Although BP (NYSE:BP) has stated its plans are to leave the unpopular oil well plugged and as it is, it's highly unlikely as time goes on that it will remain that was, as too much oil and gas would be available for sell.
This doesn't mean BP would tap into it themselves, even after years and other things are on the minds of people. But it wouldn't be surprising at all to see them sell the asset one day, and with the two relief wells already drilled, it would take just a few added steps to get the oil and gas flowing again.
Some believe the well and general area contain even more oil and gas, making it a waste to leave sitting there.
At one time BP had estimated there were 50 million barrels of oil in the well, with far below that being lost even at the higher government estimates.
Even though BP has said they won't access the well again, they did leave the possibility and probability they'll drill in the same block again; a nine-square-mile area.
If BP did decide to sell the block at some time, estimates are the value of the oil alone would be worth about $3.5 billion, and they could probably sell it for somewhere between $1 to $2 billion.
Either way, it would be surprising if this were to happen any time soon, but it would also be surprising if the block isn't drilled again some time in the distant future.
Showing posts with label BP Relief Wells. Show all posts
Showing posts with label BP Relief Wells. Show all posts
Monday, September 20, 2010
BP (NYSE:BP) Well Finally Put to Rest
If stopping the oil from leaking with a cap could be called the wake, then the permanent sealing of the BP (NYSE:BP) oil well could be called its funeral; at least in reference to it being in danger of leaking again.
The final batch of cement for the "bottom kill" set on Saturday, which prepared the way for a pressure and weight test, which confirmed the well was permanently sealed.
The cap was placed on the well in July and more cement injected into the top of the well as an extra safety measure in August.
Cement was injected into the well through a relief well in this final step.
Questions on whether or not the block the well is located in will be drilled again by BP, and whether or not the may sell the plugged well to another operator to extract the approximate 46 million barrels of oil remaining, as well as the gas.
BP has said they won't be using the well again, although they left the option open they may drill into the block again.
The final batch of cement for the "bottom kill" set on Saturday, which prepared the way for a pressure and weight test, which confirmed the well was permanently sealed.
The cap was placed on the well in July and more cement injected into the top of the well as an extra safety measure in August.
Cement was injected into the well through a relief well in this final step.
Questions on whether or not the block the well is located in will be drilled again by BP, and whether or not the may sell the plugged well to another operator to extract the approximate 46 million barrels of oil remaining, as well as the gas.
BP has said they won't be using the well again, although they left the option open they may drill into the block again.
Monday, September 13, 2010
BP (NYSE:BP) Permanent "Bottom Kill" Procedure Resumes
Quickly reversing directions on holding off on the bottom kill procedure in order to inject more mud and cement into the top of the oil well, government point man Thad Allen said they'll bypass that procedure, as it could have extended operations into October.
Concerns over the pressure spikes was behind the original decision, but they will instead install a locking sleeve on top of the well, which will provide similar protection.
Consequently BP (NYSE:BP) has resumed the drilling of the relief well which will intersect the main well in order to permanently seal Macondo.
As of Friday the relief well was 50 feet from the place of intersection of the Macondo well, and Allen said it would probably take several days to reach the destination, and another several days to fill it with cement and mud.
So by next weekend, or a little after, the job should be completed.
Concerns over the pressure spikes was behind the original decision, but they will instead install a locking sleeve on top of the well, which will provide similar protection.
Consequently BP (NYSE:BP) has resumed the drilling of the relief well which will intersect the main well in order to permanently seal Macondo.
As of Friday the relief well was 50 feet from the place of intersection of the Macondo well, and Allen said it would probably take several days to reach the destination, and another several days to fill it with cement and mud.
So by next weekend, or a little after, the job should be completed.
Friday, August 13, 2010
Did BP (NYSE:BP) Kill Well with 'Top Kill' on Purpose?
Some may wonder why it matters if BP (NYSE:BP) attempted to permanently kill the oil well on purpose with the 'top kill.' Technically it doesn't matter, as the goal is to permanently plug the well, not the methodology used.
But it does matter from the point of view of the purpose in doing it, as it could reveal there were intentions from the beginning by the Obama administration and BP to have an out if they want to extract oil from the well at a future date, or sell the oil assets to another company.
If the well were to be plugged with the top kill, and there was no need to use the relief well to do a bottom kill, there would be a perfect situation for BP or a company coming in to use the relief well for extracting oil and gas still in the well.
For about a week BP and the government have given indications permanently plugging the well may not be the way to go.
Pressure tests will be enacted to determine if the cement leaked into the annulus, which is the goal of the bottom kill, and the definition of permanently plugging it.
If that indeed did happen, or is even being tested as to possibly happened, it surely was planned that way for the purposes mentioned above.
Why would they do that? To lower public resistance to the well being accessed again for oil and gas; whether by BP or another corporation.
If cement "accidentally" seeped into the well and performed the bottom kill results, then there is a convenient relief well in place to extract the oil and gas.
While this is not a surety as to whether it'll work or not, I do think it was attempted on purpose in an effort to give it a realistic chance of working.
There can be no doubt the Obama administration and BP are attempting to salvage the oil and gas under the Gulf floor. They're just attempting to do it in a way that's palatable to the public.
But it does matter from the point of view of the purpose in doing it, as it could reveal there were intentions from the beginning by the Obama administration and BP to have an out if they want to extract oil from the well at a future date, or sell the oil assets to another company.
If the well were to be plugged with the top kill, and there was no need to use the relief well to do a bottom kill, there would be a perfect situation for BP or a company coming in to use the relief well for extracting oil and gas still in the well.
For about a week BP and the government have given indications permanently plugging the well may not be the way to go.
Pressure tests will be enacted to determine if the cement leaked into the annulus, which is the goal of the bottom kill, and the definition of permanently plugging it.
If that indeed did happen, or is even being tested as to possibly happened, it surely was planned that way for the purposes mentioned above.
Why would they do that? To lower public resistance to the well being accessed again for oil and gas; whether by BP or another corporation.
If cement "accidentally" seeped into the well and performed the bottom kill results, then there is a convenient relief well in place to extract the oil and gas.
While this is not a surety as to whether it'll work or not, I do think it was attempted on purpose in an effort to give it a realistic chance of working.
There can be no doubt the Obama administration and BP are attempting to salvage the oil and gas under the Gulf floor. They're just attempting to do it in a way that's palatable to the public.
Monday, July 26, 2010
BP (NYSE:BP) Work Stoppage from "Bonnie" Less Than Expected
Uncertainty as to the magnitude of Tropical Storm Bonnie has estimates of work stoppage by BP (NYSE:BP) up two weeks long. That changed quickly on Saturday, as the storm passed through quickly and with little damage, and vessels quickly began their trek back to the work area.
The good news concerning the storm was it disintegrated into what became essentially a series of thunderstorms and rain showers before it hit the oil well. It was uncertain what would happen once the tropical storm hit the warm Gulf waters, as past experience has at times had the storms gain in strength when that occurs.
If it would have performed in that manner, it could have stopped the relief well drilling effort for up to two weeks. Tropical Storm Bonnie was downgraded to a tropical depression as it weakened.
Only one of the relief well drilling rigs had been detached, so efforts didn't take too long to resume.
The containment cap continues to hold while the drilling continues.
The good news concerning the storm was it disintegrated into what became essentially a series of thunderstorms and rain showers before it hit the oil well. It was uncertain what would happen once the tropical storm hit the warm Gulf waters, as past experience has at times had the storms gain in strength when that occurs.
If it would have performed in that manner, it could have stopped the relief well drilling effort for up to two weeks. Tropical Storm Bonnie was downgraded to a tropical depression as it weakened.
Only one of the relief well drilling rigs had been detached, so efforts didn't take too long to resume.
The containment cap continues to hold while the drilling continues.
Thursday, July 22, 2010
BP (NYSE:BP) Relief Well Reaching Target Destination by Weekend
The first relief well of BP (NYSE:BP) is close to reaching its destination, with expectations it'll arrive at its target this weekend.
This is the only permanent fix to stopping the well from gushing into the Gulf of Mexico, although the current containment cap is doing a good job, assuming it holds.
It's possible that within two weeks after this weekend the Macondo oil well will be permanently sealed.
We have the caveat of unsurety concerning everything being tried at this point by BP, as there simply isn't a blueprint for what will work at these depths.
One method that may be used to increase the probability of success would be to shoot drilling mud through the containment cap before beginning the final procedures.
Whether that happens or not, BP will drill sideways into the well to intercept it, and then start to plug it.
This is the only permanent fix to stopping the well from gushing into the Gulf of Mexico, although the current containment cap is doing a good job, assuming it holds.
It's possible that within two weeks after this weekend the Macondo oil well will be permanently sealed.
We have the caveat of unsurety concerning everything being tried at this point by BP, as there simply isn't a blueprint for what will work at these depths.
One method that may be used to increase the probability of success would be to shoot drilling mud through the containment cap before beginning the final procedures.
Whether that happens or not, BP will drill sideways into the well to intercept it, and then start to plug it.
Friday, July 16, 2010
BP (NYSE:BP) Changes Containment Strategy
While the new containment cap continues to do its job, and tests indicate there are no leaks, as the pressure continues to rise to the desired goal of over 8,000 a square inch.
Originally BP said they'll stop pumping oil to the surface once they get the oil well contained, but that seems to have changed now according to the Gulf response manager.
Thad Allen stated the company will probably continue to sent oil to containment ships on the surface once the tests are successfully completed.
This will continue to be done until the relief wells are in place to plug the oil well permanently.
Originally BP said they'll stop pumping oil to the surface once they get the oil well contained, but that seems to have changed now according to the Gulf response manager.
Thad Allen stated the company will probably continue to sent oil to containment ships on the surface once the tests are successfully completed.
This will continue to be done until the relief wells are in place to plug the oil well permanently.
Wednesday, July 7, 2010
BP (NYSE:BP) Relief Well, 100 FT. From Their Target
The estimated time frame for BP's (NYSE:BP) relief wells to be completed was three months. They are now only 100 feet from reaching their target. A contractor for BP said the relief wells could be completed within two weeks.
President of Blackhawk Specialty Tools, Billy Brown, said that they are getting "very close" to the first relief well. They are within 10 feet of reaching their target. Blackhawk is directly involved with the cementing process of the two relief wells at the Deepwater Horizon oil spill site. He said, "Hopefully in the next two weeks we are going to be hearing some very good things. BP has been flawless in getting this well out."
Thad Allen, retired U.S. Coast Guard Administrator said, despite the fact that drilling is a week ahead of schedule he is "sticking" with the original August target. There are still plenty of variables that could effect the completion of the relief wells. Including hurricane season and as BP heads down the home stretch of the final steps, frequent stops and measurements are required.
President of Blackhawk Specialty Tools, Billy Brown, said that they are getting "very close" to the first relief well. They are within 10 feet of reaching their target. Blackhawk is directly involved with the cementing process of the two relief wells at the Deepwater Horizon oil spill site. He said, "Hopefully in the next two weeks we are going to be hearing some very good things. BP has been flawless in getting this well out."
Thad Allen, retired U.S. Coast Guard Administrator said, despite the fact that drilling is a week ahead of schedule he is "sticking" with the original August target. There are still plenty of variables that could effect the completion of the relief wells. Including hurricane season and as BP heads down the home stretch of the final steps, frequent stops and measurements are required.
Tuesday, July 6, 2010
First BP (NYSE:BP) Relief Well May be Ready by End of July
BP (NYSE:BP) has worked hard at managing expectations concerning the two relief wells being drilled which have the best chance of plugging the oil leak in the Gulf of Mexico, and have maintained their August date of completion, even though the relief well is ahead of schedule.
Still, BP spokesman Mark Proegler said concerning the well, that “There is a possibility that the first relief well could be completed by the end of July. It’s more likely that it would be some time in August.”
It's not just a matter of drilling alone though, as if that were the case, more than likely the first relief well would be completed by then.
But you have the weather factors, and the company working to error on the side of caution, so they're not going to hurry the process in order to gain some positive press on stopping the leak before estimates.
The second relief well is being drilled in case the first one fails to accomplish its goal.
Relief wells have been proven to be successful in the past, as they're not theoretical attempts to plug oil leaks, but the depth of the oil leak adds a dimension the industry has never had to deal with before, and so cautiously optimistic outlooks are there concerning the potential success of the wells, but it's not guaranteed from that viewpoint.
Still, BP spokesman Mark Proegler said concerning the well, that “There is a possibility that the first relief well could be completed by the end of July. It’s more likely that it would be some time in August.”
It's not just a matter of drilling alone though, as if that were the case, more than likely the first relief well would be completed by then.
But you have the weather factors, and the company working to error on the side of caution, so they're not going to hurry the process in order to gain some positive press on stopping the leak before estimates.
The second relief well is being drilled in case the first one fails to accomplish its goal.
Relief wells have been proven to be successful in the past, as they're not theoretical attempts to plug oil leaks, but the depth of the oil leak adds a dimension the industry has never had to deal with before, and so cautiously optimistic outlooks are there concerning the potential success of the wells, but it's not guaranteed from that viewpoint.
Friday, July 2, 2010
BP (NYSE:BP): Relief Wells Should Plug the Gulf Oil Leak
The two relief wells being drilled in order plug the Gulf oil leak continue to be ahead of schedule, and should provide the best opportunity to plug the oil spill in the Gulf of Mexico.
By "bouncing electromagnetic waves through rock to measure the distance between the relief well and the interception target," Bob Dudley, who is now overseeing the Gulf cleanup on behalf of BP, says they're about 600 feet away from reaching the area they're going to plug the well at.
This refers to the first relief well. The second well is being dug as a backup in case something goes wrong with the first one.
How the drilling works is they do it parallel with the oil well until they reach the desired depth, and at that time they'll be about 5 feet away, which they then drill directly into.
According to Coast Guard Admiral Thad Allen, the chances of successfully accomplishing the task is very high.
“Relief wells are things that these companies have done before, not just BP but all the companies,” said Allen. “The methods they’re using, the technology they’re using, it’s all been proven in the water, on land.”
By "bouncing electromagnetic waves through rock to measure the distance between the relief well and the interception target," Bob Dudley, who is now overseeing the Gulf cleanup on behalf of BP, says they're about 600 feet away from reaching the area they're going to plug the well at.
This refers to the first relief well. The second well is being dug as a backup in case something goes wrong with the first one.
How the drilling works is they do it parallel with the oil well until they reach the desired depth, and at that time they'll be about 5 feet away, which they then drill directly into.
According to Coast Guard Admiral Thad Allen, the chances of successfully accomplishing the task is very high.
“Relief wells are things that these companies have done before, not just BP but all the companies,” said Allen. “The methods they’re using, the technology they’re using, it’s all been proven in the water, on land.”
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