Tuesday, July 27, 2010

BP's (NYSE:BP) Time to Kill Oil Well Approaching

Former Coast Guard Adm. Thad Allen, who retired the the middle of the
BP (NYSE:BP) Gulf oil crisis, but still represents the U.S. government in managing the cleanup process, said the process to begin killing the Macondo oil well should begin on August 2.

The well kill will be performed in two stages, with the first being called a "static kill," referring to cement and mud being shot into the well via the top. That will be the procedure on the second of August.

Assuming that is successful, the second stage, which is tentatively scheduled for August 7, would be to shoot mud and cement in from the relief well, which has reached its desired position and is ready to take the next step. The relief well is far below the top of the oil well and deep underground. That is called a bottom kill, and depending on the outcome of the static kill, could take several days or several weeks to complete.

The time frames could easily change if tropical storms enter the region and operations have to be shut down.

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