For the first time since oil starting spilling into the Gulf of Mexico, BP (NYSE:BP) has managed to stop the leak during a test of their new containment cap. The share price of BP skyrocketed by over 7 percent as the news circulated and investors fought to get in on the action before close.
Other oil companies with exposure also moved up on the news, with Anadarko Petroleum (NYSE:APC) and Transocean (NYSE:RIG) also making significant moves before the trading session ended, with Anadarko moving up by 3.15 percent and Transocean by 4.47 percent.
Anadarko and BP kept on moving up in electronic trading.
Testing will continue until it is proven the cap can continue to keep the oil from flowing, which at this time isn't a certainty, although this step had to be successful to continue on.
BP has also said if oil stops flowing into the Gulf, it means the oil well isn't leaking anywhere else, which would be a good sign. That seems to be the case, and soon we'll know if the cap will stop the flow until the relief well is complete and permanently plugs the well.
Showing posts with label Oil Containment. Show all posts
Showing posts with label Oil Containment. Show all posts
Thursday, July 15, 2010
Monday, June 14, 2010
BP (NYSE:BP) Stock Prices Drop Again
There seems to be no relief as BP's (NYSE:BP) stock prices plummeted again. Investors remain leery and anxious as they are waiting to see what BP's move of weather or not they will agree to pay and honor its second quarter dividend payout. BP refused to comment on dividend speculation until they finished talking with shareholders.
BP's stock prices dropped another 9.3 percent, bringing it to 355.5 pence. All the while, President Obama has been putting pressure on BP to drop dividend payments to ensure that there are funds set aside for future oil cleanup and oil containment efforts. Also to make sure there is enough to pay for compensation to U.S. citizens.
Jonathan Jackson, head of equities at London based Killik & Co. said, "the call from the U.S. Administration for a third party administered fund to meet the claims of victims of the spill appears to be an attempt to show the U.S. public that the government is doing something. As a political compromise, we would expect BP to take this request."
BP's stock prices dropped another 9.3 percent, bringing it to 355.5 pence. All the while, President Obama has been putting pressure on BP to drop dividend payments to ensure that there are funds set aside for future oil cleanup and oil containment efforts. Also to make sure there is enough to pay for compensation to U.S. citizens.
Jonathan Jackson, head of equities at London based Killik & Co. said, "the call from the U.S. Administration for a third party administered fund to meet the claims of victims of the spill appears to be an attempt to show the U.S. public that the government is doing something. As a political compromise, we would expect BP to take this request."
Sunday, June 6, 2010
BP (NYSE:BP) UPDATE: Fuel Spill Containment, Secondary Containment System Planned
After so much hype and build up on BP's (NYSE:BP) fuel spill containment efforts, they have finally had success. At least in preventing some of the crude oil to continue to flow into the ocean. The device known as the containment cap, has been successfully placed on top of the pipe that BP was able to cut with giant sheers.
Tony Hayward, BP's chief executive, said on Sunday that his belief is the cap would most likely capture "the majority, probably the vast majority" of the oil still spewing out of the well. BP is purposefully gradually increasing the amount of oil being captured, this is in order to hopefully minimize the amount of water getting in and creating a frozen slushy sort of consistency. This has happened before in a different oil containment attempt.
On Saturday, the cap was able to capture about 441,000 gallons of spilling oil, this is a considerable rise from Fridays estimate of close to 250,000 gallons of oil being contained, according to BP spokesman Mark Proegler. Although nobody has any definite numbers on how much oil is leaking daily into the Gulf, the estimate is anywhere from 500,000 to 1 million gallons of crude oil being lost everyday close to the sea floor.
Hayward told BBC that they are planning a secondary containment system, expected to be completed by next weekend. BP is also hoping to set up additional hoses and pipes which would help increase the amount of oil being captured.
Tony Hayward, BP's chief executive, said on Sunday that his belief is the cap would most likely capture "the majority, probably the vast majority" of the oil still spewing out of the well. BP is purposefully gradually increasing the amount of oil being captured, this is in order to hopefully minimize the amount of water getting in and creating a frozen slushy sort of consistency. This has happened before in a different oil containment attempt.
On Saturday, the cap was able to capture about 441,000 gallons of spilling oil, this is a considerable rise from Fridays estimate of close to 250,000 gallons of oil being contained, according to BP spokesman Mark Proegler. Although nobody has any definite numbers on how much oil is leaking daily into the Gulf, the estimate is anywhere from 500,000 to 1 million gallons of crude oil being lost everyday close to the sea floor.
Hayward told BBC that they are planning a secondary containment system, expected to be completed by next weekend. BP is also hoping to set up additional hoses and pipes which would help increase the amount of oil being captured.
Monday, May 31, 2010
BP (NYSE:BP) Third Oil Containment Attempt, Riskier Than Top Kill
Here we go again, BP (NYSE:BP) is on their third attempt to get some sort of control over the worst oil spill in U.S. history. Jon Pack, a BP spokesman said the cutting will commence soon.
This oil containment procedure includes using underwater robots which will cut the damaged pipe from the leaking well. This does risk causing the crude oil flow to become even worse. This latest procedure was approved by Interior Secretary Ken Salazar and U.S. Energy Secretary Stephen Chu.
Once the damaged pipe is cut, then they will try and attach a pipe onto the leak which if successful, would cause the oil to flow to the surface and then be stored. Pack stated that currently the preparation is being done. If everything goes as planned, it should be completed by June, 6th.
This attempt is considered riskier than the "top kill" attempt, because the whole pipe will be cut off at the riser. If unsuccessful, even more oil will be flowing nonstop into the ocean.
This oil containment procedure includes using underwater robots which will cut the damaged pipe from the leaking well. This does risk causing the crude oil flow to become even worse. This latest procedure was approved by Interior Secretary Ken Salazar and U.S. Energy Secretary Stephen Chu.
Once the damaged pipe is cut, then they will try and attach a pipe onto the leak which if successful, would cause the oil to flow to the surface and then be stored. Pack stated that currently the preparation is being done. If everything goes as planned, it should be completed by June, 6th.
This attempt is considered riskier than the "top kill" attempt, because the whole pipe will be cut off at the riser. If unsuccessful, even more oil will be flowing nonstop into the ocean.
Sunday, May 30, 2010
BP (NYSE:BP): Failure Of Top Kill, New Attempt In Progress
Much anticipation built on Saturday as the conclusion was drawing near of BP's (NYSE:BP) "top kill" attempt. The devastating news came Saturday evening when BP announced their attempts to stop the oil spill were a failure.
BP's chief operating officer Doug Suttles said, "after three full days, we have been unable to stop the oil flow from the well, so we now believe it is time to move on to another option." He also stated their new effort will be "a very complex operation."
The new effort by BP, known as the "lower marine riser package," is as unsure of a oil containment procedure as the "top kill" was. It also has never been tried at such depths of over a mile below sea level. It will take a minimum of 4 days to install and even if successful, will still only be a band-aid effort.
Suttles also stated, it would aid in capturing "a great majority" of the spilling oil. The bottom line is only the relief well that is being drilled will put the spewing oil to a complete halt. The downside is that the relief well is not expected to be done until sometime in August. Which means that the devastation that the oil has caused will continue on for at least the next 2-3 months. Not to mention how much more of the crude oil will be in the ocean at that time. As well as hitting our shorelines, and killing more marine life.
BP's chief operating officer Doug Suttles said, "after three full days, we have been unable to stop the oil flow from the well, so we now believe it is time to move on to another option." He also stated their new effort will be "a very complex operation."
The new effort by BP, known as the "lower marine riser package," is as unsure of a oil containment procedure as the "top kill" was. It also has never been tried at such depths of over a mile below sea level. It will take a minimum of 4 days to install and even if successful, will still only be a band-aid effort.
Suttles also stated, it would aid in capturing "a great majority" of the spilling oil. The bottom line is only the relief well that is being drilled will put the spewing oil to a complete halt. The downside is that the relief well is not expected to be done until sometime in August. Which means that the devastation that the oil has caused will continue on for at least the next 2-3 months. Not to mention how much more of the crude oil will be in the ocean at that time. As well as hitting our shorelines, and killing more marine life.
Thursday, May 27, 2010
BP's (NYSE:BP) "Top Kill" Oil Spill Containment Efforts Show No Change
There's been much anticipation and hope as BP (NYSE:BP) started it's "top kill" attempt yesterday afternoon. There was a fluctuation in the trading market as well as investors nerves mirrored this fluctuation.
As of today on the live oil spill video, you cannot see a whole lot of change. Even though the containment equipment has been put into place and the oil cleanup efforts are in full force. The only visible difference seems to be rather than thick black crude oil spewing out of the two breaks in the pipe, there's now what appears to be brown mud barreling out.
BP chief executive, in a statement Wednesday evening said, "the operation is proceeding as we planned it."
Doug Suttles, BP's chief operating officer said at a new conference Wednesday night, "it's too early to know if its going to be successful." He also stated that it would be at least a day or two before any conclusive results would be known. He said that there's 7,000 barrels of thick drilling mud being forced into the well at varying rates of speed.
As of today on the live oil spill video, you cannot see a whole lot of change. Even though the containment equipment has been put into place and the oil cleanup efforts are in full force. The only visible difference seems to be rather than thick black crude oil spewing out of the two breaks in the pipe, there's now what appears to be brown mud barreling out.
BP chief executive, in a statement Wednesday evening said, "the operation is proceeding as we planned it."
Doug Suttles, BP's chief operating officer said at a new conference Wednesday night, "it's too early to know if its going to be successful." He also stated that it would be at least a day or two before any conclusive results would be known. He said that there's 7,000 barrels of thick drilling mud being forced into the well at varying rates of speed.
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