Oil - Service, Equipment, Pipelines etc

[winston]

Not vested.

Singapore Rig Builders: Rig tender delay but fundamentals remain intact

Summary: Petrobras has delayed its tender for 28 rigs. The latest deadline for the first package has been pushed to May 18, 2010, compared to March 18, 2010 previously. Given the huge dollar value of the first package, the delay is understandable. It seems that certain technical details still have to be ironed out by potential bidders even after clarification by Petrobras.

Hence the delay is not surprising to industry players in Brazil. Ever since Sembcorp Marine said it was building a new yard in Brazil, it has seemed to be in a better position than Keppel to win the first package given its greenfield yard that is double the size of Keppel’s. Despite the rig tender delay, fundamentals of local rig builders remain intact.

Companies with established track records and good relationships with potential customers are better positioned to secure jobs in an environment with fewer orders. We maintain our BUY ratings on Keppel Corp[FV: S$9.93] and Sembcorp Marine [FV: S$4.58]. (Low Pei Han)

[winston]

TOL:-

Would this BP spill affect the new orders of Rig-Builders eg. Keppel & Semb Marine ?

[greenhoney]

even deep water pipe laying company like DVR also got slaughtered

[mojo_]

An engineer comments on the oil disaster in the Gulf of Mexico

"A reader who is an engineer of considerable experience says watch this one evolve carefully because it is destined to continue to grow and he shares this long (but worthy explanation why:

"Heard your mention of the oil disaster in the Gulf of Mexico this morning, and you (and most everyone else except maybe George Noory) are totally missing the boat on how big and bad of a disaster this is.

First fact, the original estimate was about 5,000 gallons of oil a day spilling into the ocean. Now they're saying 200,000 gallons a day. That's over a million gallons of crude oil a week!

I'm [an] engineer with 25 years of experience. I've worked on some big projects with big machines. Maybe that's why this mess is so clear to me.

First, the BP platform was drilling for what they call deep oil. They go out where the ocean is about 5,000 feet deep and drill another 30,000 feet into the crust of the earth. This it right on the edge of what human technology can do. Well, this time they hit a pocket of oil at such high pressure that it burst all of their safety valves all the way up to the drilling rig and then caused the rig to explode and sink. Take a moment to grasp the import of that. The pressure behind this oil is so high that it destroyed the maximum effort of human science to contain it.

When the rig sank it flipped over and landed on top of the drill hole some 5,000 feet under the ocean.

Now they've got a hole in the ocean floor, 5,000 feet down with a wrecked oil drilling rig sitting on top of is spewing 200,000 barrels of oil a day into the ocean. Take a moment and consider that, will you!

First they have to get the oil rig off the hole to get at it in order to try to cap it. Do you know the level of effort it will take to move that wrecked oil rig, sitting under 5,000 feet of water? That operation alone would take years and hundreds of millions to accomplish. Then, how do you cap that hole in the muddy ocean floor? There just is no way. No way.

The only piece of human technology that might address this is a nuclear bomb. I'm not kidding. If they put a nuke down there in the right spot it might seal up the hole. Nothing short of that will work.

If we can't cap that hole that oil is going to destroy the oceans of the world. It only takes one quart of motor oil to make 250,000 gallons of ocean water toxic to wildlife. Are you starting to get the magnitude of this?

We're so used to our politicians creating false crises to forward their criminal agendas that we aren't recognizing that we're staring straight into possibly the greatest disaster mankind will ever see. Imagine what happens if that oil keeps flowing until it destroys all life in the oceans of this planet. Who knows how big of a reservoir of oil is down there.

Not to mention that the oceans are critical to maintaining the proper oxygen level in the atmosphere for human life.

We're humped. Unless God steps in and fixes this. No human can. You can be sure of that."

[greenhoney]

they have thrown the whole works with sinks and tyres thrown in for good measure and still cannot solve this. i think this one is going to make exxon valdez look like a kids playground. and still they want to do deep water drilling off the gulf of mexico?

its time for renewables! imagine the cost of cleanup is used to make renewable energy grants, the US may wean herself off imported oil!

[millionairemind]

they have thrown the whole works with sinks and tyres thrown in for good measure and still cannot solve this. i think this one is going to make exxon valdez look like a kids playground. and still they want to do deep water drilling off the gulf of mexico?

its time for renewables! imagine the cost of cleanup is used to make renewable energy grants, the US may wean herself off imported oil!

I second hand renewables!!!

Maybe something good will finally come out of this ecological disaster....

The Americans are paying $50B per month just to get their hands on this oil.. that's money flowing out of America into countries with repressive regime. Its a matter of time it will bankrupt this once great country.

Its about time the world wean itself off the black gold. Maybe for once, the oil rich countries will start fending for themselves and stop all this nonsense talk about holding the world hostage.

[kennynah]

seriously, i duno ho much oil we have left to be harnessed... we know it takes millions of years for the fossils to be decomposed into crude oil...and one day (maybe not next month.year/decade/century) this will be used up...since it appears we are consuming far faster than nature produces it...

i foresee in the distant future, mankind will have to rely on solar, wind and hydro energy to generate power for our needs...

and in another 5 billion years....mankind will need to find another planet to live on as our sun dies....but that's really not my problem

[greenhoney]

i hope that the clean energy sector will be the next industrial revolution. the one that will usher in the next engine of growth.... once we get over the capital, costs and committment stage.

[kennynah]

may not happen in our life time...maybe 50 years later...

[greenhoney]

i hope to see it in my lifetime, not often we can experience such things (industrial revolutions). but since we are almost at peak oil or past peak oil, i think its a matter of time before this new dawn becomes a reality.