Tag Archives: British Petroleum

BP to drill in the Arctic

I know environmental groups are upset but with BP’s recent safety record, why worry?  Oh right.

The Arctic is to become the "new environmental battleground", campaigners warned yesterday after BP announced plans to drill in one of the last great unspoilt wildernesses on earth.

Greenpeace and the World Wide Fund for Nature (WWF) have vowed to confront BP’s American boss, Bob Dudley, over the agreement with the Russian state-owned oil giant Rosneft to explore the Kara Sea, north of Siberia. The British energy firm was branded the world’s "environmental villain number one" by Friends of the Earth (FoE) yesterday in response to its move to exploit potential oil reserves in the remote waters.

Environmentalists are dismayed that BP, which announced the deal on Friday night, has decided to set up rigs in an area of great biodiversity and treacherous weather conditions. The region is one of the few remaining havens left for a number of endangered species, including polar bears, walruses and beluga whales. And while the waters of the Kara Sea are relatively unexplored, they are known to house key fish species such as halibut, capelin and Arctic cod.

BP finds giant new crude oil field in the Gulf of Mexico

Deepwater Horizon

First the good news and that is British Petroleum has found a giant crude oil field in the Gulf of Mexico.

It may be one of the biggest oil finds of the year, if not the decade. In recent weeks, executives at BP’s exploration centers in Houston and London have been closely tracking the progress of a very deep well that BP contractors were drilling into the seabed of the western Gulf of Mexico. In late August the exploratory well, known as Tiber, was completed. On Sept. 2, BP announced that it had made "a giant oil discovery." BP’s chief of exploration, Michael Daly, terms the Tiber find "very significant" and says it is even "better" than the Kaskida field, another huge BP property in the Gulf of Mexico, with an estimated 4 billion to 6 billion barrels of oil in place.

Of course the bad news is that this isn’t exactly a Jed Clampett type discovery which he discovered while shooting some possum in Arkansas.  This is oil that is in the deepwater Gulf.  So you have to go down a couple of miles of water and then a couple of miles of rock to get it.  The Tiber well is the world’s deepest.  It’s the kind of oil you don’t go looking for if you aren’t running out of oil elsewhere in the world and it isn’t the kind of project you undertake unless you expect to have high oil prices for a very long time.

Of course drilling in the Gulf of Mexico isn’t the easiest thing in the world to do.  Check out what happened to BP’s Thunder Horse platform during 2005’s Hurricane Dennis.

Thundre Horse sinking in 2005 Things like this, Hurricane Katrina, Hurricane Ike… tend to take a toll on production.