Thread: BP troubles just beginning??

Replacing mud with seawater would mean a reduction in hydrostatic pressure:-
5,000' x 8.4 ppg seawater = 2185 Psi
5,000 x 14.0 ? ppg mud = 3640 Psi
= 1,455 Psi pressure reduction holding everything in place.
From what I have read of this incident the main problem lies in the engineering of the well, though I could be wrong.............

Interesting that this was considered a "devil well" according to the survivors. This well just didn't want to be drilled. All sorts of problems. Most of the workers were apparently fearful of the outcome.

E. G.

Hopefully this will make BP's shares fall a bit lower as they are already becoming very attractive (from a buyers prespective) at their current price.

^ Agreed, this is "just a drop in the ocean" to BP, people don't realise how expensive it is to drill in deepwater, and they have a good new field!

Originally Posted by Airportwo

^ Agreed, this is "just a drop in the ocean" to BP, people don't realise how expensive it is to drill in deepwater, and they have a good new field!

Their shares were about £5.50 (i think) before the troubles and when i looked yesterday were about £4.15, and i think a lot of people just don't realise how big BP actually is, dip below £4 and i'm seriously thinking about chucking a load of cash their way.

American sub-contractor doing the original work

American engineers messed this up

Another interesting tid bit. The professor listed in the environmental impact study in 1999 as a wildlife expert, actually died in 1995.

BP's total plan for a "worst case scenario" submitted prior to permission to drill has turned out to be a totally erroneous document...

Am neither here nor there on the merits of BP but they sure got their tit in a wringer on this one.

On top of the Texas City refinery disaster and a major oil tanker problem they are getting a reputation of cutting corners wherever and whenever possible.

Careful, their stock may drop a lot more, especially when the final bill is paid................ in 30 or 40 years.

E. G.

EDIT: Pelosi and a senator from Florida are all over this one. Someone gonna pay. Wouldn't be surprised if the bitch wants the total US debt as compensation

When BP bought out Amoco some years back, they inherited a lot of crap like the Texas refinery

I still reckon if you bought BP shares today, just checked they are currently trading at £3.96 in London, down £0.12 on the day, you will be looking at least at a 20-25% profit in 12 months + dividends.

Pete; No reflection on your comments but the Schlumberger story, and I have read a couple variations of it left a lot of doubt in my mind as to its accuracy. I base this on when the blow out occurred, drill pipe was in the well and the Schlumberger crew were probably in the galley or the fart sack.(Certainly not on rig floor to observe a kick) Yes I agree Schlumberger is a very safety conscious company (Worked with them 15 years doing logging and perforating services) The orginal story does not ring true, sounds more like bar room talk. Just opinion.

Originally Posted by zygote1

Very easy to blame BP, but there are alot of groups around to share in the liability;
- Transocean the drilling contractor that technically has control of the rig
- Haliburton, the supplier of the alleged defective component
- Hyundai which built the rig that seems to have gone down faster than it should have.
- The outsourced subcontractor safety consultants, verification engineers, labour supply firms, suppliers of the valves, pipes and other vital parts.
- Government regulators who were leftovers from the previous Republican admin. (You can't replace these people, just because a government changes), Louisiana state officials that demanded drilling be allowed and the locals that joined in that chorus saying the regulators should butt out.

I find it hypocritical that the very people that demanded the drilling as fast as possible - Remember Sarah Palin and her Drill Baby Drill comments? - are now looking to blame BP and the US federal government for this mess. It is horrible and tragic, but pointing fingers doesn't help the situation. There's alot of blame to go around, including for people like me that still waste petrol.

BP as the operator has full liability!
Transocean as Drilling contractor has control of the rig, but NOT the well.
Haliburton was there to perform Cement jobs as per BP program.
Hyundai never gave any guarantee that the rig would withstand a blow out and fire of biblical proportions!
What about Cameron, they supplied the BOP 10 years previously, can blame still be put on them?
The Schlumberger "story" simply doesn't ring true, sorry conspiracy theorists out there, just the odds against being able to get a Helicopter at short notice, never mind the rest of story make me think that this is more of a bar bullshit session......

^This article is an interesting read and has just convinced me BP are definately a buy at their current price........

Ask Andy: BP is still worth the risk | This is Money

Originally Posted by buriramboy

I still reckon if you bought BP shares today, just checked they are currently trading at £3.96 in London, down £0.12 on the day, you will be looking at least at a 20-25% profit in 12 months + dividends.

Will western nations still accept 10 fatalities per day as acceptable to protect the BP oil pipeline from the caucasus to pakistan?

Will Iran bow to the pressure from the UN, NATO, Europe and north america and allow it's oil fields to be exploited by BP?

If the answer is yes to the above, BUY now.

Originally Posted by pet coon

Pete; No reflection on your comments but the Schlumberger story, and I have read a couple variations of it left a lot of doubt in my mind as to its accuracy. I base this on when the blow out occurred, drill pipe was in the well and the Schlumberger crew were probably in the galley or the fart sack.(Certainly not on rig floor to observe a kick) Yes I agree Schlumberger is a very safety conscious company (Worked with them 15 years doing logging and perforating services) The orginal story does not ring true, sounds more like bar room talk. Just opinion.

Hard to say if it is true or not but the article El Gibbon posted mentions them switching from mud to seawater. That would require having the pipe in the hole and is a common practice before running completion.

Originally Posted by teddy

Will western nations still accept 10 fatalities per day as acceptable to protect the BP oil pipeline from the caucasus to pakistan?

Will Iran bow to the pressure from the UN, NATO, Europe and north america and allow it's oil fields to be exploited by BP?

If the answer is yes to the above, BUY now.

I need to know if that is 10 Paki or British deaths before i can answer yes or no.

BP Gulf of Mexico Oil Spill Lessons Learned and Needed Actions



Until the Deepwater Horizon accident, it was probably believed by the majority of Congress and the American public that deepwater oil drilling/production could be safely regulated by the Federal Government and performed satisfactorily by the Big Oil Majors. How little did the public know the real extent to which the entire safety of the Gulf coast has been compromised/destroyed by a major oil well blow-out in deepwater (>4500 ft).
Remarks: A sudden, high pressure "discharge" of 12000 psi fluid is not a spill, it is an explosion. A continuous discharge of high pressure oil and gas could be classified as a "volcano" if it continues for months without stopping it. If you hear someone calling it a "very, very modest spill" - most likely a Big Oil CEO or a lawyer with the EPA/OSHA.
I. Oil/Gas Wellhead Characteristics for Mississippi Canyon in GOM
A. Hydrocarbon source rocks are rich and widespread in the Gulf of Mexico. Hydrocarbons are trapped in a variety of structural settings including salt flanks (Bullwinkle), salt/fault (Auger), fault (Vancouver), salt thrust (Joilet) and stratigraphic (Ram-Powell). The hydrocarbon mix is fairly even between oil and gas and much of the free gas is bacterial methane. This has significant implications for the current BP wellhead blowout.
B. Most deepwater oils are only moderately sour (< 2.0 wt % sulfur) and excellent for Gulf Coast refineries. Relatively large pockets of oil are found trapped between a salt canopy on top and sandstone or Miocene rock formations (17,000 ft?). The deepwater GOM oil deposits are now believed to be a world class find and much of it follows the US continental shelf 5000 ft (and deeper).
C. Deepwater oil production is important economically to the region and a major energy source of oil and gas for the US. Oil companies would very much like to follow this "oil" shelf around the Florida coastline.
D. New wells can show high (record) flow rates now exceeding 17,000 barrels per day. BP mentioned that its "Thunder Horse" platform had wells delivering over 50,000 bpd. This is a whole new realm of technical challenges which may be well beyond what can be economically achieved in a safe environment.
II. Mitigation/Clean-Up of GOM Well Blowouts
A. For deepwater wells which blowout (wellhead gas explosion on the surface), there needs to be an immediate response by large tankers (think super tanker) equipped with deepwater skimmers and oil/water separators. The idea of a barge loaded with some oil booms is totally inadequate response and carryover from the 1970s with regard to ever addressing a high pressure oil/gas well blowout with flow rates exceeding 15,000 barrels per day (and more likely 50,000 bpd for ultra deep wells). The Government should have mobilized Super Tankers 40 days ago with major oil skimming equipments (not a fleet of shrimp boats - that's only a pointwise or local defense for bays or near shoreline)
B. You will be dealing with a 5000 ft "water column" filling with oil and gas in a deepwater wellhead blowout. We are dealing with a totally new animal with these high pressure wells in deep water where the seabed pressures may exceed 2000 psi. The water column separates the light ends of the oil out and this oil floats to the top. However, 70%+ of the oil can remain underwater (trapped in/on the surface of giant gas bubbles) and could float hundreds of miles at depths of 3000 ft before eventually surfacing in much shallow waters. We need super tankers to suck up these large plumes while they are still in deepwater instead of allowing BP to deny they exist.
C. The benzene gas is water soluble and is a carcinogen at levels of 1 ppm. If an oil glob is approaching or hits your coastline you need to know the water is safe to swim from dissolved benzene.
D. Large amounts of methane gas may result in depleted oxygen layers in deeper waters. We know very little as to the chemical make-up (and fate and transport) of large underwater oil/gas plumes (see ongoing measurements at http://gulfblog.uga.edu and Dr Samantha Joye et al). We need to acquire the data - heard that yet from anybody in Government?
E. You know what happens to the drill/casing pipe when a huge drilling rig explodes and sinks. It pulls up so hard (maybe with over a million pounds of force) on the pipe string that the pipe breaks (shear failures) like you see in the BP video. It could dislocate the BOP by pulling it up and damage/break the internal mechanical mechanisms inside the BOP that is supposed to shear/close the pipe. It could pull a BOP off the wellhead connector if the rig fails to maintain dynamic positioning (on board explosion). We have no way of currently addressing these types of catastrophic failures in deepwater wells.
F. NASA in traveling to the moon, tried to achieve 0.999999 reliability in its systems (everything has to have a back-up). In the deepwater oil industry, there is no back-up BOP, there are no secondary wells already drilled, there was no acoustic sensor (to sense an wellhead explosion and automatically shut-in the well because a human could never respond fast enough), there was no barge in-place for a wellhead blow-out, etc, etc. It was busy as usual for drilling in the Gulf of Mexico.
III. Stop the Wellhead Blowout
A. Any way you can - let's see a Government prioritized list (not BP) of what coming down the pipe for the next top five technical approaches from the consultants to stop the wellhead flow. Why wasn't the pipe cutoff at the BOP at the outset and an LMRP tried? Why wasn't the original containment boom rigged to pump warm water/methanol to try and prevent hydrate formations - why didn't you pull it back up and rig it for methanol/warm water injection if it was forming hydrates? Why wasn't a number of smaller skimmers with tried above the wellhead off of ships with oily water separators (still have not done this) - could have been 500 ft to 1000 ft above the wellhead. This is the reason that the Government should take immediate charge of an environmental disaster - it's called Federal Waters. Who was in charge from the Government on Day Ten who could override BP - nobody?
B. Can you imagine someone saying we are going to let this oil continue to flow out this well until August (or Christmas?) until relief wells are drilled (statement by Carolyn Browner - Energy Consultant to President Obama)? We are suppose to wait until it hits our beaches and make some kind of response with a large manpower response (mobilize the National Guard) and/or deploy an orange oil boom and hope for the best!? Not acceptable!
C. BP's senior management is up to their ears in alligators trying to address a response so the Government is now sending Eric Holder (Justice Dept) to investigate/file "criminal charges" against BP - what a PR disaster for everyone and just impeccable timing. If Eric Holder (Justice Dept) is not going to put on a HazMat suit what good is this going to accomplish right now? Try investigating how much lobby money from Big Oil went into everybody's campaign in the past thirty years (at all levels of Government) if you want to open a "can of worms".
D. We need to stop this wellhead blowout soon - if this flow goes around the Southern tip of Florida into the Atlantic Loop Current we have just bought a potential global climate change problem - it can become that ugly fast with oil being carried all over all the oceans. If BP/consultants cannot stop this well in next 45 days, we need to seriously consider placing conventional charges (C4 or thermite) under the seabed/down the well bore of the relief well and closing this pipe by explosive charges. Alternatively, a possible option is to design a small "residual cavity" nuclear device (only 1 kilotons to 3 kilotons) detonated at a depth of say 7000 feet (or whatever the computer codes give for optimum placement and standoff distances to crush rock against the down hole drill string (will produce a cavity of 11,000 cubic meters for residual oil to flow into to remove the pressure). There will be no escaping radiation and no fracturing of the oil reservoir
at the surface if detonated in the Miocene rock or way down into sandstone. This is a very small explosion designed to produce more of a uniform spherical wave front to crush the pipe closed. The Soviets have extensive data (on land) with this approach. It gives the Government a "final resort option" if we want to stand around for months and hand-wring about it while the oceans become polluted while everything else has failed. This is why the guys in Government get paid the big bucks to make these kinds of decisions.
Suggested Action Items:
A. Let BP senior management alone to try and stop the wellhead blow-out "one more time" with LMRP cut and stab. If this fails, BP should be out of here and replaced by Government/Military Tiger Response Team asap. I think you can hire the same ROV operators and contract the same ships - just a management change. We need the equivalent of a General Honore (from Katrina days) to lead the troops and reinvent American ingenuity - anybody who has a candidate in mind send your suggestions to your Congressman/White House. Possibly General Powell could head up a military response as special White House appointee. Do something even if it's wrong because so far it's grading out at a D minus. Hopefully we can get this off the front page soon but decades of coming damage.
B. Activate at least three super tankers with oily water separators to track down large underwater plumes identified by US Navy and/or University marine Research Teams. Start measuring the oil wellhead flows and what's in the water in terms of concentrations (easily done by a Harbor Branch Team out of Florida). Why hasn't the US Navy been activated in this response? Many of our Navy people trained on the Gulf Coast and have family or relatives living along the Gulf Coast and would be glad to do something for their country. I bet I could get one hundred proposals from the US Navy/Air Force Contractors to address this oil clean-up within ten days or less (everything from air-sparged oily separators to concentrated microbes to specialized high speed skimmer craft to start sucking up oil - where is the Government's request for proposals with rapid evaluation and awards)? Submarines can track underwater plumes and ships can be modified to skim oil and there
is a ton of manpower already available. There is no innovative thinking from our Government.
C. Initiate major National Labs efforts (Sandia , INEL (DOE), Air Force Research (Wright Patterson Labs), Army Labs (Harry Diamond), ONR (Naval Research), etc) to concentrate on innovative solutions to stopping the wellhead flow (do I hear injecting wellhead mud with liquid nitrogen?) as well as start running super computer models for simulations of any/all solutions as well as fate and transport of underwater plumes and trajectories and ways to quickly locate plumes as well as concentrating microbes to attack the spills at sea on accelerated basis (go talk to a company called In-Pipe about how they concentrate microbes by a factor of 10,000 for treating grease/oily wastes). Where are the finite element (stress runs) computer runs from Cameron (maker of the BOP) which show what can happen if a transient 1,000,000 axial load is placed on the drill string at the BOP and jerks it upward off its base. What is the damage internally and what happens at the
wellhead connector - did we break or crack the collar and can we crack cement seals down the wellhead bore?
D. Start emergency Purchase Orders and funding by Congress for ordering hundreds of additional boom/microbes/organic oil cleanup compounds for deploying along the Florida (and possibly) Atlantic coastline. We need to be ready to mobilize the National Guard on one weeks notice for oil cleanup and we need Hazmat suits at the ready (and there are tens of thousands of high school students looking for work this summer - can you think of a job for them?).
E.According to data from the University of South Florida, oil plumes (slight?) maybe going around South Florida and into the Atlantic Loop Current (starting to make its turn around the Southern tip of Florida and towards Miami). It could head-up the East Coast. We need to be actively tracking this and sending marine research vessels to acquire the data. This is a major reason why oil drilling should be permanently banned off the coast of Florida - you can screw up the global ocean thermocline with a massive deepwater wellhead blow-out by changing the salinity if the water is transported by the Atlantic Loop Current.
F. Declare a National Emergency now - we are still facing decades of impact already and 70% of the problem is still underwater. We are going to be dealing with this fiasco for decades in some states/shorelines.
G. The President has too many issues on his platter to address with major bank debt sovereign crisis, Turkey's conflicts with Israel, and coming debt defaults with Greece and possibly Spain and Portugal, China selling US Treasuries and coming US Dollar devaluation, and two wars to deal with the day to day BP fiasco. He needs to get this delegated to a high level "muckey muck" (with a Big Checkbook from Congress or this is not worth addressing at all) and get on with his own world wide agenda. Mr President please delegate asap and provide the funding - Tiger Team is not yet in place!

Originally Posted by buriramboy

^This article is an interesting read and has just convinced me BP are definately a buy at their current price........

Ask Andy: BP is still worth the risk | This is Money

Try find out who is the main contractor for the clean up, buy their shares, they have a licensee to print money!
Wonder if the cost will be tax deductible for BP - bet it is!

Love it!! MMA no responsibility whatsoever? Amateurs at work!!

Reminds me of Armand Hammer during the Piper Alpha disaster in the North Sea!!

We as a company have had no fatalities in the North Sea?

Lord Cullen please check this statement from the Chairman of Occidental
Oops he is lying through his teeth. how unusual for an American CEO of a major oil company.

Gotta follow the rules boys!!! sometimes.

LOUISIANA MID-CONTINENT
OIL AND GAS ASSOCIATION
730 NORTH BOULEVARD, BATON ROUGE, LA 70802
TELEPHONE (225) 387-3205 FAX (225) 344-5502
E-MAIL CHRIS.JOHN[at]lmoga.com
Impacts of
President Obama’s Order Halting Work on 33 Exploratory Wells
in the Deepwater Gulf of Mexico
The Presidential Order does not affect the 4,515 shallow-water wells, and it does not affect 591 producing deepwater Gulf wells.
Roughly 33% of nation’s domestically produced oil comes from the Gulf of Mexico, and 10% of the nation’s natural gas.
80% of the Gulf’s oil, and 45% of its natural gas comes from operations in more than 1000 feet of water – the deepwater (2009 data).
Suspension of operations means roughly 33 floating drilling rigs – typically leased for hundreds of thousands of dollars per day – will be idled for six months or longer.
$250,000 to $500,000 per day, per rig – results in roughly $8,250,000 to $16,500,000 per day in costs for idle rigs;
Secondary impacts include:
• Supply boats – 2 boats per rig with day rates of $15,000/day per boat - $30,000/day for 33 rigs – nearly $1 million/day
• Impacts to other supplies and related support services (i.e., welders, divers, caterers, transportation, etc.)
Jobs –
Each drilling platform averages 90 to 140 employees at any one time (2 shifts per day), and 180 to 280 for 2 2-week shifts
Each E&P job supports 4 other positions
Therefore, 800 to 1400 jobs per idle rig platform are at risk
Wages for those jobs average $1,804/weekly; potential for lost wages is huge, over $5 to $10 million for 1 month – per platform.
Wages lost could be over $165 to $330 million/month for all 33 platforms
Secondary impacts: Many offshore workers live in Louisiana. The state is going to see a decrease in income taxes and sales taxes that would normally be paid by those employees. (The state does not collect a sales tax on oilfield supplies and equipment used offshore.)
Companies Impacted:
Oil Companies Impacted -
Shell has seven (7) exploratory wells that will be impacted
Others include:
Chevron (4)
Anadarko (3)
Marathon (2)
Noble Energy (2)
Eni US Operating Co. (2)
ATP Oil & Gas (2)
Statoil (2)
ExxonMobil (1)
Petrobras America (1)
BHP (1)
BP (1)
Kerr McGee (1)
Murphy (1)
LLOG (1)
Newfield (1)
Hess (1)
The 33 gulf wells where operations are suspended were the ones inspected immediately after the Deepwater Horizon blowout (per Interior Secretary Ken Salazar); in those inspections, “only minor problems were found on a couple of rigs”. Salazar believes “additional safety measures can be taken including dealing with cementing and casing of wells and significant enhancements and redundancies of blowout prevention mechanisms. Although these rigs passed the inspections, we will look at standards that are in place.”
Longer term impacts include -
Idle drilling rigs in the Gulf could mean that they will be contracted overseas for work in other locations, and if/when the halt is lifted, rigs will not be available for completing the work in the Gulf.
Loss of tolls on LA Highway 1 resulting from loss of traffic related to deepwater operations; tolls go directly to retiring the bond debt for construction of LA Highway 1 improvements, and if those tolls are lost, the state of Louisiana – as the other responsible party on the bonds - will have to pay to retire that debt, meaning loss of funding for some other programs in the state’s budget.
A 6-month halt in new drilling would defer 80,000 barrels/day, or 4% of 2011 deepwater Gulf of Mexico production. (Wood MacKenzie)
Higher drilling costs might jeopardize exploration in frontier areas. More immediately, estimates are that seven current discoveries could be rendered sub-economic, putting U.S. $7.6 billion in future government revenues at risk. Proposals to increase the cap on oil companies’ liability for oil spill damages to U.S. $10 billion could exclude U.S. independents from offshore Gulf of Mexico activities. (Wood MacKenzie)
Since these wells are not yet producing, there is no decrease in the available oil supply. However, it could lead to a decrease in the availability of domestic oil, and it is hard to tell how commodity speculators are going to respond over the next six months; there is the possibility for driving oil prices to levels well over $100 per barrel.
Prepared May 28, 2010, based on most recent data available; will be updated as needed.