BP (NYSE:BP) oil is bringing in a new blowout preventer for the well. The company is waiting to hear from U.S. officials for instructions on how to proceed. Thad Allen, National Incident Commander is the one who ordered the new piece.
U.S. officials put a halt to the bottom kill procedure. The primary concern is that the 1,000 barrels of oil currently trapped in the well could leak. The well was finally sealed July 15th, but not before spewing 4.9 million barrels of crude oil into the Gulf region.
Meanwhile, tests and talks continue between the Obama administration and BP. They have not yet decided how to move forward with the completion of the final 50 feet of the relief well. Allen said that the new blowout preventer will be replacing existing equipment. Although it's unclear whether it will be before or after the bottom kill.
Showing posts with label Relief well. Show all posts
Showing posts with label Relief well. Show all posts
Thursday, August 19, 2010
Monday, August 16, 2010
BP (NYSE:BP) Ordered by Officials To Finish Relief Well
There has been much speculation, concern, and curiosity as to whether BP (NYSE:BP) is going to finish their relief well. Now it seems they don't have a choice, U.S. Officials have demanded the company finish it.
The reasoning of this order, was the failure of pressure testing that was done on the well. The tests failed to prove that there is no risk of oil leaking in the future, according to BP's Thad Allen, National Incident Commander. What is being determined now is how to proceed. The original plan, to pump cement and mud into the bottom of the well is now under scrutiny and may be abandoned all together.
The concern is that if the cement/mud mixture is injected into the bottom, there is a substantial risk that it could cause the seal to break and force oil out of the top. "How thick the cement barrier is between the annulus and the reservoir, we just don't know." said Allen "It might be very thin, and we go and put pressure on that and we have a problem."
The problem is a result of Allen's decision for BP to plug the well with cement from the top. According to some petroleum engineers, the better way would have been to leave the mud in place on top of the well and pump the cement in from the bottom. Rather then follow the mud with the cement on top like they did.
A retired petroleum engineer, Les Ply said "It would have been easier and safer to kill the well with the relief well. When it is cemented from the bottom, you can be assured the well is dead."
The reasoning of this order, was the failure of pressure testing that was done on the well. The tests failed to prove that there is no risk of oil leaking in the future, according to BP's Thad Allen, National Incident Commander. What is being determined now is how to proceed. The original plan, to pump cement and mud into the bottom of the well is now under scrutiny and may be abandoned all together.
The concern is that if the cement/mud mixture is injected into the bottom, there is a substantial risk that it could cause the seal to break and force oil out of the top. "How thick the cement barrier is between the annulus and the reservoir, we just don't know." said Allen "It might be very thin, and we go and put pressure on that and we have a problem."
The problem is a result of Allen's decision for BP to plug the well with cement from the top. According to some petroleum engineers, the better way would have been to leave the mud in place on top of the well and pump the cement in from the bottom. Rather then follow the mud with the cement on top like they did.
A retired petroleum engineer, Les Ply said "It would have been easier and safer to kill the well with the relief well. When it is cemented from the bottom, you can be assured the well is dead."
Wednesday, August 11, 2010
BP (NYSE:BP): "To Kill" or Not "To Kill"
With BP (NYSE:BP) being so close to reaching the relief well, they now have to stop drilling due to approaching storms. Thad Allen, retired Coast Guard Adm. said they are expecting a delay of two or three days in completing the relief well.
There has been no oil spilled since the placement of the temporary cap was placed on top of the well in mid July. The crews will put into place a temporary plug to protect what they've already drilled. They are only lacking another 30 feet until they'll be done. Workers won't be going back to land.
Allen has been insisting for days that BP go ahead and start the bottom kill. On Tuesday he changed his tune, and stated that more testing needed to be completed before a decision could be made.
Allen said, "I'm not sure we know that. I don't want to prejudge whether we are going to do it or not going to do it. It will be conditioned based." He did state that there's a "very low probability"
of the bottom kill not being done. "We will let everyone know" if it changes.
There has been no oil spilled since the placement of the temporary cap was placed on top of the well in mid July. The crews will put into place a temporary plug to protect what they've already drilled. They are only lacking another 30 feet until they'll be done. Workers won't be going back to land.
Allen has been insisting for days that BP go ahead and start the bottom kill. On Tuesday he changed his tune, and stated that more testing needed to be completed before a decision could be made.
Allen said, "I'm not sure we know that. I don't want to prejudge whether we are going to do it or not going to do it. It will be conditioned based." He did state that there's a "very low probability"
of the bottom kill not being done. "We will let everyone know" if it changes.
Tuesday, August 10, 2010
BP (NYSE:BP) Relief Well Should Impact Oil Trading
The relief well that BP (NYSE:BP) has been working towards over the last few months, is only 100 feet away from reaching their target. The completion of this process will insure no more crude oil is ever released into the ocean by the Macondo well. It should also have a big impact on oil trading.
John Wright is the man who will be guiding the drill over three miles from the surface and two miles below the sea floor. The target he will be attempting to hit is less than half the size of a dartboard. If Wright misses the target, BP's engineers will pull the drill up and pour concrete into the hole, and then try it again.
Wright has helped companies for over four decades cap wells all over the world. His track record is 40 for 40, hoping to make it 41 for 41 with his completion of the Macondo well. After watching a video from BP in June, he said he is quite confident that he can do it.
"Out of forty relief wells that I've drilled, we've never missed yet. I've got high confidence we will take care of this problem as soon as we can get there," said Wright.
John Wright is the man who will be guiding the drill over three miles from the surface and two miles below the sea floor. The target he will be attempting to hit is less than half the size of a dartboard. If Wright misses the target, BP's engineers will pull the drill up and pour concrete into the hole, and then try it again.
Wright has helped companies for over four decades cap wells all over the world. His track record is 40 for 40, hoping to make it 41 for 41 with his completion of the Macondo well. After watching a video from BP in June, he said he is quite confident that he can do it.
"Out of forty relief wells that I've drilled, we've never missed yet. I've got high confidence we will take care of this problem as soon as we can get there," said Wright.
Monday, August 9, 2010
BP (NYSE:BP) Cement Hardens, on to "Bottom Kill"
BP (NYSE:BP) said that the sealing cement has hardened. Work crews are now preparing for the final stage of drilling a relief well, called "bottom kill." After oil was spewing into the ocean for 84 days.
The pressure tests that were done on the cement plug that was forced down the throat of the well, have shown the seal is securely in place. Which means, BP can start drilling on the last 100 feet to permanently seal the damaged well. The crews must drill very carefully and very slowly, only progressing at a rate of about 30 feet at a time.
The company is expecting to not be completed until next weekend. They will use the same process of drilling cement and mud, this time into the bottom of the well. At that time, they are confident the two relief wells will meet, thus completing the process and "killing" the well.
The pressure tests that were done on the cement plug that was forced down the throat of the well, have shown the seal is securely in place. Which means, BP can start drilling on the last 100 feet to permanently seal the damaged well. The crews must drill very carefully and very slowly, only progressing at a rate of about 30 feet at a time.
The company is expecting to not be completed until next weekend. They will use the same process of drilling cement and mud, this time into the bottom of the well. At that time, they are confident the two relief wells will meet, thus completing the process and "killing" the well.
Monday, August 2, 2010
BP's (NYSE:BP) Static Kill Delayed Due To Debris
The static kill procedure was set to begin today, but BP (NYSE:BP) is saying it will be delayed due to debris from the Gulf of Mexico storm. Thad Allen, National Incident Commander said it's looking like the delay will only be a day hopefully.
On July 23rd, BP had to evacuate all their drilling vessels from the oil spill site to almost 40 miles off Louisiana's coast. Once Tropical Storm Bonnie subsided, there was much sediment that fell inside the wellbore which had to be removed. There is a drilling vessel preparing to install casing into the relief well.
The casing must be installed before the static kill attempt to reinforce the well. This process may cut down on the time it takes to ultimately plug the well permanently. The relief well is not expected to be ready to have the mud pumped through it for at least a few more weeks.
On July 23rd, BP had to evacuate all their drilling vessels from the oil spill site to almost 40 miles off Louisiana's coast. Once Tropical Storm Bonnie subsided, there was much sediment that fell inside the wellbore which had to be removed. There is a drilling vessel preparing to install casing into the relief well.
The casing must be installed before the static kill attempt to reinforce the well. This process may cut down on the time it takes to ultimately plug the well permanently. The relief well is not expected to be ready to have the mud pumped through it for at least a few more weeks.
Friday, July 30, 2010
BP (NYSE:BP) Oil UPDATE: Static Kill Progress, Asset Sales
According to the soon to be CEO for BP (NYSE:BP), the company is planning on attempting the "static kill" operation on Tuesday. If successful it will seal the broken well. The the focus will turn to the relief well and permanently plugging it by the end of August.
The "static kill" process entails pumping heavy drilling mud followed by cement into the top of the Macondo well. The goal is to push a column of oil back into the reservoir almost three miles below the seafloor. Crews were installing a final pipe like casing into the well Thursday evening.
At a news conference in Mississippi, Dudley stated that BP is currently in the process of a $25 to $30 billion global asset sale. The Apace deal of $7 billion has also been agreed on. The sales are part of the company's plan to pay for the costs they've incurred from the massive oil leak that has spilled out over $200 million gallons of toxic crude.
The "static kill" process entails pumping heavy drilling mud followed by cement into the top of the Macondo well. The goal is to push a column of oil back into the reservoir almost three miles below the seafloor. Crews were installing a final pipe like casing into the well Thursday evening.
At a news conference in Mississippi, Dudley stated that BP is currently in the process of a $25 to $30 billion global asset sale. The Apace deal of $7 billion has also been agreed on. The sales are part of the company's plan to pay for the costs they've incurred from the massive oil leak that has spilled out over $200 million gallons of toxic crude.
Monday, July 26, 2010
BP (NYSE:BP) Won't Plug Well Until Next Week
Thad Allen, National Incident Commander told reporters on Sunday that BP (NYSE:BP) will most likely begin working on plugging the well next week. The ships used to help plug the well were evacuated Friday due to tropical storm Bonnie, but most have returned or are expected to return within 24 hours.
Allen said that he plans on BP beginning the process known as "static kill" next week. This entails pouring mud into the top of the well. Once completed, they will then proceed with what's called the "bottom kill." The process includes pouring mud and concrete by a connecting line to the relief well.
Allen was very optimistic over the success of containing the leaking oil on July 15th. He said the pressure continues to rise at a slow steady pace, reaching 6,904 pounds per square inch. The well remains intact with no leaks.
Allen said that he plans on BP beginning the process known as "static kill" next week. This entails pouring mud into the top of the well. Once completed, they will then proceed with what's called the "bottom kill." The process includes pouring mud and concrete by a connecting line to the relief well.
Allen was very optimistic over the success of containing the leaking oil on July 15th. He said the pressure continues to rise at a slow steady pace, reaching 6,904 pounds per square inch. The well remains intact with no leaks.
Friday, July 16, 2010
BP (NYSE:BP) Shares Decline As Cap Is Holding
After all the anticipation and excitement over BP's (NYSE:BP) success in stopping the leaking oil, reality has hit to the massive effects of the worst oil spill in U.S. history. BP saw a decline in their shares of 4 percent to $37.38.
Fifteen hours into the cap being placed upon Macondo, it is holding strong. President Barack Obama said, "It is important that we don't get ahead of ourselves here. You know, one of the problems with having the camera down there is, that when the oil stops gushing everybody feels like we're done and we're not."
While Kent Wells, BP's vice president, said that the spill center has measured a steady increase of pressure, above and beyond the minimum of 6,000 pounds to 6,700 pounds per square inch. He also stated that BP has restarted working on the relief well to help release pressure on the ruptured well.
Fifteen hours into the cap being placed upon Macondo, it is holding strong. President Barack Obama said, "It is important that we don't get ahead of ourselves here. You know, one of the problems with having the camera down there is, that when the oil stops gushing everybody feels like we're done and we're not."
While Kent Wells, BP's vice president, said that the spill center has measured a steady increase of pressure, above and beyond the minimum of 6,000 pounds to 6,700 pounds per square inch. He also stated that BP has restarted working on the relief well to help release pressure on the ruptured well.
Thursday, July 15, 2010
BP (NYSE:BP) Stocks Price Dropping Again
After a five day winning streak, BP (NYSE:BP) stocks price is dropping again. The decline is said to be because of the delayed testing that would tell if the sealing cap that has been installed is successful.
BP's shares fell 2.3 percent, while their American depository shares saw a 2.1 percent plummet to $36.12. That's its second day straight being in the red. Even after the decline seen on Tuesday and Wednesday, for the week the stock is up 6 percent.
After hitting a 14 year low last month, they are still up 35 percent. While their shares are still down 40 percent from before the explosion and sinking of the Deepwater Horizon. The cost to insure BP debt has increased, from $321,000 as of Tuesdays close to $355,000 annually.
BP's senior vice president, Kent Wells said they have temporarily stopped drilling of the relief well, which will set back the completion by a "couple days."
BP's shares fell 2.3 percent, while their American depository shares saw a 2.1 percent plummet to $36.12. That's its second day straight being in the red. Even after the decline seen on Tuesday and Wednesday, for the week the stock is up 6 percent.
After hitting a 14 year low last month, they are still up 35 percent. While their shares are still down 40 percent from before the explosion and sinking of the Deepwater Horizon. The cost to insure BP debt has increased, from $321,000 as of Tuesdays close to $355,000 annually.
BP's senior vice president, Kent Wells said they have temporarily stopped drilling of the relief well, which will set back the completion by a "couple days."
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.”
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.
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