Ship’s anchor possible cause of SoCal pipeline leak

There are reported to be suspicions that a ship’s dragging anchor could have caused the damage to the Amplify Energy Corp Pipeline off the coast of California, which has caused California’s worst oil spill since the early 1990s.

Chief Executive Officer Martyn Willsher said at a press conference on Monday October 5th that it was investigating the disaster site with a remotely controlled device. The company said that it was getting close to “a source and a cause” of the incident, which may have been caused by a ship’s anchor.

The spill began on Saturday and released some 3,000 barrels-worth of crude into the Pacific Ocean near the seaside community of surfing destination Huntington Beach.

Amplify Energy shares fell by as much as 53% on Monday, although the shares recovered some of the losses after the press conference. This caused a temporary trading halt.

A wide area of beach and ocean remained closed, with more than 2,000ft of floating barriers deployed to help contain the spilled crude, Huntington Beach city leaders said.

Willsher said that the company has sufficient insurance and other resources to handle the cost of the incident.