postponement of the retrieval of the blowout preventer by BP (NYSE:BP), Transocean Ltd. (NYSE:RIG) is now asking a judge to allow them more say in how the device in examined and what happens to it.
Cameron had believe moving the preventer risked the evidence being altered or lost, and so wanted time to be able to photograph and record the conditions.
On this different front, now that the blowout preventer is in possession of the U.S. government, Transocean whats input into the next stage of checking out what caused the failure of the preventer.
There are millions, and possibly billions, at stake in what is discovered, and/or decided, so they want to be sure they're in on what is going on.
The damaged blowout preventer was removed and taken to the surface over the weekend.
Cameron had believe moving the preventer risked the evidence being altered or lost, and so wanted time to be able to photograph and record the conditions.
On this different front, now that the blowout preventer is in possession of the U.S. government, Transocean whats input into the next stage of checking out what caused the failure of the preventer.
There are millions, and possibly billions, at stake in what is discovered, and/or decided, so they want to be sure they're in on what is going on.
The damaged blowout preventer was removed and taken to the surface over the weekend.
Saturday, September 4, 2010
BP (NYSE:BP) Successfully Switches Blowout Preventer on Well
The failed blowout preventer on top of the BP (NYSE:BP) oil well has been been successfully removed and replaced by a new blowout preventer in preparation for the final steps of performing a "bottom kill," which will permanently seal the oil well.
BP removed the damaged blowout preventer on Friday and is bringing it slowly to the surface on its mile-long journey.
Government point man Thad Allen said there was no known release of oil into the Gulf during the exchange.
"During the period of time between the removal of the damaged BOP and installation of the replacement BOP, there was no observable release of hydrocarbons from the wellhead," Allen said.
The blowout preventer, which weighs in at 300 tons, is being slowly brought to the surface so no damage is caused to the device, as it's a key piece of evidence in the ongoing investigation into the causes of the accident.
Government officials will take possession of the blowout preventer once it reaches the surface, and will eventually examine it to find out why it failed to do its job.
BP removed the damaged blowout preventer on Friday and is bringing it slowly to the surface on its mile-long journey.
Government point man Thad Allen said there was no known release of oil into the Gulf during the exchange.
"During the period of time between the removal of the damaged BOP and installation of the replacement BOP, there was no observable release of hydrocarbons from the wellhead," Allen said.
The blowout preventer, which weighs in at 300 tons, is being slowly brought to the surface so no damage is caused to the device, as it's a key piece of evidence in the ongoing investigation into the causes of the accident.
Government officials will take possession of the blowout preventer once it reaches the surface, and will eventually examine it to find out why it failed to do its job.
Monday, August 23, 2010
BP (NYSE:BP) Has Begun Removing Drill Pipe
BP (NYSE:BP) has begun the process of removing the 3,500 feet of drilling pipe from the Gulf of Mexico. This could not start until the completion of an ambient pressure test. The test assured that no oil or gas would escape if the blowout preventer and sealing cap are removed from the top of the well.
Thad Allen, retired U.S. Coast Guard Admiral, told BP that they had to put together a plan to get out the blowout preventer. They had until Sunday to turn over the plans to the U.S. government. The question remains, how they will successfully remove the pipe while managing to keep the cap and blowout preventer in place and preventing damage.
U.S. officials said that it is necessary to replace the blowout preventer prior to the final "bottom kill" attempt because there are concerns that the sealing cap could come loose. If the cement and mud mixture is forced into the bottom of the well prematurely, it ultimately could blow the cap off all together and the trapped oil would leak into the Gulf.
Thad Allen, retired U.S. Coast Guard Admiral, told BP that they had to put together a plan to get out the blowout preventer. They had until Sunday to turn over the plans to the U.S. government. The question remains, how they will successfully remove the pipe while managing to keep the cap and blowout preventer in place and preventing damage.
U.S. officials said that it is necessary to replace the blowout preventer prior to the final "bottom kill" attempt because there are concerns that the sealing cap could come loose. If the cement and mud mixture is forced into the bottom of the well prematurely, it ultimately could blow the cap off all together and the trapped oil would leak into the Gulf.
Thursday, August 19, 2010
BP (NYSE:BP) Oil Orders A New Blowout Preventer
BP (NYSE:BP) oil is bringing in a new blowout preventer for the well. The company is waiting to hear from U.S. officials for instructions on how to proceed. Thad Allen, National Incident Commander is the one who ordered the new piece.
U.S. officials put a halt to the bottom kill procedure. The primary concern is that the 1,000 barrels of oil currently trapped in the well could leak. The well was finally sealed July 15th, but not before spewing 4.9 million barrels of crude oil into the Gulf region.
Meanwhile, tests and talks continue between the Obama administration and BP. They have not yet decided how to move forward with the completion of the final 50 feet of the relief well. Allen said that the new blowout preventer will be replacing existing equipment. Although it's unclear whether it will be before or after the bottom kill.
U.S. officials put a halt to the bottom kill procedure. The primary concern is that the 1,000 barrels of oil currently trapped in the well could leak. The well was finally sealed July 15th, but not before spewing 4.9 million barrels of crude oil into the Gulf region.
Meanwhile, tests and talks continue between the Obama administration and BP. They have not yet decided how to move forward with the completion of the final 50 feet of the relief well. Allen said that the new blowout preventer will be replacing existing equipment. Although it's unclear whether it will be before or after the bottom kill.
Monday, July 19, 2010
Plumber Says His Design Stopped BP's (NYSE:BP) Oil Leak
A mystery plumber has emerged claiming that it was his design that BP (NYSE:BP) used to successfully stop the oil leak. His name is Joe Caldart, he's married has 5 children and is in his 40's.
When asked about why he choose to go public he said, "My wife was like, this is kind of scary, I don't know if you should go public." I said, "Yeah and no, but I also felt that people should know that here an average guy submitted something that maybe helped."
He said he drew three sketches on May 25th and sent them to BP and the Coastguard. They're almost an exact match to the cap that was lowered over the leaking Macondo well last week. BP's response was they weren't working on stopping the leak just containing the oil.
"The idea was using the top flange on the blowout preventer as an attachment point and then employing an internal seal against the flange surface," said Robert Bea, a Coastguard. "You can kind of see how a plumber thinks this way. That's how they have to plumb homes for sewage."
When asked about why he choose to go public he said, "My wife was like, this is kind of scary, I don't know if you should go public." I said, "Yeah and no, but I also felt that people should know that here an average guy submitted something that maybe helped."
He said he drew three sketches on May 25th and sent them to BP and the Coastguard. They're almost an exact match to the cap that was lowered over the leaking Macondo well last week. BP's response was they weren't working on stopping the leak just containing the oil.
"The idea was using the top flange on the blowout preventer as an attachment point and then employing an internal seal against the flange surface," said Robert Bea, a Coastguard. "You can kind of see how a plumber thinks this way. That's how they have to plumb homes for sewage."
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