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September 20, 2010

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Cement plug ends saga of BP spill

A CEMENT plug has permanently killed BP's runaway well nearly 4 kilometers below the sea floor in the Gulf of Mexico, five months after an explosion sank a drilling rig and led to the worst offshore oil spill in United States history.

Retired US Coast Guard Admiral Thad Allen, the federal government's point man on the disaster, said yesterday that BP's well "is effectively dead" and posed no further threat to the Gulf of Mexico. He said a pressure test to ensure the cement plug would hold had been completed.

The gusher was contained in mid-July after a temporary cap was fitted on top of the well. Mud and cement were later pushed down through the top of the well, allowing the cap to be removed.

But the well could not be declared dead until a relief well was drilled so that the ruptured well could be sealed from the bottom, ensuring it never causes a problem again. The relief well intersected the blown-out well last Thursday, and crews began pumping in the cement on Friday.

The April 20 blast killed 11 workers, and caused 780 million liters of oil to spill out.

The disaster caused an environmental and economic nightmare for people who live, work and play along hundreds of kilometers of Gulf shoreline from Florida to Texas. It also spurred civil and criminal investigations, cost gaffe-prone BP chief Tony Hayward his job, and brought increased government scrutiny of the oil and gas industry, including a costly moratorium on deepwater offshore drilling that is still in place.

Gulf residents will be feeling the pain for years to come. There is still plenty of oil in the water, and some continues to wash up on shore. Many people are still struggling to make ends meet with some waters closed to fishing. Shrimpers who are allowed to fish find it difficult to sell their catch because of the perception that the seafood is not safe to eat. Tourism along the Gulf has taken a hit.

The disaster has also taken its toll on BP. The British company's shares took a nosedive after the explosion. Owners of BP-branded gas stations in the US lost sales as customers protested at the pump.

BP has already shelled out more than US$8 billion in cleanup costs and promised to set aside another US$20 billion for a victims compensation fund. The company also faces tens of billions of dollars more in government fines and legal costs from hundreds of pending lawsuits.





 

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