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GasBuddy News Article

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U.S. Halts Drilling on Gulf Wells With Flawed Bolts

bloomberg.com -- Deep-water oil exploration has been disrupted from the Gulf of Mexico to Brazil by the discovery of faulty bolts used in safety equipment less than three years after the worst-ever U.S. maritime crude spill.

Energy explorers such as Chevron Corp., Royal Dutch Shell Plc and Transocean Ltd. said they have been directed by U.S. regulators to suspend work aboard rigs that employ General Electric Co. devices connecting drilling tubes to safety gear and the seafloor. The equipment must be retrieved so defective bolts can be replaced, the U.S. Bureau of Safety and Environmental Enforcement said in an alert issued on Jan. 29.

Installing new bolts and resuming drilling may take as long as three weeks for each rig, Credit Suisse Group AG said. For oil companies paying upwards of $600,000 a day


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Submitted Feb 08, 2013 By: teafortwo
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Author Topic: U.S. Halts Drilling on Gulf Wells With Flawed Bolts Back to Topics
REPLIES (newest first) Post a Reply
Chris46
Champion Author Dayton

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Message Posted: Feb 11, 2013 9:22:55 PM

This article made sense. Nice story.
LetemEatCake
Champion Author Oklahoma City

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Message Posted: Feb 9, 2013 9:39:01 PM


I agree with Ned....nice article!
NedW
Champion Author Indianapolis

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Message Posted: Feb 9, 2013 3:02:50 AM

Thank you for submitting this, teafortwo.
52MPG
Champion Author Dayton

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Message Posted: Feb 9, 2013 1:21:10 AM

Better to spend millions to fix the problem now than spend Billions in the future to clean up a mess.
LetemEatCake
Champion Author Oklahoma City

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Message Posted: Feb 8, 2013 10:41:53 PM


PDQ...cause a low priority on safety is expensive, and Big Oil bets they won't get caught! Usually it take a big spill or accident to bring these problems to the public's attention!

In this case...they LOST!
PDQBlues
Champion Author San Diego

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Message Posted: Feb 8, 2013 5:06:11 PM


You would think these companies would learn to put greater priority on safety, but you would be wrong.
Tomeboy
Champion Author Twin Cities

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Message Posted: Feb 8, 2013 9:05:21 AM


This certainly could push gasoline prices... even higher for beleaguered consumers. This gives speculators more opportunity to earn even more money on their investments.

Installing new bolts and resuming drilling may take as long as three weeks for each rig, Credit Suisse Group AG said. For oil companies paying upwards of $600,000 a day to rent the most- sophisticated deep-water vessels and another $500,000 a day to staff and supply each of them, the delays may be significant, said Craig Pirrong, director of the University of Houston’s Global Energy Management Institute.

“This certainly will be costly for the industry,” Pirrong said in a telephone interview yesterday.

Lower earnings from the Gulf may be a consequence for service companies due to potential for longer downtime than expected, Bill Herbert, an analyst at Simmons & Co. in Houston, wrote today in a note to investors.

“GE bolt revelations yesterday galvanized the market as Macondo scar tissue sensitivity remains acute,” he wrote. “Think of this as a modest tropical storm, albeit in January.”

“We expect rig downtime to be 2-3 weeks” including time to bring equipment up, replace the bolts and return to the seafloor, Gregory Lewis, a New York-based analyst for Credit Suisse, said in a note to clients yesterday.

“This concern adds to numerous transitory risks facing the offshore drillers as the new rig delivery cycle unfolds and investor focus shifts to delivery execution, potential cost overruns and unplanned downtime on recently delivered units,” James West, an analyst at Barclays Plc in New York, wrote yesterday in a note to investors.

humblepie
Champion Author Toledo

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Message Posted: Feb 8, 2013 7:33:02 AM

ge is the culprit now ?
teenitup
Champion Author Houston

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Message Posted: Feb 8, 2013 6:46:55 AM

GE involved. Imagine that!
EnviroChemist
Champion Author Oklahoma

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Message Posted: Feb 8, 2013 6:25:00 AM

The product of always using the lowest bidder for parts, defective bolts. A practice which seems to be coming back to haunt the oil companies and GE, to the tune of up to $600,000 per day of down time.
cruisingtx
Champion Author San Antonio

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Message Posted: Feb 8, 2013 3:04:48 AM

Up, up, and away!
mrjames1818
Champion Author New Jersey

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Message Posted: Feb 8, 2013 2:59:30 AM

The cost of doing business
SpruceGuse2
Champion Author Michigan

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Message Posted: Feb 8, 2013 2:56:14 AM

OK?.......................
Luckylindy
Champion Author Milwaukee

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Message Posted: Feb 8, 2013 2:53:37 AM

More Chinese garbage.
Cachase1
Champion Author Oklahoma City

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Message Posted: Feb 8, 2013 2:53:17 AM

We will probably see further increases in gas prices as a result.
zcolt45
Champion Author Michigan

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Message Posted: Feb 8, 2013 2:51:03 AM

This is what happens when you use Gray Market Items in these projects, someone will find out that the product was Made in CHINA to cut costs.

Big Oil cut costs to make Profits and a Hugh Bonus.

SkooterG
Champion Author Phoenix

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Message Posted: Feb 8, 2013 2:49:23 AM

Amazing.
biggiesize
Champion Author Gary

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Message Posted: Feb 8, 2013 2:45:11 AM

Another WOW!
tomok
Champion Author Portland

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Message Posted: Feb 8, 2013 2:39:50 AM

U.S. Halts Drilling on Gulf Wells With Flawed Bolts? Make sure 'ALL' equipment being used is in safe working condition at all times! if the equipment is Not in safe working condition - suspend all operations until it is fixed or repaired properly.
Drive vehicles with high MPG, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money.
The price of fuel at the pump is too high!
OHIO50
Champion Author Denver

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Message Posted: Feb 8, 2013 2:39:34 AM

Ok.
yeehaw1073
Champion Author Indiana

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Message Posted: Feb 8, 2013 2:36:15 AM

it's always something...
BigDogOH
Champion Author Cincinnati

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Message Posted: Feb 8, 2013 2:28:30 AM

$4.00 by Easter
charg3rguy1991
Champion Author Greensboro

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Message Posted: Feb 8, 2013 2:24:39 AM

They shouldn't need to be told to suspend work to fix safety equipment, they should just FIX IT on their own.
joko0
Champion Author New Jersey

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Message Posted: Feb 8, 2013 2:22:53 AM

Sounds like another bump in gas prices!
UseLessGasFolks
Champion Author Iowa

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Message Posted: Feb 8, 2013 2:22:49 AM


My Kingdom for a bolt.
UBDave
Champion Author British Columbia

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Message Posted: Feb 8, 2013 2:17:22 AM

Just another excuse to jack up gas prices even further...
madison8359
Champion Author Cleveland

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Message Posted: Feb 8, 2013 2:15:47 AM

And now for the fix.
Gibby4176
Sophomore Author Illinois

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Message Posted: Feb 8, 2013 2:14:52 AM

Figures.
SteveMartin
Champion Author New Orleans

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Message Posted: Feb 8, 2013 2:13:03 AM

Need better designers.
rwrMO
Champion Author Missouri

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Message Posted: Feb 8, 2013 2:07:34 AM

This will drive the price up.
jci25946
Champion Author Tampa

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Message Posted: Feb 8, 2013 2:02:56 AM

Someone trying to save money by buying faulty bolts!!
Ltdc
Champion Author Long Island

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Message Posted: Feb 8, 2013 2:00:26 AM

GE with egg on the old face!
teamsimons
Champion Author South Carolina

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Message Posted: Feb 8, 2013 1:57:18 AM

Why is it that faulty parts are never found before installation and use?

What impact will this have on gas prices, we wonder?
TommyTraveler
Champion Author Cincinnati

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Message Posted: Feb 8, 2013 1:57:14 AM

Better to be safe the sorry.
Pozole
Champion Author Portland

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Message Posted: Feb 8, 2013 1:55:04 AM

...DUH...
defense
Champion Author Grand Rapids

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Message Posted: Feb 8, 2013 1:51:05 AM

ok
lgwhitlock
Champion Author Chico

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Message Posted: Feb 8, 2013 1:50:27 AM

I would thing GE would have to pay for this or their insurance company anyway. Crazy. At least it was found before any accidents happened...
VB_Richard
Champion Author Virginia Beach

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Message Posted: Feb 8, 2013 1:50:15 AM

The price of a bolt!!
twobroke61
Champion Author Michigan

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Message Posted: Feb 8, 2013 1:48:18 AM

glad they found it now
hybridaholic
Champion Author Appleton

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Message Posted: Feb 8, 2013 1:47:26 AM

Probably from the cheapest bidder----China.
1fulltank
Champion Author Buffalo

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Message Posted: Feb 8, 2013 1:44:34 AM

Now we have a recall on bolts.
stefanwaggoner
All-Star Author Bakersfield

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Message Posted: Feb 8, 2013 1:36:16 AM

Just wait till we are all tapped out and the world is dry then what?
Hi1
Champion Author Ontario

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Message Posted: Feb 8, 2013 1:29:37 AM

I'm glad they got it before anything happen.
JuicyQ69
All-Star Author San Bernardino

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Message Posted: Feb 8, 2013 1:28:54 AM

Common sense.
pinofl
Veteran Author Miami

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Message Posted: Feb 8, 2013 1:28:49 AM

ok
Lairre
Champion Author Sacramento

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Message Posted: Feb 8, 2013 1:27:55 AM

Glad they found the flaws now...
vibdata
Champion Author Massachusetts

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Message Posted: Feb 8, 2013 1:23:09 AM

This is the principle of "No Responsibility." GE will not pay for this. The consumer of oil products will pay for this. Badly.

srchr
Champion Author San Jose

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Message Posted: Feb 8, 2013 1:21:27 AM

safety first
borsht
Champion Author Oakland

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Message Posted: Feb 8, 2013 1:19:20 AM

If they werte made by GE,Let's hope they make GE pay for this.
mazdaboy
Champion Author Portland

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Message Posted: Feb 8, 2013 1:16:29 AM

Job well done.
fratt
Champion Author Grand Rapids

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Message Posted: Feb 8, 2013 1:15:21 AM

Not good.
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