So how would you like to be an operator who was minding their own business, drilling a well in deepwater while taking all appropriate safety precautions when you are notified by the MMS that you need to stop, secure the well, and suspend operations? Most wells in deepwater are drilled under long term rig contracts. So as an added bonus, you get to keep paying the rig contract after force majeure is declared. Once again, thanks BP.
Jay, it's hard for many to look beyond the disaster while it is still under way. I certainly do not wish for other companies to be negatively impacted and I support continued E&P in the GOM, shelf and deep water. I would hope that all the other companies with a significant portion of their business interests tied to offshore assets would be working with the federal government to come up with a set of minimum standards that includes those highlighted by the BP disaster so that everyone else can get back to drilling. As much as the industry chafes at government regulation, there comes a time to bite the bullet and accept that the game has changed. As well it should in light of this tragedy. If other companies are in compliance with the new minimum regs, let them resume drilling ASAP!
Do you think they may have legal recourse against BP? Is insurance available for this type of loss? Is the potential economic impact of losing these smaller operators such that they should receive federal assistance? Should the feds demand a payment from BP that would support these smaller operators until such time as drilling resumes?
Sounds like BP's liability just increases every day. I don't know what all the limitations on its liability are; to the extent any exist, those limits need to be lifted. Frankly, three unsecured creditors of BP ought to file an involuntary Chapter 11, forcing BP into bankruptcy, and voting in a Trustee to operate the company.
That doesn't begin to cover the impact of shutting down operations in the GOM. What about all the businesses that aren't even in the Oil business but thrive from the business they get from those who are?
This is going to be much bigger than just for the Oil industry..
Obama is going to find he's only a flea trying to control the dog!
Hopefully, all the victims of the drilling shutdown remember this next election and tell all their relatives, friends, etc. about how they were screwed over by the government after BP made their mistake.
I also hope something happens that puts BP out of business and anyone who worked in BP management finds they can't get rehired in the O&G industry. BP makes the US government, the US Post Office, the US Congress, and Enron look like well run companies. Letting BP conduct O&G operations is like letting chimps handle hand grenades. I've heard from several insiders that BP management gives morons a bad name.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More