Some may wonder why it matters if BP (NYSE:BP) attempted to permanently kill the oil well on purpose with the 'top kill.' Technically it doesn't matter, as the goal is to permanently plug the well, not the methodology used.
But it does matter from the point of view of the purpose in doing it, as it could reveal there were intentions from the beginning by the Obama administration and BP to have an out if they want to extract oil from the well at a future date, or sell the oil assets to another company.
If the well were to be plugged with the top kill, and there was no need to use the relief well to do a bottom kill, there would be a perfect situation for BP or a company coming in to use the relief well for extracting oil and gas still in the well.
For about a week BP and the government have given indications permanently plugging the well may not be the way to go.
Pressure tests will be enacted to determine if the cement leaked into the annulus, which is the goal of the bottom kill, and the definition of permanently plugging it.
If that indeed did happen, or is even being tested as to possibly happened, it surely was planned that way for the purposes mentioned above.
Why would they do that? To lower public resistance to the well being accessed again for oil and gas; whether by BP or another corporation.
If cement "accidentally" seeped into the well and performed the bottom kill results, then there is a convenient relief well in place to extract the oil and gas.
While this is not a surety as to whether it'll work or not, I do think it was attempted on purpose in an effort to give it a realistic chance of working.
There can be no doubt the Obama administration and BP are attempting to salvage the oil and gas under the Gulf floor. They're just attempting to do it in a way that's palatable to the public.
Showing posts with label Top Kill. Show all posts
Showing posts with label Top Kill. Show all posts
Friday, August 13, 2010
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.
BP's (NYSE:BP) New Plans, Will Make Spill Worse
As BP (NYSE:BP) is putting together a new plan, after the failed "top kill" attempt, it could only make things worse. Although it would only be temporarily.
Carol Browner, the White House energy czar said, "the American people need to know that it is possible we will have oil leaking from this well until August, when the relief wells will be finished." The other complication is that storm season is moving into the Gulf. As storms move in, this causes the oil recovery operations to come to a halt.
Michael Dixon, a lieutenant in charge of oil recovery operations at the Coast Guard Venice staging area said, "the way that the currents are treating this, and the ongoing leaking of oil, this is basically small spills all over the place. It's a series of a lot of small oil spills. We're fighting on a lot of fronts."
So our worst fears are being realized, our oceans will continue to be polluted, our shorelines destroyed, stocks will continue to fall, and the full effects on humans has yet to be fully realized.
Carol Browner, the White House energy czar said, "the American people need to know that it is possible we will have oil leaking from this well until August, when the relief wells will be finished." The other complication is that storm season is moving into the Gulf. As storms move in, this causes the oil recovery operations to come to a halt.
Michael Dixon, a lieutenant in charge of oil recovery operations at the Coast Guard Venice staging area said, "the way that the currents are treating this, and the ongoing leaking of oil, this is basically small spills all over the place. It's a series of a lot of small oil spills. We're fighting on a lot of fronts."
So our worst fears are being realized, our oceans will continue to be polluted, our shorelines destroyed, stocks will continue to fall, and the full effects on humans has yet to be fully realized.
Sunday, May 30, 2010
Top Kill Failed, Wildlife Fatalities Continue Thanks To BP (NYSE:BP)
As the devastating news came Saturday evening that BP's (NYSE:BP) "top kill" attempt failed, this only means continued disaster to the delicate ecosystems that the oil spill is already destroying. Not to mention the wildlife and sea life that this will continue to devastate for years to come.
Among these are the Gulf of Mexico's 8,300 species, from the smallest plankton to the birds that live, breed, and eat from these waters. There are also numerous animals on the verge of extinction that the crude oil could wipe out all together, such as the Atlantic blue fin tuna and the Kemp's ridley sea turtle, to name just a couple.
Paul Montagna, professor of ecology, said, "instead of creating a typical spill, where the oil goes to the surface and you can scoop it up, this stuff has been distributed throughout the water column, and that means everything, absolutely everything is being effected."
As if the oil isn't enough, the toxic chemicals being dispersed a mile below the surface, are changing the composition of the oil entirely. The effects of this are preventing the oil from breaking down, as well as changing the consistency to being much oilier and much gooier.
"It's probably going to be one of the worst disaster we've ever seen," said Montagna.
Among these are the Gulf of Mexico's 8,300 species, from the smallest plankton to the birds that live, breed, and eat from these waters. There are also numerous animals on the verge of extinction that the crude oil could wipe out all together, such as the Atlantic blue fin tuna and the Kemp's ridley sea turtle, to name just a couple.
Paul Montagna, professor of ecology, said, "instead of creating a typical spill, where the oil goes to the surface and you can scoop it up, this stuff has been distributed throughout the water column, and that means everything, absolutely everything is being effected."
As if the oil isn't enough, the toxic chemicals being dispersed a mile below the surface, are changing the composition of the oil entirely. The effects of this are preventing the oil from breaking down, as well as changing the consistency to being much oilier and much gooier.
"It's probably going to be one of the worst disaster we've ever seen," said Montagna.
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.
Saturday, May 29, 2010
Updates On Top Kill and BP (NYSE:BP) Oil Spill Live Feed
As many are anxiously watching the BP (NYSE:BP) oil spill live video for any change with BP's "top kill" attempts, there aren't visible signs of much change.
Being close to 96 hours into the "top kill" attempt, most were thinking it would be stopped by now. Looking at the video of the oil spill, there appears to be a dark substance coming out of it again which looks like oil. When BP started their procedure, there was a visible change in what was spewing out of the two broken areas on the pipe. Rather than the dark crude oil there was what looked like mud, the thick engineer mud that was being pumped in.
Originally, by BP's statements, the "top kill" process was only going to take a couple days but it is now on their third day. Although BP seems to still be optimistic. They said, there's a "number of options" in case the "top kill" fails. BP also said things seem to be "promising" as they continue on with their efforts.
If BP is successful, they could then turn their full focus on cleaning up the oil that has already spilled into the ocean and is devastating shorelines, among other things.
Being close to 96 hours into the "top kill" attempt, most were thinking it would be stopped by now. Looking at the video of the oil spill, there appears to be a dark substance coming out of it again which looks like oil. When BP started their procedure, there was a visible change in what was spewing out of the two broken areas on the pipe. Rather than the dark crude oil there was what looked like mud, the thick engineer mud that was being pumped in.
Originally, by BP's statements, the "top kill" process was only going to take a couple days but it is now on their third day. Although BP seems to still be optimistic. They said, there's a "number of options" in case the "top kill" fails. BP also said things seem to be "promising" as they continue on with their efforts.
If BP is successful, they could then turn their full focus on cleaning up the oil that has already spilled into the ocean and is devastating shorelines, among other things.
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.
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.
Wednesday, May 26, 2010
BP (NYSE:BP) Stock Plummets Then Rises
BP (NYSE:BP) share prices reflect peoples uncertainty of what will happen as BP starts their "top kill" endeavor. Earlier in the day, BP's stocks fell 1.6 percent. This was as many were waiting in anticipation to hear of news on what BP was going to do.
Than BP shares started rising, seeing an increase of up to 2.6 percent to 498 pence. This being overall in Britain's FTSE 100 index seeing a 2.8 percent increase. This increase was as market talk was optimistic to hear that BP was close to giving a positive update on the situation.
Panmure Gordon analyst Peter Hitchens said, "this week is going to be fairly crucial for the company. If the top kill doesn't work the stocks going to continue to languish.
"Once you get this well under control the stock will recover a lot of lost ground, but until that happens people are just going to be nervous."
Since the oil spill disaster started April 20th, the company has lost $50 billion of its market value. That's about a quarter of its total value.
Than BP shares started rising, seeing an increase of up to 2.6 percent to 498 pence. This being overall in Britain's FTSE 100 index seeing a 2.8 percent increase. This increase was as market talk was optimistic to hear that BP was close to giving a positive update on the situation.
Panmure Gordon analyst Peter Hitchens said, "this week is going to be fairly crucial for the company. If the top kill doesn't work the stocks going to continue to languish.
"Once you get this well under control the stock will recover a lot of lost ground, but until that happens people are just going to be nervous."
Since the oil spill disaster started April 20th, the company has lost $50 billion of its market value. That's about a quarter of its total value.
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.
BP's (NYSE:BP) "Top Kill" Attempt Delayed
BP's (NYSE:BP) plan had been to start their attempt to cap the massive oil spill known as "top kill" early this morning. Now BP is saying it could be a day or two at least, this is due to their testing that was still going on in the early hours of the morning.
The "top kill" method has a good record onshore, but it has never been attempted at the depth of 5,000 feet offshore. The test that BP is currently doing is pumping drilling fluids into the BOP. This is to measure flow paths as well as to measure the pressure. Once their testing concludes, a decision will then be made on what direction the "top kill" efforts will take.
Originally, company officials estimated the time to complete the "top kill" attempt was one day, now they've changed that to two days. BP has also agreed, following much contemplation and discussion, to continue the live oil spill feed. This feed will continue uninterrupted as BP attempts their "top kill" effort.
The "top kill" method has a good record onshore, but it has never been attempted at the depth of 5,000 feet offshore. The test that BP is currently doing is pumping drilling fluids into the BOP. This is to measure flow paths as well as to measure the pressure. Once their testing concludes, a decision will then be made on what direction the "top kill" efforts will take.
Originally, company officials estimated the time to complete the "top kill" attempt was one day, now they've changed that to two days. BP has also agreed, following much contemplation and discussion, to continue the live oil spill feed. This feed will continue uninterrupted as BP attempts their "top kill" effort.
Tuesday, May 25, 2010
BP (NYSE:BP) Ready For "Top Kill" Attempt
BP's (NYSE:BP) has moved equipment in and is ready for its "top kill" attempt on Wednesday. This has never been attempted before at these depths of 5,000 feet below the surface. BP is estimating the success rate being only about a 60 - 70 percent.
If the attempt is a failure, BP has a couple other options they could implement. The first being they would try and cut the damaged riser pipe on the top of the blowout preventer, they would then attach a cap to the riser from the above drillship. The company said if successful this would capture most of the oil.
Another option is to lower a second blowout preventer or a valve. We're heading into the sixth week now since the explosion of the Deepwater Horizon on April 20th and the sinking April 22nd.
If the attempt is a failure, BP has a couple other options they could implement. The first being they would try and cut the damaged riser pipe on the top of the blowout preventer, they would then attach a cap to the riser from the above drillship. The company said if successful this would capture most of the oil.
Another option is to lower a second blowout preventer or a valve. We're heading into the sixth week now since the explosion of the Deepwater Horizon on April 20th and the sinking April 22nd.
Thursday, May 20, 2010
Next BP (NYSE:BP) Oil Well Capping Attempt Coming Soon
Representatives for BP (NYSE:BP) said in a conference call with reporters that they could attempt to "top kill" the leaking oil well as soon as May 23.
Top kill is a term the oil industry uses in regard to sealing an oil well with cement and other drilling fluids.
The amount of oil the company is capturing form the pipeline about a mile long has improved, rising from 2,000 just a couple of days ago to close to 5,000 now, according to a spokesman for the company.
If the top kill attempt doesn't work, another option would be to drill two relief wells, which would intercept the oil well at about 13,000 feet below the ocean floor. That would result in the well being permanently plugged. The downside to that is it could take up to three months to accomplish.
The amount of oil leaking from the oil well on a daily basis is estimated to be around 5,000 barrels a day, based on estimates from the Coast Guard, NOAA and BP.
Top kill is a term the oil industry uses in regard to sealing an oil well with cement and other drilling fluids.
The amount of oil the company is capturing form the pipeline about a mile long has improved, rising from 2,000 just a couple of days ago to close to 5,000 now, according to a spokesman for the company.
If the top kill attempt doesn't work, another option would be to drill two relief wells, which would intercept the oil well at about 13,000 feet below the ocean floor. That would result in the well being permanently plugged. The downside to that is it could take up to three months to accomplish.
The amount of oil leaking from the oil well on a daily basis is estimated to be around 5,000 barrels a day, based on estimates from the Coast Guard, NOAA and BP.
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