BP is set to try a top kill tomorrow on the MC252 well in the Gulf.

Effectively, a top kill consists of injecting heavy fluids under high pressure down into the well bore. The weight of those fluids (i.e. the “head”) counters the pressure of the oil and gas coming up the well bore, and the end result is a “kill”.

Then, BP can come back in with cement and permanently plug the well.

The key is that the fluid you’re injecting needs to be very heavy. Drilling fluid is typically used; it’s used on the drilling process for the exact same purpose, to contain fluids in the well bore.

The other requirement is that you must be able to inject that heavy fluid under enough pressure to initially overcome (or overpower, if you will) the opposing pressure of the oil and gas condensate coming the pipe.

Good luck BP. I’m excited to see if this works. It’s never been done in deep water.

Energy, Oil & Gas BP, oil spill, top kill

The Obama Administration is now saying that it will push BP off cleanup duty and take over if they determine that BP isn’t taking all the appropriate actions.

Great. Call in the experts.

The administration also accuses BP of “missing deadline after deadline”.

If that isn’t the kettle talking…

BP will try a top kill on Tuesday, and if that doesn’t go well I suspect they’ll try a junk shot. I don’t have much faith in junk shots.

Energy, Oil & Gas, Politics BP, deepwater drilling, oil and gas

The Organization of Petroleum Exporting Countries (OPEC) decided to hold out against further production cuts at today’s meeting, and resolved to enforce compliance with existing reductions.

Obviously dealing with crude oil ($wtic: chart) production is a double edged sword.  Cut production in an effort to drive up prices, and you risk cutting demand even further in these fragile economic times.  Leave production alone and prices could fall further, cutting the economic incentive to bolster reserves.

OPEC has claimed that crude oil prices in the range of $50 to $60/bbl would be ideal, which is down from the $70-90 range that OPEC’s secretary general Abdalla el-Badri levied as appropriate at the end of January.

One positive aspect of a lower price range is that production with higher lifting costs will be shut in, further helping moderate the industry financials as s whole.

The next meeting is in two months on May 28th where the supply-demand analysis may be a bit more clear.

Oil & Gas crude oil, energy markets, energy prices, OPEC