Oil & Energy
BP Runs Crucial Tests On Gulf Oil Leak
British Petroleum Plc last Thursday ran crucial tests on its ruptured Gulf of Mexico oil well that could stanch the flow of crude which has polluted the ocean and shoreline since April.
BP began the process on Wednesday night, which could stretched for about 48 hours.
The British energy giant began the tests after getting the green light from top United States government officials who had delayed the plan by 24 hours on concerns that the process could irreparably damage the well.
Kent Wells, BP’s senior vice president of exploration and production, said undersea robots working a mile (1.6 km) below the surface had started shutting a series of three valves designed to ultimately stop the oil flow completely.
Critically, BP has closed the main valve in the middle of the cap, “and we no longer have flow out the top,” Wells said.
BP said late on Wednesday it had isolated a leak it detected in one of the valves and was repairing it before proceeding with the test.
The developments were watched by investors on Thursday as BP’s ultimate costs may hinge on how much oil is judged to have flown freely into the Gulf.
The disaster is the largest offshore oil spill in US history.
Retired Coast Guard Admiral Thad Allen, who is overseeing the US response to the spill, has said if tests show the well can withstand certain pressures, odds are good it could be “shut in” indefinitely.
The disaster has soiled hundreds of miles (km) of shoreline, shut down about a third of Gulf fisheries, put BP on the hook for billions of dollars in cleanup costs and legal liabilities, and prompted President Barack Obama to temporarily halt deepwater drilling.
At least some of the oil from the well has been siphoned off to ships in the past few weeks, but that operation was halted while the tests are undertaken.
BP has said by the end of July, four vessels can be hooked up to collect up to 80,000 barrels (3.34 million gallons/12.7 million litres) per day.
That should be more than enough to capture the whole well output, as estimates put the spill rate between 35,000 barrels and 60,000 barrels a day.
The only proven way to kill the leak lies in the drilling of relief wells to intercept the ruptured one.
The first of two such wells started in May is expected to intercept it by the end of July and plug by mid-August.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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