Even before the disastrous explosion which rocked and destroyed the Deepwater Horizon oil rig operated by BP (NYSE:BP), the oil giant reportedly was ready to abandon the well just days before the accident.
Testifying before a federal investigative panel today, that was the assertion of BP engineer Grew Walz.
Evidently the engineers on the project weren't sure as to how to go ahead with a pressure test before the accident occurred. That seemed to bring BP to the point of dropping the Macondo well project. They now wish they had.
In other testimony, it came out that BP's time-frame concerning how long it would take to install another 15 centralizers was longer than the technician who was going to do the work.
BP has said it would have taken about 10 hours, while the technician stated it would have only taken about 4 to 8 hours.
Showing posts with label Oil Rig. Show all posts
Showing posts with label Oil Rig. Show all posts
Thursday, October 7, 2010
Friday, September 3, 2010
Mariner (NYSE:ME) Fire Way Over Hyped
The people with agendas are out in force in an attempt to paint the fire on an oil rig operated by Mariner Energy (NYSE:ME) as further prove the job-crippling oil moratorium needs to be kept in place.
Even the explosion part of the story wasn't correct, and it was simply a fire; something that is relatively common on any oil rig or oil platform.
In the Gulf of Mexico over the last several years, over a hundred fires annually start on rigs, with the vast majority of them very tiny.
With the combustible materials on this oil rigs and platforms, there are always going to be fires of some type, and making it look like this fire is any different, and that a full-blown investigation has be started, is overkill, to say the least.
It's an attempt to make it look like something far worse happened than already did, and that it confirms major safety issues in the industry.
The truth is it does neither, and it's a huge waste of time, effort and money to do this, which is largely a marketing effort by the Obama administration to continue the hated oil moratorium, which the majority of Americans oppose.
Even the explosion part of the story wasn't correct, and it was simply a fire; something that is relatively common on any oil rig or oil platform.
In the Gulf of Mexico over the last several years, over a hundred fires annually start on rigs, with the vast majority of them very tiny.
With the combustible materials on this oil rigs and platforms, there are always going to be fires of some type, and making it look like this fire is any different, and that a full-blown investigation has be started, is overkill, to say the least.
It's an attempt to make it look like something far worse happened than already did, and that it confirms major safety issues in the industry.
The truth is it does neither, and it's a huge waste of time, effort and money to do this, which is largely a marketing effort by the Obama administration to continue the hated oil moratorium, which the majority of Americans oppose.
Thursday, September 2, 2010
Mariner Energy (NYSE:ME) Explosion Produces Oil Sheen
Contrary to original reports, the Coast Guard now says there is an oil sheen in the area of the explosion of the oil rig "Vermilion 398," owned by Mariner Energy (NYSE:ME).
According to Coast Guard Petty Officer Bill Coklough, the sheen was first discovered by Mariner Energy Inc. near the oil platform.
It's reportedly about 100 feet wide and a mile long.
No one was injured from the explosion, where 13 people were working on the rig, although one was injured and sent to the hospital.
The worker followed proper safety procedures and were found in the water floating in their provided survival gear.
A fire has broken out on the platform, and three firefighting vessels have been sent to the sight, with one already reaching the oil rig and fighting the fire.
This wasn't a producing oil rig, so it's unclear as to how much threat there is from the oil.
According to Coast Guard Petty Officer Bill Coklough, the sheen was first discovered by Mariner Energy Inc. near the oil platform.
It's reportedly about 100 feet wide and a mile long.
No one was injured from the explosion, where 13 people were working on the rig, although one was injured and sent to the hospital.
The worker followed proper safety procedures and were found in the water floating in their provided survival gear.
A fire has broken out on the platform, and three firefighting vessels have been sent to the sight, with one already reaching the oil rig and fighting the fire.
This wasn't a producing oil rig, so it's unclear as to how much threat there is from the oil.
Another Oil Rig Explodes in Gulf
The Gulf of Mexico has experienced another explosion of an oil rig, as the Coast Guard responded to the accident, which injured one person.
The Coast Guard said there were 13 people on the oil rig when the explosion happened, which resulted in a fire.
No one was missing, according to Coast Guard officials.
The worker who was injured was taken to the Terrebonne General Medical Center in Houma.
The rig, named "Vermilion 398," is owned by Mariner Energy, of Houston.
Initial reports are it wasn't an active rig, as far as production goes, so it's unlikely any leak would come of the explosion, but officials are investigating the incident to be sure.
Correction: The oil platform did have seven active wells, with an average production of 1,400 barrels a day.
The Coast Guard said there were 13 people on the oil rig when the explosion happened, which resulted in a fire.
No one was missing, according to Coast Guard officials.
The worker who was injured was taken to the Terrebonne General Medical Center in Houma.
The rig, named "Vermilion 398," is owned by Mariner Energy, of Houston.
Initial reports are it wasn't an active rig, as far as production goes, so it's unlikely any leak would come of the explosion, but officials are investigating the incident to be sure.
Correction: The oil platform did have seven active wells, with an average production of 1,400 barrels a day.
Tuesday, July 13, 2010
Obama's Moratorium Results in Diamond Offshore (NYSE:DO) Moving Rig Out of Gulf to 'Republic of Congo'
Diamond Offshore (NYSE:DO) announced today it is moving its oil rig Ocean Confidence out of the Gulf of Mexico to the Republic of Congo, and has suspended a contract in the region to make the rig available.
Diamond Offshore President and CEO, Larry Dickerson, said, “As the uncertainty about continued deepwater drilling in the GOM persists, we must consider alternatives that allow our deepwater assets to remain employed. The contract we suspended with Murphy has been restructured into a one-year commitment in the GOM that is expected to recommence when our customer is satisfied that it can obtain the necessary permits and can meet any new regulatory requirements.”
A subsidiary of Murphy Exploration and Production Company (NYSE:MUR) will be the recipient of the oil rig via a new multi-well international agreement.
It's unknown how many jobs Americans have lost as a consequence of Obama's misguided oil moratorium.
This is the second rig Diamond has pulled out of region in the last several days.
Diamond Offshore President and CEO, Larry Dickerson, said, “As the uncertainty about continued deepwater drilling in the GOM persists, we must consider alternatives that allow our deepwater assets to remain employed. The contract we suspended with Murphy has been restructured into a one-year commitment in the GOM that is expected to recommence when our customer is satisfied that it can obtain the necessary permits and can meet any new regulatory requirements.”
A subsidiary of Murphy Exploration and Production Company (NYSE:MUR) will be the recipient of the oil rig via a new multi-well international agreement.
It's unknown how many jobs Americans have lost as a consequence of Obama's misguided oil moratorium.
This is the second rig Diamond has pulled out of region in the last several days.
Tuesday, June 22, 2010
Judge Overturns Obama's Moratorium Due To BP (NYSE:BP)
In a surprising move, Martin Feldman, U.S. District Judge from New Orleans has blocked President Obama's six month moratorium, originating because of BP's (NYSE:BP) worst oil spill in U.S. history. The moratorium was at first going to just be for any new deepwater drilling and for only the month of May, but then it turned into a suspension of all Gulf coast drilling. Shutting down 33 of the Gulf's exploratory wells.
The complaint was submitted to the Judge by several businesses who provided many different services who are arguing the moratorium was arbitrarily imposed. In his ruling Feldman agreed, stating in his ruling that the Interior Department is assuming because one rig failed all rigs and companies involved with deepwater drilling are posing an imminent danger.
Feldman wrote, "an invalid agency decision to suspend drilling of wells in depths of over 500 feet simply cannot justify the immeasurable effect on the plaintiffs, the local economy, the Gulf region, and the critical present day aspect of the availability of domestic energy in this country."
The Interior Department's response to the lawsuit is simply, the moratorium is necessary while the continued attempts go on in the Gulf to stop the crude oil and cleanup the oil spill. "A second deepwater blowout could overwhelm the efforts to respond to the current disaster," said the Interior Department.
The White House said there will be an immediate appeal.
The complaint was submitted to the Judge by several businesses who provided many different services who are arguing the moratorium was arbitrarily imposed. In his ruling Feldman agreed, stating in his ruling that the Interior Department is assuming because one rig failed all rigs and companies involved with deepwater drilling are posing an imminent danger.
Feldman wrote, "an invalid agency decision to suspend drilling of wells in depths of over 500 feet simply cannot justify the immeasurable effect on the plaintiffs, the local economy, the Gulf region, and the critical present day aspect of the availability of domestic energy in this country."
The Interior Department's response to the lawsuit is simply, the moratorium is necessary while the continued attempts go on in the Gulf to stop the crude oil and cleanup the oil spill. "A second deepwater blowout could overwhelm the efforts to respond to the current disaster," said the Interior Department.
The White House said there will be an immediate appeal.
Monday, June 21, 2010
BP (NYSE:BP) UPDATE: Fuel Spill containment
A group of reporters were able to tour the BP (NYSE:BP) oil rig on Saturday and see how the fuel spill containment was progressing. They flew along the Mississippi River Delta above the wetlands. They saw the ineffective boom floating as well as the skimmers. About 40 miles off the coast, they reach their destination which has a 200 foot derrick.
Wendell Guidry, the Transocean drilling superintendent that was on the rig said," its always, always on our mind." Work continues to press on around the clock. There are eight thrusters in place that keep the rig positioned correctly over the well. In the distance another rig is visible, it is siphoning oil and gas from the well and burning it. It appears the flames are coming down like a shower. There are ships surrounding this rig, their purpose is to hose of the deck to keep the heat from building.
Thad Allen, Coast Guard Administrator said that the drilling and construction of the relief wells is still ahead of schedule. Of course there can always be delays. Like on Saturday, a set of tongs which are used to hold the casings in place broke.
BP is still maintaining their drilling of the relief well should be completed sometime in August, of course there are no guarantees. Currently, they are close to 11,000 feet below the sea floor.
Wendell Guidry, the Transocean drilling superintendent that was on the rig said," its always, always on our mind." Work continues to press on around the clock. There are eight thrusters in place that keep the rig positioned correctly over the well. In the distance another rig is visible, it is siphoning oil and gas from the well and burning it. It appears the flames are coming down like a shower. There are ships surrounding this rig, their purpose is to hose of the deck to keep the heat from building.
Thad Allen, Coast Guard Administrator said that the drilling and construction of the relief wells is still ahead of schedule. Of course there can always be delays. Like on Saturday, a set of tongs which are used to hold the casings in place broke.
BP is still maintaining their drilling of the relief well should be completed sometime in August, of course there are no guarantees. Currently, they are close to 11,000 feet below the sea floor.
Saturday, June 19, 2010
Oil Companies Must Rewrite Spill Response Plans: Exxon (NYSE:XOM), Shell (LSE:RDSA), ConocoPhillips (NYSE:COP), Chevron (NYSE:CVX)
At a House Energy meeting, it was determined that Exxon (NYSE:XOM), Shell (LSE:RDSA), ConocoPhillips (NYSE:COP), and Chevron (NYSE:CVX) are as unprepared as BP with their oil spill response plans. U.S. Representative Edward Markey is going to ask the executives of each of these oil companies to revise their plans.
Markey said," there has to be a complete inspection of every facility in the Gulf, not just BP. The only thing worse than one oil rig in the bottom of the Gulf of Mexico, would be two oil rigs in the bottom of the Gulf of Mexico. We have to make sure there are no ticking time bombs." He also said the plans were "90 percent identical" for all five companies.
This is the exact reason Obama declared a six month moratorium and any deepwater drilling. To give the government time to investigate and complete their investigation as to the causes of the Gulf of Mexico oil spill. This ban has effected 33 drilling rigs in the Gulf. There are 17 members of the House from Gulf Coast states who are urging Obama to lift the ban as it will effect over 20,000 jobs in the area.
According to a lawmakers statement, "many offshore drilling companies will not be able to survive the ban."
Markey said," there has to be a complete inspection of every facility in the Gulf, not just BP. The only thing worse than one oil rig in the bottom of the Gulf of Mexico, would be two oil rigs in the bottom of the Gulf of Mexico. We have to make sure there are no ticking time bombs." He also said the plans were "90 percent identical" for all five companies.
This is the exact reason Obama declared a six month moratorium and any deepwater drilling. To give the government time to investigate and complete their investigation as to the causes of the Gulf of Mexico oil spill. This ban has effected 33 drilling rigs in the Gulf. There are 17 members of the House from Gulf Coast states who are urging Obama to lift the ban as it will effect over 20,000 jobs in the area.
According to a lawmakers statement, "many offshore drilling companies will not be able to survive the ban."
Wednesday, June 16, 2010
BP (NYSE:BP) UPDATE: Legal Claim Process, Compensation Claims
BP (NYSE:BP) and President Obama reached an agreement on they will handle the company's compensation claim and claim process. A $20 billion fund will be set up to compensate the victims of the oil spill.
After a four hour meeting with BP officials, Obama made the announcement of the agreement. BP has also said they will set up an additional $100 million fund which sole purpose would be to be used to compensate oil rig workers that will lose six months pay due being laid off because of Obama's moratorium on deepwater drilling.
"The structure we are establishing today is an important step toward making the people of the Gulf coast whole again, but it will not turn things around overnight. This is about accountability. At the end of the day that's what every American wants and expects. The people of the Gulf have my commitment that BP will meet its obligations to them. This $20 billion amount will provide substantial assurance that the claims people and businesses have will be honored," said Obama. He ensured that the $20 million is not a cap on BP's liabilities and will pay more if needed
The claim process fund will be run by Kenneth Feinberg, who was in charge on the September 11th compensation claims process and overseeing payments to families of victims. There will be a three member panel who will be in charge of the claims that are turned down. This setup helps setup a formal process instead of vague promises by BP.
After a four hour meeting with BP officials, Obama made the announcement of the agreement. BP has also said they will set up an additional $100 million fund which sole purpose would be to be used to compensate oil rig workers that will lose six months pay due being laid off because of Obama's moratorium on deepwater drilling.
"The structure we are establishing today is an important step toward making the people of the Gulf coast whole again, but it will not turn things around overnight. This is about accountability. At the end of the day that's what every American wants and expects. The people of the Gulf have my commitment that BP will meet its obligations to them. This $20 billion amount will provide substantial assurance that the claims people and businesses have will be honored," said Obama. He ensured that the $20 million is not a cap on BP's liabilities and will pay more if needed
The claim process fund will be run by Kenneth Feinberg, who was in charge on the September 11th compensation claims process and overseeing payments to families of victims. There will be a three member panel who will be in charge of the claims that are turned down. This setup helps setup a formal process instead of vague promises by BP.
Friday, June 11, 2010
The BP (NYSE:BP) Whistle Blower
It is being proven by a whistle blower that BP's (NYSE:BP) corruption goes deep and for many years. A former BP executive, Rick Lacey said that he's watched the oil company for years put profits everything ahead of everything else.
Lacey started his tell all novel in 2002 while still employed at BP as a financial analyst and accountant for almost eight years. His novel is titled "Involuntary Separation: Corporate Downsizing Gone Fatally Wrong." He isn't surprised at all at the massive oil spill and details the numerous missteps and shortcuts that BP took.
After helping BP lay off thousands of employees, he quit in 1988. One of BP's strategies was to contract to other smaller companies to decrease their liability in case of oil rig explosions and other potential accidents. "Prior to downsizing, BP drilled for its own oil," said Lacey. "So they would've been running the entire operation themselves and they would be responsible for the safety and liability for the spill."
That way BP could shift the blame to these other companies, even if they were to small to be able to pay for the oil cleanup and would have to file bankruptcy, he said. "If it was a smaller spill, they'd let the drillers go bankrupt." He said the only reason they're paying for this spill is because of the huge amount of public outrage BP would get if they did not.
We saw the scenario at the congressional hearings where each company was pointing their finger at the other, even President Obama was outraged at the companies lack of responsibilities.
Lacey started his tell all novel in 2002 while still employed at BP as a financial analyst and accountant for almost eight years. His novel is titled "Involuntary Separation: Corporate Downsizing Gone Fatally Wrong." He isn't surprised at all at the massive oil spill and details the numerous missteps and shortcuts that BP took.
After helping BP lay off thousands of employees, he quit in 1988. One of BP's strategies was to contract to other smaller companies to decrease their liability in case of oil rig explosions and other potential accidents. "Prior to downsizing, BP drilled for its own oil," said Lacey. "So they would've been running the entire operation themselves and they would be responsible for the safety and liability for the spill."
That way BP could shift the blame to these other companies, even if they were to small to be able to pay for the oil cleanup and would have to file bankruptcy, he said. "If it was a smaller spill, they'd let the drillers go bankrupt." He said the only reason they're paying for this spill is because of the huge amount of public outrage BP would get if they did not.
We saw the scenario at the congressional hearings where each company was pointing their finger at the other, even President Obama was outraged at the companies lack of responsibilities.
Wednesday, May 26, 2010
BP (LON:BP) Adds Independent Claims Mediator
BP (LON:BP) (NYSE:BP) said they've appointed an independent claims mediator to handle the myriad of damage claims coming from the large oil spill after the explosion on the Deepwater Horizon oil rig.
BP Chief Executive Tony Hayward said in a statement, "We are absolutely committed to a simple, fair claims process that gets funds to people who have been hurt by this disaster as quickly as possible."
So far over 26,000 claims have been filed, with payments of over $36 million being awarded to date.
BP Chief Executive Tony Hayward said in a statement, "We are absolutely committed to a simple, fair claims process that gets funds to people who have been hurt by this disaster as quickly as possible."
So far over 26,000 claims have been filed, with payments of over $36 million being awarded to date.
Tuesday, May 25, 2010
BP (NYSE:BP) Suing Transocean (NYSE:RIG)
BP (NYSE:BP) has filed a claim with a U.S. Court trying to get damages against Transocean, (NYSE:RIG) the company in charge of drilling the oil well.
Court documents say Transocean is arguing that the contract they had with BP makes it only liable for environmental damage caused by any spill from its rig. The insurer, Lloyd's of London is asking the Court to block the claim. Even though it was Transocean's oil rig that exploded, sank, thus causing the pipe to break and has been spewing crude oil for coming to the close of five weeks now.
BP said it has filed a claim against the insurers but declined further comment.
Even if BP gets the full $700 million in insurance, it is a minute amount considering the compensation that will have to be paid out to people who have experienced losses during the oil spill catastrophe. Not to mention what the total bill will be for the cleanup efforts and environmental damages. USB analysts put the amount at around $12 billion.
Court documents say Transocean is arguing that the contract they had with BP makes it only liable for environmental damage caused by any spill from its rig. The insurer, Lloyd's of London is asking the Court to block the claim. Even though it was Transocean's oil rig that exploded, sank, thus causing the pipe to break and has been spewing crude oil for coming to the close of five weeks now.
BP said it has filed a claim against the insurers but declined further comment.
Even if BP gets the full $700 million in insurance, it is a minute amount considering the compensation that will have to be paid out to people who have experienced losses during the oil spill catastrophe. Not to mention what the total bill will be for the cleanup efforts and environmental damages. USB analysts put the amount at around $12 billion.
Saturday, May 22, 2010
BP (NYSE:BP) CEO Frustrated Over Lack of Progress
BP (NYSE:BP) chief executive officer Tony Hayward said in an email to his people that he was frustrated over the lack of progress in plugging the oil leak in the Gulf of Mexico.
Probably in an attempt to manage expectations, Hayward added that the attempt to plug the well permanently next week isn't guaranteed either, somewhat reflecting the somber mood hanging over the ordeal as a whole.
An attempt to plug the oil well at that depth has never been attempted before, and since there is no road-map to follow, the variables that could rise from the attempt are simply not known.
He said in the email, it "would be another first for this technology at these water depths and so, we cannot take its success for granted."
In the email Hayword also pointed out that next week the Marine Board investigation will migrate toward interviewing "survivors from the rig" in hopes of getting a clear picture of what happened on the Deepwater Horizon.
Probably in an attempt to manage expectations, Hayward added that the attempt to plug the well permanently next week isn't guaranteed either, somewhat reflecting the somber mood hanging over the ordeal as a whole.
An attempt to plug the oil well at that depth has never been attempted before, and since there is no road-map to follow, the variables that could rise from the attempt are simply not known.
He said in the email, it "would be another first for this technology at these water depths and so, we cannot take its success for granted."
In the email Hayword also pointed out that next week the Marine Board investigation will migrate toward interviewing "survivors from the rig" in hopes of getting a clear picture of what happened on the Deepwater Horizon.
Friday, May 21, 2010
BP (LON:BP) Says Flow Estimates Inaccurate
BP (LON:BP) (NYSE:BP) said oil flow estimates from theorists claiming it could be ten time higher than the daily rate of 5,000 barrels released into the ocean is inaccurate.
What these theorists are doing is assuming the flow is far higher based on the diameter of the pipe, which was 19.5 inches. BP said the reason they're so far off is because the width of the pipe narrowed as a result of the accident by 30 percent.
There is also a broken drill pipe inside the riser, which has reduced the flow by another 10 percent.
The other reason the assumption is so faulty, is approximately half the flow releasing from the pipe is natural gas, and not oil, according to BP.
To get a real and more accurate estimate of the flow, the government has set up a Flow Rate Technical Team, which is expected to come up with more precise answers sometime later on Saturday.
What these theorists are doing is assuming the flow is far higher based on the diameter of the pipe, which was 19.5 inches. BP said the reason they're so far off is because the width of the pipe narrowed as a result of the accident by 30 percent.
There is also a broken drill pipe inside the riser, which has reduced the flow by another 10 percent.
The other reason the assumption is so faulty, is approximately half the flow releasing from the pipe is natural gas, and not oil, according to BP.
To get a real and more accurate estimate of the flow, the government has set up a Flow Rate Technical Team, which is expected to come up with more precise answers sometime later on Saturday.
Wednesday, May 19, 2010
BP (NYSE:BP) and Measuring Oil Spill
Some writers are making a big deal about the reasoning behind why BP (NYSE:BP) allegedly won't measure the oil spill from the explosion on the Deepwater Horizon oil rig which killed 11 workers and caused the leak from the ocean bottom.
One the obvious reasons, and legitimate ones in my opinion, is it really does take away from the efforts of trying to plug up the oil leak, which is the top priority.
It is made to sound like there's some secret reasoning behind it, but it's highly doubtful.
What possible reason would there to be to estimate the exact amount of oil being leaked into the ocean? It will do nothing to make it stop, and it's highly distracting, at minimum.
One goof thinks it's a conspiracy to hide the hidden effects of the dispersants used to control the oil, calling it an environmental risk. Who cares?
The writer talks about the potential of a "grave risk to sea life." Like the oil isn't a risk.
The idea that they are exchanging one risk for another concerning marine life is so incredibly stupid, that it's hard to understand how an article like that would even be allowed to be put in any publication.
It is tortured logic to come to this conclusion, as you'll see in this excerpt from the article:
"If the oil-eating bacteria are in fact devouring oxygen at a harmful rate, the dispersants are most likely contributing to this process. One of the reasons for breaking the oil into smaller droplets is to facilitate oil-eating bacteria's access to it. If these bacteria are also consuming the oxygen that marine ecosystems need to survive, the dispersant effort could prove counterproductive.
"But it could also change the way people remember this spill -- and how much accountability they ultimately expect for it. Once the leak is plugged and the oil is dispersed throughout the Gulf, who's to say for certain whether BP's blown well gushed 5,000 or 80,000 barrels of oil a day?"
The Atlantic needs to get this writer off her meds, or whatever it is causing her to make these assumptions.
Look at the way it's said:
"If the oil-eating bacteria are in fact devouring oxygen..."
"...the dispersants are most likely contributing to this process."
"If these bacteria are also consuming the oxygen..."
"...the dispersant effort could prove counterproductive."
"But it could also change the way people remember this spill..."
"...who's to say for certain whether BP's blown well gushed 5,000 or 80,000 barrels of oil a day?"
This writer refuses to make a statement or draw a conclusion, all the coward does is say "if," "most likely," "could," etc.
In other words, these are little disingenuous tactics used to create doubt about the company and process, while covering her rear-end by not being willing to come right out and say it.
Read it carefully and you'll see that what is really being said is she prefers to have some dubious scientists come in and "measure" the amount of oil in the ocean, while probably already having made the conclusion about it like this inept writer, who would rather have the Gulf awash in oil than stop the leak from continuing to rush into the area.
Why? She's obviously an environmental kook who is outraged over the theory that there could be a loss of oxygen which could result in the marine ecosystems not surviving.
She would rather see oil everywhere than the dispersants sprayed to help combat the oil. It's the dispersants that offend this troubled person, and that's a ridiculous and reckless idea for someone to even be thinking about when it's one of the few things that are really helping.
One the obvious reasons, and legitimate ones in my opinion, is it really does take away from the efforts of trying to plug up the oil leak, which is the top priority.
It is made to sound like there's some secret reasoning behind it, but it's highly doubtful.
What possible reason would there to be to estimate the exact amount of oil being leaked into the ocean? It will do nothing to make it stop, and it's highly distracting, at minimum.
One goof thinks it's a conspiracy to hide the hidden effects of the dispersants used to control the oil, calling it an environmental risk. Who cares?
The writer talks about the potential of a "grave risk to sea life." Like the oil isn't a risk.
The idea that they are exchanging one risk for another concerning marine life is so incredibly stupid, that it's hard to understand how an article like that would even be allowed to be put in any publication.
It is tortured logic to come to this conclusion, as you'll see in this excerpt from the article:
"If the oil-eating bacteria are in fact devouring oxygen at a harmful rate, the dispersants are most likely contributing to this process. One of the reasons for breaking the oil into smaller droplets is to facilitate oil-eating bacteria's access to it. If these bacteria are also consuming the oxygen that marine ecosystems need to survive, the dispersant effort could prove counterproductive.
"But it could also change the way people remember this spill -- and how much accountability they ultimately expect for it. Once the leak is plugged and the oil is dispersed throughout the Gulf, who's to say for certain whether BP's blown well gushed 5,000 or 80,000 barrels of oil a day?"
The Atlantic needs to get this writer off her meds, or whatever it is causing her to make these assumptions.
Look at the way it's said:
"If the oil-eating bacteria are in fact devouring oxygen..."
"...the dispersants are most likely contributing to this process."
"If these bacteria are also consuming the oxygen..."
"...the dispersant effort could prove counterproductive."
"But it could also change the way people remember this spill..."
"...who's to say for certain whether BP's blown well gushed 5,000 or 80,000 barrels of oil a day?"
This writer refuses to make a statement or draw a conclusion, all the coward does is say "if," "most likely," "could," etc.
In other words, these are little disingenuous tactics used to create doubt about the company and process, while covering her rear-end by not being willing to come right out and say it.
Read it carefully and you'll see that what is really being said is she prefers to have some dubious scientists come in and "measure" the amount of oil in the ocean, while probably already having made the conclusion about it like this inept writer, who would rather have the Gulf awash in oil than stop the leak from continuing to rush into the area.
Why? She's obviously an environmental kook who is outraged over the theory that there could be a loss of oxygen which could result in the marine ecosystems not surviving.
She would rather see oil everywhere than the dispersants sprayed to help combat the oil. It's the dispersants that offend this troubled person, and that's a ridiculous and reckless idea for someone to even be thinking about when it's one of the few things that are really helping.
Monday, May 17, 2010
BP (NYSE:BP) Capturing Some of Oil Leak
BP (NYSE:BP) engineers say they're experiencing some success om the capturing of oil from the oil spill, as a pipe a mile long has been successfully inserted into a damaged pipe the oil is leaking out of and is diverting about 1,000 barrels and sending it to a ship on the surface.
Senior executive vice president of BP, Kent Wells, said in an interview, “So we do have oil and gas coming to the ship now, we do have a flare burning off the gas, and we have the oil that’s coming to the ship going to our surge tank ... and it is working as planned.
This is only a temporary measure, as the ultimate plan is to pump heavy drilling mud into the well which will permanently seal the oil leak.
How it works is the mud will be used to block the pressure that pushes the oil up, which will stop the oil from escaping from the ocean floor.
Once that is completed, there will be cement added, which would be the permanent seal.
Wells said it would take about a week to 10 days to begin trying those measures.
Senior executive vice president of BP, Kent Wells, said in an interview, “So we do have oil and gas coming to the ship now, we do have a flare burning off the gas, and we have the oil that’s coming to the ship going to our surge tank ... and it is working as planned.
This is only a temporary measure, as the ultimate plan is to pump heavy drilling mud into the well which will permanently seal the oil leak.
How it works is the mud will be used to block the pressure that pushes the oil up, which will stop the oil from escaping from the ocean floor.
Once that is completed, there will be cement added, which would be the permanent seal.
Wells said it would take about a week to 10 days to begin trying those measures.
Saturday, May 15, 2010
BP Plc (LON:BP) Extends Rig Contract with Transocean (NYSE:RIG)
BP Plc (LON:BP) has extended their contract with Transocean Ltd (Swiss:RIGN) (NYSE:RIG), including another rig in the area, although this one will cost less than the prior one.
It's unclear whether that's because of the accident, but the overall rig contracting market has become highly competitive, and prices have been coming down recently because of competition in the industry.
This oil rig, named Discoverer Enterprise, has a contract of about one and a half years on it, through July 2012, at a daily rate of $423,000, down from the previous $523,000 now on it. The contract starts in February 2011.
I like this in that the two companies are going forward and not just focusing on the tragic accident of the Deepwater Horizon oil rig which claimed 11 lives and continues to spew oil into the Gulf of Mexico region.
It's unclear whether that's because of the accident, but the overall rig contracting market has become highly competitive, and prices have been coming down recently because of competition in the industry.
This oil rig, named Discoverer Enterprise, has a contract of about one and a half years on it, through July 2012, at a daily rate of $423,000, down from the previous $523,000 now on it. The contract starts in February 2011.
I like this in that the two companies are going forward and not just focusing on the tragic accident of the Deepwater Horizon oil rig which claimed 11 lives and continues to spew oil into the Gulf of Mexico region.
Buy BP (NYSE:BP) Put Options, Sell Transoceans's (NYSE:RIG), says Barclays
Barclays said that investors could take advantage of the gulf oil spill by buying put options of BP (NYSE:BP) and selling those of Transoceans (NYSE:RIG).
Puts give investors the right to sell a stock, and the idea is to sell the January $45 put options of Transocean and buy the $40 put options connected to American depositary receipts of BP.
“The options market seems to be pricing in a higher downside risk,” for Transocean because the premium for its puts is high compared with calls while BP’s put premium is “cheap,” said options strategist Maneesh Deshpande. “We recommend this trade to investors looking to express a bearish view on the impact of the accident.”
Transocean has lost about 28 percent of share value since the accident, and BP has lost close to 23 percent of its value.
Puts give investors the right to sell a stock, and the idea is to sell the January $45 put options of Transocean and buy the $40 put options connected to American depositary receipts of BP.
“The options market seems to be pricing in a higher downside risk,” for Transocean because the premium for its puts is high compared with calls while BP’s put premium is “cheap,” said options strategist Maneesh Deshpande. “We recommend this trade to investors looking to express a bearish view on the impact of the accident.”
Transocean has lost about 28 percent of share value since the accident, and BP has lost close to 23 percent of its value.
Friday, May 14, 2010
Nalco (NYSE:NLC) Up on Oil Spill
Nalco Holding (NYSE:NLC) is a company that provides oil-dissolving chemicals or dispersants to aid in battling oil spills when they occur, and consequently their sales of the chemical has increased exponentially since the explosion on the oil rig Deepwater Horizon has spewed oil across the Gulf.
BP (NYSE:BP), Transocean (NYSE:RIG) and Halliburton (NYSE:HAL) are all part of the reason for the increased demand of course, as they've been having their own battles themselves, as they've been putting the finger at one another as to who's responsible for the disaster, which claimed 11 lives.
Nalco has reportedly provided over 430,000 gallons of dispersants for those battling the oil slick, and that will continue to rise, even when the oil well is finally gotten under control.
Unfortunately for Nalco, at this time it only represents about 1 percent of their overall revenue, although that is sure to change, at least for the next quarterly report. The stock has risen strongly since the spill, although it settled some today, before resuming its upward movement.
BP (NYSE:BP), Transocean (NYSE:RIG) and Halliburton (NYSE:HAL) are all part of the reason for the increased demand of course, as they've been having their own battles themselves, as they've been putting the finger at one another as to who's responsible for the disaster, which claimed 11 lives.
Nalco has reportedly provided over 430,000 gallons of dispersants for those battling the oil slick, and that will continue to rise, even when the oil well is finally gotten under control.
Unfortunately for Nalco, at this time it only represents about 1 percent of their overall revenue, although that is sure to change, at least for the next quarterly report. The stock has risen strongly since the spill, although it settled some today, before resuming its upward movement.
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