Saturday, April 24, 2010

BP (LSE:BP) Production Not Affected by Oil Rig Explosion

After the explosion in connection with the oil rig drilling in the Gulf of Mexico, BP (LSE:BP) (NYSE:BP) shareholders were wondering how that would have an impact on oil production.

As far as the area the company was drilling in, it was a relatively small deposit and won't have any significant impact on oil supplies for the company.

The estimate was for less than 100 million barrels at the location, and was only being considered commercially because it was nearby other pipliines.

In that particular area BP produces about 450,000 barrels a day, about 12 percent of BP's total production.

2 comments:

Joshua Sophy said...

The environmental impact of the Deepwater Horizon oil rig sinking into the Gulf of Mexico will be felt for years to come. The financial impact is already being felt.

As it sunk, the rig began spilling tens of thousands of gallons of oil into the water per day. Nearly a half-million gallons have already spilled and the toll could be worse than that of the Valdez accident.

Fears are that oil from the well on the sea floor will begin making its way to the surface. Just 41 miles from the coast, the rig is situated so that this incident has brought a lot of business to a halt on the seas, and for those who depend on the Gulf along the shores. As the slick spreads across the Gulf, more and more business is impacted each day. This delay is likely to total in the millions of dollars until the site is cleaned.

And clearly, the impact of sea life in the Gulf is immediate and could be felt for years. Those waters serve as home to numerous fish species and shellfish like shrimp, mussels and oysters we find at markets. Not only is it next to impossible to farm these animals under such conditions, the water quality is sure to be jeopardized by the massive oil spill.

Please read this site for more information on the environmental and economic damages this explosion, fire and spill have caused: http://www.oil-rig-explosions.com/

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