The costs associated with the BP (NYSE:BP) oil spill have soared to $8 billion in a few short months, and that doesn't include the $20 billion set aside for the escrow fund now being administered by Kenneth Feinberg.
At this pace they'll pay out far more from these costs than the escrow fund, although it has to be taken into consideration they won't be paying out claims any longer because they've transferred to the fund completely.
BP said in a press release, "The cost of the response to date amounts to approximately $8 billion, including the cost of the spill response, containment, relief well drilling, static kill and cementing, grants to the Gulf states, claims paid and federal costs."
Questions are being raised by BP as to whether or not they can continue paying out if they are banned from further drilling in the Gulf of Mexico, which would be the case of legislation is passed which would prohibit them from doing so.
Showing posts with label Static Kill. Show all posts
Showing posts with label Static Kill. Show all posts
Friday, September 3, 2010
Friday, August 6, 2010
BP (NYSE:BP) Stock Prices Rise While Energy Stocks Decline
There is a sense of much relief that BP (NYSE:BP) is seeing success in their static kill attempt, causing stock prices to continue to rise. While energy stocks are on the decline.
BP's shares rose another 0.7 percent to $40.95, after the completion of the cementing of the Macondo well. After drawing a downgrade from J.P. Morgan, Transocean plummeted 3 percent to %56.34, after soaring 8 percent in the prior session.
Crude oil futures slide 1.2 percent to $80.98.
The Dow Jones Industrial Average dropped 0.7 percent. With Exxon and Chevron decreasing 0.8 percent and 0.6 percent.
The NYSE Arca Oil Index dropped 0.9 percent to 1,020. The Philadelphia Oil Service Index fell 1.4 percent to 188. The NYSE Arca Natural Gas Index also saw a decrease of 1.4 percent bringing it to 531.
BP's shares rose another 0.7 percent to $40.95, after the completion of the cementing of the Macondo well. After drawing a downgrade from J.P. Morgan, Transocean plummeted 3 percent to %56.34, after soaring 8 percent in the prior session.
Crude oil futures slide 1.2 percent to $80.98.
The Dow Jones Industrial Average dropped 0.7 percent. With Exxon and Chevron decreasing 0.8 percent and 0.6 percent.
The NYSE Arca Oil Index dropped 0.9 percent to 1,020. The Philadelphia Oil Service Index fell 1.4 percent to 188. The NYSE Arca Natural Gas Index also saw a decrease of 1.4 percent bringing it to 531.
BP (NYSE:BP) Oil: Static Kill Success, On To Relief Wells
BP (NYSE:BP) engineers appear to be successful in their static kill attempt. Cement was poured in to the top of the well, which is supposed to hold down the mud at the bottom of the well. Now they must wait at least 24 hours for the cement to harden.
The static kill process started on Tuesday with crews pumping thick mud down the well to push the crude back underground. With that success, the next step was to pour in the cement. The final step once the cement hardens is for the engineers to inject more mud and cement into the bottom of the well, creating a permanent plug.
So while we are starting to shift from one aspect of BP's disastrous oil spill to another, there is still much to be done. According to a new report issued by the Interior Department and the National Oceanic and Atmospheric Administration, there is still almost 53 million gallons of the toxic oil polluting the Gulf shores.
"There is very little observable oil out there. We can't turn a blind eye, if we don't see oil, I'm not assuming it doesn't exist," said Rear Adm. Paul Zukunft.
The static kill process started on Tuesday with crews pumping thick mud down the well to push the crude back underground. With that success, the next step was to pour in the cement. The final step once the cement hardens is for the engineers to inject more mud and cement into the bottom of the well, creating a permanent plug.
So while we are starting to shift from one aspect of BP's disastrous oil spill to another, there is still much to be done. According to a new report issued by the Interior Department and the National Oceanic and Atmospheric Administration, there is still almost 53 million gallons of the toxic oil polluting the Gulf shores.
"There is very little observable oil out there. We can't turn a blind eye, if we don't see oil, I'm not assuming it doesn't exist," said Rear Adm. Paul Zukunft.
Wednesday, August 4, 2010
Insider Stock Trading Among BP (NYSE:BP) Employees
Well, we've heard just about everything about BP (NYSE:BP), but now they are under investigation by U.S. authorities for insider stock trading among its employees. This is just one of many parallel investigations currently underway.
Since the suspicions arose, The Department of Justice and the Securities and Exchange Commission have been looking into the allegations. It's being said that there were BP insiders who had access to knowledge about the company's plans.
This knowledge for the oil cleanup and spill containment efforts were than used to cash in by trading shares. It's also being said that this information was leaked to others outside of the company.
Meanwhile, BP continues forward with its "static kill" attempt. The company is still optimistic that the relief wells will be finished by the end of this month. While the federal government has increased their estimate to almost 5 million barrels of oil that has polluted the Gulf. That's more than 12 times what BP was originally estimating.
Since the suspicions arose, The Department of Justice and the Securities and Exchange Commission have been looking into the allegations. It's being said that there were BP insiders who had access to knowledge about the company's plans.
This knowledge for the oil cleanup and spill containment efforts were than used to cash in by trading shares. It's also being said that this information was leaked to others outside of the company.
Meanwhile, BP continues forward with its "static kill" attempt. The company is still optimistic that the relief wells will be finished by the end of this month. While the federal government has increased their estimate to almost 5 million barrels of oil that has polluted the Gulf. That's more than 12 times what BP was originally estimating.
Tuesday, August 3, 2010
BP (NYSE:BP) Foregoing Relief Wells: Static Kill Up In The Air
BP (NYSE:BP) has been insisting that the only way to permanently plug the well was by the relief well. Now that the engineers are only a matter of a few feet away they are unsure how to proceed.
Testing was planned Monday evening to help crews determine if the "static kill" attempt would be preformed. Kent Wells, BP senior Vice President, said that engineers may pump the cement directly into the ruptured well through the failed blowout preventer via a surface ship. This would be done rather than waiting until the end of the month for the original plans of the relief well.
The idea isn't a new one, but BP hasn't even hinted to the possibility of a plan other than the drilling of the two relief wells to permanently plug the Macondo well. BP spokesman Daren Beaudo said, "Precisely what the relief wells will do remains to be seen given what we learn from the static kill, can't predict it for certain."
Either way, "We want to end up with cement at the bottom of the hole," said Wells. Although BP was very vague as to why after so much time, effort, and money the company seems so unclear as to the exact roll the relief wells will play. Meanwhile, several leaks have sprung near the blown out well. Rumors are flying that there was more damage than BP is admitting to, caused by tropical storm Bonnie.
Testing was planned Monday evening to help crews determine if the "static kill" attempt would be preformed. Kent Wells, BP senior Vice President, said that engineers may pump the cement directly into the ruptured well through the failed blowout preventer via a surface ship. This would be done rather than waiting until the end of the month for the original plans of the relief well.
The idea isn't a new one, but BP hasn't even hinted to the possibility of a plan other than the drilling of the two relief wells to permanently plug the Macondo well. BP spokesman Daren Beaudo said, "Precisely what the relief wells will do remains to be seen given what we learn from the static kill, can't predict it for certain."
Either way, "We want to end up with cement at the bottom of the hole," said Wells. Although BP was very vague as to why after so much time, effort, and money the company seems so unclear as to the exact roll the relief wells will play. Meanwhile, several leaks have sprung near the blown out well. Rumors are flying that there was more damage than BP is admitting to, caused by tropical storm Bonnie.
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.
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