Although BP (NYSE:BP) has stated its plans are to leave the unpopular oil well plugged and as it is, it's highly unlikely as time goes on that it will remain that was, as too much oil and gas would be available for sell.
This doesn't mean BP would tap into it themselves, even after years and other things are on the minds of people. But it wouldn't be surprising at all to see them sell the asset one day, and with the two relief wells already drilled, it would take just a few added steps to get the oil and gas flowing again.
Some believe the well and general area contain even more oil and gas, making it a waste to leave sitting there.
At one time BP had estimated there were 50 million barrels of oil in the well, with far below that being lost even at the higher government estimates.
Even though BP has said they won't access the well again, they did leave the possibility and probability they'll drill in the same block again; a nine-square-mile area.
If BP did decide to sell the block at some time, estimates are the value of the oil alone would be worth about $3.5 billion, and they could probably sell it for somewhere between $1 to $2 billion.
Either way, it would be surprising if this were to happen any time soon, but it would also be surprising if the block isn't drilled again some time in the distant future.
Showing posts with label Relief wells. Show all posts
Showing posts with label Relief wells. Show all posts
Monday, September 20, 2010
BP (NYSE:BP) Well Finally Put to Rest
If stopping the oil from leaking with a cap could be called the wake, then the permanent sealing of the BP (NYSE:BP) oil well could be called its funeral; at least in reference to it being in danger of leaking again.
The final batch of cement for the "bottom kill" set on Saturday, which prepared the way for a pressure and weight test, which confirmed the well was permanently sealed.
The cap was placed on the well in July and more cement injected into the top of the well as an extra safety measure in August.
Cement was injected into the well through a relief well in this final step.
Questions on whether or not the block the well is located in will be drilled again by BP, and whether or not the may sell the plugged well to another operator to extract the approximate 46 million barrels of oil remaining, as well as the gas.
BP has said they won't be using the well again, although they left the option open they may drill into the block again.
The final batch of cement for the "bottom kill" set on Saturday, which prepared the way for a pressure and weight test, which confirmed the well was permanently sealed.
The cap was placed on the well in July and more cement injected into the top of the well as an extra safety measure in August.
Cement was injected into the well through a relief well in this final step.
Questions on whether or not the block the well is located in will be drilled again by BP, and whether or not the may sell the plugged well to another operator to extract the approximate 46 million barrels of oil remaining, as well as the gas.
BP has said they won't be using the well again, although they left the option open they may drill into the block again.
Friday, August 6, 2010
BP (NYSE:BP) Oil: Static Kill Success, On To Relief Wells
BP (NYSE:BP) engineers appear to be successful in their static kill attempt. Cement was poured in to the top of the well, which is supposed to hold down the mud at the bottom of the well. Now they must wait at least 24 hours for the cement to harden.
The static kill process started on Tuesday with crews pumping thick mud down the well to push the crude back underground. With that success, the next step was to pour in the cement. The final step once the cement hardens is for the engineers to inject more mud and cement into the bottom of the well, creating a permanent plug.
So while we are starting to shift from one aspect of BP's disastrous oil spill to another, there is still much to be done. According to a new report issued by the Interior Department and the National Oceanic and Atmospheric Administration, there is still almost 53 million gallons of the toxic oil polluting the Gulf shores.
"There is very little observable oil out there. We can't turn a blind eye, if we don't see oil, I'm not assuming it doesn't exist," said Rear Adm. Paul Zukunft.
The static kill process started on Tuesday with crews pumping thick mud down the well to push the crude back underground. With that success, the next step was to pour in the cement. The final step once the cement hardens is for the engineers to inject more mud and cement into the bottom of the well, creating a permanent plug.
So while we are starting to shift from one aspect of BP's disastrous oil spill to another, there is still much to be done. According to a new report issued by the Interior Department and the National Oceanic and Atmospheric Administration, there is still almost 53 million gallons of the toxic oil polluting the Gulf shores.
"There is very little observable oil out there. We can't turn a blind eye, if we don't see oil, I'm not assuming it doesn't exist," said Rear Adm. Paul Zukunft.
Wednesday, August 4, 2010
Insider Stock Trading Among BP (NYSE:BP) Employees
Well, we've heard just about everything about BP (NYSE:BP), but now they are under investigation by U.S. authorities for insider stock trading among its employees. This is just one of many parallel investigations currently underway.
Since the suspicions arose, The Department of Justice and the Securities and Exchange Commission have been looking into the allegations. It's being said that there were BP insiders who had access to knowledge about the company's plans.
This knowledge for the oil cleanup and spill containment efforts were than used to cash in by trading shares. It's also being said that this information was leaked to others outside of the company.
Meanwhile, BP continues forward with its "static kill" attempt. The company is still optimistic that the relief wells will be finished by the end of this month. While the federal government has increased their estimate to almost 5 million barrels of oil that has polluted the Gulf. That's more than 12 times what BP was originally estimating.
Since the suspicions arose, The Department of Justice and the Securities and Exchange Commission have been looking into the allegations. It's being said that there were BP insiders who had access to knowledge about the company's plans.
This knowledge for the oil cleanup and spill containment efforts were than used to cash in by trading shares. It's also being said that this information was leaked to others outside of the company.
Meanwhile, BP continues forward with its "static kill" attempt. The company is still optimistic that the relief wells will be finished by the end of this month. While the federal government has increased their estimate to almost 5 million barrels of oil that has polluted the Gulf. That's more than 12 times what BP was originally estimating.
Tuesday, August 3, 2010
BP (NYSE:BP) Foregoing Relief Wells: Static Kill Up In The Air
BP (NYSE:BP) has been insisting that the only way to permanently plug the well was by the relief well. Now that the engineers are only a matter of a few feet away they are unsure how to proceed.
Testing was planned Monday evening to help crews determine if the "static kill" attempt would be preformed. Kent Wells, BP senior Vice President, said that engineers may pump the cement directly into the ruptured well through the failed blowout preventer via a surface ship. This would be done rather than waiting until the end of the month for the original plans of the relief well.
The idea isn't a new one, but BP hasn't even hinted to the possibility of a plan other than the drilling of the two relief wells to permanently plug the Macondo well. BP spokesman Daren Beaudo said, "Precisely what the relief wells will do remains to be seen given what we learn from the static kill, can't predict it for certain."
Either way, "We want to end up with cement at the bottom of the hole," said Wells. Although BP was very vague as to why after so much time, effort, and money the company seems so unclear as to the exact roll the relief wells will play. Meanwhile, several leaks have sprung near the blown out well. Rumors are flying that there was more damage than BP is admitting to, caused by tropical storm Bonnie.
Testing was planned Monday evening to help crews determine if the "static kill" attempt would be preformed. Kent Wells, BP senior Vice President, said that engineers may pump the cement directly into the ruptured well through the failed blowout preventer via a surface ship. This would be done rather than waiting until the end of the month for the original plans of the relief well.
The idea isn't a new one, but BP hasn't even hinted to the possibility of a plan other than the drilling of the two relief wells to permanently plug the Macondo well. BP spokesman Daren Beaudo said, "Precisely what the relief wells will do remains to be seen given what we learn from the static kill, can't predict it for certain."
Either way, "We want to end up with cement at the bottom of the hole," said Wells. Although BP was very vague as to why after so much time, effort, and money the company seems so unclear as to the exact roll the relief wells will play. Meanwhile, several leaks have sprung near the blown out well. Rumors are flying that there was more damage than BP is admitting to, caused by tropical storm Bonnie.
Monday, July 26, 2010
BP (NYSE:BP) Work Stoppage from "Bonnie" Less Than Expected
Uncertainty as to the magnitude of Tropical Storm Bonnie has estimates of work stoppage by BP (NYSE:BP) up two weeks long. That changed quickly on Saturday, as the storm passed through quickly and with little damage, and vessels quickly began their trek back to the work area.
The good news concerning the storm was it disintegrated into what became essentially a series of thunderstorms and rain showers before it hit the oil well. It was uncertain what would happen once the tropical storm hit the warm Gulf waters, as past experience has at times had the storms gain in strength when that occurs.
If it would have performed in that manner, it could have stopped the relief well drilling effort for up to two weeks. Tropical Storm Bonnie was downgraded to a tropical depression as it weakened.
Only one of the relief well drilling rigs had been detached, so efforts didn't take too long to resume.
The containment cap continues to hold while the drilling continues.
The good news concerning the storm was it disintegrated into what became essentially a series of thunderstorms and rain showers before it hit the oil well. It was uncertain what would happen once the tropical storm hit the warm Gulf waters, as past experience has at times had the storms gain in strength when that occurs.
If it would have performed in that manner, it could have stopped the relief well drilling effort for up to two weeks. Tropical Storm Bonnie was downgraded to a tropical depression as it weakened.
Only one of the relief well drilling rigs had been detached, so efforts didn't take too long to resume.
The containment cap continues to hold while the drilling continues.
Thursday, July 22, 2010
BP (NYSE:BP) Relief Well Reaching Target Destination by Weekend
The first relief well of BP (NYSE:BP) is close to reaching its destination, with expectations it'll arrive at its target this weekend.
This is the only permanent fix to stopping the well from gushing into the Gulf of Mexico, although the current containment cap is doing a good job, assuming it holds.
It's possible that within two weeks after this weekend the Macondo oil well will be permanently sealed.
We have the caveat of unsurety concerning everything being tried at this point by BP, as there simply isn't a blueprint for what will work at these depths.
One method that may be used to increase the probability of success would be to shoot drilling mud through the containment cap before beginning the final procedures.
Whether that happens or not, BP will drill sideways into the well to intercept it, and then start to plug it.
This is the only permanent fix to stopping the well from gushing into the Gulf of Mexico, although the current containment cap is doing a good job, assuming it holds.
It's possible that within two weeks after this weekend the Macondo oil well will be permanently sealed.
We have the caveat of unsurety concerning everything being tried at this point by BP, as there simply isn't a blueprint for what will work at these depths.
One method that may be used to increase the probability of success would be to shoot drilling mud through the containment cap before beginning the final procedures.
Whether that happens or not, BP will drill sideways into the well to intercept it, and then start to plug it.
Friday, July 16, 2010
BP (NYSE:BP) Changes Containment Strategy
While the new containment cap continues to do its job, and tests indicate there are no leaks, as the pressure continues to rise to the desired goal of over 8,000 a square inch.
Originally BP said they'll stop pumping oil to the surface once they get the oil well contained, but that seems to have changed now according to the Gulf response manager.
Thad Allen stated the company will probably continue to sent oil to containment ships on the surface once the tests are successfully completed.
This will continue to be done until the relief wells are in place to plug the oil well permanently.
Originally BP said they'll stop pumping oil to the surface once they get the oil well contained, but that seems to have changed now according to the Gulf response manager.
Thad Allen stated the company will probably continue to sent oil to containment ships on the surface once the tests are successfully completed.
This will continue to be done until the relief wells are in place to plug the oil well permanently.
Tuesday, July 6, 2010
First BP (NYSE:BP) Relief Well May be Ready by End of July
BP (NYSE:BP) has worked hard at managing expectations concerning the two relief wells being drilled which have the best chance of plugging the oil leak in the Gulf of Mexico, and have maintained their August date of completion, even though the relief well is ahead of schedule.
Still, BP spokesman Mark Proegler said concerning the well, that “There is a possibility that the first relief well could be completed by the end of July. It’s more likely that it would be some time in August.”
It's not just a matter of drilling alone though, as if that were the case, more than likely the first relief well would be completed by then.
But you have the weather factors, and the company working to error on the side of caution, so they're not going to hurry the process in order to gain some positive press on stopping the leak before estimates.
The second relief well is being drilled in case the first one fails to accomplish its goal.
Relief wells have been proven to be successful in the past, as they're not theoretical attempts to plug oil leaks, but the depth of the oil leak adds a dimension the industry has never had to deal with before, and so cautiously optimistic outlooks are there concerning the potential success of the wells, but it's not guaranteed from that viewpoint.
Still, BP spokesman Mark Proegler said concerning the well, that “There is a possibility that the first relief well could be completed by the end of July. It’s more likely that it would be some time in August.”
It's not just a matter of drilling alone though, as if that were the case, more than likely the first relief well would be completed by then.
But you have the weather factors, and the company working to error on the side of caution, so they're not going to hurry the process in order to gain some positive press on stopping the leak before estimates.
The second relief well is being drilled in case the first one fails to accomplish its goal.
Relief wells have been proven to be successful in the past, as they're not theoretical attempts to plug oil leaks, but the depth of the oil leak adds a dimension the industry has never had to deal with before, and so cautiously optimistic outlooks are there concerning the potential success of the wells, but it's not guaranteed from that viewpoint.
Monday, July 5, 2010
BP's (NYSE:BP) Gulf Oil Leak Costs Reach Over $3 Billion
BP's (NYSE:BP) has released their latest report today of the Gulf oil leak costs. The total has reached $3.12 billion for the cleaning, capping, and payouts to government, businesses, and individuals. This amount does not include the $20 billion fund that was agreed upon and set up last month.
BP officials said that the tropical storms and continued turbulent weather has not inhibited the drilling of the two relief wells. They're still slightly ahead of schedule for the projected timeframe of early to mid-August for the completion of the drilling and plug to be in place. The burning of oil and gas continues without any delays at the site.
The weather and turbulant seas have delayed being able to bring in another vessel called the Helix Producer. Officials are saying the vessel will more than double the amount of oil able to be collected and then burned. It connects with the leaking well by a flexible hose that can disconnecting and reconnecting quickly due to bad weather.
There is also a giant Taiwanese oil skimming devise is called "A Whale," that has been being tested over the weekend North of BP's leaking well. Because of the choppy seas they had to stop the testing. According to the National Weather Service this bad weather is expected to continue on into next week.
BP officials said that the tropical storms and continued turbulent weather has not inhibited the drilling of the two relief wells. They're still slightly ahead of schedule for the projected timeframe of early to mid-August for the completion of the drilling and plug to be in place. The burning of oil and gas continues without any delays at the site.
The weather and turbulant seas have delayed being able to bring in another vessel called the Helix Producer. Officials are saying the vessel will more than double the amount of oil able to be collected and then burned. It connects with the leaking well by a flexible hose that can disconnecting and reconnecting quickly due to bad weather.
There is also a giant Taiwanese oil skimming devise is called "A Whale," that has been being tested over the weekend North of BP's leaking well. Because of the choppy seas they had to stop the testing. According to the National Weather Service this bad weather is expected to continue on into next week.
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