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20 Rigs Missing In Gulf Of Mexico

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Declan Curry on BBC news this morning @ about 7:20, let it slip that the US Coast Guard were reporting that there were abourt "20 oil rigs missing" in the Gulf of Mexico.

If true this is huge! $100 pb any time soon!

Interesting that one else is saying anything about it. I wonder if it is being hushed up whilst damage limitation messures (such as the US buying up evey drop on petrol on the market!) are put in place.

Did Declan repeat that little gem later?

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Declan Curry on BBC news this morning @ about 7:20, let it slip that the US Coast Guard were reporting that there were abourt "20 oil rigs missing" in the Gulf of Mexico.

If true this is huge! $100 pb any time soon!

Interesting that one else is saying anything about it. I wonder if it is being hushed up whilst damage limitation messures (such as the US buying up evey drop on petrol on the market!) are put in place.

Did Declan repeat that little gem later?

He is just wrong-about half a dozen were adrift, largest of which was owned by Diamond Offshore circa $310m, and are now being recovered by tugs. The implication that 20 rigs just disappeared bermuda Triangle style is just sensationalist rubbish I think...

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I've read about this on several different sources so I do not think it is being hushed up.

Katrina is likely to have a "more lasting impact on refinery production and the distribution system" than previous hurricanes, the US Department of Energy said.

Oil companies are currently assessing the damage and many oil rigs and platforms are missing, while a number of major refineries have closed.

"The Gulf Coast is a prime supplier through pipelines now shut due to lack of power and ocean-going barges unable to load from ports eradicated by the storm," said David Knapp, an analyst at Energyintel.

"The loss of critical gasoline flows... will stress markets over the next few weeks," he added.

The US Minerals Management Service estimated that 95% of the Gulf of Mexico's oil output was out of service following the hurricane, as well as more than 80% of natural gas production.

http://news.bbc.co.uk/1/hi/business/4203414.stm

It will take a while for the authorities to work out how much damage has been caused

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If you consider that rig losses are the extreme, then it is highly likely that there will be a distribution of damage across the 'fleet' ranging from severe to slight. All of which will delay the rigs coming back on stream. There are going to be some major issues here.

One company has reported that there is a fire on the surface where its rig used to be!

Thank god they all appear to have evacuated the crews!

Edited by FTBagain

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Missing, floating or whatever. The point is they are out of production and that's what counts as far as the global economy is concerned.

The disruption to pipelines, ports and refineries is potentially very serious if it can't be restored soon. :(

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If you consider that rig losses are the extreme, then it is highly likely that there will be a distribution of damage across the 'fleet' ranging from severe to slight. All of which will delay the rigs coming back on stream. There are going to be some major issues here.

One company has reported that there is a fire on the surface where its rig used to be!

Thank god they all appear to have evacuated the crews!

I feel sure the crews would have evacuated themselves.

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Smurf

The disruption to pipelines, ports and refineries is potentially very serious if it can't be restored soon

It won't be.

My dad used to design oil rigs for a living so I know a bit about it (I will have a chat with tonight about and find out some definitve info.) but with my basic knowledge, even if the rig is still float there is the difficult problem of capturing it, towing back and reconnecting it to the well head which is a valve system on the sea bed.

None of that easy and there is likely to be a shortage of big tugs with all the work (and possible losses amougst the tug fleet) and it assumes the rig and more importantly the well head is undamaged. Most unlikely. I briefly worked for a small company that used to design anchor winches for rigs. In heavy weather it was not unknown for the winches to get torn of the decks! So if nothing else they are going to have to inspect the rigs for hid damage or they will risk further damage and loss of life!

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Marina

I feel sure the crews would have evacuated themselves.

The rigs are only equipped with life boats for self evacuation, just like on a ferry, and I would not want to be floating around in one of them in a Hurricane! The rigs rely on outside support from speciallist support ships and helicopters owned and operated by their own oil company or sub contractors. One company, BP, I think evacuated about 4000 staff and there are many more companies operating in the Gulf of Maxico. That is alot of people!

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Marina

The rigs are only equipped with life boats for self evacuation, just like on a ferry, and I would not want to be floating around in one of them in a Hurricane! The rigs rely on outside support from speciallist support ships and helicopters owned and operated by their own oil company or sub contractors. One company, BP, I think evacuated about 4000 staff and there are many more companies operating in the Gulf of Maxico. That is alot of people!

I think Marina was referring to a bowel movement......

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My dad used to design oil rigs for a living so I know a bit about it (I will have a chat with tonight about and find out some definitve info.) but with my basic knowledge, even if the rig is still float there is the difficult problem of capturing it, towing back and reconnecting it to the well head which is a valve system on the sea bed.

Normal rig abandonment procedures for semi-subs include decoupling from the 'risers' - these are the pipes that connect the rig to the sub-sea well heads and transport the oil/gas through the water column. This would have happened prior to the crew leaving the ship - rigs are abandoned by helicopter and support boat - it's a big operation, but all (certainly BP's which I can only comment on) were fully evacuated in plenty of time. This is all for the deep water offshore. Some of these rigs would have definately taken on some damage, but I would expect most to be ready to pump within the week. Whether the pipelines are ready to take the oil and gas is a different matter however as most do not have power on the onshore receiving terminals at the moment.

The shallower water fixed rigs in the Gulf are the ones that would've have sustained longer term damage - again, they would have been abandoned (although many are unmanned anyway), but they do not de-couple from the risers as they are fixed and not floating semi-subs like the deep water rigs described above. It's here I would expect the impact to be felt - evidently, Chevron in particular were wacked big-time.

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To put it into perspective there are over 4000 rigs operating in the Gulf of Mexico

The real problem is the refineries which the rigs feed.

I suspect the US goverment is having to news manage this to stop panic buying in the US i cannot see how they can be uneffected by such a huge temporary loss

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To put it into perspective there are over 4000 rigs operating in the Gulf of Mexico

The real problem is the refineries which the rigs feed.

I suspect the US goverment is having to news manage this to stop panic buying in the US i cannot see how they can be uneffected by such a huge temporary loss

If those refineries aren't up an running pretty soon then keeping the true situation quiet is going to be like trying to hide an elephant under your living room rug. It will get to the point where it just can't be kept from public view - service station tanks literally running dry.

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Declan Curry on BBC news this morning @ about 7:20, let it slip that the US Coast Guard were reporting that there were abourt "20 oil rigs missing" in the Gulf of Mexico.

If true this is huge! $100 pb any time soon!

European gasoline hit $100/bbl today.........

10ppm, sulfur free, gasoline barges in the trading hub of

Amsterdam-Rotterdam-Antwerp traded at a fresh high of $845/mt Thursday

morning, equating to a value in excess of $100/bbl.

European gasoline values continue to skyrocket, climbing nearly $200/mt

since Friday. Values in Europe have boomed tracking strong numbers out of the US.

Since the European markets returned to work Tuesday from the holiday

weekend the market has reacted firmly to the supply interruptions that

Hurricane Katrina wreaked in the southern US states.

"The US is short and will not be able to produce product for some time

yet," one trader said. "People are willing to pay big numbers in Europe for

the chance to send gasoline to the US. Whatever you pay here you will be able

to sell for more in the US," the trader added.

Sources continued to see potential up-side in European values, saying

that traders were still able to hold back product, expecting higher values.

With all ARA refineries fully operational, gasoline runs in Europe are

being maximised, traders said. The crack to front-month Brent, a basic tool

for refiners to assess the worth of refined products relative to crude oil,

rose to record high of $33.5/bbl. During the peak of the driving season in

2004 the prompt crack reached a peak of $22/bbl,

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Laonshark

To put it into perspective there are over 4000 rigs operating in the Gulf of Mexico

The real problem is the refineries which the rigs feed.

Agreed but Forbes quoted the number of rigs as being 591 in the Gulf area, pumping 1.5m bpd. The 20 missing rigs represent the extreme. It is all the other equipment damage, as we have both pointed out that is the problem. This could take far longer to repair if the damage is wide spread and extensive.

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Gooner,

I believe that they use a hub and spoke system (where a number of production rigs / wells are contected a major rig and all teir product is brought ashore along a single pipe) in the North Sea.

Do they use a similar system in the Gulf? If so, could this cause more disruption? My feeling is that it could, especial if the hub rig is severely damaged.

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Declan Curry on BBC news this morning @ about 7:20, let it slip that the US Coast Guard were reporting that there were abourt "20 oil rigs missing" in the Gulf of Mexico.

If true this is huge! $100 pb any time soon!

Interesting that one else is saying anything about it. I wonder if it is being hushed up whilst damage limitation messures (such as the US buying up evey drop on petrol on the market!) are put in place.

Did Declan repeat that little gem later?

Owner

Rig/Equipment

Status

Value

Insurance

Comments

Diamond Offshore

Ocean Warwick

Aground

$14MM

$50MM

On Daupin Island, AL. Significant damage.

Diamond Offshore

Ocean Voyager

Drifting 9 miles north

Transocean

Deepwater Nautilus

Drifting

$700MM

Drifted during Ivan too

Rowan

Rowan-New Orleans

Sunk?

$7.4MM

$8.5MM

Other 21 rigs appear ok

Royal Dutch Shell

Mars Platform

Damaged

$1.0BB

Produces 220K barrels/day = 15% U.S. Gulf output

Nobles Energy

Jim Thompson

Drifting

$142MM

Drifted 17 miles north. No material damage.

ENSCO

ENSCO 7500

Drifting

$500MM

Was listing slightly, but no damage.

ENSCO

ENSCO 29

Damaged

$15MM

$7.6MM

"Significant damage."

Global SantaFe

Development Driller I

Listing slightly

Global SantaFe

Arctic 1

Aground near mouth of Mississippi River

BP

Thunder Horse

Stable

$1BB

Self-insured

Valero

St. Charles Refinery

Shut-down

Damaged - No production for 1-2 weeks.

PEMEX

PSS Chemul

Crashed into $70M AL bridge. Destroyed $4M barge.

Swift Energy

No damage. Surrounding areas = flooding/damage.

Newfield

"A" Platform

Missing

Other structures intact.

Forest Oil

South Pass 24

Damaged

Aerial assessment showed damage.

Plantation Pipeline No damage. No power though.

PAA Pipeline

Mobile Bay Dock

Loss covered by insurance (subject to deductible).

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Gooner,

I believe that they use a hub and spoke system (where a number of production rigs / wells are contected a major rig and all teir product is brought ashore along a single pipe) in the North Sea.

Do they use a similar system in the Gulf? If so, could this cause more disruption? My feeling is that it could, especial if the hub rig is severely damaged.

spot-on. They vary in scale, but there are a couple of big systems such as Mardi Gras (irony?) that connects 5 or 6 big developments. Nearer shore there are a number of smaller systems, but without power generation (and receiving terminals) the receiving stations at the end of the pipeline systems cannot transport the product through.

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Here's two that aren't missing -

edited: plus one more that isn't lost, although the bridge it hit is a bit the worse for wear.

AP_PeterCosgrove_Katrina_AL.jpg

pic05556.jpg

oilrig.jpg

post-758-1125646419_thumb.jpg

post-758-1125646479_thumb.jpg

post-758-1125667757_thumb.jpg

Edited by Tim M

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Tim M,

Amazing pictures. One of the chaps here in the office has just said that 10 ships fully load with fuel are already sailing to the US from Europe! It was on the news last night apparently.

I think I'll fill up on the way home tonight before the prices go through the roof!

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You bunch of drama queens - the BBC says "Experts believe the impact will be short-lived and will not tip the country [uSA] into recession. Growth of 3.5% to 4% is still expected this year." So there's no need to worry ;)

Government news management has kicked in again to stop panic buying, the erosion of consumer confidence and the like. Waited around for the biz news on BBC R4's Today this morning and no mention of any of it.

Noticed on the telly that George W and Co seemed more concerned about stopping looting than providing the poor who stayed behind in New Orleans (no money or transport to escape in many cases) with food and water. Well done ITV for showing the reality on the ground.

Edited by Vivaldo

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  • 341 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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