BP’s first relief well is less than 264ft from its target depth, and about 12ft away horizontally from the well, according to the latest administration briefing.
As the two relief wells get closer to their target, BP’s ailing share price has improved somewhat.
But despite the positive reaction from investors, the prospect of the relief wells failing altogether is also being raised as the drilling nears its target.
As the FT’s Ed Crooks writes, in the event of total failure of the wells, “the company may be doomed”.
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Killing a rogue well via a relief well can be rather challenging, as previous examples show. Those experienced with relief wells believe there is some cause for optimism, however.
Crude oil prices fell on the news last month that the IEA had raised its predictions of oil supply. But were they right to?
The non-Opec world, predicted to be on the edge of production decline, would actually increase oil production by about 1m b/d in 2010 – 2015, the agency said.
But the increase during this period will only be 1m b/d — less than a fifth of total projected world supply growth. The vast majority, in otherwords, will come from Opec members.
And there are two other points making the non-Opec growth look less impressive.
First, all the gains are made in 2010 and 2011. From 2012 onwards, total output declines:
- ‘We’ve been going flat out’ on the spill
- The rise of gas Opec?
- Europe’s demand. Iran’s gas reserves. And then there’s Russia
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