Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Big Oil plans 'rapid response system' for Gulf

By Ben Rooney, staff reporter


NEW YORK (CNNMoney.com) -- Four leading energy companies announced a plan Wednesday to create a "rapid response system" to deal with any future oil spills in the Gulf of Mexico.

ExxonMobil (XOM, Fortune 500), Chevron (CVX, Fortune 500), ConocoPhillips (COP, Fortune 500) and Shell (RDS.A) have committed $1 billion to fund the initial cost. However, the companies did not say when the system would be ready.

The system, which is still being developed, will be designed to use "capture vessels" to contain and store oil in the event of an underwater well blowout. It will be able to operate at depths up to 10,000 feet, and have initial capacity to contain 100,000 barrels per day.

In the event of a spill, the system can be mobilized within 24 hours.

The system will be operated and maintained by a non-profit organization called the Marine Well Containment Company. The oil companies said engineering, procurement and construction of containment equipment and vessels for the system will begin immediately.

"As an industry, we must rebuild trust with the American people in order to demonstrate that we can produce energy in a safe and environmentally responsible manner," Marvin Odum, president of Shell, said in a prepared statement.

BP (BP) is considering a plan that could permanently seal the ruptured well as soon as this weekend. But the tactic, called a "static kill," requires the approval of the federal government and cannot proceed until BP gets a crucial casing in place, a company official said.  To top of page

Search for Jobs

Index Last Change % Change
Dow 20,614.70 -41.88 -0.20%
Nasdaq 5,830.28 12.59 0.22%
S&P 500 2,345.07 -0.89 -0.04%
Treasuries 2.41 -0.01 -0.54%
Data as of 2:42pm ET
Company Price Change % Change
Micron Technology In... 28.66 2.20 8.29%
Bank of America Corp... 22.98 -0.09 -0.37%
Advanced Micro Devic... 13.69 -0.10 -0.73%
Ford Motor Co 11.60 -0.07 -0.61%
Mylan NV 40.80 -0.80 -1.92%
Data as of 2:27pm ET
Sponsors

Sections

Doubts about the future of President Trump's agenda have put Wall Street on the defensive. Investors yanked $8.9 billion from U.S. stock funds More

With the fate of the Obamacare repeal teetering on the edge on Friday morning, President Trump brought a CEO to the White House to talk about jobs. More

A PwC report estimates that 38% of U.S. jobs are at a high risk of being replaced by robots and artificial intelligence over the next 15 years. More