I was down at the Global Petroleum show yesterday during the set up. I have another job that is involved in the trade show industry. Anyways one of my clients also does subsea drilling in the Gulf of Mexico and around the world.
I asked him about this whole mess and if he thought BP was going to be able to get it under control or capped.
The impression he gave me was that BP has spent so much money drilling this well they don't want to just close it up and risk not realizing any profits from it. They are looking for a way to still be able to obtain the oil from the well without spending a fortune on re drilling.
Keep in mind this is from a competitor and I have no idea on all of the details on what exactly is happening down there or if BP's efforts are for the good of the environment or not. I just thought it was a very interesting and surprising comment on the situation.
The fact that BP's efforts aren't 100% on the containment and well being of the environment right now is appaling (if true).
Wouldn't surprise me if that were true. Offshore wells cost waaaaaaay more to drill then regular surface wells and combined with the fact that they will be on the hook for the cleanup/lawsuits, why not try and capture as much oil as possible. Just the fact that so many millions of barrels have been spilt already should give people an idea of just how huge that reservoir is.
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Originally Posted by Mike Oxlong
I was down at the Global Petroleum show yesterday during the set up. I have another job that is involved in the trade show industry. Anyways one of my clients also does subsea drilling in the Gulf of Mexico and around the world.
I asked him about this whole mess and if he thought BP was going to be able to get it under control or capped.
The impression he gave me was that BP has spent so much money drilling this well they don't want to just close it up and risk not realizing any profits from it. They are looking for a way to still be able to obtain the oil from the well without spending a fortune on re drilling.
Keep in mind this is from a competitor and I have no idea on all of the details on what exactly is happening down there or if BP's efforts are for the good of the environment or not. I just thought it was a very interesting and surprising comment on the situation.
The fact that BP's efforts aren't 100% on the containment and well being of the environment right now is appaling (if true).
I've heard this a few times and I'm fairly certain this is a ridiculous assumption. Think about it. The costs to date for trying to stop this well, and the clean up to date have been huge. BP's site pegs it at ~$990MM. Which is MORE than enough to redrill the well if they'd had a chance to just shut it off and lose the well.
Then when you add the fact that their stock has dropped somewhere around 40%, and you'd have to be absolutely insane to believe that BP isn't doing everything they can to get this thing capped ASAP, regardless of whether or not they'll be able to reuse the wellbore.
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Location: In my office, at the Ministry of Awesome!
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Originally Posted by Huntingwhale
Wouldn't surprise me if that were true. Offshore wells cost waaaaaaay more to drill then regular surface wells and combined with the fact that they will be on the hook for the cleanup/lawsuits, why not try and capture as much oil as possible. Just the fact that so many millions of barrels have been spilt already should give people an idea of just how huge that reservoir is.
I'm not trying to downplay how huge this event is, but I think your post is a great example of people not really paying attention and just throwing out numbers.
The governments officail estimate is 12000-19000 bbl/d.
So with this thing having been going for ~50 days that means the High end estimate is ~1MM bbl of oil. 1 Million, not many millions.
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I'm not trying to downplay how huge this event is, but I think your post is a great example of people not really paying attention and just throwing out numbers.
The governments officail estimate is 12000-19000 bbl/d.
So with this thing having been going for ~50 days that means the High end estimate is ~1MM bbl of oil. 1 Million, not many millions.
Apologies. I meant to say 1 million. And yes l do pay attention to this fairly regularly. I think anyone working in Oil/Gas right now is.
The fact that BP's efforts aren't 100% on the containment and well being of the environment right now is appaling (if true).
BP's common shares have declined by a value of about $60 billion to this point. That's to the point where they've actually opened themselves up to takeover speculation. And all of that's on top of the cash flow impact this will have.
That makes the "we're not really trying" scenario hard to believe.
Cowperson
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I'm nit going to pretend I know about the quest to fix the problem at the bottom of the ocean, and it's true that I view this entirely from the perspective of a potential investor looking for profits. That being said what exactly is Obama not doing that he should be?
As someone else (cowperson) has pointed out he has already called for BP to axe it's dividend (which I find appaling as a supporter of the free market). Really though, what can Obama do here? If the oil continues to spew it's not as though he has a solution that no one else knows about. I don't believe for a second that BP is holding back a solution either.
I'm nit going to pretend I know about the quest to fix the problem at the bottom of the ocean, and it's true that I view this entirely from the perspective of a potential investor looking for profits. That being said what exactly is Obama not doing that he should be?
As someone else (cowperson) has pointed out he has already called for BP to axe it's dividend (which I find appaling as a supporter of the free market). Really though, what can Obama do here? If the oil continues to spew it's not as though he has a solution that no one else knows about. I don't believe for a second that BP is holding back a solution either.
For one, shutting down all offshore drilling below the arctic circle doesn't help anybody.
It was more of my amazement of the media than a shot of Obama. Obama hasn't handled this badly but it's not perfect like some (very important) media is creaming it's pants over. When the media starts throwing words like flawless and perfect around, they're too bias.
Bush would have been flogged.
/Fotze beat me to it
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I'm nit going to pretend I know about the quest to fix the problem at the bottom of the ocean, and it's true that I view this entirely from the perspective of a potential investor looking for profits. That being said what exactly is Obama not doing that he should be?
As someone else (cowperson) has pointed out he has already called for BP to axe it's dividend (which I find appaling as a supporter of the free market). Really though, what can Obama do here? If the oil continues to spew it's not as though he has a solution that no one else knows about. I don't believe for a second that BP is holding back a solution either.
To be honest, I don't find it appalling at all. Obama can say whatever he likes, and BP will to the same extent do whatever they think is best for their company and their shareholders. Obama isn't legislating anything, he's simply pointing out that following through on their dividend is some pretty poor optics for a company that is currently responsible for one of the worst ecological crises in history.
As for the person who said that stopping drilling in the arctic is an overreaction: give your head a shake. The U.S. clearly needs to review its regulatory frameworks and the safety standards of the industry before it allows more offshore drilling--especially more new offshore drilling. That's called being responsible, and I'm glad Obama has the stones to do it--I just hope Congress does too, because they're the ones who are going to have to create the new standards under which drilling can be allowed.
I have to give kudos to CBC last night, they illustrated the problems that are happening using a ordinary drinking straw.
They talked about the cut and cap operation as being equivalent to trying to screw your garden hose onto the outside faucett while its running at maximum pressure.
I was down at the Global Petroleum show yesterday during the set up. I have another job that is involved in the trade show industry. Anyways one of my clients also does subsea drilling in the Gulf of Mexico and around the world.
I asked him about this whole mess and if he thought BP was going to be able to get it under control or capped.
The impression he gave me was that BP has spent so much money drilling this well they don't want to just close it up and risk not realizing any profits from it. They are looking for a way to still be able to obtain the oil from the well without spending a fortune on re drilling.
Keep in mind this is from a competitor and I have no idea on all of the details on what exactly is happening down there or if BP's efforts are for the good of the environment or not. I just thought it was a very interesting and surprising comment on the situation.
The fact that BP's efforts aren't 100% on the containment and well being of the environment right now is appaling (if true).
Wasnt one of the things they tried was to fill the hole with cement - something called "top fill"?
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As an HR/Healt&Safety professional in oil and gas, I know regulations are more lax in the US than in Canada. Yes, it would be nice if they tightened up regulation in the US, but you all need only look at healthcare and the proposed financial regulation to see how congress and the public feel about government regulation. That being said, just because your company was given the benefit of the doubt and more due dillegence and site visits weren't conducted, doesn't mean its the governments fault when a company screws up this badly. The government can't be everywhere to check everything, especially in a country where the majority want the government out of everything. Yes, one giant spill out of thousands world wide is good odds but realistically this shouldn't happen. I also think a lot of people have forgotten that this cost 11 people their lives.
The new hi-def video they have of the leak that they're showing on CNN tonight is pretty unreal. The stuff is absolutely just pouring out of there. Pretty sad.
The new hi-def video they have of the leak that they're showing on CNN tonight is pretty unreal. The stuff is absolutely just pouring out of there. Pretty sad.
believe it or not, a week ago it looked a hell of alot worse...
Looking through some of the license data, I am a little confused. Are they drilling 2 relief wells?
The well bottom location is Mississippi Canyon block 252 and the API number is 608174116900.
The well 608174116900 spud date 10/7/2009 and TD'd on 3/8/2010 and then well 608174116901 is a side track, spud date 3/18/2009. Not sure if drilling the side track is responsible for the blowout because I think the original borehole was plugged and abandoned (ST status).
They are showing a well API: 608174118900 as drilling with a spud date of 5/3/2010 so I am assuming this is the relief well.
They have also applied for a well API: 608174119000. Is this a second relief well or are they dumb enough to try drilling a new well on this lease? I am not terribly familiar with offshore stuff so can anyone shed some light on it?
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