British Petroleum (BP) is back up and running in the Gulf of Mexico, but officials are hesitant to specify exactly how much oil and natural gas is being produced. The Mad Dog and Atlantis Fields have ample proven supply of both oil and natural gas. The two fields have a combined daily production capacity of 280,000 barrels of oil, and 220 million cubic feet of natural gas.
A disastrous spill in April, 2010, took a 30% bite out of BP’s market value. This year, second-quarter profits suffered under the weight of extensive maintenence, which is scheduled to continue through the rest of the year. Production levels for 2012 are projected to be lower than in 2011.
In an effort to make up the deficit, BP has sold its Carson, California refinery along with 800 associated gas stations to San Antonio-based Tesoro Corp. (TSO) for $2.5 billion. BP is also looking to liquidate $38 billion worth of what it calls “non-strategic” Gulf properties.
Meanwhile, deepwater operations are accelerating and BP expects to spend $4 billion on the Gulf of Mexico this year, and the same amount each year for the next ten years.
