Deepwater Horizon Disaster Spurs Industry-Wide Improvements in Spill Containment

In the wake of the devastating 2010 Deepwater Horizon disaster, the oil and gas industry has made significant strides in enhancing its spill containment capabilities. The Helix Well Containment Group, a consortium of oil companies, has announced plans to nearly double the depth at which it can contain out-of-control offshore oil and gas wells by mid-summer. Currently, the group's system can handle wells in water up to 5,600 feet deep, but this will be extended to 10,000 feet by mid-summer. This enhancement will allow operators to control capping and containment stacks at greater depths, exceeding the depth of any well currently drilled or planned by the consortium's 22 members.

Key Takeaways:

• The Helix Well Containment Group will double its spill containment depth to 10,000 feet by mid-summer, surpassing the depth of any well drilled or planned by its 22 member companies.
• The group's system is capable of handling blowouts of 55,000 barrels of oil a day in water up to 5,600 feet deep, with planned upgrades increasing this capacity.
• The improved response and containment capabilities will allow operators to control capping and containment stacks at greater depths, enhancing overall safety and environmental protection.
• Major oil companies, including Exxon Mobil Corp., Chevron Corp., and Royal Dutch Shell PLC, have formed the Marine Well Containment Co., which can capture up to 60,000 barrels of spilled oil per day at depths of up to 8,000 feet.
• BHP Billiton Ltd. has joined the Marine Well Containment Co. at a cost of $130 million, becoming the first company to have begun drilling a deep-water Gulf well.

Statistics:

• The Helix Well Containment Group's system can currently handle wells in water up to 5,600 feet deep.
• The system will be upgraded to handle wells in up to 8,000 feet of water by April 8, 2011.
• By mid-summer, the system will be able to handle wells in up to 10,000 feet of water.
• The Marine Well Containment Co. has the capacity to capture up to 60,000 barrels of spilled oil per day at depths of up to 8,000 feet.
• BHP Billiton Ltd. paid $130 million to join the Marine Well Containment Co. at the end of 2010.

Sources:

• Dow Jones Commodities News via Comtex, "Helix Well Containment Group to nearly double depth it can handle spill well containment" (Mar 30, 2011).
• Dow Jones Newswires, "Marine Well Containment Co. Adds BHP Billiton to Membership" (Mar 30, 2011).