Friday, September 3, 2010

Difference Between Mariner (NYSE:ME) and BP (NYSE:BP) Accidents

There is a huge difference between the production platform that made up the Mariner Energy (NYSE:ME) incident, and the exploration and drilling platform operated by BP (NYSE:BP)

As most people following the BP story know, an oil exploration and drilling company digs into the floor of the ocean which includes gas, which can be under high pressure and volatile to the point of exploding, like it did on the Deepwater Horizon, starting the series of events which led us to where we are now.

With production platforms they're completely different, as they access remote wells which include prepared areas where pressure-control devices are in place, along with concrete and steel piping. That's why when there are accidents, they aren't that severe.

Since 2006, there have been over 100 accidents annually in the Gulf of Mexico alone, according to data put together by the Bureau of Ocean Energy Management, Regulation and Enforcement, similar to the one experienced by Mariner Energy Thursday. And while they cause damage to the platforms or rigs, they do little, if any, damage to the waters. They also haven't resulted in any loss of life either during that period of time, confirming the completely different set of circumstances each represent.

In other words, there is no comparison or commonality between the two companies or the circumstances on the rigs and platforms, and in the case of Mariner, was simply another one of many that happens in the Gulf and around the world on a consistent basis, and are part of doing business in the sector.

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