BP Plc (NYSE:BP) has signed a two-year deal with Angola worth $340 million.
The oil giant will pay for a deepwater oil rig with that money, according to Odfjell Drilling, a Norwegian rig owner.
Odjfell's Deepsea Stavanger rig can drill at depths of up to 3,000 metres, and is reportedly ready to begin by the first half of next year.
BP has an additional three one-year options on the rig if it chooses to exercise them.
Drilling will be in Block 18 off the coast of Angola.
Showing posts with label Offshore Drilling. Show all posts
Showing posts with label Offshore Drilling. Show all posts
Monday, October 25, 2010
Friday, October 15, 2010
BP (NYSE:BP) Keeping Deepwater Assets
BP (NYSE:BP) and partner TNK-BP, a joint venture between BP and Russian billionaires, announced today they have a confirmed deal is now in place over some assets held in Venezuela by BP.
The oil giant has been selling a number of assets, and others are on the block, in order to raise around $30 billion to pay for growing liabilities from the Gulf oil spill.
A number of onshore and natural gas assets have already been sold.
With the oil future in deep water though, BP is holding onto those assets, and aren't considering selling them. That includes natural gas deepwater drilling off of Azerbaijan.
Contrary to what appears to be a move away from deepwater drilling, it is in fact expanding fast, as huge resources are believed to be in waters which have had little, if any, exploration done on them.
With the huge known natural gas reserves discovered, many energy companies are doubling their efforts in the much more profitable oil sector.
The oil giant has been selling a number of assets, and others are on the block, in order to raise around $30 billion to pay for growing liabilities from the Gulf oil spill.
A number of onshore and natural gas assets have already been sold.
With the oil future in deep water though, BP is holding onto those assets, and aren't considering selling them. That includes natural gas deepwater drilling off of Azerbaijan.
Contrary to what appears to be a move away from deepwater drilling, it is in fact expanding fast, as huge resources are believed to be in waters which have had little, if any, exploration done on them.
With the huge known natural gas reserves discovered, many energy companies are doubling their efforts in the much more profitable oil sector.
Wednesday, October 13, 2010
Offshore Drilling Soaring Even with BP (NYSE:BP) Oil Spill
The report released today by the International Energy Agency confirms what many suspected, that offshore drilling in the world continues to grow in spite of the BP (NYSE:BP) oil spill, as demand for the black gold continues to rise.
With the response from the Obama administration in the U.S., they will probably be the only country producing less oil, with an estimated loss of 60,000 barrels a day in 2010, growing to about 100,000 barrels a day less in 2011, said the IEA.
Other areas of the world won't have lower production, as the agency said they don't "foresee any significant impact on production elsewhere.”
Actually offshore drilling is really only just getting started as onshore oil fields get harder to find. Many countries are just starting to get their offshore exploration deal going, which promises much more oil in the future.
The problem in the past was being able to see through the salt on the ocean floor to find the oil and gas. New technology now allows them to get past that former obstacle.
With the response from the Obama administration in the U.S., they will probably be the only country producing less oil, with an estimated loss of 60,000 barrels a day in 2010, growing to about 100,000 barrels a day less in 2011, said the IEA.
Other areas of the world won't have lower production, as the agency said they don't "foresee any significant impact on production elsewhere.”
Actually offshore drilling is really only just getting started as onshore oil fields get harder to find. Many countries are just starting to get their offshore exploration deal going, which promises much more oil in the future.
The problem in the past was being able to see through the salt on the ocean floor to find the oil and gas. New technology now allows them to get past that former obstacle.
Monday, October 11, 2010
BP (NYSE:BP) Spill to Look at Future Of Offshore Drilling in U.S.
On Wednesday the BP (NYSE:BP) oil spill commission will meet to take a look at what the future of offshore drilling is for America.
At this time the commission in investigating various aspects of the accident leading to and the consequences of the explosion on the Deepwater Horizon oil rig.
Being a public discussion, sparks are sure to fly as the highly controversial and disastrous oil moratorium of the Obama administration has affected thousands of jobs in the Gulf region, and more through permitting standards in shallow water drilling that are increasingly costing the loss of more jobs.
The National Commission on the BP PLC Deepwater Horizon Oil Spill and Offshore Drilling say they'll also talk about the rules that decide the parameters of offshore drilling in the U.S.
At this time the commission in investigating various aspects of the accident leading to and the consequences of the explosion on the Deepwater Horizon oil rig.
Being a public discussion, sparks are sure to fly as the highly controversial and disastrous oil moratorium of the Obama administration has affected thousands of jobs in the Gulf region, and more through permitting standards in shallow water drilling that are increasingly costing the loss of more jobs.
The National Commission on the BP PLC Deepwater Horizon Oil Spill and Offshore Drilling say they'll also talk about the rules that decide the parameters of offshore drilling in the U.S.
Thursday, September 16, 2010
Pride (NYSE:PDE) CEO Louis Raspino Looks at Zero Risk in Offshore Drilling
Talking at the Barclays Capital (NYSE:BCS) CEO Energy-Power Conference in New York, Pride International Inc (NYSE:PDE) CEO Louis Raspino, said the Obama administration is attempting to get "how close to zero" they can concerning the risks of offshore drilling.
But like the mountaintop removal by coal companies, that's usually another way of saying they're attempting to kill the industry; at least in the Gulf region.
The idea perfection is always an evil one, as it creates the unreachable idea of utopianism, which always ends up being destructive and hurting human beings in one way or the other.
Raspino added, "Quite frankly, the industry has to show the government that it can do a better job than it could do in its last blowout."
While that's not necessarily a bad thing, it's secondary to the ideology behind the proposed changes.
In light of all this, Raspino has predicted there will probably never be a return to the rig count in the Gulf in the future. Welcome to utopia.
But like the mountaintop removal by coal companies, that's usually another way of saying they're attempting to kill the industry; at least in the Gulf region.
The idea perfection is always an evil one, as it creates the unreachable idea of utopianism, which always ends up being destructive and hurting human beings in one way or the other.
Raspino added, "Quite frankly, the industry has to show the government that it can do a better job than it could do in its last blowout."
While that's not necessarily a bad thing, it's secondary to the ideology behind the proposed changes.
In light of all this, Raspino has predicted there will probably never be a return to the rig count in the Gulf in the future. Welcome to utopia.
Wednesday, September 1, 2010
Chevron (NYSE:CVX) Completes Deepest Canadian Exploration Well
Chevron (NYSE:CVX) announced it has completed the drilling of the deepest exploration well in Canadian history off the coast of Newfoundland.
The oil company said they were able to finish the operations without any safety problems. The drilling was in 2,600 meters of water.
Drilling on the project was finished last week, according to Chevron spokesman Leif Sollid, but the results won't be released for about two years, he added.
With the project going on in the midst of the BP (NYSE:BP) oil spill, Chevron was under tight scrutiny, and had to report daily to a safety team concerning the various tests to ensure safe drilling.
The oil company said they were able to finish the operations without any safety problems. The drilling was in 2,600 meters of water.
Drilling on the project was finished last week, according to Chevron spokesman Leif Sollid, but the results won't be released for about two years, he added.
With the project going on in the midst of the BP (NYSE:BP) oil spill, Chevron was under tight scrutiny, and had to report daily to a safety team concerning the various tests to ensure safe drilling.
Monday, July 26, 2010
BP (NYSE:BP) Ready to Launch Libya Offshore Drilling
In deal three years in the making, BP (NYSE:BP) is poised to launch its drilling program into Libyan offshore waters, in a well that will be deeper than the Macondo field well, which has been leaking oil into the Gulf of Mexico until a second containment cap stopped the spill from continuing to enter the waters.
The Libya deepwater drilling will be in the Gulf of Sirte, and is set to start in the next several weeks.
BP spokesman David Nicholas said to AFP news on Saturday: "We expect to begin the first well in the next few weeks," also saying it "can take six months or more to drill."
Concerning the outrageous accusations by Democrats in America that BP and/or the British government had released the Lockerbie bomber in order to secure the oil contracts, UK Foreign Secretary William Hague said this, "There is no evidence that corroborates in any way the allegation of BP's involvement in the Scottish Executive's entirely separate decision to release him on compassionate grounds."
According to Scottish Justice Secretary Kenny MacAskill, all the material related to the incident is in the public domain, and nothing is left to be relieved, other than the communication between the governments of the US and the UK over the matter. That can only be released if given permission from the United States.
Every politician asked in Britain has said there is no connection between BP and the Lockerbie bomber release, and the accusation and showcase hearings meant to distract the American people away from the horrid performance of the Democrats is ridiculous and needs to be stopped.
It underscores the desperate plight of the Democrats who have rejected the will of the American people and forced through unwanted legislation, along with uncontrolled spending, which generations of Americans will have to pay back.
To risk solid relations with the UK in order to protect themselves, well, from themselves, is the ultimate in reckless behavior.
The Libya deepwater drilling will be in the Gulf of Sirte, and is set to start in the next several weeks.
BP spokesman David Nicholas said to AFP news on Saturday: "We expect to begin the first well in the next few weeks," also saying it "can take six months or more to drill."
Concerning the outrageous accusations by Democrats in America that BP and/or the British government had released the Lockerbie bomber in order to secure the oil contracts, UK Foreign Secretary William Hague said this, "There is no evidence that corroborates in any way the allegation of BP's involvement in the Scottish Executive's entirely separate decision to release him on compassionate grounds."
According to Scottish Justice Secretary Kenny MacAskill, all the material related to the incident is in the public domain, and nothing is left to be relieved, other than the communication between the governments of the US and the UK over the matter. That can only be released if given permission from the United States.
Every politician asked in Britain has said there is no connection between BP and the Lockerbie bomber release, and the accusation and showcase hearings meant to distract the American people away from the horrid performance of the Democrats is ridiculous and needs to be stopped.
It underscores the desperate plight of the Democrats who have rejected the will of the American people and forced through unwanted legislation, along with uncontrolled spending, which generations of Americans will have to pay back.
To risk solid relations with the UK in order to protect themselves, well, from themselves, is the ultimate in reckless behavior.
Tuesday, June 22, 2010
Petrobras (NYSE:PBR) Ignores BP (NYSE:BP), Investing $224 Billion Over Five Years
In what should be a very profitable move, the bold Brazilian oil company, Petroleo Brasilero SA, or Petrobras (NYSE:PBR), is ignoring the Gulf of Mexico troubles connected to the BP (NYSE:BP) oil spill, is investing about $224 billion over the next five years in its offshore oil fields, the largest discovered in the Western Hemisphere in 30 years.
The oil fields were discovered using new techniques which are able to discover what's below the salt on the ocean floor.
Now that so many possibilities are open because of the new way of finding out what's below the ocean floor, BP is also setting aside an additional $118.8 billion for exploration and production during that same five-year period as well.
With oil prices relatively low, although still more profitable than natural gas, the future looks bright for Petrobras, as they will assuredly make more discoveries of their coasts, and bring the world oil it thirsts so much for.
This is a great move by the company, as it's the perfect time to expand when the rest of the world is largely going on the defensive in regards to oil.
The oil fields were discovered using new techniques which are able to discover what's below the salt on the ocean floor.
Now that so many possibilities are open because of the new way of finding out what's below the ocean floor, BP is also setting aside an additional $118.8 billion for exploration and production during that same five-year period as well.
With oil prices relatively low, although still more profitable than natural gas, the future looks bright for Petrobras, as they will assuredly make more discoveries of their coasts, and bring the world oil it thirsts so much for.
This is a great move by the company, as it's the perfect time to expand when the rest of the world is largely going on the defensive in regards to oil.
Thursday, May 27, 2010
Obama's Overreaction to BP (NYSE:BP), Oil Accident
It's incredible to see people so worked up over the oil spill, BP (NYSE:BP), oil industry, and even Obama, who has finally taken some criticism during his administration, and it of course would come from radical environmentalists and earth worshippers.
Just a few days ago an airplane went down with over 200 people losing their lives, and yet you didn't get a call to shut down the airline industry. But one large mistake and there's hysteria as these people who ignorantly believe the earth is their mother gnash their teeth and gleefully attack the oil industry and Obama over oil leaking into the Gulf of Mexico, which just happens to have a ton of oil seep into it year after year; about four times in one year what the Exxon Valdez did years ago.
Now after getting some criticism from his base, and others, Obama now responds in a manner that is only politically motivated, and not based on what he really believes in.
Unfortunately, it's more important to mainstream media to hype and keep this story going, than it is for the lost lives of the workers on the Deepwater Horizon, or those on the recent airline crash.
Now the banning and stoppage of work on offshore wells and deepwater drilling will crush the oil industry, something the radical environmentalists have been waiting for for a long time.
It will also end with shortages and competitors from other countries grabbing the oil drilling ball and running with it.
Too bad at a time when Obama could have used his stubbornness for some good, he instead caved to the radicals and took steps to placate them rather than show some leadership by bringing balance to the situation, and not shut down everything in a world that can never be perfect.
Just a few days ago an airplane went down with over 200 people losing their lives, and yet you didn't get a call to shut down the airline industry. But one large mistake and there's hysteria as these people who ignorantly believe the earth is their mother gnash their teeth and gleefully attack the oil industry and Obama over oil leaking into the Gulf of Mexico, which just happens to have a ton of oil seep into it year after year; about four times in one year what the Exxon Valdez did years ago.
Now after getting some criticism from his base, and others, Obama now responds in a manner that is only politically motivated, and not based on what he really believes in.
Unfortunately, it's more important to mainstream media to hype and keep this story going, than it is for the lost lives of the workers on the Deepwater Horizon, or those on the recent airline crash.
Now the banning and stoppage of work on offshore wells and deepwater drilling will crush the oil industry, something the radical environmentalists have been waiting for for a long time.
It will also end with shortages and competitors from other countries grabbing the oil drilling ball and running with it.
Too bad at a time when Obama could have used his stubbornness for some good, he instead caved to the radicals and took steps to placate them rather than show some leadership by bringing balance to the situation, and not shut down everything in a world that can never be perfect.
Monday, May 24, 2010
U.S. Pushing BP (NYSE:BP) by Raising Liability Cap for Oil Spill
The U.S. governments' attempt to force BP (NYSE:BP) pay more than they legally have to for Gulf of Mexico oil spill will have the usual unintended consequences, having the potential to make it too costly for smaller oil companies to drill for offshore oil. It would also generate a slew of lawsuits related to existing agreements in place.
In relationship to economic losses connected to oil spills, politicians have introduced legislation which would raise the cap to $10 billion as the maximum payout required.
The existing $75 million cap on damages is also being considered to be raised, with Obama supporting it.
What will raise legal problems and challenges is the legislation is targeting leases that are already in place, and not only new leases, something that could cause all type of problems for companies drilling, as the lease agreements were based on existing conditions and costs, and the increase in insurance premiums could devastate the companies if this is what ends up happening.
There is precedence in a prior Supreme Court ruling which favored existing leases, which says the laws in place at the time the lease was agreed to are considered to be still part of the contract, and would rule in the situation.
More than likely the attempt to change the terms of the lease would be rejected, as it would breach the leases in place.
The idea of applying a cap to BP alone could also be unconstitutional in reference to due process and basic fairness, so is also unlikely to be implemented.
With BP saying they're more than willing to pay for legitimate economic claims, it's questionable as to why the politicians are going forward with this, as they could do it at another time once they see how BP responds practically to their promise. This of course only applies to this specific case, and no other.
In relationship to economic losses connected to oil spills, politicians have introduced legislation which would raise the cap to $10 billion as the maximum payout required.
The existing $75 million cap on damages is also being considered to be raised, with Obama supporting it.
What will raise legal problems and challenges is the legislation is targeting leases that are already in place, and not only new leases, something that could cause all type of problems for companies drilling, as the lease agreements were based on existing conditions and costs, and the increase in insurance premiums could devastate the companies if this is what ends up happening.
There is precedence in a prior Supreme Court ruling which favored existing leases, which says the laws in place at the time the lease was agreed to are considered to be still part of the contract, and would rule in the situation.
More than likely the attempt to change the terms of the lease would be rejected, as it would breach the leases in place.
The idea of applying a cap to BP alone could also be unconstitutional in reference to due process and basic fairness, so is also unlikely to be implemented.
With BP saying they're more than willing to pay for legitimate economic claims, it's questionable as to why the politicians are going forward with this, as they could do it at another time once they see how BP responds practically to their promise. This of course only applies to this specific case, and no other.
Friday, May 21, 2010
Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), Royal Dutch Shell (NYSE: RDS-A) Recommend Safety Changes for Offshore Drilling
Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and Royal Dutch Shell (NYSE:RDS-A) are part of a task force brought together to take a look at ways they can make changes to offshore drilling to make it safer, in the light of the oil spill in the gulf from the explosion on the Deepwater Horizon oil rig.
Also partaking in the discussions were BP (NYSE:BP) (LON:BP), Transocean (NYSE:RIG), and Halliburton (NYSE:HAL), all which had a connection to the failed rig.
Some of the recommendations from the discussions include deploying redundant barriers against gas flow before the heavy drilling fluid is removed; increased testing of blowout preventers to be be sure they can drill through the pipe to shut off the well in emergency situations; and running a negative pressure test to ensure the barriers in place are working before the heavy drilling fluid is taken out.
The companies made it clear their recommendations are a criticism of BP and the other companies, and even if these recommended procedures were in place it wouldn't necessarily have stopped what happened on the Deepwater Horizon.
Also partaking in the discussions were BP (NYSE:BP) (LON:BP), Transocean (NYSE:RIG), and Halliburton (NYSE:HAL), all which had a connection to the failed rig.
Some of the recommendations from the discussions include deploying redundant barriers against gas flow before the heavy drilling fluid is removed; increased testing of blowout preventers to be be sure they can drill through the pipe to shut off the well in emergency situations; and running a negative pressure test to ensure the barriers in place are working before the heavy drilling fluid is taken out.
The companies made it clear their recommendations are a criticism of BP and the other companies, and even if these recommended procedures were in place it wouldn't necessarily have stopped what happened on the Deepwater Horizon.
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