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WTI Spikes Following News Of GOM Platform Loss Of Control, Spill
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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Uhh. Sigh.
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.
Yeah, they can say hi to Corzine while there. Oh, wait.
Another fabulous hurricane season on the way.
wonder which city is going to play the gas ration game this year?
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).
Let me be the first to call it: SPR release at $115 WTI.
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.
Just topped off anohter 1/2 barrel of gasoline yesterday. Long efficiency.
Can we get some articles on domestic refinery capacity and utilization? Units stored and average flow/restoration of stock vs depletion?
Whose "hoarding" etc?
Or you could simply find the charts for yourself...
Hint: Google is your friend, hell, even Bing and Yahoo! can find them....
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.
Or how bout this gem?
http://www.data.gov/energy/datasets/refinery-utilization-and-capacity
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"....
http://www.eia.gov/dnav/pet/pet_pnp_cap1_dcu_nus_a.htm
Please tell me what the above means.
You are going to have to be a little more specific....
I think we already answered that.
Because capacity directly correlates to "new refineries"? Compare our two most recent links bro..
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....
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.
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....
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.
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)....
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.
You seem to enjoy making shit up or are you simply living up to your avatar?
Chicago ! My (kind of) Town! Summer blends, winter blends, it all blends.
Why can't these psychopaths just naked short to hell paper oil and make everything seem fine?
Oh, we'll be burning paper for energy soon enough.
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
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)
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 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"!
Have you ever added anything of use or interest here?
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.
Interesting timing. My bicycle count increased by 2 over the weekend. Up to 8, now.
Let the oil price rise.
16 legs wow must make for interesting pants
Yeah but watch out for those trouser burps
taint convergence maximal
Great.
You'll be able to get to the grocery story.
But the stuff that goes on those shelves won't.
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?
everyone?
surely you jest
a gun comes before labor for a non-insignificant portion of population
hint:non preppers
ethnically challenged
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.
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.
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.
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.
a decent quality bike does not use grease in any capacity
wax lubes only
Not to worry! I'm sure Talos will corexit.
Figures. Just when our beaches started looking nice again. Time to break out the chemicals to poison my Gulf Beaches some more....
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.
Bullish!
For what, I have no fucking clue, but it's gotta be bull(shit)ish for something
Bullish for cleanup crews! Now they can make a little extra coin and throw it in to the markets.
Bullish for oil particles. They get to escape back into their natural environment.
Once again big industry polluting the Gulf like it is their private toilet bowl.
WTI target is now moved up to $108.
$150 is coming.
Not yet, it's only breathing hard...
Ugh, not again.
http://youtu.be/2AAa0gd7ClM
http://youtu.be/977O_4ngtYM
GOMers!
Gomer's Pile.......of toxic sludge
Surprise, Suprise Surpri.....oh. wait...not really.
Pretty slick.
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.
Im about to go top off. Gas prices around me haven't moved much since crude was in the mid nineties.
Someone cue up the "We're Sorry" clip
Some Beach!
http://www.youtube.com/watch?v=Uy6giGvm9rY
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.
That dataset on the left of the screen is a hoot.
$1.17/bbl, too funny.
BULLISH FOR COLD FUSION.........................oh wait....................
Birinyi ruler time!
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.
Long gas canisters and stabil
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.
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.
Is diesel more inert for storage?
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.
I was referring to its likelihood to explode or catch fire. But I bet diesel is better at both.
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.
You can actually put a match out in deisel.
<Don't try this at home - for illustrative/entertainment purposes only.>
The gasoline I put in the lawnmower tank in October is still good in March when I crank up that thing again.
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.
Don't you want to lock up someone actually responsible?
Like a geologist?
Naw, the senior engineer, you know the one that has a clip on tie so he can attend the occasional board meeting...
Go long siphon hoses.
yep..., and welcome to Thunderdome!
Sigh... I hope they are smart enough to not use corexit.
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.
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.
NOT GOODFOR JAPANESE OIL IMPORTS YO!
old well, meh. this is a nothing burger and $105 oil doesn't bother the bernank in the least
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.
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.
Rid the world of evil speculators?
1. You can't rid the world of evil anything. Deal with it.
Come on, your average late 80's Chevy Blazer, you know, the kind OJ drove, leakes more oil than this.
OJ was driving a Bronco.
Overheard at the Palin dinner table...
Dammit! I said Drill not Spill....
Are you sure that was at the dinner table?
Not bad, not bad at all...
My God she is hot.
Never stick your dick into CRAZY.....
Wait, was that "always," or "never?"
Bullish for oil drillers (at least the ones not involved in this spill).
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.
So is it BP again?
More expensive stuff => Recovery!!!
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?
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.
Well I read your paragraph because I thought it said "...insert butt plug," but it actually said something about a bridge plug.
Ahhh, Gulf of Mexico drilling. Making Canadian oil sands look pristine
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.
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.