WTRG Economics Rig Count and Energy Forecasts

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BP Macondo Oil Well Update

Tuesday, July 27, 2010
The cap on the well is showing good integrity with pressure slowly increasing and now at 6932 psi. They will be releasing the storm packer in the DD3 relief well. Wednesday and Thursday should be devoted to well clean out and by Friday they should begin to set the casing.

BP  will likely cement the relief well late in week. At that point they should be ready to perform a static kill on the Macondo well by pumping mud into the top.

Wednesday, July 21, 2010
The main point at the BP briefing weather was that work on the relief well for the Macondo has been delayed due to the potential of a tropical storm during the period when BP had planed to set the casing in the well. The entire operation could take as much as a week and there needs to be a clear weather window before operations resume. They have set a storm packer (plug) in the relief well about 300 feet below the ocean floor as a precautionary measure. It will be removed and BP will proceed with cleaning the well bore and setting the final casing as soon as there is a weather window.

BP is awaiting government approval to introduce heavy mud into the Macondo well to counterbalance the oil pressure. If successful this would kill the well and provide temporary insurance against further leaks until the relief well is completed and the Macondo is cemented shut.

Tuesday, July 20, 2010
At BP's 3.:30 PM briefing by Kent Wells there was little change in the status of the well. The pressure continues to rise. It is at 6,834 psi now rising at less than one psi / hour indicating that the well still has integrity. It continues to be shut-in subject to approval every 24 hours by Admiral Allen. The static kill remains an option once again subject to government approval. In any case, the permanent solution remains the relief well with 50-60 feet remaining to drill.

Monday, July 19, 2010


At BP's 5:00PM briefing by Kent Wells there was discussion of the possibility of a static kill of the Macondo well. This would entail pumping heavy mud from the top of the well until the weight of the mud overcomes the pressure from the oil. This would add another layer of protection and enhance the already high probability of success from the relief well. It is unlikely that BP would attempt to cement the well from the top.

The DD3 relief well is four feet horizontally at a 2.8° angle from the Macondo at a depth of 17,862 feet.  This is a casing point and they will be cementing the casing before continuing a few feet to encounter the Macondo. At that point they will mill through the casing and introduce cement into the Macondo. This should be followed by milling through the pipe, introducing more cement and permanently killing the well.

Had the Macondo been successful it would have been one of the top five producers in the Gulf of Mexico.

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Crude Oil, Gasoline and Natural Gas Futures Price

NYMEX Prices for July 28
, 2010
NYMEX Light Sweet Crude -0.51
$76.99
ICE Brent -0.07
$76.06
RBOB Gasoline NY Harbor +0.0002
$2.0634
Heating Oil NY Harbor -0.0030
$1.9964
NYMEX Natural Gas +0.099
$4.774
Graphs: Oil & Gas Spot and Futures prices

Oil, Gas, Energy Prices, News & Issues:
Federal official to outline what lies ahead after oil spill is sealed
The BP Spill: Has the Damage Been Exaggerated?
Iran 'vulnerable' to sanctions
Exploration - Rotary Rig Count: U.S. +14, Canada -16, International +9
Spill puts Obama's oil fund chief on hostile turf
Iran's opposition leader warns rulers could topple
Hugo Chávez oil threats: Why Chávez won't cut off oil to the US
Bonnie becomes even less organized in Gulf
Storm Threat Forces Ships to Leave Work at Oil Spill Site

Russia's energy interests in Iran
Al Qaeda claims Yemen attacks, vows more strikes
Passions on Display at E.P.A. Meeting

Oil prices slide on surprise gain in US crude stockpiles
Oil chiefs to give evidence in UK after BP spill fears
ONGC, Petro Vietnam to bid for BP asset off Vietnam-India oil min
Indonesia demands compensation for Timor Sea spill
New sanctions crimp Iran's shipping business as insurers withhold coverage
Alaska judge impedes plans for oil and gas drilling in the Arctic

BP Rises After Agreeing on $7 Billion Sale of Fields to Apache
Sikorsky Aircraft Says Saudi Arabia's Ministry Of Interior Inks Contract To Procure 12 S-76D Helicopters
Chavez says government has stake in opposition broadcaster
Messy cleanup of BP oil spill damages the Gulf
Gulf energy demand surge to sap oil exports
Iraq's oil minister calls for swift action on contracts
Ecuadorian official confirms talks with China on oil loan deal
Raytheon to supply missiles to Saudi Arabia
Unusual Step Recalled With Blowout Preventer
BP, RWE developing Egyptian natural gas field
BP Well Boss Could Shed Light on Cause of Gulf Oil Disaster
U.S. Allows BP to Keep Well Closed for Another Day-Leak Detected Source Unknown
Optimistic BP Hopeful That Damaged Well Can Stay Closed
Iran's parliament urges to continue uranium enrichment
Iran Says Nuclear-Fuel Talks Should Open in September
Colombia calls for OAS meeting to address alleged FARC presence in Venezuela
China crude pipelines explode, burn in Dalian port

BP's Gulf well test could exceed 48 hours-BP exec
Capped Gulf of Mexico oil well 'withstands pressure'
Is Obama Claiming Credit for Gulf Spill Solution?
Natural gas jumps as hot weather boosts demand
Natural Gas Company's Disclosure Decision Could Change Fracking Debate
Russia Seeks Explanation From Iran On Nuclear Program
Pickens puts polish on plan to curb oil imports
Colombia accuses Venezuela of harbouring rebel groups
Gulf well test to start after cap repair: BP exec
BP Partially Stops Macondo Well Oil Flow for Test
IEA forecasts slower oil demand growth in 2011
Why BP Can't Find a Friend in Big Oil
Russia Plan To Help Iran Challenges Sanctions
CME Group to launch Contract for Western Canadian Select Crude

Commission Chairmen Say Moratorium Is a Burden
Gulf oil to keep flowing while cap is analyzed
Sanctions tighten pressure on Iran's oil industry
Iran: Strike by Merchants Spreads at Tehran Bazaar
Al-Qaeda attacks security buildings in South Yemen
El Paso gets right-of-way grant for gas pipeline
Allis-Chalmers to acquire American Well Control

Revised US Drilling Moratorium No Longer Based on Water Depth
BP affixes new cap on Gulf oil well; tests ahead
Eni Strikes Oil Offshore Angola
Sinopec Addax strikes oil at Nigerian block

BP in talks with Apache 'to sell Alaska oil field'
Interior Rewrites History, Erases BP From List of Finalists for Safety Award
BP Aims to Contain Flow of Gulf Well Within Days
Anadarko tells BP it won't help pay for oil spill

Crude oil ends 1.9% higher, natural gas tanks 3.6%
Court refuses stay in deepwater drilling case
Platts Survey: OPEC Pumps 29.12 Million Barrels of Oil Per Day in June

DOE raises production lost to drilling moratorium
US EIA sees stronger 2010 world oil demand growth
Helmerich & Payne warns oil field service peers about PDVSA
Russia says nuclear issue must not dominate Iran Six talks
Gas drillers seek input on Pennsylvania natgas tax

Oil prices slip on US recovery concerns
BP Squandered Chance to Capture More Oil From Well, Helix Says
Ecuador seeks renegotiated foreign oil contracts
Angolan, Cuban firms join Venezuelan oil venture
China objects to US unilateral sanctions on Iran
EU imposes flight ban on Iran Air over safety
BP, bleeding billions, plans asset sales to fund oil spill compensation
US eyes UN peacekeepers for Iraq after 2011
In BP 'war room,' small victories, many uncertainties
E.P.A. Issues Coal Air Pollution Rules

Iraq looks to spectacular oil boom to revive its political fortunes
Tests to start on Gulf oil 'super skimmer'

Graphs Oil and Natural Gas Prices
Futures Prices Spot Prices
NYMEX Crude Oil WTI Cushing, Oklahoma
Brent Crude Oil Brent Spot
RBOB Gasoline Gasoline - New York Harbor
Heating Oil Heating Oil - New York Harbor
NYMEX Natural Gas Natural Gas Henry Hub Louisiana
 








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