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Oil majors unite to protect GoM

THE ill-fated Macondo well and subsequent oil spill in the Gulf of Mexico has proved to be a wake...

Oil majors unite to protect GoM

Chevron, ConocoPhillips, ExxonMobil and Shell last night announced plans to build and deploy a rapid response system that will be available to capture and contain oil in the event of a potential future underwater well blowout in the GoM.

In a joint statement, the companies said the new system would be engineered to be used in water depths of up to 10,000 feet and have initial capacity to contain 100,000 barrels per day with potential for expansion.

The system could also be used on a wide range of well designs and equipment, oil and natural gas flow rates, weather conditions and would be able to begin mobilisation within 24 hours.

Since the Deepwater Horizon explosion in April and devastating oil spill that followed, the industry has been criticised for not being prepared for a major spill.

US Bureau of Ocean Energy Management, Regulation and Enforcement director Michael Bromwich said the new plan was encouraging.

"The BP oil spill has made it clear that oil and gas companies did not have the sufficient containment capacity to respond to a major spill," Bromwich said in an emailed statement.

"We are encouraged that a number of companies recognise this issue and are taking steps to correct it.

"Ultimately we are exploring the changes and reforms that need to be made in deepwater safety standards, spill response and containment.

"These changes and reforms will be developed in response to the findings of the ongoing reviews, investigations and the public meetings, but steps like these move in the right direction."

The four majors have committed $US1 billion to fund the initial costs of the system which will include specially designed subsea containment equipment connected by manifolds, jumpers and risers to capture vessels that will store and offload oil.

The four companies will also form a non-profit organisation, Marine Well Containment Company, to operate and maintain the system. Other companies will be invited and encouraged to participate in the organisation.

"This system offers key advantages to the current response equipment in that it will be pre-engineered, constructed and tested and ready for rapid deployment in the deepwater Gulf of Mexico," the joint statement said.

ConocoPhillips chief executive officer Jim Mulva said the development of the system would "greatly enhance" industry's ability to ensure a quick and effective response.

"The oil and gas industry has long been recognised as a technological leader, and the American public expects us to improve our ability to respond immediately to offshore incidents."

ExxonMobil chief executive officer Rex Tilerson said extensive experience of industry showed that when the focus remained on safe operations and risk management, "tragic accidents like the one we are witnessing in the Gulf of Mexico today should not occur".

"If we all do our jobs properly, this system will never be used," he said.

Work on the construction of equipment and vessels for the system will begin immediately.

Meanwhile the US House of Representatives passed legislation that promotes new ways to clean up oil spills and improve deepwater drilling safety.

According to AP, two measures responding to the BP oil spill have been cleared by the House of Representatives and now go to the Senate for approval.

The first bill would result in an increase in the amount of federal money spent on research and development of new cleanup methods and technologies from $US22 million to $US48 million.

The second bill promotes the research on devices designed to prevent accidents such as the blowout preventer that failed on the Deepwater Horizon rig, and also deals with backup systems intended to shut off wells in an accident.

House of Representatives speaker Nancy Pelosi said the bills were urgent and noted that the response to the BP spill relied on the same methods and technologies used 21 years ago to clean up the Exxon Valdex tanker spill in Alaska.

"In the wake of the disastrous BP oil spill, it is the responsibility of this Congress to act to hold BP accountable, support the families and businesses of the Gulf, and prepare for unforeseen disasters," AP quoted Pelosi as saying.

Experts have estimated that 35,000-60,000 barrels of oil per day have been flowing into the GoM since the Deepwater Horizon blowout in April.

The explosion also killed 11 men onboard the Deepwater Horizon and resulted in the semisubmersible sinking.

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