The preparations for response to an oil spill by BP (NYSE:BP) didn't include tropical storms or hurricanes, leading some to question the overall validity and expertise of the oil giant in these areas.
It was in the midst of a Congressional hearing on creating a new law on improving the quality of technology in order to help stop accidents like the one on the Deepwater Horizon oil rig (which continues to spew oil into the Gulf of Mexico), where the revelation was brought forth, seeming to imply technology alone isn't the only answer if oil companies don't have the overall picture as to what could go wrong in case of an oil spill like the one we're now experiencing, and what variables would need to be included in their preparations and potential scenarios they may face.
Even though it was pointed out because of what has turned into Hurricane Alex, it isn't clear what else could be done in these circumstances more than is being done, now that the big waves have hit the area.
It could be that hurricanes weren't included in contingency plans because there's nothing else to do but leave the area until it subsides.
What is more important in that regard is when the equipment and moving of workers off these rigs could interfere with the flow of the general population leaving for safety at the same time. In that case, as it now being planned, it is better for the company to leave earlier in order to keep from interfering with traffic flow.
But as far as out in the water, other than ships that can better handle rough waters, there isn't much else that can be done but wait it out in safety.
Everything on commodities brokers, futures trading, commodities trading, gold, silver, futures brokers, oil futures, business news, markets and commodities options ...
Showing posts with label Tropical Storm Alex. Show all posts
Showing posts with label Tropical Storm Alex. Show all posts
Thursday, July 1, 2010
Wednesday, June 30, 2010
BP (NYSE:BP) Cleanup On Hold as Worst Waves of Hurricane Alex are Over
BP (NYSE:BP) said the worst of the waves, which were in some cases as high as 12 feet, have passed where the Gulf oil well is leaking, although they were on average smaller than that.
Even so, the waves were still in the seven foot to eight foot high range, which keeps the cleanup efforts on hold until they subside; at least in relationship to booming and skimming operations.
Other oil companies, including Exxon Mobil (NYSE:XOM) and ConocoPhillips (NYSE:COP) has also evacuated workers from the Gulf region. Approximately 25 percent of all oil production in the Gulf has been stopped, along with about 9 percent of natural gas production.
While Tropical Storm Alex should completely bypass the leaking oil well of BP, weather models show there's an over 40 percent chance that one will enter the area where the oil well is leaking by the end of August.
Even so, the waves were still in the seven foot to eight foot high range, which keeps the cleanup efforts on hold until they subside; at least in relationship to booming and skimming operations.
Other oil companies, including Exxon Mobil (NYSE:XOM) and ConocoPhillips (NYSE:COP) has also evacuated workers from the Gulf region. Approximately 25 percent of all oil production in the Gulf has been stopped, along with about 9 percent of natural gas production.
While Tropical Storm Alex should completely bypass the leaking oil well of BP, weather models show there's an over 40 percent chance that one will enter the area where the oil well is leaking by the end of August.
Labels:
BP,
BP Cleanup,
ConocoPhillips,
ExxonMobil,
Gulf Oil,
Hurrican Alex,
Tropical Storm Alex
Tuesday, June 29, 2010
BP (NYSE:BP) Halts Skimmers Ships on Bad Weather
Oil skimmers were stopped by BP (NYSE:BP) and sent to share as bad weather from Tropical Storm Alex sends strong winds and high waves to the oil spill region.
BP has stated the storm could hinder operations and keep their effort to install a third oil-capture system on hold, which would bring the amount of oil collected on a daily basis to over 50,000 barrels.
Waves have been as high as 12 feet in a number of places in the Gulf, along with 25 mph winds.
One of the managers of the skimming operations for BP, Wayne Hebert, said there is no way of knowing when the skimming work will resume, as it's completely dependent upon weather conditions.
BP has stated the storm could hinder operations and keep their effort to install a third oil-capture system on hold, which would bring the amount of oil collected on a daily basis to over 50,000 barrels.
Waves have been as high as 12 feet in a number of places in the Gulf, along with 25 mph winds.
One of the managers of the skimming operations for BP, Wayne Hebert, said there is no way of knowing when the skimming work will resume, as it's completely dependent upon weather conditions.
Monday, June 28, 2010
Additional BP (NYSE:BP) Oil-Capture Capacity Delayed
Tropical Storm Alex, whether it turns toward the BP (NYSE:BP) oil spill or not, has already affected the plans of BP to add capture capacity to the oil spilling into the Gulf.
The company was about to add a third vessel to the oil collection efforts, which had the possibility of capturing the majority of oil escaping into the region.
After the third vessel is hooked up it could capture up to 53,000 barrels a day. Depending on how much is actually escaping into the Gulf, that could cover the vast majority of it.
Up to 60,000 barrels are estimated to be leaking into the Gulf on a daily basis, with worst-case scenario from BP placing it as high as 100,000; although that latter number is doubtful.
Unless the storm changes course, the existing oil-capture systems are expected to be unaffected by the tropical storm.
Waves up to 12 feet high are going to cause the delay of attaching the third vessel to capture oil.
The company was about to add a third vessel to the oil collection efforts, which had the possibility of capturing the majority of oil escaping into the region.
After the third vessel is hooked up it could capture up to 53,000 barrels a day. Depending on how much is actually escaping into the Gulf, that could cover the vast majority of it.
Up to 60,000 barrels are estimated to be leaking into the Gulf on a daily basis, with worst-case scenario from BP placing it as high as 100,000; although that latter number is doubtful.
Unless the storm changes course, the existing oil-capture systems are expected to be unaffected by the tropical storm.
Waves up to 12 feet high are going to cause the delay of attaching the third vessel to capture oil.
BP (NYSE:BP) Relief Wells and Storm Season
The storm season is rapidly approaching, and there are a number of ways this could disrupt the cleanup efforts of BP (NYSE:BP) as they battle the oil spill.
Most obvious is the attempt to capture as much oil as they can as it continues to spill into the Gulf of Mexico. Tropical Storm Alex, if it does move into the cleanup area, could disrupt the process for about two weeks.
But for the long term and more permanent solution, Alex, and other possible storms could cause the original time period to extend much longer as to how long before they permanently stop the leak.
As important as it is to keep the cleanup efforts going on the existing leak, it's even more important to stop the leak in its tracks.
Up to three tropical storms are projected to hit the Gulf region this season, and if each one were to stop efforts for two weeks, it could cause the relief wells to up to a month and a half to two months longer.
Most obvious is the attempt to capture as much oil as they can as it continues to spill into the Gulf of Mexico. Tropical Storm Alex, if it does move into the cleanup area, could disrupt the process for about two weeks.
But for the long term and more permanent solution, Alex, and other possible storms could cause the original time period to extend much longer as to how long before they permanently stop the leak.
As important as it is to keep the cleanup efforts going on the existing leak, it's even more important to stop the leak in its tracks.
Up to three tropical storms are projected to hit the Gulf region this season, and if each one were to stop efforts for two weeks, it could cause the relief wells to up to a month and a half to two months longer.
Storm Could Disrupt BP (NYSE:BP) Cleanup for Two Weeks
If Tropical Storm Alex ends up hitting the Gulf of Mexico spill and cleanup area, it could shut things down for a two-week period, although the Helix Q4000, which is the vessel flaring the oil and gas, would be able to stay a few extra days before being moved from the area.
The good news is the storm at this time is gravitating toward Mexico and away from the area, but that's no guarantee it won't change direction sometime soon, as it's a part of the way these storms can behave.
Computer storm models show Tropical Storm Alex moving over the Yucatan Peninsula of Mexico.
Over the weekend sustainable winds of 40 mph were the maximum from the storm system.
Coast Guard Adm. Thad Allen said on Friday the oil well could be left unattended for 14 days.
The good news is the storm at this time is gravitating toward Mexico and away from the area, but that's no guarantee it won't change direction sometime soon, as it's a part of the way these storms can behave.
Computer storm models show Tropical Storm Alex moving over the Yucatan Peninsula of Mexico.
Over the weekend sustainable winds of 40 mph were the maximum from the storm system.
Coast Guard Adm. Thad Allen said on Friday the oil well could be left unattended for 14 days.
Labels:
Gulf of Mexico,
Oil Spill,
Thad Allen,
Tropical Storm Alex
Subscribe to:
Posts (Atom)