To: Alighieri who wrote (570156 ) 6/4/2010 11:48:19 AM From: tejek Respond to of 1579707 BP’s Cap Is Recovering Gulf Oil, May Get 90% of Leak June 04, 2010, 11:05 AM EDT By Jim Polson June 4 (Bloomberg) -- BP Plc said its effort to divert oil leaking from its Gulf of Mexico well to a ship on the surface is working, with a goal of capturing more than 90 percent of the spill. Recovery of oil aboard the drillship began about midnight and may have reached a rate of 1,000 barrels a day, based on a BP estimate, U.S. Coast Guard Admiral Thad Allen said today during a conference call with reporters. Government scientists had estimated the well was leaking 12,000 to 19,000 barrels of oil a day, a figure that may have increased as much as 20 percent after London-based BP yesterday cut away a kinked riser pipe to install the cap.“I’d like to see us capture 90-plus percent of this flow,” Doug Suttles, BP’s chief operating officer for exploration and production, said on CBS’s “Early Show.” “That’s possible with this design. We have to work through the next 24 to 48 hours to optimize that.” The well began leaking after the Deepwater Horizon rig exploded on April 20 and sank two days later, resulting in the deaths of 11 workers. Four valves on the cap BP installed are venting oil now and the continued flow isn’t an indication it has failed, Suttles said on CNN. Engineers expect today to close the four valves, designed to prevent clogging, he said. Filling the StrawOil was seen pouring around the cap when it was installed last night because the pipe connecting the cap to the drillship was filled with nitrogen gas to prevent clogging, Allen said. “It’s almost like this: If you were to put your finger over the top of a straw and put it into a glass of water and then slowly lift your finger off every once in a while so that the straw would fill up with water,” Allen said. “They’re trying to fill that pipe with nothing but product that’s coming from the reservoir.” The biggest oil spill in U.S. history has soiled at least 140 miles (225 kilometers) of coastline, halted new exploratory drilling in the Gulf and shut down a third of its fishing areas. The leak is 40 miles off Louisiana’s coast under about 5,000 feet (1,524 meters) of water. President Barack Obama returns to the Louisiana coast today to assess the latest efforts to counter the spill. Oil from the spill has split into separate slicks that threaten beaches and marshland from Grand Isle, Louisiana, to Pensacola, Florida, as winds shift northeastward, Allen said. ‘Unprecedented’ “The scope of this thing is expanding to the point that it is rather unprecedented,” Allen said. “We will continue to press for resources.” Florida Governor Charlie Crist asked BP America President Lamar McKay for $50 million, saying the state had already exhausted $25 million provided by the company last month to protect coastline and organize cleanups. The letter, dated yesterday, was released today by Crist’s office. The Gulf spill has “first call on dollars,” BP Chief Executive Officer Tony Hayward told investors today on a conference call. “The financial consequences of this will undoubtedly be severe,” Hayward said. “We’re a strong company committed to meeting all of our responsibilities.” BP rose 6.45 pence, or 1.5 percent, to 438.70 pence at 3:42 p.m. in London. The shares have fallen 33 percent since the rig exploded. --With assistance from Edwin Chen in Washington, Katarzyna Klimasinska in Houston and Brian Swint in London. Editors: Tina Davis, Kim Jordan To contact the reporter on this story: Jim Polson in New York at jpolson@bloomberg.net To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net Sponsored Linksbusinessweek.com