If things were to proceed without any major problems, the "bottom kill" by BP (NYSE:BP) would have happened in the middle of August, but that won't be the case, as concerns over trapped debris have put things temporarily on hold until officials figure out how to deal with it.
While the oil has stopped leaking from the oil well, it can't be pronounced officially dead until the bottom kill is completed.
The decision to perform a "top kill" first resulted in the possibility cement being caught between a couple of layers of casing, which then trapped oil that had leaked inside.
Former Coast Guard Admiral Thad Allen said, "When we do the intercept well and commence pumping mud and cement... it will create pressure," Allen said. "We want to make sure before I give the order and direct BP to do that, that we know the implications of that pressure, and how we will deal with it."
Two potential solutions would be to work with the existing sealing cap on top of the well using what is called a "pressure relief method," or place a new blow-out preventer in place which would be able to handle any pressure coming from the blocked area.
Once a decision is made and Allen gives the go ahead, it's expected to take about a week to complete the operation.
Showing posts with label Containment Cap. Show all posts
Showing posts with label Containment Cap. Show all posts
Wednesday, August 18, 2010
Gulf Shrimping Season Arrives After BP (NYSE:BP) Stops Spill
The fall shrimping season is hitting the Gulf of Mexico, and fisherman are out in force for the first time since the BP (NYSE:BP) oil spill, and reports so far show an abundance of shrimp caught and a clean bunch of shrimp on top of that.
Some shrimpers said they saw no hint of oil or tar balls while they were fishing, and that's good news for everyone involved.
Waters controlled by Louisiana, Texas, Mississippi, Alabama and Florida are all open for shrimping, and more news about the conditions will arrive as reports are turned in.
Tests on the shrimp in the Gulf have shown they are clean and edible, but the key will be to convince consumers of that reality.
After people start eating them and giving feedback, that should create a domino effect which should generate more demand and help the fishing industry and region get back on track.
Some shrimpers said they saw no hint of oil or tar balls while they were fishing, and that's good news for everyone involved.
Waters controlled by Louisiana, Texas, Mississippi, Alabama and Florida are all open for shrimping, and more news about the conditions will arrive as reports are turned in.
Tests on the shrimp in the Gulf have shown they are clean and edible, but the key will be to convince consumers of that reality.
After people start eating them and giving feedback, that should create a domino effect which should generate more demand and help the fishing industry and region get back on track.
Thursday, August 12, 2010
Has BP (NYSE:BP) Already Plugged Well Permanently?
According to National Incident Commander Thad Allen, BP (NYSE:BP) may have "accidentally" killed the oil well, making the bottom kill from the relief an unnecessary action.
The recent top kill could have resulted in cement moving into the annulus, which is what the "bottom kill" goal would have been to do, and which is the definition of the well permanently and safely being killed.
Allen said in a briefing, "A bottom kill finishes this well. The question is has it already been accomplished?"
He added that BP is now putting into play a pressure test on the well to determine whether or not the annulus has been reached by the cement. If so, the pressure tests will reveal it.
The question does arise as to whether this was really inadvertent or not, or an attempt to have it happen this way in order to allow the oil giant to either resume drilling in the future or sell the assets to another energy company.
We'll probably never know, but it's highly doubtful the government or BP ever had the idea in their mind to just let the oil sit underneath the Gulf floor. This gives them a nice out and reason to use the relief well for 'other purposes.'
The recent top kill could have resulted in cement moving into the annulus, which is what the "bottom kill" goal would have been to do, and which is the definition of the well permanently and safely being killed.
Allen said in a briefing, "A bottom kill finishes this well. The question is has it already been accomplished?"
He added that BP is now putting into play a pressure test on the well to determine whether or not the annulus has been reached by the cement. If so, the pressure tests will reveal it.
The question does arise as to whether this was really inadvertent or not, or an attempt to have it happen this way in order to allow the oil giant to either resume drilling in the future or sell the assets to another energy company.
We'll probably never know, but it's highly doubtful the government or BP ever had the idea in their mind to just let the oil sit underneath the Gulf floor. This gives them a nice out and reason to use the relief well for 'other purposes.'
Tuesday, August 10, 2010
BP's (NYSE:BP) Permanent/Temporary Plugging of Gulf Oil Well
It can no longer be taken seriously that BP (NYSE:BP) is permanently plugging the Macondo oil well in the Gulf of Mexico, in the sense that it will never be accessed again.
That doesn't mean the leak won't be permanently sealed, just that the ability to extract oil and gas from it again surely has been taken into consideration during the entire process.
Even the second relief well, always from the beginning touted as a backup if the first relief well didn't work, had to be considered another way to tap into the oil and gas once the cleanup is well under way and media coverage and public anger had subsided.
It's impossible to know when BP may end up tapping into the well again, or if they decide to sell it off to a competitor who could do the work without the type of reaction BP would have to endure.
Whatever the eventual outcome of the oil well, one thing is sure, that much oil can't be allowed to go to waste, and it isn't just business interests that are at stake, but consumer and political as well, even though there will be a very low key approach and a significant length of time which goes by before we hear talk and trial balloons thrown out to see the reaction and test the waters.
We'll probably be through a lot of the claims process at that time and the cleanup, which will help defuse the emotion related to the Gulf spill and its effects.
In the end, BP will stop the leak permanently, but the Macondo well will live on, and the stoppage there will only be temporary.
That doesn't mean the leak won't be permanently sealed, just that the ability to extract oil and gas from it again surely has been taken into consideration during the entire process.
Even the second relief well, always from the beginning touted as a backup if the first relief well didn't work, had to be considered another way to tap into the oil and gas once the cleanup is well under way and media coverage and public anger had subsided.
It's impossible to know when BP may end up tapping into the well again, or if they decide to sell it off to a competitor who could do the work without the type of reaction BP would have to endure.
Whatever the eventual outcome of the oil well, one thing is sure, that much oil can't be allowed to go to waste, and it isn't just business interests that are at stake, but consumer and political as well, even though there will be a very low key approach and a significant length of time which goes by before we hear talk and trial balloons thrown out to see the reaction and test the waters.
We'll probably be through a lot of the claims process at that time and the cleanup, which will help defuse the emotion related to the Gulf spill and its effects.
In the end, BP will stop the leak permanently, but the Macondo well will live on, and the stoppage there will only be temporary.
Friday, August 6, 2010
BP (NYSE:BP) To Make Billions Off Remaining Oil?
Now that the end is coming as far as permanently plugging the oil well, the question needs to be asked as to what to do with the remaining oil, which estimated at about 45,000 barrels. That would generate close to $3.7 billion at current market prices, and more if oil prices continue to rise.
The attempt is already being made to make it sound controversial if BP somehow taps into the oil or sells the oil well to another company in order to generate revenue.
But the issue is simpler than that: do we waste that many barrels of oil for no reason? Now that the well is safely plugged, why waste that much oil?
Some ridiculous comments are already being made that oil from the site shouldn't be used commercially, as if it's some type of holy site or shrine. It's a place to access oil for millions of people to use for their needs. To let it sit and waste underneath the Gulf of Mexico would be a crime, and poor management of our resources.
There is the possibility BP may want to leave the well as it is with the top kill, as it will hold the oil in and leave it available for access in the future.
You can be sure there are conversations with government officials about this, as the waste of 45,000 barrels and the use it could get, jobs it would create, and money it would make, all make it in the best interest of Americans to have the oil be extracted from the well and used.
To think differently would be naive. What's being weighed is how deep the political fallout would be if it was to go forward.
This is why second thoughts have been thrown out be BP about the pumping of cement and mud into the well using the relief well. As once it's completed, there is no way to be able to access the oil.
At minimum, I would think they're at least considering selling the existing well to another company in order to have the oil not go to waste, and to make it more palatable to those who would strongly oppose BP retaining possession and resuming drilling.
How government officials, especially, respond to these questions will determine whether or not it's something that's in the works or not.
The attempt is already being made to make it sound controversial if BP somehow taps into the oil or sells the oil well to another company in order to generate revenue.
But the issue is simpler than that: do we waste that many barrels of oil for no reason? Now that the well is safely plugged, why waste that much oil?
Some ridiculous comments are already being made that oil from the site shouldn't be used commercially, as if it's some type of holy site or shrine. It's a place to access oil for millions of people to use for their needs. To let it sit and waste underneath the Gulf of Mexico would be a crime, and poor management of our resources.
There is the possibility BP may want to leave the well as it is with the top kill, as it will hold the oil in and leave it available for access in the future.
You can be sure there are conversations with government officials about this, as the waste of 45,000 barrels and the use it could get, jobs it would create, and money it would make, all make it in the best interest of Americans to have the oil be extracted from the well and used.
To think differently would be naive. What's being weighed is how deep the political fallout would be if it was to go forward.
This is why second thoughts have been thrown out be BP about the pumping of cement and mud into the well using the relief well. As once it's completed, there is no way to be able to access the oil.
At minimum, I would think they're at least considering selling the existing well to another company in order to have the oil not go to waste, and to make it more palatable to those who would strongly oppose BP retaining possession and resuming drilling.
How government officials, especially, respond to these questions will determine whether or not it's something that's in the works or not.
Wednesday, August 4, 2010
About 75 Percent of BP (NYSE:BP) Gulf Oil Gone
Close to 75 percent of all the oil released into the Gulf of Mexico has evaporated, burned off, eaten by microbes or captured, according to White House energy adviser Carol Browner.
Browner said in a TV interview, "Our scientists and external scientists believe that the vast majority of the oil has now been contained. And so, I think we're turning a corner here."
Once BP stopped the oil from being released into the Gulf with their last containment cap, many were surprised at how quickly the Gulf healed itself through evaporation and microbes eating the oil, and evidently, even the dispersant used by BP to break up the oil.
Some inspecting other areas of the Gulf region for damage have suggested it would be better, for the most part, to allow the other areas to heal themselves as well, rather than have the government assign projects to BP which may not do near as good as nature itself.
Browner said in a TV interview, "Our scientists and external scientists believe that the vast majority of the oil has now been contained. And so, I think we're turning a corner here."
Once BP stopped the oil from being released into the Gulf with their last containment cap, many were surprised at how quickly the Gulf healed itself through evaporation and microbes eating the oil, and evidently, even the dispersant used by BP to break up the oil.
Some inspecting other areas of the Gulf region for damage have suggested it would be better, for the most part, to allow the other areas to heal themselves as well, rather than have the government assign projects to BP which may not do near as good as nature itself.
Wednesday, July 28, 2010
BP (NYSE:BP) Change of Leadership Won't Dampen Cleanup Efforts says Thad Allen
Government point man in the Gulf of Mexico oil spill, former Coast Guard Admiral Thad Allen, said the change of CEOs by BP (NYSE:BP) won't change the commitment to cleanup efforts in the region.
Commenting on the decision to remove Tony Hayward on October 1, Allen said, "I don't see any diminishing of performance or priorities," from the transition.
Effectively Bob Dudley will be CEO, as Hayward will obviously be a lame duck and non-entity; at least in the United States, where he has numerous PR disasters which made the situation worse than it had been from that perspective.
The schedule to being the "static kill' on Monday remains on target as well, which at the end of the week should finish off with the relief well ready to plug the well permanently on the bottom.
The static kill will focus on the top of the well, where cement and mud is injected into the well. The relief well does a similar thing from the bottom of the well.
Allen added the containment cap which has stopped the oil from flowing into the Gulf remains stable and continues to do the job it was intended to do.
Commenting on the decision to remove Tony Hayward on October 1, Allen said, "I don't see any diminishing of performance or priorities," from the transition.
Effectively Bob Dudley will be CEO, as Hayward will obviously be a lame duck and non-entity; at least in the United States, where he has numerous PR disasters which made the situation worse than it had been from that perspective.
The schedule to being the "static kill' on Monday remains on target as well, which at the end of the week should finish off with the relief well ready to plug the well permanently on the bottom.
The static kill will focus on the top of the well, where cement and mud is injected into the well. The relief well does a similar thing from the bottom of the well.
Allen added the containment cap which has stopped the oil from flowing into the Gulf remains stable and continues to do the job it was intended to do.
Friday, July 23, 2010
BP (NYSE:BP) Gets Go Ahead for Cap to Remain Sealed
Saying the possibility of the containment cap in place over the Macondo well in the Gulf of Mexico has little chance of causing leaks to explode in other areas of the well, National Incident Commander Thad Allen said he and U.S. Energy Secretary Steven Chu have given BP (NYSE:BP) the okay to keep the cap in place as long as needed.
Allen said they took into account the visual, seismic and acoustic surveillance, along with pressure readings, which point to successful containment of the oil well.
In a press conference Thursday, Allen said, “We’re starting to create almost a 3-D model of what the formation around that well looks like. That allows us to rule out indications there might be a leak.”
Major concerns now are whether strong winds will hit the area in a way that it will cause more oil to hit the shorelines, something that happened with Hurricane Alex.
The U.S. National Hurricane Center issued warnings of storms forming in the east part of the Gulf, which could reach the oil well on the morning of July 24, according to Allen.
Data after the recent storm showed oil on the shoreline was about twice what it was before the storm.
Allen said they took into account the visual, seismic and acoustic surveillance, along with pressure readings, which point to successful containment of the oil well.
In a press conference Thursday, Allen said, “We’re starting to create almost a 3-D model of what the formation around that well looks like. That allows us to rule out indications there might be a leak.”
Major concerns now are whether strong winds will hit the area in a way that it will cause more oil to hit the shorelines, something that happened with Hurricane Alex.
The U.S. National Hurricane Center issued warnings of storms forming in the east part of the Gulf, which could reach the oil well on the morning of July 24, according to Allen.
Data after the recent storm showed oil on the shoreline was about twice what it was before the storm.
Thursday, July 22, 2010
BP (NYSE:BP) Effort to Permanently Stop Leak Threatened by Storms
BP (NYSE:BP) again finds itself under the threat of Gulf storms, as the effort to stop the oil leak permanently could be hindered again if storms are unleashed in the region.
If a storm does come, BP would have to move its ships from the area, keeping them from observing the well, but it would still remain capped, assuming everything goes well for during that time.
Weather forecasters give the storm about a 60 percent chance of turning into a tropical storm by Friday. Even so, it is weakening as it approaches other countries in the Gulf.
If it does drive BP out of the area, the government may have them open the cap to relieve pressure in order to prevent the cap from causing any major underground leaks while a storm is in the region and observation is impossible.
If a storm does come, BP would have to move its ships from the area, keeping them from observing the well, but it would still remain capped, assuming everything goes well for during that time.
Weather forecasters give the storm about a 60 percent chance of turning into a tropical storm by Friday. Even so, it is weakening as it approaches other countries in the Gulf.
If it does drive BP out of the area, the government may have them open the cap to relieve pressure in order to prevent the cap from causing any major underground leaks while a storm is in the region and observation is impossible.
Tuesday, July 20, 2010
BP (NYSE:BP): Pressure Rising with New Containment Cap
Even though stories have been circulating about a leak in the Macondo well, the fact that the pressure continues to rise is an indicator the well isn't leaking.
This is why the company has been looking for the pressure to continue rising to close to 8,000 pounds a square inch, as it would bring the conclusion there isn't a leak.
If the well wasn't rising in pressure, or the pressure was low, it would indicate a leak in the well, and the need to take further action to plug it.
The latest figures had the well pressure at close to 6,800 pounds a square inch, a good number going forward, which implies the integrity of the well is being retained, and/or there are no leaks at other parts of the well.
This is why the company has been looking for the pressure to continue rising to close to 8,000 pounds a square inch, as it would bring the conclusion there isn't a leak.
If the well wasn't rising in pressure, or the pressure was low, it would indicate a leak in the well, and the need to take further action to plug it.
The latest figures had the well pressure at close to 6,800 pounds a square inch, a good number going forward, which implies the integrity of the well is being retained, and/or there are no leaks at other parts of the well.
Friday, July 16, 2010
BP (NYSE:BP) Cap Pressure Rising is Good News
After stopping the flow of oil into the Gulf of Mexico yesterday, the next step by BP (NYSE:BP) will be to determine if the amount of pressure rising within the new containment cap.
The good news is that's exactly how it's performing at this time, as the pressure continues to rise.
Why this is good news is if the pressure rises to above 8,000, which is the goal of the oil giant, it will show there isn't oil leaking out somewhere else. The lower the pressure the more possibility there are leaks somewhere.
The latest numbers were the pressure was up to 6,700 a square inch inside the capping stack of the well, and that indicates so far the oil isn't spilling into the Gulf.
The good news is that's exactly how it's performing at this time, as the pressure continues to rise.
Why this is good news is if the pressure rises to above 8,000, which is the goal of the oil giant, it will show there isn't oil leaking out somewhere else. The lower the pressure the more possibility there are leaks somewhere.
The latest numbers were the pressure was up to 6,700 a square inch inside the capping stack of the well, and that indicates so far the oil isn't spilling into the Gulf.
Anadarko (NYSE:APC), Transocean (NYSE:RIG) Soar on BP (NYSE:BP) Stopping Gulf Oil Leak
Investors scrambled to invest in Anadarko (NYSE:APC) and Transocean (NYSE:RIG) at the end of the trading day Thursday, on the news BP (NYSE:BP) stopped oil from leaking into the Gulf of Mexico, having successfully closed the valves with their new containment cap.
BP was up over 7 percent at the end of trading. Transocean was next, up by $2.34, or 4.47 percent. Anadarko Petroleum was right behind them, gaining $1.50 a share, or 3.15 percent.
Anadarko continues to rise after trading, as did BP, while Transocean pulled back.
BP was up over 7 percent at the end of trading. Transocean was next, up by $2.34, or 4.47 percent. Anadarko Petroleum was right behind them, gaining $1.50 a share, or 3.15 percent.
Anadarko continues to rise after trading, as did BP, while Transocean pulled back.
Thursday, July 15, 2010
BP (NYSE:BP) Stops Oil Leak - Share Price Explodes!
BP (NYSE:BP) shares exploded upward after the announcement they had stopped oil from leaking into the Gulf of Mexico.
Shares closed at $38.92, rising $2.74, or 7.57 percent. Share price also continued to move up in trading after close.
In a press conference, BP's Kent Wells was chosen to deliver the news most have been waiting to hear since the the explosion on the Deepwater Horizon oil rig in April started the oil leaking.
BP wasn't sure how long it would take because it wasn't known if the initial closing of the valves would stop the leak, or they've have to continue on with other steps.
Calling it a "critical milestone," Wells did stress that it is not an guaranteed success. Oil could begin flowing again, depending on the results of well-integrity tests, which will search for leaks. That could last up to 48 hours.
Now they also await the first relief well to be completed which will permanently seal the oil well.
BP has said when they stop the oil they wouldn't be producing any more from the well.
The rise in share price brought the market cap of the company up to $121.85 billion.
Shares closed at $38.92, rising $2.74, or 7.57 percent. Share price also continued to move up in trading after close.
In a press conference, BP's Kent Wells was chosen to deliver the news most have been waiting to hear since the the explosion on the Deepwater Horizon oil rig in April started the oil leaking.
BP wasn't sure how long it would take because it wasn't known if the initial closing of the valves would stop the leak, or they've have to continue on with other steps.
Calling it a "critical milestone," Wells did stress that it is not an guaranteed success. Oil could begin flowing again, depending on the results of well-integrity tests, which will search for leaks. That could last up to 48 hours.
Now they also await the first relief well to be completed which will permanently seal the oil well.
BP has said when they stop the oil they wouldn't be producing any more from the well.
The rise in share price brought the market cap of the company up to $121.85 billion.
Government Gives OK on BP (NYSE:BP) Cap Test
A day after the U.S. government told BP (NYSE:BP) to hold back on testing the new containment cap until questions were answered, they've now given the go ahead for BP to proceed with the tests.
It does make you wonder what the government was doing over the last week or so, as they should have been asking questions before the process began, not wait until BP was in the middle of the process. How hard would it have been to do that?
Concerns were over the testing of the oil well, and whether that could make things worse or not if it failed.
Evidently BP has successfully answered those concerns, and National Incident Commander Thad Allen said they've been given permission to go forward.
BP said it'll take about 48 hours to complete the test to see if it is working properly or not.
It does make you wonder what the government was doing over the last week or so, as they should have been asking questions before the process began, not wait until BP was in the middle of the process. How hard would it have been to do that?
Concerns were over the testing of the oil well, and whether that could make things worse or not if it failed.
Evidently BP has successfully answered those concerns, and National Incident Commander Thad Allen said they've been given permission to go forward.
BP said it'll take about 48 hours to complete the test to see if it is working properly or not.
Wednesday, July 14, 2010
Why New BP (NYSE:BP) Containment Cap Takes Time to Test
The first thing to understand about the new containment cap being tested on the leaking oil well in the Gulf of Mexico, is it's a temporary measure, and is being put in place until the more permanent relief well is put in place, which will plug the oil leak.
Now that the cap is in place, it could take up to two days or longer to do what is needed to be done to successfully implement the system.
The first step, which has already been completed, is doing a seismic survey, which created a map of the rock underneath the floor of the sea in order to compare it with future surveys, so that they are sure pressure on the well isn't causing problems which can't be seen. That took at least several hours to complete.
Next, engineers from BP will shut off the pipes transferring oil to vessels on the surface of the Gulf, to see ow the cap takes the pressure of the oil pushing against it.
After that three valves which allow oil to pass through the cap will be closed one at a time.
If the oil is stopped too quickly, it could end up damaging the oil well even more, or blow the cap off the well.
What scientists want to see is the pressure readings to come in at around 8,000 to 9,000 pounds per square inch. That would indicate there are no other leaks coming from the oil well. If it's under about 6,000, they say it would mean there are leaks that hadn't been identified yet.
The purpose of the test is to see what the condition of the "wellbore below the seafloor," according to point man Thad Allen.
Each step will determine if another step will need to be taken. If nothing else is discovered, the test could be completed, and the test would be over, and the leak stopped.
That's why the range of 6 hours to up to several days has been thrown out, as each step and its success or lack of success, will change the timeframe.
Now that the cap is in place, it could take up to two days or longer to do what is needed to be done to successfully implement the system.
The first step, which has already been completed, is doing a seismic survey, which created a map of the rock underneath the floor of the sea in order to compare it with future surveys, so that they are sure pressure on the well isn't causing problems which can't be seen. That took at least several hours to complete.
Next, engineers from BP will shut off the pipes transferring oil to vessels on the surface of the Gulf, to see ow the cap takes the pressure of the oil pushing against it.
After that three valves which allow oil to pass through the cap will be closed one at a time.
If the oil is stopped too quickly, it could end up damaging the oil well even more, or blow the cap off the well.
What scientists want to see is the pressure readings to come in at around 8,000 to 9,000 pounds per square inch. That would indicate there are no other leaks coming from the oil well. If it's under about 6,000, they say it would mean there are leaks that hadn't been identified yet.
The purpose of the test is to see what the condition of the "wellbore below the seafloor," according to point man Thad Allen.
Each step will determine if another step will need to be taken. If nothing else is discovered, the test could be completed, and the test would be over, and the leak stopped.
That's why the range of 6 hours to up to several days has been thrown out, as each step and its success or lack of success, will change the timeframe.
Tuesday, July 13, 2010
Testing Begins on New BP (NYSE:BP) Containment Cap
After placing the 150,000 lb. containment cap over the oil well leaking in the Gulf of Mexico, BP (NYSE:BP) has began testing the new cap to see if it can do the job of stopping the oil from leaking into the Gulf.
The tests area a double-edged sword, in that the news could be bad news because it could confirm the flowing oil can't be contained, or of course it could be good news that it can be. The tests will make that determination.
BP began with seismic testing, and later on in the day has plans in place to test the well's integrity.
"When the data says that we need to open up the well we'll do that," he said. "When the data says that the well can be shut in we'll do that," said BP Senior Vice President Kent Wells.
The testing offers other uncertainties as it relates to time, as testing could be completed today, or stretch out for two days or longer.
Even if the cap can't successfully completely stop the flow of oil, it will be an improvement over the prior cap, slowing down the oil, and will also all collection vessels on the surface to disconnect and reconnect quicker in case of bad weather, helping to keep more oil from escaping into the Gulf.
The tests area a double-edged sword, in that the news could be bad news because it could confirm the flowing oil can't be contained, or of course it could be good news that it can be. The tests will make that determination.
BP began with seismic testing, and later on in the day has plans in place to test the well's integrity.
"When the data says that we need to open up the well we'll do that," he said. "When the data says that the well can be shut in we'll do that," said BP Senior Vice President Kent Wells.
The testing offers other uncertainties as it relates to time, as testing could be completed today, or stretch out for two days or longer.
Even if the cap can't successfully completely stop the flow of oil, it will be an improvement over the prior cap, slowing down the oil, and will also all collection vessels on the surface to disconnect and reconnect quicker in case of bad weather, helping to keep more oil from escaping into the Gulf.
Success of New BP (NYSE:BP) Containment Cap
Even though there are high expectations about the new BP (NYSE:BP) containment cap put in place, it's going to take up to several days before it is known if it is successful or not.
After being placed, tests will now begin to ascertain whether or not the new cap can survive the immense pressure from the oil escaping and then be able to distribute it to the surface vessels via the pipes.
Assuming it does work, it should effectively stop all oil from escaping into the Gulf, and give some breathing room before the permanent relief well is put in place.
And if the first relief well fails, a properly working containment cap would keep the oil from flowing into the ocean until they make a second attempt with a backup relief well.
The key to identifying if it is working properly or not is the pressure within the cap. If it is rising, it would confirm there are no other well leaks, if pressure is lower, it means there is probably another leak somewhere else in the well, whereby a second cap would be placed over the first.
The new containment cap weighs in at 150,000 lbs.
After being placed, tests will now begin to ascertain whether or not the new cap can survive the immense pressure from the oil escaping and then be able to distribute it to the surface vessels via the pipes.
Assuming it does work, it should effectively stop all oil from escaping into the Gulf, and give some breathing room before the permanent relief well is put in place.
And if the first relief well fails, a properly working containment cap would keep the oil from flowing into the ocean until they make a second attempt with a backup relief well.
The key to identifying if it is working properly or not is the pressure within the cap. If it is rising, it would confirm there are no other well leaks, if pressure is lower, it means there is probably another leak somewhere else in the well, whereby a second cap would be placed over the first.
The new containment cap weighs in at 150,000 lbs.
Monday, July 12, 2010
BP (NYSE:BP) Surges on Stopping Leak, Selling Alaskan Assets
BP (NYSE:BP) had it largest one-day surge in 20 months in London on the possibility they may be able to stop the oil leak in the Gulf soon, and that they could generate capital by selling off some of its Alaskan assets.
The new containment cap being put on by BP today, if it's successful, would effectively stop the flow of oil seeping into the ocean, giving them some breathing room until they permanently plug it with a relief well.
BP is also negotiating with Apache Corp. to sell assets they hold in Alaska for a little under $12 billion, which would exceed their original goal of raising $10 billion through asset sales. Other assets they could sell are in several South American countries and/or Vietnam.
That could mean they'll stop at that point concerning raising capital in that manner, or they're going to use asset sales as a chief way of raising capital, seeing some are hesitant to invest in them, as well as the share price of the oil giant has been rising significantly lately.
The Sunday Times in London also reported that Exxon Mobil (NYSE:XOM) has been encouraged or given permission to investigate bidding on taking over BP. It could be premature to think that Exxon, or any other major oil company would take on BP at this point, at least not until a more accurate picture of what their liability will be emerges.
The new containment cap being put on by BP today, if it's successful, would effectively stop the flow of oil seeping into the ocean, giving them some breathing room until they permanently plug it with a relief well.
BP is also negotiating with Apache Corp. to sell assets they hold in Alaska for a little under $12 billion, which would exceed their original goal of raising $10 billion through asset sales. Other assets they could sell are in several South American countries and/or Vietnam.
That could mean they'll stop at that point concerning raising capital in that manner, or they're going to use asset sales as a chief way of raising capital, seeing some are hesitant to invest in them, as well as the share price of the oil giant has been rising significantly lately.
The Sunday Times in London also reported that Exxon Mobil (NYSE:XOM) has been encouraged or given permission to investigate bidding on taking over BP. It could be premature to think that Exxon, or any other major oil company would take on BP at this point, at least not until a more accurate picture of what their liability will be emerges.
Friday, July 9, 2010
BP (NYSE:BP) Oil Leak Contained by Monday?
It's possible with the combination of a new containment cap and connecting another ship to a part of the leaking oil well in the Gulf, that BP (NYSE:BP) effectively contain almost all the oil leaking from the well by Monday.
Estimates from National Incident Commander Thad Allen have been the new system and cap could capture up to 80,000 barrels of oil a day, which would exceed government estimates of up to 60,000 barrels a day leaking into the Gulf.
The major challenge for BP will be successfully placing the new containment cap on the oil well, which isn't guaranteed.
If it does work, it would be a major turning point in the oil disaster, and would give some breathing room to complete the first relief well, which is considered the best chance at completely stopping the oil spill.
It hasn't been made totally clear if the new containment cap would completely stop the oil from flowing, or if it is simply an improvement over the last cap, and would greatly enhance the capture rate, but would still allow oil to flow into the Gulf.
Estimates from National Incident Commander Thad Allen have been the new system and cap could capture up to 80,000 barrels of oil a day, which would exceed government estimates of up to 60,000 barrels a day leaking into the Gulf.
The major challenge for BP will be successfully placing the new containment cap on the oil well, which isn't guaranteed.
If it does work, it would be a major turning point in the oil disaster, and would give some breathing room to complete the first relief well, which is considered the best chance at completely stopping the oil spill.
It hasn't been made totally clear if the new containment cap would completely stop the oil from flowing, or if it is simply an improvement over the last cap, and would greatly enhance the capture rate, but would still allow oil to flow into the Gulf.
BP (NYSE:BP) Collects 24,395 Barrels of Oil Thursday
BP (NYSE:BP) still hasn't been able to get back to the recovery levels it had several days before the underwater robot hit the containment cap, which had been capturing about 28,000 barrels a day.
Since then the amount of oil captured has been down by several thousand barrels a day.
That should soon change, and possibly as early as this weekend, as a new containment cap will attempt to placed on the well which could capture the majority of oil escaping, up to 80,000 barrels a day.
The problem is there is simply no idea at this time of really how much oil is escaping into the Gulf, as estimates are from 30,000 barrels a day all the way up to the worst case scenario of 100,000 barrels a day.
Since then the amount of oil captured has been down by several thousand barrels a day.
That should soon change, and possibly as early as this weekend, as a new containment cap will attempt to placed on the well which could capture the majority of oil escaping, up to 80,000 barrels a day.
The problem is there is simply no idea at this time of really how much oil is escaping into the Gulf, as estimates are from 30,000 barrels a day all the way up to the worst case scenario of 100,000 barrels a day.
Subscribe to:
Posts (Atom)