Enbridge (NYSE:EEP) workers are pushing hard to meet the Monday noon deadline given by the Environmental Protection Agency for the energy company to stop the flow of oil from the oil pipeline.
The oil pipeline leaking oil in the Chicago suburb of Romeoville.
On Friday, the oil had been leaking from the pipe at a rate of 200 to 600 gallons an hour, according to an EPA spokeswoman.
Enbridge spokesman Terri Larson said, "The leak site itself is contained but oil is continuing to drain out of the pipeline. As that oil drains out crews are cleaning it up."
The shutting down of the pipeline, which transports close to 459,000 barrels of oil a day from Superior, Wisconsin to Griffith, Indiana, has caused the price of oil to shoot up, based on the uncertainty as to when it'll be opened up again.
Showing posts with label Oil Leak. Show all posts
Showing posts with label Oil Leak. Show all posts
Monday, September 13, 2010
Monday, August 9, 2010
BP's (NYSE:BP) Financial Compliance, Will They Pay
The top energy advisor for President Obama stated that BP (NYSE:BP) will be paying a "large financial penalty" for the oil spill in the Gulf of Mexico. The question remains if the company will take on their responsibilities and show financial compliance. He would not say as to whether criminal negligence charges were going to be taken against the company.
BP is now in the process of shifting from stopping the oil leak, to cleaning the oil that has polluted beaches and restoring economic health to the region. Director of The White House Office of Energy and Climate Change Policy, Carol Browner stressed that BP is anything but off the hook for the billions of dollars of penalties they will incur.
"BP will be held absolutely accountable. There will be a large financial penalty," said Browner. There has been over 205 million gallons, or 4.9 million barrels of the toxic crude oil released into the Gulf region. While about 800,000 barrels were able to be collected, contained, and funneled to ships on the waters surface.
BP is now in the process of shifting from stopping the oil leak, to cleaning the oil that has polluted beaches and restoring economic health to the region. Director of The White House Office of Energy and Climate Change Policy, Carol Browner stressed that BP is anything but off the hook for the billions of dollars of penalties they will incur.
"BP will be held absolutely accountable. There will be a large financial penalty," said Browner. There has been over 205 million gallons, or 4.9 million barrels of the toxic crude oil released into the Gulf region. While about 800,000 barrels were able to be collected, contained, and funneled to ships on the waters surface.
Friday, July 30, 2010
BP (NYSE:BP) Oil UPDATE: Static Kill Progress, Asset Sales
According to the soon to be CEO for BP (NYSE:BP), the company is planning on attempting the "static kill" operation on Tuesday. If successful it will seal the broken well. The the focus will turn to the relief well and permanently plugging it by the end of August.
The "static kill" process entails pumping heavy drilling mud followed by cement into the top of the Macondo well. The goal is to push a column of oil back into the reservoir almost three miles below the seafloor. Crews were installing a final pipe like casing into the well Thursday evening.
At a news conference in Mississippi, Dudley stated that BP is currently in the process of a $25 to $30 billion global asset sale. The Apace deal of $7 billion has also been agreed on. The sales are part of the company's plan to pay for the costs they've incurred from the massive oil leak that has spilled out over $200 million gallons of toxic crude.
The "static kill" process entails pumping heavy drilling mud followed by cement into the top of the Macondo well. The goal is to push a column of oil back into the reservoir almost three miles below the seafloor. Crews were installing a final pipe like casing into the well Thursday evening.
At a news conference in Mississippi, Dudley stated that BP is currently in the process of a $25 to $30 billion global asset sale. The Apace deal of $7 billion has also been agreed on. The sales are part of the company's plan to pay for the costs they've incurred from the massive oil leak that has spilled out over $200 million gallons of toxic crude.
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."
Friday, July 16, 2010
BP (NYSE:BP) Oil: Sealing Cap Testing Shows Success
On Thursday afternoon BP (NYSE:BP) finally tested the sealing cap that was placed on the Macondo well. The test showed no oil flow and the leak found earlier in the week was successfully repaired.
Although, this is the preliminary phase of their testing. It is expected for the testing to continue on anywhere from the next six hours to two days, possibly longer. Even though there is much to be optimistic about, anything can go wrong as the pressure inside the containment cap continues to be raised. As the testing continues, it will show weather the sealing cap can handle the intense pressure of oil without breaking and causing a new leak.
This is very good new for BP, especially after prior failed attempts to contain the oil leak in the Gulf. After each failed attempt, the company's share prices continued to drop, losing over half of their market value since April 20th. Plus due to the disaster, lawmakers have taken several steps in implementing new safety measures as well as banning new offshore exploration.
Although, this is the preliminary phase of their testing. It is expected for the testing to continue on anywhere from the next six hours to two days, possibly longer. Even though there is much to be optimistic about, anything can go wrong as the pressure inside the containment cap continues to be raised. As the testing continues, it will show weather the sealing cap can handle the intense pressure of oil without breaking and causing a new leak.
This is very good new for BP, especially after prior failed attempts to contain the oil leak in the Gulf. After each failed attempt, the company's share prices continued to drop, losing over half of their market value since April 20th. Plus due to the disaster, lawmakers have taken several steps in implementing new safety measures as well as banning new offshore exploration.
Monday, July 12, 2010
Exxon (NYSE:XOM) Company Takeover of BP (NYSE:BP)
There has been much speculation over investors possibly purchasing BP (NYSE:BP), apparently the U.S. Government has opened the door for Exxon Mobil (NYSE:XOM) to "take a look" and purchase BP for a complete company takeover. A merge of the two oil companies would put Exxon's total stock market value at over $400 billion. When asked about the validity of these claims, both companies refused to comment.
Tony Hayward, BP's chief executive, held several meetings last week with several potential "friendly" oil investors. The cause was the possibility of a hostile bid that Hayward said he was fully aware of. BP has stated openly that they plan on selling some of their assets to help cover some of the costs incurred by the massive oil leak.
They have already began talks with several rivals. The U.S.'s largest independent oil group, Apache Corporation, is named as one of the companies being in exclusive talks with BP to purchase $12 billion of investments. Including the biggest oil field in North America, Prudhoe Bay.
A BP spokesman said, " We've said we're going to be divesting about $10 billion over the next 12 months as a result of the spill, but we have no comment on specific deals."
Tony Hayward, BP's chief executive, held several meetings last week with several potential "friendly" oil investors. The cause was the possibility of a hostile bid that Hayward said he was fully aware of. BP has stated openly that they plan on selling some of their assets to help cover some of the costs incurred by the massive oil leak.
They have already began talks with several rivals. The U.S.'s largest independent oil group, Apache Corporation, is named as one of the companies being in exclusive talks with BP to purchase $12 billion of investments. Including the biggest oil field in North America, Prudhoe Bay.
A BP spokesman said, " We've said we're going to be divesting about $10 billion over the next 12 months as a result of the spill, but we have no comment on specific deals."
Sunday, July 4, 2010
BP's (NYSE:BP) Gulf Oil Leak Threatens Historic Shipwrecks
As we watch the news we've seen the obvious disastrous effects of the BP (NYSE:BP) Gulf oil leak. Beneath the Gulf waters there is an underwater battlefield full of historic World War II shipwrecks, sea battles, and the history of pirates.
There are many significant shipwrecks with 20 miles of the damaged oil well. This underwater world was discovered by oil companies while searching for wells. Many researchers fear that this treasure seekers paradise is being destroyed by the crude oil that continues to flow freely. The Gulf is lined with old fishing villages, pirate colonies, historic hotels, American Indian shell midden mounds, World War II casualties, and wooden shipwrecks.
Steven Anthony, president of the maritime archaeological and Historical Society said, "People think of them as being lost, but with the deep sea diving innovations we have today, these shipwrecks are easily accessible."
"If the oil congeals at the bottom, it will be dangerous for scuba divers to go down there and explore. The spill will stop investigations, it will put a chill, a halt on operations," continued Anthony.
There are many significant shipwrecks with 20 miles of the damaged oil well. This underwater world was discovered by oil companies while searching for wells. Many researchers fear that this treasure seekers paradise is being destroyed by the crude oil that continues to flow freely. The Gulf is lined with old fishing villages, pirate colonies, historic hotels, American Indian shell midden mounds, World War II casualties, and wooden shipwrecks.
Steven Anthony, president of the maritime archaeological and Historical Society said, "People think of them as being lost, but with the deep sea diving innovations we have today, these shipwrecks are easily accessible."
"If the oil congeals at the bottom, it will be dangerous for scuba divers to go down there and explore. The spill will stop investigations, it will put a chill, a halt on operations," continued Anthony.
Friday, June 18, 2010
BP (NYSE:BP) Credit, Third Downgrade By Moody's
BP's (NYSE:BP) credit rating has been hit with its third downgrade from the rating agency Moody's Investors Service on Friday. They said, "Moody's updated assessment is that the spill will have a sustained negative impact on the groups free cash flow generation and overall financial profile for a number of years." BP dropped from Aa2 to A2, June 3 decline was from Aa1 to Aa2.
Standard and Poors 500 also lowered their rating of BP on Thursday. This is the second downgrade they have given BP in a month from an A to A-1. On Tuesday, Fitch also dropped their rating six notches of BP's long term debt to just above junk level.
David Staples, managing director of Moody's Corporate finance group said," the oil leak has to stop. As long as the oil leak continues, the costs continue to mount and the exposure to litigation continues. BP declined to comment on the downgrade. Staples did say that BP would remain on close review for further future downgrades.
Bryon Grote, BP's Chief Financial officer did say on Wednesday that he hoped the deal struck with the White House would help reinforce their prior rating of AA from Moody's.
Standard and Poors 500 also lowered their rating of BP on Thursday. This is the second downgrade they have given BP in a month from an A to A-1. On Tuesday, Fitch also dropped their rating six notches of BP's long term debt to just above junk level.
David Staples, managing director of Moody's Corporate finance group said," the oil leak has to stop. As long as the oil leak continues, the costs continue to mount and the exposure to litigation continues. BP declined to comment on the downgrade. Staples did say that BP would remain on close review for further future downgrades.
Bryon Grote, BP's Chief Financial officer did say on Wednesday that he hoped the deal struck with the White House would help reinforce their prior rating of AA from Moody's.
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.
Sunday, June 13, 2010
ALERT: Chevron (NYSE:CVX) Oil Spill
A severe oil spill was discover early Saturday morning East of Red Butte Canyon, Chevron (NYSE:CVX) and Salt Lake City officials has been working non-stop to get this oil spill under control.
The site of the leak is estimated to be losing about 5 gallons a minute, for a total so far of 400 to 500 barrels. As of yet, the leak has not been capped off. The Salt Lake Valley Health Department says the oil has leaked into the Jordon river in two different areas and has now made its way into the Great Salt Lake. Officials say drinking water has not been effected and is not expected to effect the surrounding areas.
Residents are being asked to stay away from Liberty Park as well as Red Butte Canyon. This is so crews working can do so without interruption. Also, the water with crude oil mixed in is considered toxic and is not safe for humans or animals. There are several water access points.
The Mayor, Ralph Becker said, "we are working tirelessly with Chevron teams to contain the spill from the critical ecological areas effected in our city. Our fire teams have capped the site and will work to determine the damage and best course of action. We ask all residents of Salt Lake City to help by staying away from these areas."
The site of the leak is estimated to be losing about 5 gallons a minute, for a total so far of 400 to 500 barrels. As of yet, the leak has not been capped off. The Salt Lake Valley Health Department says the oil has leaked into the Jordon river in two different areas and has now made its way into the Great Salt Lake. Officials say drinking water has not been effected and is not expected to effect the surrounding areas.
Residents are being asked to stay away from Liberty Park as well as Red Butte Canyon. This is so crews working can do so without interruption. Also, the water with crude oil mixed in is considered toxic and is not safe for humans or animals. There are several water access points.
The Mayor, Ralph Becker said, "we are working tirelessly with Chevron teams to contain the spill from the critical ecological areas effected in our city. Our fire teams have capped the site and will work to determine the damage and best course of action. We ask all residents of Salt Lake City to help by staying away from these areas."
Wednesday, June 2, 2010
BP (NYSE:BP) Oil Spill Could Go On Until December, Despite Best Hazardous Spill Containment Efforts
Despite BP's (NYSE:BP) best hazardous spill containment efforts, it's looking like the oil could be raging on continually until December and possibly into the new year. Dan Pickering, the head of research at energy investor Tudor Pickering Holt. & Company in Houston said, this process is teaching us to be skeptical of deadlines. The worst case scenario is Christmas time.
If this time frame is correct and the crude oil continues to pour out of the well, that will be approximately 4 million barrels of oil since April 20th. This is based on the governments estimate of the oil leak spewing 12,000 to 19,000 barrels a day into the Gulf.
Mak Saito, an Associate Scientist at Woods Hole Oceanographic Institute in Massachusetts said, with so much crude pouring into the ocean, it could change the very chemistry of the sea. Robert Wine, a BP spokesman, would not give the company's worst case scenario. Although, in its original plans for Monacondo, BP estimated the worst case scenario for an oil spill loss was 162,000 barrels a day, according to its filing with the U.S. Interior Departments Mineral Management Service.
Fred Aminzadeh, a research professor at the University of Southern California's Center for Integrated Smart Oil Fields, said the absolute worst case scenario is that the well is never successfully plugged. That would leave the well to flow for probably more than a decade.
If this time frame is correct and the crude oil continues to pour out of the well, that will be approximately 4 million barrels of oil since April 20th. This is based on the governments estimate of the oil leak spewing 12,000 to 19,000 barrels a day into the Gulf.
Mak Saito, an Associate Scientist at Woods Hole Oceanographic Institute in Massachusetts said, with so much crude pouring into the ocean, it could change the very chemistry of the sea. Robert Wine, a BP spokesman, would not give the company's worst case scenario. Although, in its original plans for Monacondo, BP estimated the worst case scenario for an oil spill loss was 162,000 barrels a day, according to its filing with the U.S. Interior Departments Mineral Management Service.
Fred Aminzadeh, a research professor at the University of Southern California's Center for Integrated Smart Oil Fields, said the absolute worst case scenario is that the well is never successfully plugged. That would leave the well to flow for probably more than a decade.
Sunday, May 30, 2010
Chevron (NYSE:CVX) Oil Leak, Will Pay All Oil Cleanup Costs
Chevron's (NYSE:CVX) engineers are frantically trying to find out the cause of their oil leak, which has been going on since April. So far, it's reporting to have lost at least 50 liters of oil and gas into the Burrard Inlet.
The company has said it is putting together a plan to extract and treat the pollutants stemming from their refinery. Although, this plan will not be put into effect until sometime in the Summer.
Ray Lord, Chevron's spokesman said they will put into place extraction wells as well as absorption blooms in the Inlet for now to help contain and recover the leak. Even though Lord would not give an estimate of what the fuel cleanup would cost, he assures that Chevron will be paying for everything in full.
"How long the wells and booms need to be there is difficult for us to say right now. It'll depend on how much of the ground water is appearing, what the transmission rate is and how effective our
interception systems are," said Lord.
The company has said it is putting together a plan to extract and treat the pollutants stemming from their refinery. Although, this plan will not be put into effect until sometime in the Summer.
Ray Lord, Chevron's spokesman said they will put into place extraction wells as well as absorption blooms in the Inlet for now to help contain and recover the leak. Even though Lord would not give an estimate of what the fuel cleanup would cost, he assures that Chevron will be paying for everything in full.
"How long the wells and booms need to be there is difficult for us to say right now. It'll depend on how much of the ground water is appearing, what the transmission rate is and how effective our
interception systems are," said Lord.
Friday, May 28, 2010
BP (NYSE:BP) Risks Making Oil Spill Worse
BP (NYSE:BP) engineers are proceeding with extreme caution, as they continue on their containment efforts for the fuel spill. This was after stopping their "top kill" endeavors for a day, this is apparently just part of the process according to BP officials.
This gives the engineers time to review the effects or lack there of. At that time, Doug Suttles, BP's chief operating officer said, "we have not yet stopped the flow. You stop pumping. If the pressure begins to rise you pump again. If it doesn't rise, you have some sign of success."
As well as analyzing the spill containment results on Thursday, BP was also restocking their oil spill equipment with close to 15,000 barrels of the heavy engineering mud in preparation for their next oil cleanup attempt, which began Thursday evening.
Tony Hayward, BP's head, indicated the "top kill" attempt could make the oil leak worse, this is one of the risks of this endeavor.
This gives the engineers time to review the effects or lack there of. At that time, Doug Suttles, BP's chief operating officer said, "we have not yet stopped the flow. You stop pumping. If the pressure begins to rise you pump again. If it doesn't rise, you have some sign of success."
As well as analyzing the spill containment results on Thursday, BP was also restocking their oil spill equipment with close to 15,000 barrels of the heavy engineering mud in preparation for their next oil cleanup attempt, which began Thursday evening.
Tony Hayward, BP's head, indicated the "top kill" attempt could make the oil leak worse, this is one of the risks of this endeavor.
Wednesday, May 26, 2010
BP: (NYSE:BP) No To Live Video Feed of "Top Kill"
Apparently, BP (NYSE:BP) has changed their mind. Originally, BP was among much hesitation , going to allow the live oil spill video to run uninterrupted throughout their "top kill" attempt. They're now saying no, and have already cut the oil spill video as of early this morning. This is leading many to wonder why BP wants to shut out the millions of people that their oil leak has, is, and will continue to effect for generations.
BP ensures it will report on the progress and on the outcome once complete. Part of the reasoning for this secrecy is to help shield the public from making rash decisions on what they may assume by what they see. Especially when it comes to stocks, this would not be adequate information.
If BP is successful, Gordan Gray from Collin Stewart analyst gives his opinion on the effect this would have on BP's shares. He says we would see an initial incline in the shares around mid 500's p/sh level after their 14 percent under preformance of the global sector. Any further recovery can be expected to take much longer though. A short term rise would be a good opportunity to switch from BP to Royal Dutch Shell which is seen as having a good valuation upside, a strong free cash flow turnaround, and a much stronger outlook for dividends.
BP ensures it will report on the progress and on the outcome once complete. Part of the reasoning for this secrecy is to help shield the public from making rash decisions on what they may assume by what they see. Especially when it comes to stocks, this would not be adequate information.
If BP is successful, Gordan Gray from Collin Stewart analyst gives his opinion on the effect this would have on BP's shares. He says we would see an initial incline in the shares around mid 500's p/sh level after their 14 percent under preformance of the global sector. Any further recovery can be expected to take much longer though. A short term rise would be a good opportunity to switch from BP to Royal Dutch Shell which is seen as having a good valuation upside, a strong free cash flow turnaround, and a much stronger outlook for dividends.
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