Even before the disastrous explosion which rocked and destroyed the Deepwater Horizon oil rig operated by BP (NYSE:BP), the oil giant reportedly was ready to abandon the well just days before the accident.
Testifying before a federal investigative panel today, that was the assertion of BP engineer Grew Walz.
Evidently the engineers on the project weren't sure as to how to go ahead with a pressure test before the accident occurred. That seemed to bring BP to the point of dropping the Macondo well project. They now wish they had.
In other testimony, it came out that BP's time-frame concerning how long it would take to install another 15 centralizers was longer than the technician who was going to do the work.
BP has said it would have taken about 10 hours, while the technician stated it would have only taken about 4 to 8 hours.
Showing posts with label Macondo. Show all posts
Showing posts with label Macondo. Show all posts
Thursday, October 7, 2010
Tuesday, August 17, 2010
Texas Receives Full BP (NYSE:BP) Cleanup Check
In what will probably be one of the smallest checks BP (NYSE:BP) writes for a while, at least to companies or institutions, they sent a check to Texas for $175,000 to pay for the amount the Lone Star state billed them for the cleanup of Galveston beach, which was $174,295.
Tar balls proven to be from the Macondo oil spill washed up on the Galveston beach and had to be cleaned up during the Fourth of July weekend.
The tar balls ended up on McFaddin Beach, which when tested in July were confirmed to have come from the oil well leaking into the Gulf of Mexico.
The way the state of Texas works in situations like this, is if it is proven scientifically to be associated with a specific source, they will then bill the entity for the resources used.
If they are unable to identify the source, then payment comes from a tax they impose on oil barrels imported from other countries.
Tar balls proven to be from the Macondo oil spill washed up on the Galveston beach and had to be cleaned up during the Fourth of July weekend.
The tar balls ended up on McFaddin Beach, which when tested in July were confirmed to have come from the oil well leaking into the Gulf of Mexico.
The way the state of Texas works in situations like this, is if it is proven scientifically to be associated with a specific source, they will then bill the entity for the resources used.
If they are unable to identify the source, then payment comes from a tax they impose on oil barrels imported from other countries.
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."
BP (NYSE:BP) Kills Whale Skimmer With Dispersants
There has been much controversy surrounding BP's (NYSE:BP) use of the toxic dispersant Corexit, it's proving to kill off more than just marine life. The U.S. coastguard has deemed the Taiwanese skimmer called "A Whale" ineffective.
Due to the massive amounts of dispersants distributed into the Gulf, it broke up the oil resulting in "A Whale" not being able to properly skim the water for oil. There was a lot of optimistic hope that it would greatly assist in the removal of the toxic crude. During its testing it only removed minuscule amounts of oil.
Bob Grantham, TMT offshore spokesman said, "This ship demonstrated that it can bring substantial volumes of capacity to bear in addressing oil spills quickly and with great maneuverability. That said, the particular conditions present in the Macondo spill did not afford the vessel to recover a significant amount of oil. Due to the highly dispersed nature of oil in the Gulf."
Due to the massive amounts of dispersants distributed into the Gulf, it broke up the oil resulting in "A Whale" not being able to properly skim the water for oil. There was a lot of optimistic hope that it would greatly assist in the removal of the toxic crude. During its testing it only removed minuscule amounts of oil.
Bob Grantham, TMT offshore spokesman said, "This ship demonstrated that it can bring substantial volumes of capacity to bear in addressing oil spills quickly and with great maneuverability. That said, the particular conditions present in the Macondo spill did not afford the vessel to recover a significant amount of oil. Due to the highly dispersed nature of oil in the Gulf."
Friday, July 16, 2010
BP (NYSE:BP) Shares Decline As Cap Is Holding
After all the anticipation and excitement over BP's (NYSE:BP) success in stopping the leaking oil, reality has hit to the massive effects of the worst oil spill in U.S. history. BP saw a decline in their shares of 4 percent to $37.38.
Fifteen hours into the cap being placed upon Macondo, it is holding strong. President Barack Obama said, "It is important that we don't get ahead of ourselves here. You know, one of the problems with having the camera down there is, that when the oil stops gushing everybody feels like we're done and we're not."
While Kent Wells, BP's vice president, said that the spill center has measured a steady increase of pressure, above and beyond the minimum of 6,000 pounds to 6,700 pounds per square inch. He also stated that BP has restarted working on the relief well to help release pressure on the ruptured well.
Fifteen hours into the cap being placed upon Macondo, it is holding strong. President Barack Obama said, "It is important that we don't get ahead of ourselves here. You know, one of the problems with having the camera down there is, that when the oil stops gushing everybody feels like we're done and we're not."
While Kent Wells, BP's vice president, said that the spill center has measured a steady increase of pressure, above and beyond the minimum of 6,000 pounds to 6,700 pounds per square inch. He also stated that BP has restarted working on the relief well to help release pressure on the ruptured well.
Tuesday, July 13, 2010
BP (NYSE:BP) UPDATE: Sealing Cap Installed, Trading Shares, Futures Trading
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 ?
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 ?
Friday, July 9, 2010
Anadarko (NYSE:APC) Tells BP (NYSE:BP) Won't Pay Oil Spill Bill
Even though Bp (NYSE:BP) continues to send their partner in the Macondo oil well, Anadarko Petroleum (NYSE:APC), bills for the Gulf oil spill, Anadarko continues to tell them they aren't going to pay anything because it was recklessness on the part of BP which led to the disaster.
Anadarko has a 25 percent stake in the Macondo well, and Japan-based Mitsui has a 10 percent stake, with BP holding the remaining 65 percent of the project.
So far the liability Anadarko has from BP's viewpoint is over $270 million.
According to Anadarko spokesman John Christiansen, he said on Friday that the company let BP know there would be no payment coming their way.
The agreement between the two companies does show Anadarko would have to pay for 25 percent of the costs.
Anadarko has a 25 percent stake in the Macondo well, and Japan-based Mitsui has a 10 percent stake, with BP holding the remaining 65 percent of the project.
So far the liability Anadarko has from BP's viewpoint is over $270 million.
According to Anadarko spokesman John Christiansen, he said on Friday that the company let BP know there would be no payment coming their way.
The agreement between the two companies does show Anadarko would have to pay for 25 percent of the costs.
Thursday, June 24, 2010
BP's (NYSE:BP) Spill Containment Cap Back In Place
BP (NYSE:BP) said they have been successful in putting the spill containment cap back onto the Macondo well. Oil and gas has resumed being taken to the drillship Discoverer Enterprise at the surface.
Thad Allen, Coast Guard Admiral said the containment cap was removed by Transocean after an ROV hit the cap. The drillship Discoverer Enterprise was then moved off the site so that repair could begin. What happened was the ROV accidentally closed a vent which regulates the gas and oil flow and prevents pressure from building.
The vent closure than caused the pressure to build and hydrocarbons started bubbling up through the line which purpose is to inject warm water as oil is being brought to the surface. This water prevents hydrate crystals from forming and clogging the line.
Thad Allen, Coast Guard Admiral said the containment cap was removed by Transocean after an ROV hit the cap. The drillship Discoverer Enterprise was then moved off the site so that repair could begin. What happened was the ROV accidentally closed a vent which regulates the gas and oil flow and prevents pressure from building.
The vent closure than caused the pressure to build and hydrocarbons started bubbling up through the line which purpose is to inject warm water as oil is being brought to the surface. This water prevents hydrate crystals from forming and clogging the line.
Monday, June 14, 2010
Anadarko's (NYSE:APC) Fuel Spill Containment Responsibilities
While so many people are focused on BP, Halliburton, and Transocean, many are forgetting about Anadarko's (NYSE:APC) fuel spill containment responsibilities.
Anadarko, who owns a 25 percent stake of the Macondo discovery, the site of the explosion and oil leak that followed, has lost 33 percent or 25 billion of market capitalization since April 20th. BP who is working in the field unlike Anadarko, has lost $69 billion or 37 percent. If Anadarko is required to foot their 25 percent of the bill, that would equal to $98 billion. While BP's share at 67 percent of the discovery puts their required cost at $106 billion.
Obviously, this is no where near what oil stock prices are reflecting, which is much less. BofA Merrill Lynch Global Research estimates the net value of present claims could run close to 11 billion total. What's completely uncertain is what the potential punitive damages will end up costing these oil companies. By looking at BP's share prices, it's expected to be extremely high.
The question is, will Anadarko also be held responsible and required to pay anything past the initial oil cleanup costs. Anadarko has stated their interest in Macondo did not come until well after drilling began. They're also maintaining they had no involvement in the operating procedures or in designing the well.
The American Association of Professional Landmen's Form 810 clearly states, all parties to the agreement usually bear liability for damages based on their stake except "when liability results from the gross negligence or willful misconduct" of one of the involved parties. So if BP ends up being found grossly negligent, it would open the door for Anadarko being able to contest paying any punitive damages.
Anadarko, who owns a 25 percent stake of the Macondo discovery, the site of the explosion and oil leak that followed, has lost 33 percent or 25 billion of market capitalization since April 20th. BP who is working in the field unlike Anadarko, has lost $69 billion or 37 percent. If Anadarko is required to foot their 25 percent of the bill, that would equal to $98 billion. While BP's share at 67 percent of the discovery puts their required cost at $106 billion.
Obviously, this is no where near what oil stock prices are reflecting, which is much less. BofA Merrill Lynch Global Research estimates the net value of present claims could run close to 11 billion total. What's completely uncertain is what the potential punitive damages will end up costing these oil companies. By looking at BP's share prices, it's expected to be extremely high.
The question is, will Anadarko also be held responsible and required to pay anything past the initial oil cleanup costs. Anadarko has stated their interest in Macondo did not come until well after drilling began. They're also maintaining they had no involvement in the operating procedures or in designing the well.
The American Association of Professional Landmen's Form 810 clearly states, all parties to the agreement usually bear liability for damages based on their stake except "when liability results from the gross negligence or willful misconduct" of one of the involved parties. So if BP ends up being found grossly negligent, it would open the door for Anadarko being able to contest paying any punitive damages.
Thursday, May 20, 2010
Will BP (NYSE:BP) Still Develop Macondo
A BP (NYSE:BP) spokesman, Toby Odone said "At this point we genuinely want to get this shut in, stop the flow of oil, and clean up." This was in response to questions if BP was still considering the commercial development of Macondo.
BP says it's to early to think about any commercial development, all their focus and energy at this time is on containing and stopping the oil leak. Before the devastation of April 20th, BP was considering it because of the oil fields near by.
The CEO of BP, Tony Hayward has estimated that the Macondo well held 50 million to 100 million barrels of oil. While this is considered a substantial amount of oil, it is by no means considered a "giant." This is the term used in association with oil fields containing a minimum of 250 million barrels of oil.
BP may decide to not spend anymore money on this project other than the ongoing efforts to seal the well and the drilling for relief wells.
BP says it's to early to think about any commercial development, all their focus and energy at this time is on containing and stopping the oil leak. Before the devastation of April 20th, BP was considering it because of the oil fields near by.
The CEO of BP, Tony Hayward has estimated that the Macondo well held 50 million to 100 million barrels of oil. While this is considered a substantial amount of oil, it is by no means considered a "giant." This is the term used in association with oil fields containing a minimum of 250 million barrels of oil.
BP may decide to not spend anymore money on this project other than the ongoing efforts to seal the well and the drilling for relief wells.
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