BP Aware Of Cracks In Oil Well Two Months Before Explosion

Published on 06-17-2010
Source: Bloomberg BP Plc was struggling to seal cracks in its Macondo well as far back as February, more than two months before an explosion killed 11 and spewed oil into the Gulf of Mexico. It took 10 days to plug the first cracks, according to reports BP filed with the Minerals Management Service that were later delivered to congressional investigators. Cracks in the surrounding rock continued to complicate the drilling operation during the ensuing weeks. Left unsealed, they can allow explosive natural gas to rush up the shaft. “Once they realized they had oil down there, all the decisions they made were designed to get that oil at the lowest cost,” said Peter Galvin of the Center for Biological Diversity, which has been working with congressional investigators probing the disaster. “It’s been a doomed voyage from the beginning.” BP didn’t respond to calls and e-mails seeking comment. The company’s shares rose 22 pence to 359 pence today in London after the company struck a deal with the Obama administration yesterday to establish a $20 billion fund to pay cleanup costs and compensation. BP has lost 45 percent of its market value since the catastrophe. On Feb. 13, BP told the minerals service it was trying to seal cracks in the well about 40 miles (64 kilometers) off the Louisiana coast, drilling documents obtained by Bloomberg show. Investigators are still trying to determine whether the fissures played a role in the disaster. ‘Cement Squeeze’ The company attempted a “cement squeeze,” which involves pumping cement to seal the fissures, according to a well activity report. Over the following week the company made repeated attempts to plug cracks that were draining expensive drilling fluid, known as “mud,” into the surrounding rocks. BP used three different substances to plug the holes before succeeding, the documents show. “Most of the time you do a squeeze and then let it dry and you’re done,” said John Wang, an assistant professor of petroleum and natural gas engineering at Penn State in University Park, Pennsylvania. “It dries within a few hours.” Repeated squeeze attempts are unusual and may indicate rig workers are using the wrong kind of cement, Wang said. Grappling Engineers BP Chief Executive Officer Tony Hayward and other top executives were ignorant of the difficulties the company’s engineers were grappling with in the well before the explosion, U.S. Representative Henry Waxman, chairman of the House Energy and Commerce Committee, said today during a hearing in Washington. “We could find no evidence that you paid any attention to the tremendous risk BP was taking,” Waxman said as Hayward waited to testify. “There is not a single e-mail or document that you paid the slightest attention to the dangers at this well.” BP Chief Operating Officer Doug Suttles and exploration chief Andy Inglis “were apparently oblivious to what was happening,” said Waxman, a California Democrat. “BP’s corporate complacency is astonishing.” In early March, BP told the minerals agency the company was having trouble maintaining control of surging natural gas, according to e-mails released May 30 by the House Energy and Commerce Committee, which is investigating the spill. Gas Surges While gas surges are common in oil drilling, companies have abandoned wells if they determine the risk is too high. When a Gulf well known as Blackbeard threatened to blow out in 2006, Exxon Mobil Corp. shut the project down. “We don’t proceed if we cannot do so safely,” Exxon Chief Executive Officer Rex Tillerson told a House Energy and Commerce committee panel on June 15. On March 10, BP executive Scherie Douglas e-mailed Frank Patton, the mineral service’s drilling engineer for the New Orleans district, telling him: “We’re in the midst of a well control situation.” The incident was a “showstopper,” said Robert Bea, an engineering professor at the University of California, Berkeley, who has consulted with the Interior Department on offshore drilling safety. “They damn near blew up the rig.”