Today BP (NYSE:BP) begins the difficult task of removing the temporary cap used to stop the oil from entering into the Gulf of Mexico, while at the same time attempting to remove the blowout preventer which didn't work as it should have to prevent oil from spilling into the water.
Most of the determination of who will be fined or liable is centered primarily around the blowout preventer, and it continues to be the key piece of physical evidence in the case.
The trick will be to remove it while not allowing the approximate 1,000 barrels of oil trapped to release into the Gulf, while also not damaging the vital piece of evidence.
When the company performed the "top kill," they inadvertently trapped the oil in the well, making it difficult to remove the blowout preventer without some of the oil entering the Gulf.
Expectations are the process will be performed without the oil leaking into the Gulf, but BP will be on standby to collect the oil in case it does.
Government point man Thad Allen gave the go ahead to start the operation today.
Showing posts with label Top Kill. Show all posts
Showing posts with label Top Kill. Show all posts
Monday, August 30, 2010
Friday, August 20, 2010
BP's (NYSE:BP) First Step to Permanently Kill Oil Well
BP (NYSE:BP) has started the process of killing off the Macondo oil well in the Gulf of Mexico, and there are a number of steps they have to take before successfully accomplishing the task.
In this article we'll talk about the first step, which sets the stage for the rest.
On Thursday pressure testing began, which deals with finding out if the equipment on top of well has in fact been sealed. That includes the blowout preventer, which many assume is the cause of the ordeal in the first place.
Concern over damaging the damaged blowout preventer is what has been the major cause of the delay in proceeding with operations. If it is damaged by the bottom kill, there could be a lot of difficulty proving what other damage may have happened before.
Before starting the test, BP flushed or cleaned out the equipment and injected seawater into it in order to check whether the pressure inside is the same as that which is beneath the surface of the Gulf.
What that did is determine if the "top kill" did completely seal the well on August 5. This is important because of the possibility the approximate 1,000 barrels of oil still inside the well could be pushed out into the Gulf from the bottom kill procedures and if the equipment on top of the well is removed.
This test should last for two days.
Government representative Thad Allen must give approval for each step of the bottom kill process.
In this article we'll talk about the first step, which sets the stage for the rest.
On Thursday pressure testing began, which deals with finding out if the equipment on top of well has in fact been sealed. That includes the blowout preventer, which many assume is the cause of the ordeal in the first place.
Concern over damaging the damaged blowout preventer is what has been the major cause of the delay in proceeding with operations. If it is damaged by the bottom kill, there could be a lot of difficulty proving what other damage may have happened before.
Before starting the test, BP flushed or cleaned out the equipment and injected seawater into it in order to check whether the pressure inside is the same as that which is beneath the surface of the Gulf.
What that did is determine if the "top kill" did completely seal the well on August 5. This is important because of the possibility the approximate 1,000 barrels of oil still inside the well could be pushed out into the Gulf from the bottom kill procedures and if the equipment on top of the well is removed.
This test should last for two days.
Government representative Thad Allen must give approval for each step of the bottom kill process.
Thursday, August 19, 2010
BP (NYSE:BP) Not Responding to Transocean (NYSE:RIG) Request for Oil Spill Documents
Documents which could shed light on the cause of the oil spill have been requested by Transocean (NYSE:RIG) from BP NYSE:BP), which owned the Deepwater Horizon oil rig that they had leased to BP.
In a letter to BP on Wednesday, Transocean attorney Steven Roberts pressed the issue harder, and sent a copy of the letter to members of Congress as well as the Obama administration.
A copy of Roberts' letter, revealed he told BP that "the task of fairly determining the cause and measures to improve the safety of all offshore workers cannot be completed in a manner that instills confidence in any findings.”
There were 16 categories of data Transocean is asking for, including tests on the blowout preventer, which would shed light on whether or not that was the ultimate cause of the accident.
The blowout preventer remains trapped in the oil well, and is part of the reason for the delay of the bottom kill, as concerns the permanent plugging of the well could damage it, compromising its use to determine whether it had failed to do its job.
In a letter to BP on Wednesday, Transocean attorney Steven Roberts pressed the issue harder, and sent a copy of the letter to members of Congress as well as the Obama administration.
A copy of Roberts' letter, revealed he told BP that "the task of fairly determining the cause and measures to improve the safety of all offshore workers cannot be completed in a manner that instills confidence in any findings.”
There were 16 categories of data Transocean is asking for, including tests on the blowout preventer, which would shed light on whether or not that was the ultimate cause of the accident.
The blowout preventer remains trapped in the oil well, and is part of the reason for the delay of the bottom kill, as concerns the permanent plugging of the well could damage it, compromising its use to determine whether it had failed to do its job.
BP (NYSE:BP) Date to Kill Oil Well Pushed Back to Week of September 6
Originally BP (NYSE:BP) thought they would be able to kill the Macondo well by the middle of August, but weather and technical difficulties caused them to miss that timeline, and now they're looking at the week of September 6 as the period they'll be able to complete the job.
Retired Coast Guard Admiral Thad Allen, who is the government representative watching over the ordeal, said this, "In the last 40 hours we've agreed to a sequence of actions that I'm going to direct BP to take, starting with flushing out the current blow-out preventer, actually looking for material that might cause us a problem, and actually move to put a new blow-out preventer on and then do the bottom-kill.
"This will ensure that we can withstand any pressure that may be generated," he added. "If all that lines up, we should be looking somewhere at the week after Labor Day."
Technical concerns relate to the top kill procedure, which resulted in approximately 1,000 barrels of oil being trapped in the space between rock layers and the well pipe.
There's a possibility that the bottom kill operations, which entail pumping cement and mud through the relief, could push the oil up out into the Gulf, or possibly break the original blowout preventer which a lot of liability concerning the accident is tied into.
Retired Coast Guard Admiral Thad Allen, who is the government representative watching over the ordeal, said this, "In the last 40 hours we've agreed to a sequence of actions that I'm going to direct BP to take, starting with flushing out the current blow-out preventer, actually looking for material that might cause us a problem, and actually move to put a new blow-out preventer on and then do the bottom-kill.
"This will ensure that we can withstand any pressure that may be generated," he added. "If all that lines up, we should be looking somewhere at the week after Labor Day."
Technical concerns relate to the top kill procedure, which resulted in approximately 1,000 barrels of oil being trapped in the space between rock layers and the well pipe.
There's a possibility that the bottom kill operations, which entail pumping cement and mud through the relief, could push the oil up out into the Gulf, or possibly break the original blowout preventer which a lot of liability concerning the accident is tied into.
Wednesday, August 18, 2010
BP (NYSE:BP) to Miss "Bottom Kill" mid-August Goal
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.
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.
Friday, August 13, 2010
Government's Thad Allen Screws Up BP (NYSE:BP) Relief Well Efforts
It was puzzling to a number of petroleum engineers when BP (NYSE:BP) was told to attempt a "top kill" on the leaking oil well, while foregoing the "bottom kill," which is the only sure way to permanently plug the well.
This had to be a decision by government officials to attempt to save the approximate 45,000 barrels of oil left in the well, along with the natural gas.
What appears to have been the strategy was to attempt a top kill which may also have also plugged the annulus, a space between the production casing and the outer casing that runs all the way to the top of the well. That is what the purpose of a bottom kill is.
That's why a pressure test was performed, in order to see if in one blow they were able to kill the well, while leaving the option of extracting oil and gas in the future via a relief well already in place.
While it's certain BP wouldn't have had any qualms about this, the decision was National Incident Commander Thad Allen's, and those who gave him the instructions to proceed in that manner.
Because it makes little sense, it is obvious there is something else in play, and that could only be the attempt to salvage the oil and gas in the well for the short term.
Now another unnecessary problem has arisen from attempting the top kill in this way. About 1,000 barrels of oil are trapped below the top, and performing a bottom kill could push it out into the Gulf of Mexico.
But if the bottom seal were to now break, a new avenue for the oil to be released into the Gulf would be created.
Somebody must have wanted this oil and gas awfully bad to take this kind of risk.
Now Allen said today he may order BP to perform the bottom kill like it originally planned to, and accept the fact that more oil will be released into the Gulf.
This had to be a decision by government officials to attempt to save the approximate 45,000 barrels of oil left in the well, along with the natural gas.
What appears to have been the strategy was to attempt a top kill which may also have also plugged the annulus, a space between the production casing and the outer casing that runs all the way to the top of the well. That is what the purpose of a bottom kill is.
That's why a pressure test was performed, in order to see if in one blow they were able to kill the well, while leaving the option of extracting oil and gas in the future via a relief well already in place.
While it's certain BP wouldn't have had any qualms about this, the decision was National Incident Commander Thad Allen's, and those who gave him the instructions to proceed in that manner.
Because it makes little sense, it is obvious there is something else in play, and that could only be the attempt to salvage the oil and gas in the well for the short term.
Now another unnecessary problem has arisen from attempting the top kill in this way. About 1,000 barrels of oil are trapped below the top, and performing a bottom kill could push it out into the Gulf of Mexico.
But if the bottom seal were to now break, a new avenue for the oil to be released into the Gulf would be created.
Somebody must have wanted this oil and gas awfully bad to take this kind of risk.
Now Allen said today he may order BP to perform the bottom kill like it originally planned to, and accept the fact that more oil will be released into the Gulf.
Friday, August 6, 2010
BP (NYSE:BP) Confirms Suspicions They May Drill in Same Oil Well Again
With BP (NYSE:BP) backing off its original strategy of performing a bottom kill on the Macondo oil well, it has raised questions as to whether or not they're thinking of making money off the well again, and that has been confirmed as a very strong likelihood by COO Doug Suttles.
Suttles said at a press briefing, "There's lots of oil and gas here. We're going to have to think about what to do with that at some point."
The recent success of the "top kill" offered the option to BP, and it looks like it is definitely part of their goals going forward.
There is approximately 45,000 barrels of oil still in the well, estimated to be valued at just under $4 billion, depending on the price of oil per barrel at the time it's being calculated.
Government point man Thad Allen said this about it, "I would assume that's a policy issue related to the management of the lease. Frankly, it hasn't been raised to my level at this point. I'm not sure I can comment on it."
While it may be true of Allen, it can almost be counted on that the U.S. government isn't surprised at the comments of Suttles, and have more than likely been talking privately with the company about it.
The Interior Department does refute that idea, with spokeswoman Kendra Barkoff saying, "The well is almost dead. Under no circumstances are we going to allow them to reopen the well to extract oil and gas."
That remains to be seen. But the operative word here is "them," as far as Barkoff's comments. It could easily be interpreted that another company besides BP could come in and extract the oil, if BP sold the asset to them.
Either way, this part of the story isn't over, and the relief wells could be used to plug the well, but also could be used to access the oil as well.
It does confirm what we've been talking about the last couple of days at Commodity Surge that it looks like this is what BP has been planning, and now we know it is.
Suttles said at a press briefing, "There's lots of oil and gas here. We're going to have to think about what to do with that at some point."
The recent success of the "top kill" offered the option to BP, and it looks like it is definitely part of their goals going forward.
There is approximately 45,000 barrels of oil still in the well, estimated to be valued at just under $4 billion, depending on the price of oil per barrel at the time it's being calculated.
Government point man Thad Allen said this about it, "I would assume that's a policy issue related to the management of the lease. Frankly, it hasn't been raised to my level at this point. I'm not sure I can comment on it."
While it may be true of Allen, it can almost be counted on that the U.S. government isn't surprised at the comments of Suttles, and have more than likely been talking privately with the company about it.
The Interior Department does refute that idea, with spokeswoman Kendra Barkoff saying, "The well is almost dead. Under no circumstances are we going to allow them to reopen the well to extract oil and gas."
That remains to be seen. But the operative word here is "them," as far as Barkoff's comments. It could easily be interpreted that another company besides BP could come in and extract the oil, if BP sold the asset to them.
Either way, this part of the story isn't over, and the relief wells could be used to plug the well, but also could be used to access the oil as well.
It does confirm what we've been talking about the last couple of days at Commodity Surge that it looks like this is what BP has been planning, and now we know it is.
BP (NYSE:BP) Completes Pumping Cement Into Oil Well
BP (NYSE:BP) has completed the final step in the "static kill" at the top of the oil well, finishing pumping cement into the top of the well, according to Thad Allen, who is overseeing the operations for the government.
Allen said, "I think we can all breathe a little easier regarding the potential that we'll have oil in the Gulf ever again. But we need to assure the people of the Gulf and the people of the United States that this thing is properly finished."
The cement should take about 24 hours to dry, added Allen.
Next comes the long-awaited bottom kill from the relief well, which will pour into cement at the bottom to completely and permanently seal the well.
Final drilling will take about a week to reach its destination, which is just above the large reservoir of oil. Once it reaches there, it could take weeks before the well is totally sealed with more cement.
A second relief well is being drilled in case the first one fails.
Allen said, "I think we can all breathe a little easier regarding the potential that we'll have oil in the Gulf ever again. But we need to assure the people of the Gulf and the people of the United States that this thing is properly finished."
The cement should take about 24 hours to dry, added Allen.
Next comes the long-awaited bottom kill from the relief well, which will pour into cement at the bottom to completely and permanently seal the well.
Final drilling will take about a week to reach its destination, which is just above the large reservoir of oil. Once it reaches there, it could take weeks before the well is totally sealed with more cement.
A second relief well is being drilled in case the first one fails.
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
BP's (NYSE:BP) Static Kill Successful, Final Kill Coming Soon
The first step to permanently plug the Macondo well in the Gulf of Mexico has been achieved by BP (NYSE:BP), as they said the well has reached "static condition," meaning "The well pressure is now being controlled by the hydrostatic pressure of the drilling mud, the desired outcome of the static kill procedure," according to the oil company.
BP began the process at about 4:00 PM EDT Tuesday, and pumped mud in the top of the well for close to eight hours.
The next step in the process will be to perform a "bottom kill," where mud and cement will be injected into the well almost 2 1/2 miles underneath the bottom of the Gulf. That will ensure a complete and permanent solution to the problem.
Sometime in the next 10 to 14 days the final procedure will begin. That period of time could be extended if any bad weather arises. The time frame is a best-case scenario.
BP began the process at about 4:00 PM EDT Tuesday, and pumped mud in the top of the well for close to eight hours.
The next step in the process will be to perform a "bottom kill," where mud and cement will be injected into the well almost 2 1/2 miles underneath the bottom of the Gulf. That will ensure a complete and permanent solution to the problem.
Sometime in the next 10 to 14 days the final procedure will begin. That period of time could be extended if any bad weather arises. The time frame is a best-case scenario.
BP (NYSE:BP) Static Kill Begins, Fixes Hydraulic Leak
With the official beginning of the static kill by BP (NYSE:BP), whereby they're attempting to permanently plug the oil from the Macondo well from leaking into the Gulf of Mexico, BP had to put things temporarily on hold until they fixed a leak in their hydraulic system.
That has been completed, and at about 4:00 PM EDT Tuesday, BP began the operations of pumping heavy drilling mud into the top of the well to see if that will do the job.
They of course still have the other means of plugging the well through the relief well far below the surface and far below the top of the well, where they're beginning to pump mud.
That bottom kill should start in about two weeks or so, assuming the weather conditions cooperate.
Expectations for the "static kill" have been being managed from the beginning, as it's not nearly as guaranteed as the bottom kill will be, as there are possibilities oil will escape from parts of the casing of the well or the annulus, which would increase the difficulty and chances of complete success.
That has been completed, and at about 4:00 PM EDT Tuesday, BP began the operations of pumping heavy drilling mud into the top of the well to see if that will do the job.
They of course still have the other means of plugging the well through the relief well far below the surface and far below the top of the well, where they're beginning to pump mud.
That bottom kill should start in about two weeks or so, assuming the weather conditions cooperate.
Expectations for the "static kill" have been being managed from the beginning, as it's not nearly as guaranteed as the bottom kill will be, as there are possibilities oil will escape from parts of the casing of the well or the annulus, which would increase the difficulty and chances of complete success.
Tuesday, June 1, 2010
Does BP (NYSE:BP) Have a Future?
After the failed attempt to stop the flow of oil over the weekend, the latest response by analysts watching BP (NYSE:BP), is whether or not they'll be able to survive the crisis.
If this next attempt to cap the leak also fails, it's settling in that BP may have to wait until August before they have a permanent fix in place, which will no doubt punish the company in every way, as it'll play out before the public on a daily basis.
They may be helped by changes in the news cycle, but even with that it's unlikely they'll ever be out of the eye of the media constantly reminding everyone of what's happening as up to 19,000 barrels of oil a day pour into the Gulf of Mexico.
So far approximately $67 billion in market value has been lost since the accident.
If this next attempt to cap the leak also fails, it's settling in that BP may have to wait until August before they have a permanent fix in place, which will no doubt punish the company in every way, as it'll play out before the public on a daily basis.
They may be helped by changes in the news cycle, but even with that it's unlikely they'll ever be out of the eye of the media constantly reminding everyone of what's happening as up to 19,000 barrels of oil a day pour into the Gulf of Mexico.
So far approximately $67 billion in market value has been lost since the accident.
Anadarko (NYSE:APC), Transocean (NYSE:RIG), Halliburton (NYSE:HAL) Down on BP (NYSE:BP) Connection
The oil and gas sector is taking a big hit today, especially BP (NYSE:BP) and companies like Anadarko (NYSE:APC), Transocean (NYSE:RIG) and Halliburton (NYSE:HAL) which have a connection of one type or another to the explosion and sinking of the Deepwater Horizon oil rig which led to the oil spill.
After failing to quickly end the flow of oil into the Gulf of Mexico through their Top Kill attempt over Memorial Day weekend, BP and others are paying the price together, as they're punished by investors and the unknown fallout from the failure to cap the well, which now could end up lasting close to three more months before an almost guaranteed procedure is completed.
As of about 1:00 p.m. EDT, Anadarko was down $7.47 a share, to $44.86, a 14.27 percent drop; Transocean dropped $4.15 a share, to $55.62, a 7.31 percent fall; Halliburton was off $3.00, to $21.83 a share, a 12.08 percent plunge, and BP was down $4.99, to $37.94, a decline of 12.08 percent.
After failing to quickly end the flow of oil into the Gulf of Mexico through their Top Kill attempt over Memorial Day weekend, BP and others are paying the price together, as they're punished by investors and the unknown fallout from the failure to cap the well, which now could end up lasting close to three more months before an almost guaranteed procedure is completed.
As of about 1:00 p.m. EDT, Anadarko was down $7.47 a share, to $44.86, a 14.27 percent drop; Transocean dropped $4.15 a share, to $55.62, a 7.31 percent fall; Halliburton was off $3.00, to $21.83 a share, a 12.08 percent plunge, and BP was down $4.99, to $37.94, a decline of 12.08 percent.
BP (NYSE:BP) Shares: It's Clobberin' Time
After the attempt to "Top Kill" the oil leak in the Gulf BP (NYSE:BP) failed, BP shares are taking a beating today, down by over 12 percent a little after noon EDT.
As prospects of them getting a quick fix on the oil leak fade, their share price will continue to fade with them.
Now that hope is pretty much gone from the point of view of those watching the incident, they share price would move up nicely if the marine cap they're going to try next were to surprisingly work.
The problem with their next attempt is there is additional risk for the leak to worsen for several days to a week if it fails, as they they remove a piece that is helping stem the flow of oil.
If it were to succeed, the oil would be siphoned to the surface to an oil tanker.
As prospects of them getting a quick fix on the oil leak fade, their share price will continue to fade with them.
Now that hope is pretty much gone from the point of view of those watching the incident, they share price would move up nicely if the marine cap they're going to try next were to surprisingly work.
The problem with their next attempt is there is additional risk for the leak to worsen for several days to a week if it fails, as they they remove a piece that is helping stem the flow of oil.
If it were to succeed, the oil would be siphoned to the surface to an oil tanker.
Saturday, May 29, 2010
Aftermath if BP (NYSE:BP) "Top Kill" Doesn't Work
An important question emerges as BP (NYSE:BP) continues its attempt to "Top Kill" the leak in the Gulf of Mexico, and that is if the effort does fail overall, has it done something to slow down the flow of oil in the Gulf, or are we back where we started from before the Wednesday attempt?
The answer is vital if the effort does indeed prove to be a failure, because if there is at least a partial win by slowing down the flow of oil in a significant manner, it could give some relief all around as public and media pressure mounts concerning the situation.
If nothing else, there'll at least be a pop in the bubble of public perception and opinion if it does some good, and hope that the damage won't be as bad as it could and will be if the oil flow is as strong as it was before the try.
What will determine the next phase of media coverage and public concern is whether the oil leak becomes more of a trickle than a gusher.
Any significant slowdown will be considered a win by BP, and will ease things up a bit for them. If not, it's hard to tell where it'll all end up, as there's not much more anger and outcry that will grow than it is now, as it's reached a feverish pitch.
You also have the fatigue factor which could settle in, as people get tired of this type of negative story after prolonged exposure to it, and it'll slow down some no matter which way it goes.
Now that most people are aware of the circumstances and the stake involved, it's hard to tell what will happen after the Memorial Day weekend either way, as their minds drift to lost loved ones and enjoying the holiday.
People will be back to work and looking at their own challenges and problems with the concerns over the economy and jobs. That could mean the legs of this story are at their highest level now, and it could deflate going forward.
This doesn't change what needs to be done, but just an observation as to how long people can take in the catastrophe before they weary of it. I think that time is approaching, and hopefully we can get rid of the circus atmosphere and let BP and others do the work of stopping it, if they indeed fail this weekend.
The answer is vital if the effort does indeed prove to be a failure, because if there is at least a partial win by slowing down the flow of oil in a significant manner, it could give some relief all around as public and media pressure mounts concerning the situation.
If nothing else, there'll at least be a pop in the bubble of public perception and opinion if it does some good, and hope that the damage won't be as bad as it could and will be if the oil flow is as strong as it was before the try.
What will determine the next phase of media coverage and public concern is whether the oil leak becomes more of a trickle than a gusher.
Any significant slowdown will be considered a win by BP, and will ease things up a bit for them. If not, it's hard to tell where it'll all end up, as there's not much more anger and outcry that will grow than it is now, as it's reached a feverish pitch.
You also have the fatigue factor which could settle in, as people get tired of this type of negative story after prolonged exposure to it, and it'll slow down some no matter which way it goes.
Now that most people are aware of the circumstances and the stake involved, it's hard to tell what will happen after the Memorial Day weekend either way, as their minds drift to lost loved ones and enjoying the holiday.
People will be back to work and looking at their own challenges and problems with the concerns over the economy and jobs. That could mean the legs of this story are at their highest level now, and it could deflate going forward.
This doesn't change what needs to be done, but just an observation as to how long people can take in the catastrophe before they weary of it. I think that time is approaching, and hopefully we can get rid of the circus atmosphere and let BP and others do the work of stopping it, if they indeed fail this weekend.
BP (NYSE:BP) "Top Kill" a Failure?
Hope is dimming for the attempt by BP (NYSE:BP) to quickly plug the oil leak at the bottom of the Gulf of Mexico through Top Kill, as BP Chief Operating Officer Doug Suttles confirms they haven't been able to stop the oil spill yet.
With maybe 24 hours left to determine whether it will succeed or not, Suttles added BP is already looking toward their contingency plan of attempting to put a cap over the well, something that has already failed once, but obviously is worth the attempt, as the only sure way to stop it will take probably till August before it's in place, which would be a disaster for everyone involved, and would bring incredible political pressure on Obama and the oil industry in general.
This isn't to say the Top Kill or Junk Shot has failed, but the longer they go on the less likely it'll be they will be successful.
With maybe 24 hours left to determine whether it will succeed or not, Suttles added BP is already looking toward their contingency plan of attempting to put a cap over the well, something that has already failed once, but obviously is worth the attempt, as the only sure way to stop it will take probably till August before it's in place, which would be a disaster for everyone involved, and would bring incredible political pressure on Obama and the oil industry in general.
This isn't to say the Top Kill or Junk Shot has failed, but the longer they go on the less likely it'll be they will be successful.
BP (NYSE:BP): "Top Kill" Taking Longer Than Expected
The attempt by BP (NYSE:BP) to stop the oil flow in the Gulf of Mexico using what is called "Top Kill" looks like it'll take longer than expected, as far as operationally and in finding out if it'll work.
Much of that comes from the heavy fluid being used to attempt to plug the oil well isn't filling it at the percentage hoped, and so a secondary method of injecting various materials called “junk shot,” which attempts to fill in holes which would help the original fluid fill it in better.
Each time a "junk Shot" is taken, BP has to stop the operations and wait. That is the major cause of it taking longer than usual, as they're evidently trying more of these than we know of.
Original estimates of knowing whether it would work or not was up to two days, now that has been extended to up to another two days.
Much of that comes from the heavy fluid being used to attempt to plug the oil well isn't filling it at the percentage hoped, and so a secondary method of injecting various materials called “junk shot,” which attempts to fill in holes which would help the original fluid fill it in better.
Each time a "junk Shot" is taken, BP has to stop the operations and wait. That is the major cause of it taking longer than usual, as they're evidently trying more of these than we know of.
Original estimates of knowing whether it would work or not was up to two days, now that has been extended to up to another two days.
Friday, May 28, 2010
BP (NYSE:BP) "Top Kill" to Use "Junk Shot"
The next phase by BP (NYSE:BP) at their attempt to "Top Kill" the oil leak in the Gulf will be to us what is called a "Junk Shot."
A "junk shot" refers to using materials like golf balls, shredded rubber tires and pieces of rope and injecting them into the broken blowout preventer. This would hopefully clog it all up and stop the oil flow.
BP said injecting the material into the preventer would fill in gaps now open, which would help the fluid and mud end up in the well, something that they've had difficulty doing to this point.
While the leak will eventually be plugged, this is the best chance by BP to do it quickly, as pressure continues to mount stop the oil flow.
A "junk shot" refers to using materials like golf balls, shredded rubber tires and pieces of rope and injecting them into the broken blowout preventer. This would hopefully clog it all up and stop the oil flow.
BP said injecting the material into the preventer would fill in gaps now open, which would help the fluid and mud end up in the well, something that they've had difficulty doing to this point.
While the leak will eventually be plugged, this is the best chance by BP to do it quickly, as pressure continues to mount stop the oil flow.
Thursday, May 27, 2010
BP (NYSE:BP) Stops "Top Kill"
BP (NYSE:BP) has temporarily halted their attempt to "Top Kill" or plug the oil leak in the Gulf of Mexico, saying there was far too much drilling fluid escaping while being injected into the well.
The assumption is they are revamping their techniques and will continue on once they're satisfied.
A technician stated it wasn't a major challenge, and "We're still quite optimistic. It is not assured and its not a done deal yet. All of this will require some time."
Plans are to continue pumping the fluid around midnight local time.
The assumption is they are revamping their techniques and will continue on once they're satisfied.
A technician stated it wasn't a major challenge, and "We're still quite optimistic. It is not assured and its not a done deal yet. All of this will require some time."
Plans are to continue pumping the fluid around midnight local time.
BP (NYSE:BP): 24-48 Hours Before "Top Kill" Results Known
Contrary to some reports, there is no conclusive evidence that the "Top Kill" effort by BP (NYSE:BP) has been successful, and according to a company spokesman, it could take from 24-48 hours before they know for sure whether or not it succeeded.
The company is pouring heavy fluids into the oil leak in order to stop the flow. As it has never been attempted before, the chances of success are about 60 to 70 percent form the point of view of BP.
Some media outlets had reported it was successful, but that's unfair and irresponsible reporting, as it generates expectations which could cause more harm to BP because those assertions are out of control, but they would have to pay for them.
Either way, it seems that at least part of the leak has been plugged, and a minimum, it could stem the flow of oil from coming out at the levels they have been coming out.
The company is pouring heavy fluids into the oil leak in order to stop the flow. As it has never been attempted before, the chances of success are about 60 to 70 percent form the point of view of BP.
Some media outlets had reported it was successful, but that's unfair and irresponsible reporting, as it generates expectations which could cause more harm to BP because those assertions are out of control, but they would have to pay for them.
Either way, it seems that at least part of the leak has been plugged, and a minimum, it could stem the flow of oil from coming out at the levels they have been coming out.
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