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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.

 

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Tue, 07/09/2013 - 16:56 | 3735251 The Shootist
The Shootist's picture

Uhh. Sigh.

Tue, 07/09/2013 - 16:59 | 3735262 DoChenRollingBearing
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.

Tue, 07/09/2013 - 17:02 | 3735271 CrimsonAvenger
CrimsonAvenger's picture

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

Tue, 07/09/2013 - 17:13 | 3735308 ParkAveFlasher
ParkAveFlasher's picture

Another fabulous hurricane season on the way. 

 

Tue, 07/09/2013 - 17:18 | 3735321 tip e. canoe
tip e. canoe's picture

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

Tue, 07/09/2013 - 17:27 | 3735346 ParkAveFlasher
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).

Tue, 07/09/2013 - 17:29 | 3735356 malikai
malikai's picture

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

Tue, 07/09/2013 - 17:34 | 3735374 CPL
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.

Tue, 07/09/2013 - 17:36 | 3735382 negative rates
negative rates's picture

Just topped off anohter 1/2 barrel of gasoline yesterday. Long efficiency.

Tue, 07/09/2013 - 17:49 | 3735412 noless
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?

Tue, 07/09/2013 - 18:07 | 3735456 Flakmeister
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....

Tue, 07/09/2013 - 18:23 | 3735491 noless
noless's picture

You didn't write that...

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MOPUEUS2&f=M

Looks like a downward trend.

Tue, 07/09/2013 - 18:41 | 3735514 Flakmeister
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"....

Tue, 07/09/2013 - 18:49 | 3735537 noless
noless's picture

http://www.eia.gov/dnav/pet/pet_pnp_cap1_dcu_nus_a.htm

Please tell me what the above means.

Tue, 07/09/2013 - 18:51 | 3735545 Flakmeister
Flakmeister's picture

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

Tue, 07/09/2013 - 18:54 | 3735549 noless
noless's picture

I think we already answered that.

Tue, 07/09/2013 - 18:51 | 3735544 noless
noless's picture

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

Tue, 07/09/2013 - 19:01 | 3735560 Flakmeister
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....

Tue, 07/09/2013 - 19:09 | 3735582 noless
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.

Wed, 07/10/2013 - 00:01 | 3736426 Flakmeister
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....

Wed, 07/10/2013 - 02:28 | 3736638 Totentänzerlied
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.

Wed, 07/10/2013 - 08:34 | 3736956 Flakmeister
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)....

Wed, 07/10/2013 - 09:16 | 3737065 dunce
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.

Wed, 07/10/2013 - 09:34 | 3737099 Flakmeister
Flakmeister's picture

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

Wed, 07/10/2013 - 09:21 | 3737077 Cult of PersonALity
Cult of PersonALity's picture

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

Tue, 07/09/2013 - 17:23 | 3735322 SHEEPFUKKER
SHEEPFUKKER's picture

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

Tue, 07/09/2013 - 17:27 | 3735349 ParkAveFlasher
ParkAveFlasher's picture

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

Tue, 07/09/2013 - 19:02 | 3735469 Flakmeister
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

Tue, 07/09/2013 - 19:18 | 3735603 noless
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)

Wed, 07/10/2013 - 00:00 | 3736436 Flakmeister
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... 

Wed, 07/10/2013 - 02:37 | 3736651 Totentänzerlied
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"!

Wed, 07/10/2013 - 09:36 | 3737105 Flakmeister
Flakmeister's picture

Have you ever added anything of use or interest here?

Tue, 07/09/2013 - 17:15 | 3735313 Divided States ...
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.

Tue, 07/09/2013 - 17:15 | 3735314 bobola
bobola's picture

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

Let the oil price rise.

 

Tue, 07/09/2013 - 17:19 | 3735326 prains
prains's picture

16 legs wow must make for interesting pants

Tue, 07/09/2013 - 17:23 | 3735338 The Thunder Child
The Thunder Child's picture

Yeah but watch out for those trouser burps

Tue, 07/09/2013 - 17:27 | 3735352 prains
prains's picture

taint convergence maximal

Tue, 07/09/2013 - 17:31 | 3735361 CrashisOptimistic
CrashisOptimistic's picture

 

Great.

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

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

Tue, 07/09/2013 - 17:36 | 3735383 CPL
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?

Tue, 07/09/2013 - 22:45 | 3736208 johnQpublic
johnQpublic's picture

everyone?

surely you jest

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

hint:non preppers

ethnically challenged

Tue, 07/09/2013 - 17:37 | 3735386 McMolotov
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.

Tue, 07/09/2013 - 18:43 | 3735529 bobola
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.

 

 

Tue, 07/09/2013 - 19:03 | 3735565 Iriestx
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.

Tue, 07/09/2013 - 21:44 | 3736029 ForTheWorld
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.

Tue, 07/09/2013 - 22:46 | 3736213 johnQpublic
johnQpublic's picture

a decent quality bike does not use grease in any capacity

wax lubes only

Tue, 07/09/2013 - 17:27 | 3735353 Gringo Viejo
Gringo Viejo's picture

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

Tue, 07/09/2013 - 16:57 | 3735253 johngaltfla
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....

Wed, 07/10/2013 - 09:29 | 3737093 dunce
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.

Tue, 07/09/2013 - 16:57 | 3735256 quasimodo
quasimodo's picture

Bullish! 

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

Tue, 07/09/2013 - 16:59 | 3735263 JailBank
JailBank's picture

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

Tue, 07/09/2013 - 17:03 | 3735275 The Shootist
The Shootist's picture

Bullish for oil particles. They get to escape back into their natural environment.

Tue, 07/09/2013 - 16:58 | 3735258 slaughterer
slaughterer's picture

Once again big industry polluting the Gulf like it is their private toilet bowl.  

WTI target is now moved up to $108.

Tue, 07/09/2013 - 17:37 | 3735387 CPL
CPL's picture

$150 is coming.

Tue, 07/09/2013 - 18:15 | 3735473 Flakmeister
Flakmeister's picture

Not yet, it's only breathing hard...

Tue, 07/09/2013 - 17:00 | 3735261 RacerX
RacerX's picture

Ugh, not again.

http://youtu.be/2AAa0gd7ClM

Tue, 07/09/2013 - 17:05 | 3735284 RacerX
Tue, 07/09/2013 - 17:07 | 3735267 Shell Game
Shell Game's picture

GOMers!

Tue, 07/09/2013 - 17:17 | 3735320 SHEEPFUKKER
SHEEPFUKKER's picture

Gomer's Pile.......of toxic sludge

Tue, 07/09/2013 - 19:18 | 3735604 Jumbotron
Jumbotron's picture

Surprise, Suprise Surpri.....oh. wait...not really.

Tue, 07/09/2013 - 19:26 | 3735629 Mae Kadoodie
Mae Kadoodie's picture

Pretty slick.

Tue, 07/09/2013 - 17:00 | 3735268 yogibear
yogibear's picture

LOL, how high can it go this time? Have a platform spill or leak and disrruption in the middle east and we could see it test the highs.

Americans are already used to $4.00/gal gasoline. Most people I know wouldn't have any problem with a 50% increase. Bernanke and the Fed hyper-print and we could see higher prices which are permanent.

Tue, 07/09/2013 - 17:04 | 3735278 The Shootist
The Shootist's picture

Im about to go top off. Gas prices around me haven't moved much since crude was in the mid nineties.

Tue, 07/09/2013 - 17:02 | 3735274 azengrcat
azengrcat's picture

Someone cue up the "We're Sorry" clip

Tue, 07/09/2013 - 17:04 | 3735279 Jason T
Tue, 07/09/2013 - 17:08 | 3735288 yogibear
yogibear's picture

Oh, look at the chart... Looks like we are heading back to retesting the WTI record price.

 

http://www.economagic.com/em-cgi/data.exe/var/west-texas-crude-long.

 

It's time for all the "HOT Money" to go into oil.

Tue, 07/09/2013 - 17:51 | 3735418 Esso
Esso's picture

That dataset on the left of the screen is a hoot.

$1.17/bbl, too funny.

Tue, 07/09/2013 - 17:07 | 3735290 kito
kito's picture

BULLISH FOR COLD FUSION.........................oh wait....................

Tue, 07/09/2013 - 17:11 | 3735300 e m m
e m m's picture

Birinyi ruler time!

Tue, 07/09/2013 - 17:12 | 3735303 q99x2
q99x2's picture

At the time of the last oil spill I was getting a divorce. Hope this one doesn't look as bad as that one did.

Tue, 07/09/2013 - 17:12 | 3735304 The Thunder Child
The Thunder Child's picture

Long gas canisters and stabil

Tue, 07/09/2013 - 17:20 | 3735328 The Shootist
The Shootist's picture

I only saw one old guy filling up an extra 5 gallon back when the Egypt crisis was more uncertain. I bet we'll be seeing more (maybe me) if this keeps up.

Tue, 07/09/2013 - 17:30 | 3735359 The Thunder Child
The Thunder Child's picture

I would recommend at least 20-30 gallons stabilized and stored out of site at all times, 5-10 gallons of diesel (that stuff will keep for 10 years), enough for 1 oil change on your vehicle and a couple of large bottles of 2 stroke oil(for chainsaws etc..) even if you don't use the diesel or 2 stroke oil you can barter it for A LOT in SHTF scenarios.

Tue, 07/09/2013 - 17:34 | 3735373 The Shootist
The Shootist's picture

Is diesel more inert for storage?

Tue, 07/09/2013 - 17:50 | 3735410 The Thunder Child
The Thunder Child's picture

Yes, add some stabil into the can and diesel will store for 10 years. Gasoline will only store for 1 year with stabil (90 days without) after that it starts to break down, I just cycle it every spring.

Tue, 07/09/2013 - 17:53 | 3735424 The Shootist
The Shootist's picture

I was referring to its likelihood to explode or catch fire. But I bet diesel is better at both.

Tue, 07/09/2013 - 18:05 | 3735434 The Thunder Child
The Thunder Child's picture

Ah sorry, both store well in dark cool places but diesel is much safer due to it's higher flashpoint and tendancy to release less vapours.

Tue, 07/09/2013 - 18:06 | 3735454 Citxmech
Citxmech's picture

You can actually put a match out in deisel.

<Don't try this at home - for illustrative/entertainment purposes only.>

Tue, 07/09/2013 - 18:09 | 3735459 Uchtdorf
Uchtdorf's picture

The gasoline I put in the lawnmower tank in October is still good in March when I crank up that thing again.

Tue, 07/09/2013 - 17:19 | 3735307 JFKFC
JFKFC's picture

Drill baby drill. It's Mexico's gulf anyway.

Can we please lock some hot-shit CEO up in the joint. Big Oil or Wall St, doesn't matter. Just make sure they're on the receiving end of some ass-to-mouth from Nasty Nate & their respective industries will undoubtedly regulate themselves just fine thereafter.

Tue, 07/09/2013 - 17:34 | 3735375 CrashisOptimistic
CrashisOptimistic's picture

Don't you want to lock up someone actually responsible?

Like a geologist?

Tue, 07/09/2013 - 18:45 | 3735532 Flakmeister
Flakmeister's picture

Naw, the senior engineer, you know the one that has a clip on tie so he can attend the occasional board meeting...

Tue, 07/09/2013 - 17:13 | 3735309 yogibear
yogibear's picture

Go long siphon hoses. 

Tue, 07/09/2013 - 18:09 | 3735461 Eternal Complainer
Eternal Complainer's picture

yep..., and welcome to Thunderdome!

Tue, 07/09/2013 - 18:30 | 3735505 spanish inquisition
spanish inquisition's picture

Sigh... I hope they are smart enough to not use corexit.

Tue, 07/09/2013 - 17:25 | 3735319 Trampy
Trampy's picture

It hasn't budged natural gas, with August NG down 8 cents at 3.661, with yesterday's strong "hot weather comin" rally being capped at the exact midpoint of 4.003 to 3.526.

If we had a free market, NG prices would be rising more than WTI on this news.

NG is headed up on summer weather, but Henry Hub futures got whacked overnight so the Boyz can load up more longs. 

I'm long the 4.00 calls so it's not just academic interest.

Tue, 07/09/2013 - 17:21 | 3735329 beavertails
beavertails's picture

As bad as this is the tradegy in Quebec where 50 might have perished is not getting the coverage to protect the rail companies, aka Buffet and al.

Tue, 07/09/2013 - 17:22 | 3735333 maskone909
maskone909's picture

NOT GOODFOR JAPANESE OIL IMPORTS YO!

Tue, 07/09/2013 - 17:24 | 3735340 buzzsaw99
buzzsaw99's picture

old well, meh. this is a nothing burger and $105 oil doesn't bother the bernank in the least

Tue, 07/09/2013 - 17:26 | 3735348 bidaskspread
bidaskspread's picture

OR it could be the 9 million bbl draw in the API's when analyst's expectations were 3.3 but hey, an oil spill sounds cooler.

Tue, 07/09/2013 - 17:27 | 3735354 Tenshin Headache
Tenshin Headache's picture

That Fuelfix quote makes this sound like a big nothingburger. An old, tapped out well producing mostly water at low psi. They'll have that plugged up right quick.

I'm waiting for the CME margin hike. That might be a BTFD.

Tue, 07/09/2013 - 17:47 | 3735405 Meremortal
Meremortal's picture

Rid the world of evil speculators?

1. You can't rid the world of evil anything. Deal with it.

 

 

Tue, 07/09/2013 - 17:58 | 3735435 Quantum Nucleonics
Quantum Nucleonics's picture

Come on, your average late 80's Chevy Blazer, you know, the kind OJ drove, leakes more oil than this.

Tue, 07/09/2013 - 23:12 | 3736302 IrritableBowels
IrritableBowels's picture

OJ was driving a Bronco.

Tue, 07/09/2013 - 18:09 | 3735460 Flakmeister
Flakmeister's picture

Overheard at the Palin dinner table...

Dammit! I said Drill not Spill....

Tue, 07/09/2013 - 18:50 | 3735540 Bastiat
Bastiat's picture

Are you sure that was at the dinner table?

Tue, 07/09/2013 - 19:03 | 3735564 Flakmeister
Flakmeister's picture

Not bad, not bad at all...

Tue, 07/09/2013 - 22:31 | 3736160 Seize Mars
Seize Mars's picture

My God she is hot.

Wed, 07/10/2013 - 00:02 | 3736441 Flakmeister
Flakmeister's picture

Never stick your dick into CRAZY.....

Wed, 07/10/2013 - 01:02 | 3736535 Seize Mars
Seize Mars's picture

Wait, was that "always," or "never?"

Tue, 07/09/2013 - 18:11 | 3735465 CheapBastard
CheapBastard's picture

Bullish for oil drillers (at least the ones not involved in this spill).

Tue, 07/09/2013 - 18:50 | 3735541 Quantum Nucleonics
Quantum Nucleonics's picture

I wouldn't think so. Another major (which this isn't) spill would give the eco-holy warriors in the Administration the excuse to lock up the permitting cycle again, which would push out/cancel drilling backlog.

Tue, 07/09/2013 - 18:23 | 3735492 NidStyles
NidStyles's picture

So is it BP again?

Tue, 07/09/2013 - 19:22 | 3735612 MacHoolahan
MacHoolahan's picture

More expensive stuff => Recovery!!!

Tue, 07/09/2013 - 22:30 | 3736157 Seize Mars
Seize Mars's picture

Um, let me get this straight:

"
...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...
"

So, an abandoned well now has gas and other hydrocarbons flowing out?

Hm. That's strange. I wonder if that has ever happened anywhere else?

Wed, 07/10/2013 - 01:16 | 3736552 Money Squid
Money Squid's picture

A flowing well usually means the reservoir pressure is high enough to push a column of fluid up through the well and push fluid (gas-water-oil mixture) out of the well head at 175 psi. Generally gas wells with less than 1,000 psi are not economical and are closed (shut in) until they permanently abandoned (plugged with cement and abandonment mud). When performing well work they crew works though the well head or they will 'kill' the well by pumping in drilling mud, or insert bridge plug, check to see if the well will 'flow' when opened. If not they may take the well head off and bolt on a a blow out preventer (BOP). If the well starts to flow after they removed the well head but before the BOP is on they may have a problem. But 175 psi is pretty low pressure. If the BOP is on they just close the annular preventer or pump down heavier drilling mud. The comment about the tubing be old was not clear. The well is drilled and casing is cemented. Production/injection tubing in run in and the well is produced throught the tubing. If the tubing leaks the the fluid should be confined inside the casing. Too much technical data is missig to understand what is really going on.

Wed, 07/10/2013 - 20:28 | 3739738 Seize Mars
Seize Mars's picture

Well I read your paragraph because I thought it said "...insert butt plug," but it actually said something about a bridge plug.

Wed, 07/10/2013 - 01:10 | 3736546 U4 eee aaa
U4 eee aaa's picture

Ahhh, Gulf of Mexico drilling. Making Canadian oil sands look pristine

Wed, 07/10/2013 - 07:22 | 3736827 esum
esum's picture

fits neatly into the regime wish for HIGHER ENERGY COSTS.... another $8 billion for alternative energy, when in reality we have all we need readily availble and then some. free market forces would be driving energy costs DOWN (here in the energy rich USSA)....thank you Obumbler the outlaw king of Amerika. coal / lng / fracking / untapped proven reserves.... and the best of all nuke. what energy shortage? what oil crisis? the only crisis we have is GOVERNMENT TRUST and COMPETENCE... Those are the real SHORTAGE CRISES in America today. 

Wed, 07/10/2013 - 08:29 | 3736938 Dapper Dan
Dapper Dan's picture

Cajun speak?

 Workers estimated the sheen spanned an area four miles wide by three quarters of a mile long.

What is the shortest runway in the world?

 The one Cajun airline landed on. They busted through the fog and hit the runway, hit the brakes, threw out the anchor, did everything to get stopped. The pilot wiped the sweat from his face and said, god dog man that's the shortest runway I never did saw. The co pilot says,  ya man, but look at how wide that thing is.

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