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

Index Last Change % Change
Dow 16,382.65 31.27 0.19%
Nasdaq 4,744.45 -5.53 -0.12%
S&P 500 1,953.37 4.51 0.23%
Treasuries 2.17 -0.02 -1.14%
Data as of 3:24pm ET
Company Price Change % Change
Bank of America Corp... 15.91 0.06 0.38%
Apple Inc 110.54 -1.80 -1.60%
Freeport-McMoRan Inc... 10.09 0.19 1.92%
Intel Corp 29.07 0.47 1.64%
Netflix Inc 101.74 -3.70 -3.51%
Data as of 3:09pm ET
Sponsors

Sections

Americans are transforming how they eat -- paying more attention to the origins of their food and how it's made. And Kimbal Musk is at the forefront of a movement that is accelerating the rate of change. More

Pimco's famous fund once managed by star manager Bill Gross has less than $100 billion in management for the first time since 2007. More

The BauBax travel jacket, with 15 built-in features, needed $20,000 on Kickstarter, but got $9 million. More

Pimco's famous fund once managed by star manager Bill Gross has less than $100 billion in management for the first time since 2007. More