WTI Spikes Following News Of GOM Platform Loss Of Control, Spill

Tyler Durden's picture

Even if the last thing the tapering US "recovery" needed is a surge in energy costs, it may soon be getting them following yet another news flashback, this time to the 2010 GOM disaster. Just headlines for now from Bloomberg:

  • U.S. IS RESPONDING TO A LOSS OF WELL CONTROL IN GULF OF MEXICO
  • GULF OF MEXICO EVENT OCCURRED AT SHIP SHOAL BLACK 225 PLATFORM
  • GULF SITE POSSIBLE SHEEN IS OVER 4 MILES WIDE BY 3/4 MILE LONG
  • ENERGY RESOURCES TECHNOLOGY GULF OF MEXICO OWNS PLATFORM: U.S.
  • U.S.: COMPANY ASSESSMENT SAYS GAS FLOWING FROM GULF WELL
  • U.S. SAYS ALL PLATFORM WORKERS SAFELY EVACUATED FROM PLATFORM
  • U.S.: 2 OTHER WELLS ON PLATFORM B WERE PRODUCING AND WERE SHUT
  • U.S. TO CONDUCT INVESTIGATION ON CAUSE OF GULF OF MEXICO EVENT

WTI meanwhile up another $0.70 just shy of $105. Time to rid the world of evil speculators once and for all.

The full story, which appeared earlier, in FuelFix:

Five workers were forced to evacuate a platform in the Gulf of Mexico on Monday evening when gas condensate began escaping from a Talos Energy well.

 

The decades-old well south of Louisiana has been inactive for 15 years and was in the process of being permanently abandoned. As workers conducted plugging and abandonment operations on Monday, salt water containing a small amount of gas and light condensate began to flow from the well, said Talos Energy president Timothy Duncan.

 

“In an abundance of caution, we decided to evacuate the platform and mobilize our spill response team,” Duncan said. “We are focused on the safety of our personnel while taking all appropriate measures to limit any environmental impact.”

 

Duncan speculated that the age of the tubing may have contributed to the incident.

 

Because the well taps into an old field first developed in the 1970s and was producing mostly water at a low-flowing pressure of 175 pounds per square inch when it was last operational in 1998, the new discharge may be leaking slowly with relatively few hydrocarbons.

 

Still, a light rainbow sheen was detected at the site. Workers estimated the sheen spanned an area four miles wide by three quarters of a mile long.

 

Duncan said the company was “doing everything we can to have the well under control as soon as possible, which we expect to be within the next 24 hours.”

 

Workers returned to the site Tuesday to work to bring the well under control.

 

The Bureau of Safety and Environmental Enforcement and Coast Guard are overseeing Talos’ response and will conduct an investigation of the incident. Agency officials are stationed at a command center in Houston, monitoring well control and pollution response efforts.

 

Coast Guard and safety bureau officials conducted an overflight of the site Tuesday and documented natural gas flowing from the well.

 

Two other wells at the platform were producing at the time and have subsequently been shut-in, federal officials said.

 

A private, Houston-based oil and gas company, Talos acquired the well from Energy Resource Technology in February.

 

The leaking well is located in Ship Shoal block 225, about 74 miles southwest of Port Fourchon, La. The facility has been the subject of an active idol iron removal program, approved by federal regulators at the safety bureau, under which Talos decommissions and removes old structures.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
DoChenRollingBearing's picture

Indeed, ugh, not again.  Might be time to throw some perps in jail for sloppiness...  That would serve as an example to be extra-careful.

CrimsonAvenger's picture

Yeah, they can say hi to Corzine while there. Oh, wait.

ParkAveFlasher's picture

Another fabulous hurricane season on the way. 

 

tip e. canoe's picture

wonder which city is going to play the gas ration game this year?

ParkAveFlasher's picture

It'll be NYC again.  Bloomy is nothing but cooperative with the CB agenda of capital controls (or supply controls, which is the same thing, because money won't move if it has no goods or services to chase).

malikai's picture

Let me be the first to call it: SPR release at $115 WTI.

CPL's picture

It's tuesday.  Another 3 day's to go so people can take a breath.  Once the algo's get into it tommorrow it'll be completely over the top.

noless's picture

Can we get some articles on domestic refinery capacity and utilization? Units stored and average flow/restoration of stock vs depletion?

Whose "hoarding" etc?

Flakmeister's picture

Or you could simply find the charts for yourself...

Hint: Google is your friend, hell, even Bing and Yahoo! can find them....

Flakmeister's picture

You answered your own questions... Do you really want a shill to tell you what they mean?

Edit: This is one my favs

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MOCLEUS2&f=M

I roll it out when asshats talk about "no new refineries"....

Flakmeister's picture

You are going to have to be a little more specific....

noless's picture

I think we already answered that.

noless's picture

Because capacity directly correlates to "new refineries"? Compare our two most recent links bro..

Flakmeister's picture

No because asshats try to blame the EPA for a lack of new refineries while refining capacity has increased...

I have dinner guests coming shortly. I'll check back later....

noless's picture

Flak, don't get bent out of shape, i like you, i like what you contribute.

That said, i don't see the epa as a paragon of transparency and efficiency..

Trust me on this, i value a clean environment, but how we get there isn't as easy as trusting with full faith an agency that can be obstructed and bribed into worthlessness.

Flakmeister's picture

Not getttng bent out of shape by any means...

I trust the EPA despite all its flaws to monitor the quality of the air and water than I do for either of the Koch siblings or ANY corporate executive esp. those involved with fossil fuels... In fact, the EPA does a remarkable job considering the bullshit they have to deal with from an obstructionist Congress that is clearly in the hands of the worst polluters...

Go ahead junk away, but if you do, tell me what county you live in and I will show you the Mercury levels and life expectancy for that county and if enough you junk, we should be able to get enough data to show how strongly they anti-correlate....

Totentänzerlied's picture

You should know better than to think that enormous life expectancy is some kind of universal ideal or worthy goal, let alone a realistic option, and that there are no other nontrivial factors, for that matter. You're gonna have to do better than that, a lot better. Not that you can, evidently.

The rest of your post is good old naïveté mixed with outright shilling, ho-hum; would make a decent comedy routine.

Flakmeister's picture

Blow it out your ass...

Here is the data, keep deluding yourself, at least I know that my children and I are nowhere near a coal fired powerplant,

http://earthjustice.org/sites/default/files/library/reports/harvard-report-controlling-mercury-emissions.pdf

maybe I will post the data for Hg exposure and loss of IQ (that would explain many things)....

dunce's picture

Obama likes high oil prices, SPR releases are political eye wash so the real trigger for action is an impending election. The release will dominate the news for at least two days while real issues are pushed off to the side to be dealt with after the election. Despite this administrations best (or worst) efforts there is no supply shortage.

Flakmeister's picture

You seem to enjoy making shit up or are you simply living up to your avatar?

Cult of PersonALity's picture

Chicago !   My (kind of) Town!   Summer blends, winter blends,  it all blends.

SHEEPFUKKER's picture

Why can't these psychopaths just naked short to hell paper oil and make everything seem fine? 

ParkAveFlasher's picture

Oh, we'll be burning paper for energy soon enough.

Flakmeister's picture

Could it be that oil is actually consumed unlike gold?

Edit: It is truly remarkable how the fucktards hit the down button without giving any thought to the matter.... Sigh

noless's picture

Then argue cogently and coherently with them.

You asked me to use google to find true refinery stats, the top hits are all eia.gov,

"In order to cure, you must first understand": Scientist in 28 days later

You honestly believe that the financial sector gives a fuck about oils natural state?

I can't argue with you, this is all completely insane.

Cue the plague monkeys.
(i largely agree with you)

Flakmeister's picture

That only works with some of them, the others don;t want to here shit about anything. Discussion must be rooted in facts, and if the facts are alien and denied, there is no argument...

If there is one lesson I would to pass on is that:

The first step towards true knowledge is to realize your ignorance. Only then can you learn... 

Totentänzerlied's picture

The irony, coming from you, oh my, that is fantastic!

Oh rationalists, empiricists, humanists, progressives, if not for all the horror you've created, you'd make the best jesters a king could have.

It's the blind leading the blind, but hey, at least they can "here"!

Flakmeister's picture

Have you ever added anything of use or interest here?

Divided States of America's picture

So much shit going on right now that I wouldnt be surprised if big fuckin monsters pop out from the ocean to destroy cities (ala the movie Pacific Rim coming out next week)...but unfortunately the only robots that humanity has right now are those effin HFT bots trying to scalp a few cents of each trade.

bobola's picture

Interesting timing.  My bicycle count increased by 2 over the weekend.  Up to 8, now.

Let the oil price rise.

 

prains's picture

16 legs wow must make for interesting pants

The Thunder Child's picture

Yeah but watch out for those trouser burps

CrashisOptimistic's picture

 

Great.

You'll be able to get to the grocery story.

But the stuff that goes on those shelves won't.

CPL's picture

Everyone will be reaching for a gardening tool and the help of a neighbour loooong before they touch their guns.

 

See how this is going to work yet?

johnQpublic's picture

everyone?

surely you jest

a gun comes before labor for a non-insignificant portion of population

hint:non preppers

ethnically challenged

McMolotov's picture

Americans are, for the most part, fat and lazy. Ride a bike? Pffffft.

One more reason for El Presidente to declare amnesty for illegals and open the floodgates. We'll need rickshaw drivers.

bobola's picture

Sad but true.

Talking about the money I don't spend at the gas pump or doctor's office would apparently be lost on this non-biking crowd.

 

 

Iriestx's picture

You'll spend what you save ten times over when you get hit by a car and have to pay your share of your Obamacare.

ForTheWorld's picture

As a fellow rider of bicycles, be careful what you wish for - tyres, tubes, grease and lubricants are mostly oil based, so either start stocking up on the above, or at least ride on brilliantly smooth roads so things don't wear out as quickly.

johnQpublic's picture

a decent quality bike does not use grease in any capacity

wax lubes only

Gringo Viejo's picture

Not to worry! I'm sure Talos will corexit.

johngaltfla's picture

Figures. Just when our beaches started looking nice again. Time to break out the chemicals to poison my Gulf Beaches some more....

dunce's picture

The leakage as described is far from shore and will largely dissipate naturally. A sheen is only a molecule thick which normal wave action will break apart. Much ado about nothing.

quasimodo's picture

Bullish! 

For what, I have no fucking clue, but it's gotta be bull(shit)ish for something

JailBank's picture

Bullish for cleanup crews! Now they can make a little extra coin and throw it in to the markets.