Major oil companies plan to create Marine Well Containment System

WINCHESTER (Scrap Monster): In response to federal government demand for technologies capable of preventing a spill on the scale of BP's Deepwater Horizon, a coalition of integrated oil and natural gas companies  Chevron, ConocoPhillips, ExxonMobil and Shell  announced plans to create a Marine Well Containment System.

This system will be overseen by a new non-profit organization formed by the four energy firms, the Marine Well Containment Company (MWCC).

Commenting on the new system, energy analyst Michael Lynch, president of Strategic Energy & Economic Research, Inc. (SEER), stated: "The new containment system not only is another significant technological achievement for the U.S. energy industry and its world-class drillers, but also demonstrates a strong commitment to working with federal regulators. And in light of the president's new budget proposal this week, the capital investment provided by the MWCC offers a stark contrast to the market uncertainty the administration's policies continue to create."

Less than ten months after BP's neglect led to the Deepwater Horizon explosion in the Gulf of Mexico, this new response system was released. This efficient planning and execution is a positive sign for energy markets. Lynch continued: 

"American technologies are the gold standard for drilling worldwide, but have been stricken by safety management breakdowns due to the negligence of a few select outlier companies. Thankfully Chevron, Conoco, Exxon, and Shell have joined together to create this new system, one that will ensure American energy firms can continue to provide affordable and accessible energy to our businesses and consumers. With oil prices continuing to creep toward $90 per barrel in New York, and even reaching $103 in Europe, this is especially helpful for those in the Gulf region, many of whom are still hurting economically due to BP's spill, the ensuing offshore moratorium and a drilling permit process that remains sluggish."

Michael Lynch serves as president and director of global petroleum service of Strategic Energy & Economic Research, Inc. (SEER). He has more than 25 years experience analyzing international energy, notably oil and natural gas markets. Lynch has advised the U.S. Congress, the United Nations, the World Bank and the International Energy Agency (IEA), and has taught at Tufts University and currently lectures at Vienna University.

 (PRNewswire-USNewswire)