Thursday, July 22, 2010

Exxon (NYSE:XOM), Shell (NYSE:RDS-A), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP) Developing Rapid-response Deployment System

Exxon Mobil (NYSE:XOM), Chevron Corp. (NYSE:CVX), ConocoPhillips (NYSE:COP) and Royal Dutch Shell (NYSE:RDS-A) announced they are working together to develop a rapid-response system to combat any future oil spills.

The four companies are contributing $250 million each toward the $1 billion project, which will be able to be used at depths up to 10,000 feet, and capture or contain up to 100,000 barrels a day; something that would have stopped the BP (NYSE:BP) oil spill from spreading across the Gulf.

Alan Jeffers, an Exxon spokesman, said this about the new effort, “Exxon Mobil is taking the lead on the engineering construction phase, but the plan is to set up a non-profit organization that will ultimately manage this. It’s still in the development stages, but we’re going to ask others to join and those who choose not to join can have access to the equipment via commercial arrangements.”

The new organization created from the effort will be non-profit, and will be called the Marine Well Containment Co.

It isn't called a rapid-response system for nothing, as it'll be able to be deployed within a period of 24 hours.

Engineers from the four companies mentioned above are working on developing the system.

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