Tuesday, June 22, 2010

BP (NYSE:BP) Close To Placing Better Cap on Oil Leak

By the end of June, BP (NYSE:BP) should have an improved cap over the oil well now leaking oil into the Gulf, and it could be within a week if everything goes right, according to Coast Guard Admiral Thad Allen, who is representing the U.S government in overseeing the matter.

The practicals of it are the existing containment cap will be removed and then replaced with a larger one, which not only can capture more oil, but also allow those vessels processing or burning off the gas and oil to disconnect and move to safer waters in case of a hurricane.

One important additional element of the new cap will be a sensor which should give a more accurate reading of rate the oil is actually leaking into the Gulf; something no one has yet to get a handle on.

Government scientists have estimated a daily oil leak of 35,000 to 60,000 barrels, while the worst-case scenario from BP is as high as 100,000 barrels of oil a day gushing into the Gulf.

Once the cap is in place, there will be another vessel included in the processing of the oil, which could capture up to 53,000 barrels a day.

By the middle of July, BP hopes to be able to capture up to 80,000 barrels of day if that much is actually spilling into the ocean.

So far BP has captured 231,190 barrels of oil since the cap system has been in place.

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