Yahoo Finance Gulf of Mexico Oil Spill Set to Be the Largest Since Deepwater Horizon
Offshore production from major oil names like Occidental, W&T Offshore and Talos Energy has been shuttered following a spill that Bloomberg is calling the worst in the US "since the Deepwater Horizon disaster."
These producers took a significant hit on Thursday as they stopped approximately 62,000 barrels of daily oil production due to a subsea pipeline rupture. The rupture resulted in a substantial oil spill of 26,000 barrels, equivalent to the volume of two Olympic-size swimming pools, in the Gulf of Mexico near Louisiana, Bloomberg noted.
If the magnitude of this spill is verified, it would mark the most substantial incident of its kind since 2010, when BP PLC's Deepwater Horizon rig catastrophe led to the release of 3.2 million barrels of oil off the coast of Louisiana.
The report, citing the U.S. Coast Guard, said other firms impacted by the situation include Walter Oil & Gas Corp, Cantium LLC, and Arena Offshore LLC.
These entities are now prohibited from resuming pumping activities until the source of the leak is securely identified and necessary repairs are completed, as outlined by the Coast Guard's statement.
The initial report of the spill came last Thursday when Main Pass Oil Gathering Co., the pipeline operator, observed a decrease in pipe pressure. It remains uncertain whether Main Pass is indeed the origin of the spill since multiple operators operate in the vicinity. Nevertheless, the Coast Guard has labeled the incident as MPOG 11015, with reference to the company, the report said.
If the size of the leak is confirmed, it would be the 11th largest in U.S. history.
By Zerohedge.com
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