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U.S. Halts Drilling on Gulf Wells With Flawed Bolts

bloomberg.com -- Deep-water oil exploration has been disrupted from the Gulf of Mexico to Brazil by the discovery of faulty bolts used in safety equipment less than three years after the worst-ever U.S. maritime crude spill.

Energy explorers such as Chevron Corp., Royal Dutch Shell Plc and Transocean Ltd. said they have been directed by U.S. regulators to suspend work aboard rigs that employ General Electric Co. devices connecting drilling tubes to safety gear and the seafloor. The equipment must be retrieved so defective bolts can be replaced, the U.S. Bureau of Safety and Environmental Enforcement said in an alert issued on Jan. 29.

Installing new bolts and resuming drilling may take as long as three weeks for each rig, Credit Suisse Group AG said. For oil companies paying upwards of $600,000 a day

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Submitted Feb 08, 2013 By: teafortwo

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Chris46 Champion Author Dayton Posts:23,705 Points:2,084,265 Joined:Sep 2005	Message Posted: Feb 11, 2013 11:22:55 PM Ignore Chris46 Report Abuse This article made sense. Nice story.
LetemEatCake Champion Author Oklahoma City Posts:5,615 Points:1,207,430 Joined:Mar 2008	Message Posted: Feb 9, 2013 11:39:01 PM Ignore LetemEatCake Report Abuse I agree with Ned....nice article!
NedW Champion Author Indianapolis Posts:5,625 Points:1,144,345 Joined:Mar 2008	Message Posted: Feb 9, 2013 5:02:50 AM Ignore NedW Report Abuse Thank you for submitting this, teafortwo.
52MPG Champion Author Dayton Posts:7,277 Points:1,744,630 Joined:Apr 2006	Message Posted: Feb 9, 2013 3:21:10 AM Ignore 52MPG Report Abuse Better to spend millions to fix the problem now than spend Billions in the future to clean up a mess.
LetemEatCake Champion Author Oklahoma City Posts:5,615 Points:1,207,430 Joined:Mar 2008	Message Posted: Feb 9, 2013 12:41:53 AM Ignore LetemEatCake Report Abuse PDQ...cause a low priority on safety is expensive, and Big Oil bets they won't get caught! Usually it take a big spill or accident to bring these problems to the public's attention! In this case...they LOST!
PDQBlues Champion Author San Diego Posts:7,084 Points:1,450,275 Joined:Jan 2009	Message Posted: Feb 8, 2013 7:06:11 PM Ignore PDQBlues Report Abuse You would think these companies would learn to put greater priority on safety, but you would be wrong.
Tomeboy Champion Author Twin Cities Posts:3,784 Points:562,590 Joined:Apr 2009	Message Posted: Feb 8, 2013 11:05:21 AM Ignore Tomeboy Report Abuse This certainly could push gasoline prices... even higher for beleaguered consumers. This gives speculators more opportunity to earn even more money on their investments. Installing new bolts and resuming drilling may take as long as three weeks for each rig, Credit Suisse Group AG said. For oil companies paying upwards of $600,000 a day to rent the most- sophisticated deep-water vessels and another $500,000 a day to staff and supply each of them, the delays may be significant, said Craig Pirrong, director of the University of Houston’s Global Energy Management Institute. “This certainly will be costly for the industry,” Pirrong said in a telephone interview yesterday. Lower earnings from the Gulf may be a consequence for service companies due to potential for longer downtime than expected, Bill Herbert, an analyst at Simmons & Co. in Houston, wrote today in a note to investors. “GE bolt revelations yesterday galvanized the market as Macondo scar tissue sensitivity remains acute,” he wrote. “Think of this as a modest tropical storm, albeit in January.” “We expect rig downtime to be 2-3 weeks” including time to bring equipment up, replace the bolts and return to the seafloor, Gregory Lewis, a New York-based analyst for Credit Suisse, said in a note to clients yesterday. “This concern adds to numerous transitory risks facing the offshore drillers as the new rig delivery cycle unfolds and investor focus shifts to delivery execution, potential cost overruns and unplanned downtime on recently delivered units,” James West, an analyst at Barclays Plc in New York, wrote yesterday in a note to investors.
humblepie Champion Author Toledo Posts:34,310 Points:2,374,295 Joined:Mar 2006	Message Posted: Feb 8, 2013 9:33:02 AM Ignore humblepie Report Abuse ge is the culprit now ?
teenitup Champion Author Houston Posts:1,674 Points:252,030 Joined:Sep 2012	Message Posted: Feb 8, 2013 8:46:55 AM Ignore teenitup Report Abuse GE involved. Imagine that!
EnviroChemist All-Star Author Oklahoma Posts:735 Points:211,810 Joined:Oct 2011	Message Posted: Feb 8, 2013 8:25:00 AM Ignore EnviroChemist Report Abuse The product of always using the lowest bidder for parts, defective bolts. A practice which seems to be coming back to haunt the oil companies and GE, to the tune of up to $600,000 per day of down time.
cruisingtx Champion Author San Antonio Posts:1,586 Points:1,372,150 Joined:Jan 2009	Message Posted: Feb 8, 2013 5:04:48 AM Ignore cruisingtx Report Abuse Up, up, and away!
mrjames1818 Champion Author New Jersey Posts:1,560 Points:2,001,020 Joined:Mar 2004	Message Posted: Feb 8, 2013 4:59:30 AM Ignore mrjames1818 Report Abuse The cost of doing business
SpruceGuse2 Champion Author Michigan Posts:9,744 Points:2,456,635 Joined:Mar 2006	Message Posted: Feb 8, 2013 4:56:14 AM Ignore SpruceGuse2 Report Abuse OK?.......................
Luckylindy Champion Author Milwaukee Posts:4,527 Points:1,129,205 Joined:May 2008	Message Posted: Feb 8, 2013 4:53:37 AM Ignore Luckylindy Report Abuse More Chinese garbage.
Cachase1 Champion Author Oklahoma City Posts:11,460 Points:2,382,055 Joined:Aug 2003	Message Posted: Feb 8, 2013 4:53:17 AM Ignore Cachase1 Report Abuse We will probably see further increases in gas prices as a result.
zcolt45 Champion Author Michigan Posts:3,957 Points:891,110 Joined:Jan 2006	Message Posted: Feb 8, 2013 4:51:03 AM Ignore zcolt45 Report Abuse This is what happens when you use Gray Market Items in these projects, someone will find out that the product was Made in CHINA to cut costs. Big Oil cut costs to make Profits and a Hugh Bonus.
SkooterG Champion Author Phoenix Posts:1,359 Points:329,335 Joined:May 2012	Message Posted: Feb 8, 2013 4:49:23 AM Ignore SkooterG Report Abuse Amazing.
biggiesize Champion Author Gary Posts:1,203 Points:1,263,400 Joined:Sep 2005	Message Posted: Feb 8, 2013 4:45:11 AM Ignore biggiesize Report Abuse Another WOW!
tomok Champion Author Portland Posts:33,074 Points:2,347,605 Joined:Aug 2006	Message Posted: Feb 8, 2013 4:39:50 AM Ignore tomok Report Abuse U.S. Halts Drilling on Gulf Wells With Flawed Bolts? Make sure 'ALL' equipment being used is in safe working condition at all times! if the equipment is Not in safe working condition - suspend all operations until it is fixed or repaired properly. Drive vehicles with high MPG, are very safe, reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. The price of fuel at the pump is too high!
OHIO50 All-Star Author Denver Posts:881 Points:1,021,725 Joined:Mar 2010	Message Posted: Feb 8, 2013 4:39:34 AM Ignore OHIO50 Report Abuse Ok.
yeehaw1073 Champion Author Indiana Posts:2,371 Points:1,852,375 Joined:May 2004	Message Posted: Feb 8, 2013 4:36:15 AM Ignore yeehaw1073 Report Abuse it's always something...
BigDogOH Champion Author Cincinnati Posts:8,517 Points:1,810,725 Joined:Mar 2008	Message Posted: Feb 8, 2013 4:28:30 AM Ignore BigDogOH Report Abuse $4.00 by Easter
charg3rguy1991 All-Star Author Greensboro Posts:769 Points:245,600 Joined:Sep 2012	Message Posted: Feb 8, 2013 4:24:39 AM Ignore charg3rguy1991 Report Abuse They shouldn't need to be told to suspend work to fix safety equipment, they should just FIX IT on their own.
joko0 Champion Author New Jersey Posts:1,980 Points:567,565 Joined:Oct 2008	Message Posted: Feb 8, 2013 4:22:53 AM Ignore joko0 Report Abuse Sounds like another bump in gas prices!
UseLessGasFolks Champion Author Iowa Posts:5,459 Points:1,298,735 Joined:Jul 2007	Message Posted: Feb 8, 2013 4:22:49 AM Ignore UseLessGasFolks Report Abuse My Kingdom for a bolt.
UBDave Champion Author British Columbia Posts:1,217 Points:1,376,615 Joined:Oct 2008	Message Posted: Feb 8, 2013 4:17:22 AM Ignore UBDave Report Abuse Just another excuse to jack up gas prices even further...
madison8359 Champion Author Cleveland Posts:9,044 Points:1,596,220 Joined:Apr 2008	Message Posted: Feb 8, 2013 4:15:47 AM Ignore madison8359 Report Abuse And now for the fix.
Gibby4176 Rookie Author Illinois Posts:92 Points:283,725 Joined:Apr 2012	Message Posted: Feb 8, 2013 4:14:52 AM Ignore Gibby4176 Report Abuse Figures.
SteveMartin Champion Author New Orleans Posts:4,443 Points:887,590 Joined:May 2008	Message Posted: Feb 8, 2013 4:13:03 AM Ignore SteveMartin Report Abuse Need better designers.
rwrMO Champion Author Missouri Posts:2,546 Points:581,170 Joined:Jun 2011	Message Posted: Feb 8, 2013 4:07:34 AM Ignore rwrMO Report Abuse This will drive the price up.
jci25946 Champion Author Tampa Posts:3,281 Points:942,715 Joined:Jan 2006	Message Posted: Feb 8, 2013 4:02:56 AM Ignore jci25946 Report Abuse Someone trying to save money by buying faulty bolts!!
Ltdc Champion Author Long Island Posts:7,225 Points:1,679,820 Joined:Jul 2007	Message Posted: Feb 8, 2013 4:00:26 AM Ignore Ltdc Report Abuse GE with egg on the old face!
teamsimons Champion Author South Carolina Posts:2,483 Points:504,070 Joined:Aug 2011	Message Posted: Feb 8, 2013 3:57:18 AM Ignore teamsimons Report Abuse Why is it that faulty parts are never found before installation and use? What impact will this have on gas prices, we wonder?
TommyTraveler Champion Author Cincinnati Posts:8,694 Points:1,701,230 Joined:Nov 2007	Message Posted: Feb 8, 2013 3:57:14 AM Ignore TommyTraveler Report Abuse Better to be safe the sorry.
Pozole Champion Author Portland Posts:9,614 Points:1,597,445 Joined:Mar 2005	Message Posted: Feb 8, 2013 3:55:04 AM Ignore Pozole Report Abuse ...DUH...
defense Champion Author Grand Rapids Posts:1,378 Points:1,370,160 Joined:May 2004	Message Posted: Feb 8, 2013 3:51:05 AM Ignore defense Report Abuse ok
lgwhitlock Champion Author Chico Posts:7,400 Points:1,688,420 Joined:Jun 2008	Message Posted: Feb 8, 2013 3:50:27 AM Ignore lgwhitlock Report Abuse I would thing GE would have to pay for this or their insurance company anyway. Crazy. At least it was found before any accidents happened...
VB_Richard Champion Author Virginia Beach Posts:1,673 Points:353,995 Joined:Dec 2011	Message Posted: Feb 8, 2013 3:50:15 AM Ignore VB_Richard Report Abuse The price of a bolt!!
twobroke61 Champion Author Michigan Posts:8,395 Points:1,591,885 Joined:Sep 2008	Message Posted: Feb 8, 2013 3:48:18 AM Ignore twobroke61 Report Abuse glad they found it now
hybridaholic Champion Author Appleton Posts:8,380 Points:1,558,740 Joined:Dec 2008	Message Posted: Feb 8, 2013 3:47:26 AM Ignore hybridaholic Report Abuse Probably from the cheapest bidder----China.
1fulltank Champion Author Buffalo Posts:7,918 Points:1,547,235 Joined:Nov 2008	Message Posted: Feb 8, 2013 3:44:34 AM Ignore 1fulltank Report Abuse Now we have a recall on bolts.
stefanwaggoner All-Star Author Bakersfield Posts:562 Points:151,315 Joined:Mar 2012	Message Posted: Feb 8, 2013 3:36:16 AM Ignore stefanwaggoner Report Abuse Just wait till we are all tapped out and the world is dry then what?
Hi1 Champion Author Ontario Posts:4,865 Points:1,726,560 Joined:Jun 2007	Message Posted: Feb 8, 2013 3:29:37 AM Ignore Hi1 Report Abuse I'm glad they got it before anything happen.
JuicyQ69 All-Star Author San Bernardino Posts:643 Points:1,143,140 Joined:Apr 2009	Message Posted: Feb 8, 2013 3:28:54 AM Ignore JuicyQ69 Report Abuse Common sense.
pinofl Veteran Author Miami Posts:364 Points:70,120 Joined:Dec 2012	Message Posted: Feb 8, 2013 3:28:49 AM Ignore pinofl Report Abuse ok
Lairre Champion Author Sacramento Posts:3,062 Points:190,185 Joined:Oct 2012	Message Posted: Feb 8, 2013 3:27:55 AM Ignore Lairre Report Abuse Glad they found the flaws now...
vibdata Champion Author Massachusetts Posts:4,090 Points:849,300 Joined:Nov 2005	Message Posted: Feb 8, 2013 3:23:09 AM Ignore vibdata Report Abuse This is the principle of "No Responsibility." GE will not pay for this. The consumer of oil products will pay for this. Badly.
srchr Champion Author San Jose Posts:7,264 Points:1,622,000 Joined:Apr 2008	Message Posted: Feb 8, 2013 3:21:27 AM Ignore srchr Report Abuse safety first
borsht All-Star Author Oakland Posts:807 Points:192,790 Joined:Aug 2012	Message Posted: Feb 8, 2013 3:19:20 AM Ignore borsht Report Abuse If they werte made by GE,Let's hope they make GE pay for this.
mazdaboy Champion Author Portland Posts:7,898 Points:2,100,205 Joined:Aug 2003	Message Posted: Feb 8, 2013 3:16:29 AM Ignore mazdaboy Report Abuse Job well done.