FUCK YOU BP

[DJSapp]

It's unfortunate that the current crop of scandelous companies has forever imprinted this in your head. Many companies (including those in the Natural Resource Industries) spend millions of dollars a year maintaining programs with the goal of retaining a "social license to operate." Its bad business sense not to. Look in your town for the largest employer, I bet they do a hell of a lot more for the area than just provide jobs, no? I bet they contribute to social programs, fund childrens sports, donate to librarys, hospitals, and schools, provide scholarships and grants, etc. etc.

How the Big Oil companies' track record is on stuff like this, I don't know. But I bet there are some nice, new school buildings and shit like that near Prudhoe........

Four words: Corporate Tax Write Off.


Don't ever think that multibillion dollar corporations give a shit about you or your community.

[0BernhardFranz]

Four words: Corporate Tax Write Off.


Don't ever think that multibillion dollar corporations give a shit about you or your community.

You know people treated my like shit although I had miracles.I had before contacted my influential Arabic friends and asked them to lower the oil price to promote industrial growth so it went down to 13 $ a barrel.
But then after such unthankfullness I contacted them again and asked them to raise it to as high as possible.

Bernhard Franz

[freaks~in~creeks]

You know people treated my like shit although I had miracles.I had before contacted my influential Arabic friends and asked them to lower the oil price to promote industrial growth so it went down to 13 $ a barrel.
But then after such unthankfullness I contacted them again and asked them to raise it to as high as possible.

Bernhard Franz

oBurn HArd frAnz ,
Please ask them to lower the prices by winter so it does not cost so damn much to ride my snowrocketmachine

thank you

[Mike TV]

has anyone seen the new e85 flex fuel vehicles? i think that they look promising

[Cyber Cop]

For all you pinkos who fail to see how big oil has your interests at heart you might wanna see this film. Who Killed the Electric Car?

Just saw it tonight. It's all about how big oil and Detroit are working hard to build schools n' shit. You know to maintain that all important social contract. In fact they fired all the add agencies and the lobbyists and just started investing in dog parks and stuff. yup, believe it rover.

[P_McPoser]

Four words: Corporate Tax Write Off.


Don't ever think that multibillion dollar corporations give a shit about you or your community.

Eh? I know most of the stuff we do like that we expense....

[Kellie]

Well, I figure I will chime in here as I am closer to this issue than most. The spill was on the oil transit line running from flowstation 2 (a facility that produces 35 MBPD oil) to flowstation 1 where it joins with another line and heads down the sales oil line to the Alyeska Pipeline enroute to Valdez. This particular line had not been smart-pigged in 15 years. It had not been maintenance pigged in recent years (I am not sure when the last pig was run). Regular inspections have been completed on the line, but these are point inspections and have the ability to reasonably survey about 10% of the line. There is not a good reason not to have smart pigged in that long, but keep in mind that for many of those years, Flowstation 2 was marginally profitable with low crude oil prices barely warranting its operation. It is not surprising that smart pigging (which costs about $1-2MM) was not on the agenda of a facility whose future was so unsure.

A spill occured on the west side of Prudhoe Bay in February that caused folks in Prudhoe to begin shifting paradigms. Prior to the spill, inspection reports, crude quality (low water content) and no incidents to indicate otherwise led to an assumption that the sales oil lines were in good shape. There is a very comprehensive inspection plan at Prudhoe Bay that focuses on corrosion from the wells, in the facilities, and in transit lines, but is capable only of inspecting points on the line. This is the industry standard. A smart pig was run on the line about a month ago and found indication of 16 anomalies. These thin areas on the pipe are the result of microbial corrosion and the pits are less than 1 in in diameter. In 17,500 ft of pipeline, that means there are 16 inches of high risk areas, akin to finding a needle in a haystack. It was in stripping insulation to further inspect anomalies from the smart pig report that the leaks were discovered. There was approximately 4-5 bbls spilled.

After discovery of the leak and due to the recent leak on the west side of Prudhoe, BP management decided to shut down the field until the lines can be replaced. I assure all of you that the priorities have been to contain the spill, ensure basic health and life safety of the camps (power is derived from natural gas that comes from producing wells, diesel is derived from taking a portion of crude from the sales oil line, removing diesel, and returning to the line, etc.), and then do everything possible to resume business. The leak happened on Sunday morning. By Monday, business resumption planning was underway. There are plans to for interim use of existing lines, but it is not an overnight task to hot tap lines, ensure proper leak detection, ensure the integrity of these other potential lines, etc. It is not in BPs interest to keep this field shut in. The loss is around $30MM per day.

I hope this helps to shed light on the situation . . . I am not here to engage in debate about the politics, big business, etc. but am more than happy to answer questions about the actual details of the situation in Prudhoe Bay.

[bad_roo]

Well, I figure I will chime in here as I am closer to this issue than most. The spill was on the oil transit line running from flowstation 2 (a facility that produces 35 MBPD oil) to flowstation 1 where it joins with another line and heads down the sales oil line to the Alyeska Pipeline enroute to Valdez. This particular line had not been smart-pigged in 15 years. It had not been maintenance pigged in recent years (I am not sure when the last pig was run). Regular inspections have been completed on the line, but these are point inspections and have the ability to reasonably survey about 10% of the line. There is not a good reason not to have smart pigged in that long, but keep in mind that for many of those years, Flowstation 2 was marginally profitable with low crude oil prices barely warranting its operation. It is not surprising that smart pigging (which costs about $1-2MM) was not on the agenda of a facility whose future was so unsure.

A spill occured on the west side of Prudhoe Bay in February that caused folks in Prudhoe to begin shifting paradigms. Prior to the spill, inspection reports, crude quality (low water content) and no incidents to indicate otherwise led to an assumption that the sales oil lines were in good shape. There is a very comprehensive inspection plan at Prudhoe Bay that focuses on corrosion from the wells, in the facilities, and in transit lines, but is capable only of inspecting points on the line. This is the industry standard. A smart pig was run on the line about a month ago and found indication of 16 anomalies. These thin areas on the pipe are the result of microbial corrosion and the pits are less than 1 in in diameter. In 17,500 ft of pipeline, that means there are 16 inches of high risk areas, akin to finding a needle in a haystack. It was in stripping insulation to further inspect anomalies from the smart pig report that the leaks were discovered. There was approximately 4-5 bbls spilled.

After discovery of the leak and due to the recent leak on the west side of Prudhoe, BP management decided to shut down the field until the lines can be replaced. I assure all of you that the priorities have been to contain the spill, ensure basic health and life safety of the camps (power is derived from natural gas that comes from producing wells, diesel is derived from taking a portion of crude from the sales oil line, removing diesel, and returning to the line, etc.), and then do everything possible to resume business. The leak happened on Sunday morning. By Monday, business resumption planning was underway. There are plans to for interim use of existing lines, but it is not an overnight task to hot tap lines, ensure proper leak detection, ensure the integrity of these other potential lines, etc. It is not in BPs interest to keep this field shut in. The loss is around $30MM per day.

I hope this helps to shed light on the situation . . . I am not here to engage in debate about the politics, big business, etc. but am more than happy to answer questions about the actual details of the situation in Prudhoe Bay.

Pfffft - what does she know?

[4matic]

Gasoline is down .19c a gallon today.

[P_McPoser]

Well, I figure I will chime in here as I am closer to this issue than most. The spill was on the oil transit line running from flowstation 2 (a facility that produces 35 MBPD oil) to flowstation 1 where it joins with another line and heads down the sales oil line to the Alyeska Pipeline enroute to Valdez. This particular line had not been smart-pigged in 15 years. It had not been maintenance pigged in recent years (I am not sure when the last pig was run). Regular inspections have been completed on the line, but these are point inspections and have the ability to reasonably survey about 10% of the line. There is not a good reason not to have smart pigged in that long, but keep in mind that for many of those years, Flowstation 2 was marginally profitable with low crude oil prices barely warranting its operation. It is not surprising that smart pigging (which costs about $1-2MM) was not on the agenda of a facility whose future was so unsure.

A spill occured on the west side of Prudhoe Bay in February that caused folks in Prudhoe to begin shifting paradigms. Prior to the spill, inspection reports, crude quality (low water content) and no incidents to indicate otherwise led to an assumption that the sales oil lines were in good shape. There is a very comprehensive inspection plan at Prudhoe Bay that focuses on corrosion from the wells, in the facilities, and in transit lines, but is capable only of inspecting points on the line. This is the industry standard. A smart pig was run on the line about a month ago and found indication of 16 anomalies. These thin areas on the pipe are the result of microbial corrosion and the pits are less than 1 in in diameter. In 17,500 ft of pipeline, that means there are 16 inches of high risk areas, akin to finding a needle in a haystack. It was in stripping insulation to further inspect anomalies from the smart pig report that the leaks were discovered. There was approximately 4-5 bbls spilled.

After discovery of the leak and due to the recent leak on the west side of Prudhoe, BP management decided to shut down the field until the lines can be replaced. I assure all of you that the priorities have been to contain the spill, ensure basic health and life safety of the camps (power is derived from natural gas that comes from producing wells, diesel is derived from taking a portion of crude from the sales oil line, removing diesel, and returning to the line, etc.), and then do everything possible to resume business. The leak happened on Sunday morning. By Monday, business resumption planning was underway. There are plans to for interim use of existing lines, but it is not an overnight task to hot tap lines, ensure proper leak detection, ensure the integrity of these other potential lines, etc. It is not in BPs interest to keep this field shut in. The loss is around $30MM per day.

I hope this helps to shed light on the situation . . . I am not here to engage in debate about the politics, big business, etc. but am more than happy to answer questions about the actual details of the situation in Prudhoe Bay.

Thank you Kellie. That's some great information!

I figured they were losing big bucks, but 30MM a day was about 20MM a day more than I thought!

edit: Is that the value of deferred production or actual time-value loss?

[P_McPoser]

Four words: Corporate Tax Write Off.
Don't ever think that multibillion dollar corporations give a shit about you or your community.

Of course not, I mean, it's pretty easy to convince people to move to a small town with crappy infrastructure and substandard schools and work for your company so you can make that multibillion dollar profit.

[rideit]

And Meth and cheap whorehouses.

[MTT]

Well, I figure I will chime in here as I am closer to this issue than most. The spill was on the oil transit line running from flowstation 2 (a facility that produces 35 MBPD oil) to flowstation 1 where it joins with another line and heads down the sales oil line to the Alyeska Pipeline enroute to Valdez. This particular line had not been smart-pigged in 15 years. It had not been maintenance pigged in recent years (I am not sure when the last pig was run). Regular inspections have been completed on the line, but these are point inspections and have the ability to reasonably survey about 10% of the line. There is not a good reason not to have smart pigged in that long, but keep in mind that for many of those years, Flowstation 2 was marginally profitable with low crude oil prices barely warranting its operation. It is not surprising that smart pigging (which costs about $1-2MM) was not on the agenda of a facility whose future was so unsure.

A spill occured on the west side of Prudhoe Bay in February that caused folks in Prudhoe to begin shifting paradigms. Prior to the spill, inspection reports, crude quality (low water content) and no incidents to indicate otherwise led to an assumption that the sales oil lines were in good shape. There is a very comprehensive inspection plan at Prudhoe Bay that focuses on corrosion from the wells, in the facilities, and in transit lines, but is capable only of inspecting points on the line. This is the industry standard. A smart pig was run on the line about a month ago and found indication of 16 anomalies. These thin areas on the pipe are the result of microbial corrosion and the pits are less than 1 in in diameter. In 17,500 ft of pipeline, that means there are 16 inches of high risk areas, akin to finding a needle in a haystack. It was in stripping insulation to further inspect anomalies from the smart pig report that the leaks were discovered. There was approximately 4-5 bbls spilled.

After discovery of the leak and due to the recent leak on the west side of Prudhoe, BP management decided to shut down the field until the lines can be replaced. I assure all of you that the priorities have been to contain the spill, ensure basic health and life safety of the camps (power is derived from natural gas that comes from producing wells, diesel is derived from taking a portion of crude from the sales oil line, removing diesel, and returning to the line, etc.), and then do everything possible to resume business. The leak happened on Sunday morning. By Monday, business resumption planning was underway. There are plans to for interim use of existing lines, but it is not an overnight task to hot tap lines, ensure proper leak detection, ensure the integrity of these other potential lines, etc. It is not in BPs interest to keep this field shut in. The loss is around $30MM per day.

I hope this helps to shed light on the situation . . . I am not here to engage in debate about the politics, big business, etc. but am more than happy to answer questions about the actual details of the situation in Prudhoe Bay.

Kellie:
Thanks for taking the time to post an explanation of what is happening. It’s rare that a detailed explanation makes it into the public domain.
It sounds like BP was cutting some corners but nothing tragic? I am sure that with Oil prices as high as they are, the problem will be resolved fairly quickly and hopefully correctly.

PS:
What do you know about alleged oil reserves in the Midwest? I always hear rumors that Oil companies are sitting on large wells in Oklahoma and Texas has the price of oil gone up enough to start ramping up domestic production? Does it exist? Are we saving it for later?

[davey]

Kellie:
Thanks for taking the time to post an explanation of what is happening. It’s rare that a detailed explanation makes it into the public domain.
It sounds like BP was cutting some corners but nothing tragic? I am sure that with Oil prices as high as they are, the problem will be resolved fairly quickly and hopefully correctly.

PS:
What do you know about alleged oil reserves in the Midwest? I always hear rumors that Oil companies are sitting on large wells in Oklahoma and Texas has the price of oil gone up enough to start ramping up domestic production? Does it exist? Are we saving it for later?

I think oil shale in CO is one of the largest deposits of oil in the country, its just a major pita to get it out. I can see them trying to get oil shale going again, but I don't know how soon.

[Greydon Clark]

I can see them trying to get oil shale going again, but I don't know how soon.

Oil Shale worked out real well in the ’80s. Anyway, a few months ago High Country News did a bit the renewed interest in oil shale, companies that are trying to extract it profitably, and the environmental impact.

FYI, the pipeline in question was exempt from many of the federal maintenance standards designed to prevent this type of thing happening. Check out the New Hour’s interview with the head of BP’s Alaskan operation for the details.

[davey]

Oil Shale worked out real well in the ’80s. Anyway, a few months ago High Country News did a bit the renewed interest in oil shale, companies that are trying to extract it profitably, and the environmental impact.

The US would LOVE for oil shale to get going soon I bet. The oil sands seem to be working out quite well for canada, and it would be nice for the US to get a large area booming like Fort mcmurray is.

[gramboh]

Four words: Corporate Tax Write Off.


Don't ever think that multibillion dollar corporations give a shit about you or your community.

That doesn't make sense, unless the tax incentive is greater than the expenditure. These costs are deductible in most cases in US and Canadian tax law that I have seen (there are special exceptions). Believe it or not BP is one of the better large O&G producers socially.

BP spends $100 with 30% tax rate, they save $30. Net expenditure of $70. If they cared only about money they would not make the expenditure at all.

[DJSapp]

That doesn't make sense, unless the tax incentive is greater than the expenditure. These costs are deductible in most cases in US and Canadian tax law that I have seen (there are special exceptions). Believe it or not BP is one of the better large O&G producers socially.

BP spends $100 with 30% tax rate, they save $30. Net expenditure of $70. If they cared only about money they would not make the expenditure at all.

Right, but PmcPostsalot did make a point that they have to attract people to work for them in some godforsaken places with little infrastructure. This is the cost of doing business, and an expense that they can write off in a different column on the tax for where they get that $30 back instead of a total loss. In addition, they get PR points for being "The Company that Cares." If they truly cared, those toilets in the schools would be made of gold and people would be flocking to AK to work for them. Truth is, they make it just bareable enough to retain the workforce. It is an expense for the company which they can write off as a public benefit, ergo tax break.

[homerjay]

Right, but PmcPostsalot did make a point that they have to attract people to work for them in some godforsaken places with little infrastructure. This is the cost of doing business, and an expense that they can write off in a different column on the tax for where they get that $30 back instead of a total loss. In addition, they get PR points for being "The Company that Cares." If they truly cared, those toilets in the schools would be made of gold and people would be flocking to AK to work for them. Truth is, they make it just bareable enough to retain the workforce. It is an expense for the company which they can write off as a public benefit, ergo tax break.

Those companies are typically required to do improvements in an area they're impacting, as a condition to their drilling/exploration leases. It's surely not a result of benevolence, and whether or not it's a tax write off I don't know. Just like how you can't come in and build a huge subdivision without widening the exisiting access road.

Although the local municipalities here on CO's western slope don't see a penny from traffic jams full of Halliburton gas drilling trucks to improve infrastrucure. I think that's because they're leasing roadless NF and BLM land, a whole other thread.

[Eldo]

Right, but PmcPostsalot...

This made me laugh out loud.

[Greydon Clark]

I think that's because they're leasing roadless NF and BLM land, a whole other thread.

Formerly roadless national forest lands.

[tetsuma]

I think oil shale in CO is one of the largest deposits of oil in the country, its just a major pita to get it out. I can see them trying to get oil shale going again, but I don't know how soon.

I think the US oil shales are the largest in-place oil deposit on the planet -- that or the athabasca tar sands in canada. but it's mining, and a lot less neat than drilling a dozen wells from one pad.

[tetsuma]

The spill was on the oil transit line running from flowstation 2 (a facility that produces 35 MBPD oil) to flowstation 1 where it joins with another line and heads down the sales oil line to the Alyeska Pipeline enroute to Valdez.

These thin areas on the pipe are the result of microbial corrosion and the pits are less than 1 in in diameter.

Kellie, so I think what you're saying that the lines going to FS2 were more susceptible to corrosion because the crude flowing through FS2 has a higher water cut than average (hence the cruddy economics), might also have more crud/particulates (ditto), the anti-microbials didn't work as well as expected (or weren't enough for that high a wateril ratio), and you got sulfate reducing bacteria thriving?

Good luck. Is it easier fixing this stuff in the Winter?

David

[P_McPoser]

This made me laugh out loud.

Me too. Guilty.

[Kellie]

I can´t speak much about oil shale in Colorado or reserves in Texas and Oklahoma . . .

As far as corrosion from FS2 . . . there is very little water in the crude outgoing from the facility, but there are a few low points in the line that the existing water was able to collect, and the microbes able to attack. Greydon is right in that these lines were not DOT regulated and therefore not government inspected. The government does not give the operators input on the state of a pipeline, but rather the opposite.

In addition, they get PR points for being "The Company that Cares." If they truly cared, those toilets in the schools would be made of gold and people would be flocking to AK to work for them. Truth is, they make it just bareable enough to retain the workforce.

In regards to people wanting to work for BP - I can assure you that many of the contractors want that very thing. As far as a major corporation goes, it is a good one to work for, in my opinion. I have not experienced anything that would be described as ¨just bearable¨ to be retained. Being a ¨company that cares¨ is good business for any company, and much of America benefits from corporate donations, programs, etc.

I guess the one point I would like to make is that this is no way a strategic or intentional move by BP. The timing is bad, yes, but nobody wants to deal with this kind of situation.

And in other news, it´s puking in Las Lenas and I couldn´t see my runs today from all the face shots!!!