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Can U.S. Shale Rebound?

Can U.S. Shale Rebound?

With oil prices still hovering…

BP Investigate Fatal Explosion at Natural Gas Station in Colorado

Following an explosion at a natural gas compressor station in western Colorado, which killed one worker and injured two more, BP has launched a full investigation into the cause.

The explosion occurred at the Pinon compressor station, a small gathering hub near Bayfield, which is supplied by natural gas wells in the San Juan basin. It handled about 30 million cubic feet of natural gas each day, but has now been shut down, with now date given as tow when it will be reopened.

BP is the largest natural gas producer in Colorado, with more than 1,500 wells and the majority situated in the San Juan basin. Most of BP’s wells use new technique such as hydraulic fracturing to extract oil and gas from unconventional plays, such as shale formations.

BP has already faced bad press over recent years for its safety record. Back in 2005 an explosion at the Texas City refinery killed 15 employees, whilst more recently in 2010 the blowout at the Macondo well in the Gulf of Mexico killed 11 people and caused the worst offshore oil spill in US history.

In order to avoid as much negative attention as possible BP have been quick to release a statement explaining the action that they are taking. “BP has launched its own investigation into the accident. We will also cooperate with federal, state and local officials as they conduct investigations of their own,” it said.

By. Joao Peixe of Oilprice.com



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