Deepwater Horizon Update June 17, 2010
Numbers to Date:
•35,000-60,000 barrels or 1,470,000- 2,520,000 gallons are leaking from the well (Latest Federal estimate based on new and more accurate data)
•Up to 3.48 million barrels or 1.46 billion gallons have leaked from the well since the explosion April 20 (according to the new federal estimates).
•20.7 million gallons of an oil/water mixture have been recovered
•From BP: For the last 12 hours on June 16th (noon to midnight), approximately 7,710 barrels of oil were collected and approximately 2,600 barrels of oil and 22 million cubic feet of natural gas were flared.
• On June 16th, a total of approximately 14,750 barrels of oil were collected and approximately 3,850 barrels of oil and 40 million cubic feet of natural gas were flared.
• Total oil recovered from both the LMRP Cap and Q4000 systems since they were implemented is approximately 179,000 barrels.
June 16, 2010
The agreed upon plan:
Independent Claims Facility
•Created to make the claims process fairer, faster and more transparent
•Facility will create standards for claims
•A panel of 3 judges will hear appeals of the administrators decisions
•All claims adjudicated under this facility have access to the escrow account
•This facility is specifically for individuals and small business affected by the oil spill
•Local, state, tribal, and federal government claims will continue to be handles by BP directly
•Decisions by this facility are binding on BP under current law
Escrow Account
•BP will contribute $20 billion over a four-year period
•$5 billion per year, (1.25 billion per quarter) including $5 billion within 2010, until the $20B is paid out
•Assurance for these commitments will be set aside in $20 billion in U.S. assets
•The account is neither a floor or ceiling on liability
•The account is assurance that funds are available and can be used for: Claims adjudicated by the independent claims facility, Judgments & Settlements, Natural resource damage costs, State and local response costs
•BP will continue to pay all removal costs and damages it owes as the responsible party
•BP will not assert any liability cap under OPA to avoid liability
Voluntary Contribution for Rig Workers
•BP will contribute $100 million to a foundation to support unemployed oil rig workers
•The May legislative proposal would create a program of unemployment assistance to provide benefits to workers who lose their jobs as a result of an oil spill
Environment and Health Monitoring
•BP committed $500 million for the 10yr GOM Research Initiative to improve understanding of the impacts of and ways to mitigate oil and gas pollution
•BP will work with governors, state and local environmental and health authorities on a long-term monitoring program to assure the environmental and public health of the GOM Region
"We Care about the Small People" -BP Chairman, Carl-Henric Svanberg Video from AP
BP Finances:
As a result of the $20bn escrow account BP has canceled its dividend payout scheduled for June 21st and the rest of the dividend pay outs for 2010. Upon the 4th quarter payment in 2010, BP's board will meet to determine the full impact of the Deepwater Horizon tragedy and determine if dividends will be paid out in 2011.
2010 cash flows from operation are still expected to exceed $30bn before the costs of the oil spill are considered. Stocks rose for BP in London by 6.9% and slightly in the U.S. for a 45 cent increase.
June 15, 2010
LMRP Containment Cap Operation Fire
Tuesday morning the LMRP containment cap operation was temporarily shut down after a fire ensued on the top deck of the Discoverer Enterprise. The fire was believed to have been caused by lightning. The fire was put out and operations continued as normal hours later.
GOM fish and wildlife flee oil spill
Dolphins and sharks are showing up in shallow water along Florida’s coast and mullets, crabs rays and small fish are congregating by the thousands off Alabama’s coats.
Marine scientists working in the GOM are seeing thousands of fish and wildlife move closer to the coast. The movement closer to the shore may indicate the animals current habitat is badly polluted. The over crowding of wildlife near the shores could cause mass die-off due to lack of oxygen, competition for food and higher threat from predators.