According to the U.S. National Hurricane Center, tropical storm Bonnie is South of the Bahama's and is heading toward the southern tip of Florida - straight to BP's (NYSE:BP) oil infested waters.
It is on track to hit the Florida Keys tomorrow at 6:15pm at 40 miles per hour. The storm is expected to gain strength as it hits.
The storm is being watched carefully by forecasters to see what it will do as it enters the Gulf and if its on track to hit directly over the BP oil spill site. Jeff Masters, co-founder of weather underground, said that tropical storm winds hitting 50 MPH would force oil into the Louisiana marshes as well as into Lake Pontchartrain.
Travis Hartman, energy manager and meteorologist said, "Oil production in the central to western Gulf should monitor this system for possible increases in intensity, but most rigs can withstand tropical storm force winds fairly well."
Showing posts with label Rigs. Show all posts
Showing posts with label Rigs. Show all posts
Friday, July 23, 2010
Tuesday, June 29, 2010
Crude Oil Trading, Stock Shares: Shell (LSE:RDSA), Exxon Mobil (NYSE:XOM) and BP (NYSE:BP)
While BP (NYSE:BP) finally saw an increase, other U.S. stock shares and crude oil trading continues to fall, including Royal Dutch Shell (LSE:RDSA) and Exxon Mobil (NYSE:XOM), sliding from a prior seven week high. Causing the Standard and Poors 500 to drop again, this is the fifth time in six days.
The S&P saw another decline of 0.1 percent to 1,074.57, while the energy shares among S&P tumbled 1.3 percent as a group - this being the highest loss among 10 industries. While the Dow Jones Industrial average also slide losing 0.1 percent or 5.29 point to 10,138.52. Crude oil fell below $78 a barrel in New York, this is due to slow economic growth concerns that this may reduce demand.
Exxon Mobil dropped 1.39 percent to $57.65. While Royal Dutch Shell saw a decline of 2.9 percent to $49.56, and BP saw a gain of 0.96 percent to 27.31.
Meanwhile, many are watching with worry and anticipation as Alex continues it's course towards the Gulf as swells are already reaching it. It is expected to turn into a hurricane and the force of the storm is already causing evacuations on several of the oil rigs. Air Logistics, an offshore helicopter company has been evacuating Gulf workers in the Western Gulf of Mexico.
Shell is planning on shutting down production today on their rigs in the central and Western Gulf. Exxon has also started the process of evacuation from the offshore facilities that are expected to be in the path of Alex.
The S&P saw another decline of 0.1 percent to 1,074.57, while the energy shares among S&P tumbled 1.3 percent as a group - this being the highest loss among 10 industries. While the Dow Jones Industrial average also slide losing 0.1 percent or 5.29 point to 10,138.52. Crude oil fell below $78 a barrel in New York, this is due to slow economic growth concerns that this may reduce demand.
Exxon Mobil dropped 1.39 percent to $57.65. While Royal Dutch Shell saw a decline of 2.9 percent to $49.56, and BP saw a gain of 0.96 percent to 27.31.
Meanwhile, many are watching with worry and anticipation as Alex continues it's course towards the Gulf as swells are already reaching it. It is expected to turn into a hurricane and the force of the storm is already causing evacuations on several of the oil rigs. Air Logistics, an offshore helicopter company has been evacuating Gulf workers in the Western Gulf of Mexico.
Shell is planning on shutting down production today on their rigs in the central and Western Gulf. Exxon has also started the process of evacuation from the offshore facilities that are expected to be in the path of Alex.
Monday, June 28, 2010
Shell Oil (LSE:RDSA) Reaches Gulf Deal With Noble
Shell Oil (LSA:RDSA) has reached a deal with Noble Corp. that gives them $4 billion of new contracts. Noble is also purchasing Frontier Drilling, a privately held company for $2.16 billion in cash.
Shell will be paying reduced fees for the leasing of Noble's rigs in the Gulf of Mexico. They have also given Shell the full right to cancel any contracts between the two rigs currently in the Gulf. Due to President Obama's six month moratorium on deepwater drilling.
The agreements are contingent upon Noble closing the deal with Frontier. Upon doing so, Shell will have the go ahead for the two ultra deepwater projects according to the terms of the contract. Anadarko pulled out of their contract with Noble in the beginning of June from drilling contracts due to the moratorium.
John Breed, a Noble spokesman said the purpose of the Shell purchase is to hopefully ease concerns and prevent oil companies from fully abandoning agreements in the Gulf. " We're working with our customers to find a resolution that would allow them to keep rigs under contract," said Breed.
Shell will be paying reduced fees for the leasing of Noble's rigs in the Gulf of Mexico. They have also given Shell the full right to cancel any contracts between the two rigs currently in the Gulf. Due to President Obama's six month moratorium on deepwater drilling.
The agreements are contingent upon Noble closing the deal with Frontier. Upon doing so, Shell will have the go ahead for the two ultra deepwater projects according to the terms of the contract. Anadarko pulled out of their contract with Noble in the beginning of June from drilling contracts due to the moratorium.
John Breed, a Noble spokesman said the purpose of the Shell purchase is to hopefully ease concerns and prevent oil companies from fully abandoning agreements in the Gulf. " We're working with our customers to find a resolution that would allow them to keep rigs under contract," said Breed.
Sunday, June 27, 2010
Shell (LSE:RDSA): We Must Keep Deep Water Drilling For Oil
Peter Voser, the chief executive of Royal Dutch Shell (LSE:RDSA) said even though there's been a massive oil spill due to BP, lack of resources and ability to contain the crude oil, deep water drilling is still an absolute necessary to be able to meet the growing energy demands the industry is facing. He was sure to add though that the disaster readiness must be properly evaluated and corrected.
"My expectation is that we will go forward with it but it needs some changes. It's clear, now some of the findings are coming out, that the oil response side has got some weaknesses and we as an industry have to come together in order to actually be better prepared in the future," said Voser.
Due to the worst oil spill in history, President Obama put into play a six month moratorium on all deep water drilling. This was put into place in May and was only supposed to last through that month and be effective on any new deep water drilling. As the month of May came to a close, that is when Obama extended the moratorium to six months and made it effective on all drilling rigs in the Gulf.
Voser said, "we have got other safety procedures across the globe. But I think again that for some companies, there will be some learning in this that needs to be adapted. Safety and design features need to be constantly improved. By doing so we can actually prevent these kinds of things from happening much more and I think that's where we need to drive it even further on the global scale."
"My expectation is that we will go forward with it but it needs some changes. It's clear, now some of the findings are coming out, that the oil response side has got some weaknesses and we as an industry have to come together in order to actually be better prepared in the future," said Voser.
Due to the worst oil spill in history, President Obama put into play a six month moratorium on all deep water drilling. This was put into place in May and was only supposed to last through that month and be effective on any new deep water drilling. As the month of May came to a close, that is when Obama extended the moratorium to six months and made it effective on all drilling rigs in the Gulf.
Voser said, "we have got other safety procedures across the globe. But I think again that for some companies, there will be some learning in this that needs to be adapted. Safety and design features need to be constantly improved. By doing so we can actually prevent these kinds of things from happening much more and I think that's where we need to drive it even further on the global scale."
Tuesday, June 22, 2010
Shell (LSE:RDSA) Penalized By Bond Market, 2.75 Billion Debt Offering
In a 2.75 billion dollar debt offering, Shell (LSE:RDSA) received penalties by the bond market. Anadarko's notes saw a significant decline as fear mounts that profits will fall across the oil industry due to the worst U.S. oil spill in history.
Shell has the most rigs in the Gulf that are now being effected by the deepwater drilling ban. The effect is causing Shell to face higher yield spreads causing investors considerable doubt to weather the government will further increase restrictions and regulations. Anadarko has yet to see if they will be required to pay their share of the oil spill disaster. Having a 25 percent stake, if it's found that they do have to pay they would be required to pay 25 percent of the oil cleanup costs.
Levington, a managing director of corporate credit at Brookfield in New York said, "it could delay the timely projects or possibly eliminate them. It could require additional monitoring and maintenance, all of which could hurt earnings, cash flow, and returns on oil invested capital."
Shell has the most rigs in the Gulf that are now being effected by the deepwater drilling ban. The effect is causing Shell to face higher yield spreads causing investors considerable doubt to weather the government will further increase restrictions and regulations. Anadarko has yet to see if they will be required to pay their share of the oil spill disaster. Having a 25 percent stake, if it's found that they do have to pay they would be required to pay 25 percent of the oil cleanup costs.
Levington, a managing director of corporate credit at Brookfield in New York said, "it could delay the timely projects or possibly eliminate them. It could require additional monitoring and maintenance, all of which could hurt earnings, cash flow, and returns on oil invested capital."
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