Oil Spill Question

AROB44

Junior
Mar 20, 2008
1,381
226
63
Can someone explain to me why BP could not have a fleet of tankers sucking this **** up. This was proposed by the retired CEO of Shell who stated that this had been done on a massive spill in the Arabian Gulf some 20 years ago.Also, I think I heard this solution was in a 524 page document filed by BP explaining what their plan was in case of an accident regarding this well.

Any insight from folks more knowledgeable than myself would be appreciated.
 

Shmuley

Heisman
Mar 6, 2008
23,688
10,217
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the guy being interviewed was in charge of a Saudi Arabian deep sea well blowout clean-up operation. Said they immediately put 3 super tankers in place and siphoned the oil. The per day cost to do this was $1 billion.

And there's your answer.

What was not clarified was whether the $1 billion was direct cost or whether that included the value of tanker operations lost as a result of being diverted to the cleanup (opportunity cost for you econ shortdicks).
 

AROB44

Junior
Mar 20, 2008
1,381
226
63
Damn.....that seems like a hell of a lot for 3 super tankers. But, I admit I have no expertise in that business (hell, at my age...60+...I'm not sure I have any expertise left).
 
H

HippyDawg

Guest
than to use the supertankers. Or maybe they have insurance that will pay to cleanup the land but will not cover the user of supertankers to mitigate the damage?
 

bulliegolfer

Redshirt
Oct 19, 2008
1,844
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Let's pray this mud filling attempt gets the job done. Then to get this mess cleaned up........who knows.
 

fishwater99

Freshman
Jun 4, 2007
14,072
54
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It still would probably be cheaper for them in the long run. LAWYERS

Chuck Todd asked the President about this yesterday and he danced around and did not even answer the question.
 

Shmuley

Heisman
Mar 6, 2008
23,688
10,217
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but, here, read this transcript from America's Nightly Scoreboard (FBN):

ASMAN: Let me go to Nicholas real quickly because I want to give him time to weigh in on what kind of engineering would be involved in cleaning this up.

I understand, Nicholas, that there are these huge tankers that can be used to suck up a lot of oil. Of course, it's mixed with the water. That can be separated later and we reuse the oil. How do you get resources into gulf now?

NICHOLAS POZZI, CHAIRMAN, WOW ENGERY SOLUTIONS: One of the things I think that's super important is first of all, stop arguing and let's just get her done. And get the actual tankers -- and I don't care what size they are. The longer this goes on, the more tankers you're going to need. That diminishes amount of resources available because, while the tankers are cleaning up the gulf, they're not delivering oil. Therefore, it is very, very expensive way to do it. The Saudis never mind -- never hesitated one bit to do it because it involved the environment, it involved human life, it also involved people's trade.

(CROSSTALK)

ASMAN: Nicholas, hold on a second. Let me just alert the viewers as to what you're talk about. The Saudis have had terrible, terrible accidents with spills as well. Some even worse than what we're seeing in the gulf right now. And yet, they acted almost immediately in cleaning it up using these tankers, correct?

POZZI: That is correct. Probably a billion dollars or more was spent a day. I lost track, after signing so many P.O.s. But we had hoses in the water, at all depths, inside of 16 hours. And we responded because it is a catastrophe. You never want to keep hydrocarbons in water for any length of time. I don't care if it is your swimming pool. I don't care if it is a pond in the back of your yard. Oil is no good and -- but we need it. And we depend upon it because --

(CROSSTALK)

ASMAN: OK. Nicholas, hold on one second.

POZZI: Yes, sir.

ASMAN: It has been in there for 30 days now. Of course, not all of it has been in there for 30 days. But is it too late? Has it been in the water too long to use these processes that they used in Saudi Arabia?

POZZI: No, sir, it hasn't. It's just that you're going to need a lot more of them and a lot more effort, and basically a lot more money because of the fact that you're going to have to get rid of this stuff as quickly as possible. And I don't care if you separate it now and recover it now. Because you can always do later. We did it later because we didn't have resources, the manpower or the time. So basically, when we mobilized, we threw everything we had at it. Basically, once we did that, we realized our timeline and how quickly we could suck it up and what we needed to suck it up. Then we threw money at it. We got it done. We were successful. And we used supertankers, centrifuges and separators, mechanical separators.

ASMAN: We've got to leave it at that, Nicholas.

POZZI: And we got it done. Yes, sir.

ASMAN: But the job can be done. That is the point. And it's a good point.

POZZI: Yes, sir.

ASMAN: Nicholas Pozzi, Ewell Smith, great to see you both.
 

woozman

All-Conference
Nov 13, 2004
3,380
2,550
113
fishwater99 said:
It still would probably be cheaper for them in the long run. LAWYERS
Yep. There have been full pagelegal ads referring to possible losses due to the oil spill in the Sun Herald for weeks, now. And billboards along the same lines have popped up on I-10.

My boss knows a shrimper that BP is paying $2,600 PER DAY to have his boat ready to assist just in case they need him. So this cat is making $18 K a week to sit on his ***. Seems like$1 Billion would be cheap compared to what'll end up costing them.
 

8dog

All-American
Feb 23, 2008
13,882
5,705
113
paying someone $2,600 a day is evidence that BP would get off cheaper by spending a billion dollars a day?

Can you expand on this?
 

woozman

All-Conference
Nov 13, 2004
3,380
2,550
113
My point was this is just 1 guy in Biloxi - multiply that by the thousands of people that they have hired or have subcontracted. There is equipment stockpiled south of I-10 b/t Long Beach and Gulfport that has to cost a $100,000 per day and that is just 1 staging area - they're several of those along the coast and that's just in MS. The oil boom that they deployed rents in the $2/LF range, per day, plus daily inspections at a T&M rate. Plus the cost of all the equipment that they have on site trying to fix the problem. What does it cost per day to rent and staff the rigs that are drilling the relief wells - $ 1million/day?...

This will cost BP a lot more than $1 billion.

Edited to add - I thought we were talking $1 Billion total, butI just now caught the "per day" part. So disregard my arguement.
 

Porkchop.sixpack

Redshirt
Jan 23, 2007
2,524
0
0
Given that a well has never been capped this deep, that makes things a little diffferent than the Saudi situtation. $1 billion a day for a week? They can pay that cost, although it defenitely crimps earnings. But, $1 billion a day for as long as it takes to cap this thing? BP might not can fund a cost like that. I mean, there is some limit to their ability to pay. I don't know what that limit is.

That's what I worry a little bit about. BP (actually along with the other partners involved in the well) should pay the cost to clean up after themselves. But, I wonder if they can. Given they have a lot of earnings, present and past, to offset the expense. But, there is a limit to their ability, and I hope this thing doesn't extend beyond that limit.