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.
Showing posts with label Oil Cap. Show all posts
Showing posts with label Oil Cap. Show all posts
Friday, July 16, 2010
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.
Wednesday, July 7, 2010
New BP (NYSE:BP) Cap Would Capture 80,000 Barrels a Day
Original estimates as to what the new cap being put on the oil well by BP (NYSE:BP) in the Gulf of Mexico have been upwardly revised to 80,000 barrels of oil being captured a day; up from the previous 53,000 barrels estimated.
According to now retired Coast Guard Adm. Thad Allen, who is still overseeing operations on behalf of the U.S. government, the new containment cap will completely seal the well, which will keep about all of the oil from escaping.
Reports after putting the cap back on after the underwater robot hit it seem to indicate it isn't doing as good a job as it had before getting hit, as the number of barrels of oil being captured are down several thousand a day since then.
By all estimates, this should take care of all of the oil being released into the Gulf. The only other number higher than 80,000 that has been thrown out there is in case of the absolute worst case scenario, where BP themselves said could be up to 100,000 barrels a day escaping into the Gulf.
That seems unlikely at this time, and the 80,000 barrels a day capture rate will just about take care of the problem, although there is the danger of Gulf storms causing temporary stoppage.
According to now retired Coast Guard Adm. Thad Allen, who is still overseeing operations on behalf of the U.S. government, the new containment cap will completely seal the well, which will keep about all of the oil from escaping.
Reports after putting the cap back on after the underwater robot hit it seem to indicate it isn't doing as good a job as it had before getting hit, as the number of barrels of oil being captured are down several thousand a day since then.
By all estimates, this should take care of all of the oil being released into the Gulf. The only other number higher than 80,000 that has been thrown out there is in case of the absolute worst case scenario, where BP themselves said could be up to 100,000 barrels a day escaping into the Gulf.
That seems unlikely at this time, and the 80,000 barrels a day capture rate will just about take care of the problem, although there is the danger of Gulf storms causing temporary stoppage.
Monday, June 28, 2010
BP (NYSE:BP) Oil Capture Rate Slowing
At the same time BP (NYSE:BP) cleanup costs are rising on a daily basis, the capture rate of oil has been falling.
Costs on a daily basis over the last three days has been $100 million, while the capture rate of oil has plummeted from 28,570 a day during the week to 23,700 barrels a day through the weekend.
That could be a sign that the underwater robot hitting the containment cap may have resulted in a poorer capture rate when it was put back in place, as it has been down ever since.
Before the accident the oil capture rate was at close to capacity.
Once a couple of new vessels are added to the capture system, estimates are as high as 53,000 barrels a day in oil could be capture, which should give a better idea of how much is actually escaping the well.
Costs on a daily basis over the last three days has been $100 million, while the capture rate of oil has plummeted from 28,570 a day during the week to 23,700 barrels a day through the weekend.
That could be a sign that the underwater robot hitting the containment cap may have resulted in a poorer capture rate when it was put back in place, as it has been down ever since.
Before the accident the oil capture rate was at close to capacity.
Once a couple of new vessels are added to the capture system, estimates are as high as 53,000 barrels a day in oil could be capture, which should give a better idea of how much is actually escaping the well.
Saturday, June 26, 2010
Will BP's (NYSE:BP) Increased Capture Capacity End Spill?
If BP (NYSE:BP) has some luck on their side, next week when they increase their ability to capture oil from the leaking oil well in the Gulf of Mexico, they'll be able to manage the flow for the first time it started leaking into the Gulf.
A lot has to fall in place, and the most important is whether that increased capacity will be enough to cover the amount of oil continuing to empty into the Gulf.
Estimates will have to be fairly accurate for that to happen, and if they are able to cover those projections, for the first time an estimate as to the liability concerning the spill will probably be able to be made; at least as to how the Clean Water Act goes, which could result in billion of dollars in fines, depending on how BP's role in the accident is defined.
The other problem and potential frustration is if they are able to collect the vast majority of oil spilling, and then storms arrive which undo a lot of that progress for a significant period of time.
If they are able to put the new system in place, at least they'll be able to relatively quickly attach and detach to and from the system, which would allow less oil to continue being released.
At this time meteorologists have said it could be the worst storm season in years, and three major ones could hit the Gulf in a major way.
A lot has to fall in place, and the most important is whether that increased capacity will be enough to cover the amount of oil continuing to empty into the Gulf.
Estimates will have to be fairly accurate for that to happen, and if they are able to cover those projections, for the first time an estimate as to the liability concerning the spill will probably be able to be made; at least as to how the Clean Water Act goes, which could result in billion of dollars in fines, depending on how BP's role in the accident is defined.
The other problem and potential frustration is if they are able to collect the vast majority of oil spilling, and then storms arrive which undo a lot of that progress for a significant period of time.
If they are able to put the new system in place, at least they'll be able to relatively quickly attach and detach to and from the system, which would allow less oil to continue being released.
At this time meteorologists have said it could be the worst storm season in years, and three major ones could hit the Gulf in a major way.
Wednesday, June 16, 2010
BP (NYSE:BP) Puts Second Containment System in Action
The second containment system to collect oil and gas from the Gulf spill has been started to be used by BP (NYSE:BP), which should allow the oil company to collect more oil and give a clearer picture as to how much oil is actually escaping into the Gulf.
Early today the new system started collecting oil and gas and brought it to a vessel waiting on the surface to process it.
Government scientists have been as unable to get an accurate reading as BP has concerning the amount of oil escaping the well, now upwardly adjusting the amount to 35,000 to 60,000 barrels a day, up from their prior figures of 20,000 to 40,000 a day.
Once the new containment system is optimized, it'll capture a lot more oil and as than before, and if they aren't able to handle that amount, it'll tell us whether or not the government numbers are even close to being based in reality.
Early today the new system started collecting oil and gas and brought it to a vessel waiting on the surface to process it.
Government scientists have been as unable to get an accurate reading as BP has concerning the amount of oil escaping the well, now upwardly adjusting the amount to 35,000 to 60,000 barrels a day, up from their prior figures of 20,000 to 40,000 a day.
Once the new containment system is optimized, it'll capture a lot more oil and as than before, and if they aren't able to handle that amount, it'll tell us whether or not the government numbers are even close to being based in reality.
Friday, June 11, 2010
BP (NYSE:BP) Saves 88,700 Barrels of Oil So Far
After adding up the approximate 15,400 barrels BP (NYSE:BP) collected yesterday to its previous total, the oil giant has now kept 88,700 barrels from escaping into the Gulf of Mexico.
A new cap containment system will be put in place next week which could result in capturing up to 50,000 barrels a day if there were that much that could be collected.
Once the new device is in place, we may for the first time get an accurate picture of how much oil is actually spilling into the region, as much has been only estimates and guesses at this time, including the dubious numbers thrown around by "government" scientists, who are so clueless they through out numbers from 20,000 to 40,000.
The difference between the two are so great, that is must be concluded they have no better idea than anyone else, although they were used by Obama and Democrats to chastise BP for understating how much was being leaked into the ocean, even though they didn't have the guts to say how much really was.
The reason why is they're clueless, and the fact that they're government scientists already confirms they can't be trusted.
A new cap containment system will be put in place next week which could result in capturing up to 50,000 barrels a day if there were that much that could be collected.
Once the new device is in place, we may for the first time get an accurate picture of how much oil is actually spilling into the region, as much has been only estimates and guesses at this time, including the dubious numbers thrown around by "government" scientists, who are so clueless they through out numbers from 20,000 to 40,000.
The difference between the two are so great, that is must be concluded they have no better idea than anyone else, although they were used by Obama and Democrats to chastise BP for understating how much was being leaked into the ocean, even though they didn't have the guts to say how much really was.
The reason why is they're clueless, and the fact that they're government scientists already confirms they can't be trusted.
BP (NYSE:BP) Oil Siphoning Doubling in July
BP (NYSE:BP) (LON:BP) said the amount of oil they'll be able to capture through their siphoning system will double by the middle of July, according to Coast Guard Admiral Thad Allen.
Collection capacity will reach as high as 50,000 barrels a day, which evidently means another ship or two would be needed, the current ship only is able to process at most, 18,000 barrels a day.
It could be they are counting on flaring or burning off the rest, as they have a second ship in the area which will be activated next week, and that one is an oil-flaring rig.
At 50,000 barrels a day, assuming there is that much to capture, it would be a huge waste simply burn it off rather than use it, but they'll probably wait till they are able to determine how much oil is actually escaping the oil well before making those decisions.
New week a new containment system will be put in place, which is why the amount of oil captured could reach the 50,000 barrels a day mark.
Collection capacity will reach as high as 50,000 barrels a day, which evidently means another ship or two would be needed, the current ship only is able to process at most, 18,000 barrels a day.
It could be they are counting on flaring or burning off the rest, as they have a second ship in the area which will be activated next week, and that one is an oil-flaring rig.
At 50,000 barrels a day, assuming there is that much to capture, it would be a huge waste simply burn it off rather than use it, but they'll probably wait till they are able to determine how much oil is actually escaping the oil well before making those decisions.
New week a new containment system will be put in place, which is why the amount of oil captured could reach the 50,000 barrels a day mark.
Thursday, June 10, 2010
BP (NYSE:BP) to Capture 10,000 Barrels More a Day by Next Week
BP (NYSE:BP) said they should have the ability to capture another 10,000 barrels of oil a day next week after a second system is used on the well head, which it will be attached to.
According to Senior Vice President Kent Wells, the way the second system will work will be to connect hoses to the blowout preventer on top of the well, which has the potential to increase the amount being siphoned.
From there they are expected to burn off the oil once it reaches the surface.
Since the capped the oil well six days ago, BP has collected about 73,000 barrels of oil on the Discoverer Enterprise.
The company has said the majority of the oil escaping the well should be captured by next week.
According to Senior Vice President Kent Wells, the way the second system will work will be to connect hoses to the blowout preventer on top of the well, which has the potential to increase the amount being siphoned.
From there they are expected to burn off the oil once it reaches the surface.
Since the capped the oil well six days ago, BP has collected about 73,000 barrels of oil on the Discoverer Enterprise.
The company has said the majority of the oil escaping the well should be captured by next week.
BP (NYSE:BP), Coast Guard: Oil Leak Contained by Next Week
Making a bold but welcome statement, BP (NYSE:BP) and Coast Guard Adm. Thad Allen agreed that by next week the oil leak in the Gulf of Mexico will be contained, setting the stage for dealing even more with the oil still floating around the Gulf.
At this time approximately 630,000 gallons of oil is being captured by the cap placed on the well and the resultant siphoning of oil to ships on the surface.
While it won't capture 100 percent of the oil, by far the vast majority will be collected. That shouldn't be a problem as far as the affect on the water, as natural oil leaks have been in the area which are huge when added together, although much more dispersed throughout the Gulf.
Estimates are this is accounting for about have of the oil seeping into the Gulf at this time.
At this time approximately 630,000 gallons of oil is being captured by the cap placed on the well and the resultant siphoning of oil to ships on the surface.
While it won't capture 100 percent of the oil, by far the vast majority will be collected. That shouldn't be a problem as far as the affect on the water, as natural oil leaks have been in the area which are huge when added together, although much more dispersed throughout the Gulf.
Estimates are this is accounting for about have of the oil seeping into the Gulf at this time.
BP (NYSE:BP) Captured 15,800 Barrels of Oil Wednesday
The increase in barrels of oil captured by BP (NYSE:BP) slowed Wednesday, after several days of huge surges. The amount was up slightly from Tuesday's total of 15,600 barrels, reaching 15,800 barrels collected for the day.
One problem BP faces with capturing the oil is the ability of the one tanker they have in the area to process it. According to Coast Guard Adm. Thad Allen, the existing vessel could probably process up to 18,000 barrels of oil a day.
A second vessel in on the way to help in that regard, expected to arrive soon, and which reportedly will be able to process an additional 5,000 to 10,000 barrels a day.
BP said they could have a system in place next week which would capture up to 28,000 barrels of oil a day. They added that some of that would have to be flared.
Since the capped the leaking oil well, BP has kept 73,300 barrels of oil from escaping into the ocean.
One problem BP faces with capturing the oil is the ability of the one tanker they have in the area to process it. According to Coast Guard Adm. Thad Allen, the existing vessel could probably process up to 18,000 barrels of oil a day.
A second vessel in on the way to help in that regard, expected to arrive soon, and which reportedly will be able to process an additional 5,000 to 10,000 barrels a day.
BP said they could have a system in place next week which would capture up to 28,000 barrels of oil a day. They added that some of that would have to be flared.
Since the capped the leaking oil well, BP has kept 73,300 barrels of oil from escaping into the ocean.
Wednesday, June 9, 2010
BP (NYSE:BP): Oil Will Become Trickle
In the boldest statement from BP (NYSE:BP) yet on their attempt to stop oil from flowing into the Gulf of Mexico, Chief Operating Officer Doug Suttles said the flow of oil should be reduced "to a relative trickle" by as early as Monday or Tuesday.
Suttles reiterated that a second vessel is on its way to help with the processing of the oil, which the current tanker is oil to do at a 15,000 barrel-a-day pace. The new one should process oil at between 5,000 to 10,000 barrels a day.
Next month a new containment cap currently being built is expected to even better seal the oil well, reducing the oil leakage even more.
With oil reaching the shores probably coming from the day of the accident, Suttles said we'll probably see oil following up by about that same number of days once the leak is mostly contained.
Suttles reiterated that a second vessel is on its way to help with the processing of the oil, which the current tanker is oil to do at a 15,000 barrel-a-day pace. The new one should process oil at between 5,000 to 10,000 barrels a day.
Next month a new containment cap currently being built is expected to even better seal the oil well, reducing the oil leakage even more.
With oil reaching the shores probably coming from the day of the accident, Suttles said we'll probably see oil following up by about that same number of days once the leak is mostly contained.
Tuesday, June 8, 2010
BP (NYSE:BP) Captures 14,800 Barrels Monday
BP (NYSE:BP) is improving its capture rate of oil, as it increased to 14,800 barrels on the day, approaching the limitations of how much it can process on the one vessel in the area in the short term.
As a result of their success, BP is bringing another ship into the area in order to be able to process more of the captured oil as it increases in the amount collected. That ship is expected to reach the region in two to three days.
Once that ship arrives, it should be able to increase oil processing capacity from 5,000 to 10,000 barrels a day. The ship now doing the processing is only able to process 15,000 barrels a day, seemingly making the capturing process more successful than BP evidently originally thought it would be.
Sometime next month an even better cap will be put in place which should be able to capture even more oil and stop the ocean leak even better.
As a result of their success, BP is bringing another ship into the area in order to be able to process more of the captured oil as it increases in the amount collected. That ship is expected to reach the region in two to three days.
Once that ship arrives, it should be able to increase oil processing capacity from 5,000 to 10,000 barrels a day. The ship now doing the processing is only able to process 15,000 barrels a day, seemingly making the capturing process more successful than BP evidently originally thought it would be.
Sometime next month an even better cap will be put in place which should be able to capture even more oil and stop the ocean leak even better.
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