Oil & Gas Prices: Big fire Down Under, Brazil oil rig “tilting”, Chevron hoping to get back to work in Brazil

“We don’t know what’s in the smoke, we don’t know what’s burning, we don’t know the toxicity of it.”-Kim Zander, Police Chief Inspector

For the second day a huge oil fire is raging in Wingfield, South Australia, Australia.  It’s a waste oil depot, and the city of Adelaide is being covered with toxic smoke.

More than 100 firefighters worked to control the fire. The fire is still raging but is contained.  Word is that it was an accident that started the fire.  Homes and businesses were evacuated.

The waste oil depot is owned by Mulhern Waste Oil, who recycles the waste petroleum oils for re-use.

In Brazil, Petroleo Brasileiro SA had shut down operation on their huge Alaska Star oil platform, after it tilted three degrees.

The platform is located over Brazil’s 7th largest underwater oil & gas field (the Albacora field).  Petroleo Brasileiro SA is the world’s largest deep water petroleum producer.

The Alaska Star platform is being operated by a contractor.  The platform was stabilized after a leak of “drilling fluid” was stopped.

Speaking of Brazil, Chevron is hopeful they will be allowed to resume operations, after the government shut them down because of a huge oil spill last year.

However, Chevron has to convince Brazilian inspectors first: “We are not convinced that Chevron has identified the causes of the accident and that the risks have been mitigated to the satisfaction of Brazilian society.”-Magda Chambriard, ANP

In 2011, 2,400 to 3,000 barrels spilled in the Frade field northeast of Rio de Janeiro. Brazil fined Chevron $28 million.  Brazilian officials accused Chevron of trying to hide up the spill: “We believe the accident could’ve been avoided. There was an environmental crime. They hid information and their emergency team took almost 10 days to start acting.”-Carlos Minc, Rio de Janeiro state’s environment secretary