Offshore oil exploration stopped in Gulf of Mexico

Deep-water oil exploration on some drilling rigs in the Gulf of Mexico was stopped by U.S. regulators. According to Bloomberg, operations stretching as far as Brazil were discontinued after faulty bolts made by General Electric Co. were discovered on some rigs. The bolts are used to connect drilling tubes to safety equipment on the sea floor.

The article reported Chevron Corp., Royal Dutch Shell Plc and Transocean Ltd. are among the companies told to suspend work on rigs that use the faulty bolts after the U.S. Bureau of Safety and Environmental Enforcement issued an alert on January 29 about the equipment. Between 30 and 40 GE customers were reportedly at risk of being affected by the faulty bolts.

The bolts will be retrieved so they can be replaced, a process that may take up to three weeks for each rig, according to Bloomberg. The pause on exploration could be significantly delayed and cost companies hundreds of thousands of dollars.

Craig Pirrong, director of the University of Houston's Global Energy Management Institute, while discussing the enforcement by United States regulators, said the safety measure was a result of the government increasing scrutiny of deep-water drilling activities.

According to Reuters, offshore rig contractors in the Gulf of Mexico were told to inspect certain blowout preventers (BOPs) after a faulty bolt was to blame for a leak of drilling fluid in late January.

PennEnergy's research area provides more information on the top ten offshore drilling contractors.

Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List icon Sign up for our Email Newsletter
For Email Marketing you can trust

Whitepapers

Substation Communications Design Legacy to IEC 61850 Best Practices

Two trends, the migration of the electrical grid to the “Smart Grid” and the adoption of Ethernet...

How to Mitigate Risk and Ensure Compliance: Govern Your Documents Accordingly

Too often, organizations hear “information governance” and think “records management” and “compli...

Using Information Intelligence for the Energy Sector

  In this IDC Energy Insights white paper, sponsored by EMC, the author provides an overview...

Enterprise Content Management in the Energy Industry: Increase Safety and Reliability, Reduce Costs and Damages

This Frost & Sullivan white paper looks at the need for enterprise content management to incr...

Latest Energy Jobs

View more Job Listings >>

Archived Articles

PennEnergy Articles
2008 | 2009 | 2010 | 2011 | 2012 | 2013

OGJ Articles
2011 | 2012 | 2013

OGFJ Articles
2011 | 2012 | 2013

Power Engineering Articles
2011 | 2012 | 2013

Power Engineering Intl Articles
2011 | 2012 | 2013

Utility Products Articles
2011 | 2012 | 2013

HydroWorld Articles
2011 | 2012 | 2013

COSPP Articles
2011 | 2012 | 2013

ELP Articles
2011 | 2012 | 2013