Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
THEY DON'T RING THE BELL AT THE CRPTO MARKET TOP! - 20th Dec 24
CEREBUS IPO NVIDIA KILLER? - 18th Dec 24
Nvidia Stock 5X to 30X - 18th Dec 24
LRCX Stock Split - 18th Dec 24
Stock Market Expected Trend Forecast - 18th Dec 24
Silver’s Evolving Market: Bright Prospects and Lingering Challenges - 18th Dec 24
Extreme Levels of Work-for-Gold Ratio - 18th Dec 24
Tesla $460, Bitcoin $107k, S&P 6080 - The Pump Continues! - 16th Dec 24
Stock Market Risk to the Upside! S&P 7000 Forecast 2025 - 15th Dec 24
Stock Market 2025 Mid Decade Year - 15th Dec 24
Sheffield Christmas Market 2024 Is a Building Site - 15th Dec 24
Got Copper or Gold Miners? Watch Out - 15th Dec 24
Republican vs Democrat Presidents and the Stock Market - 13th Dec 24
Stock Market Up 8 Out of First 9 months - 13th Dec 24
What Does a Strong Sept Mean for the Stock Market? - 13th Dec 24
Is Trump the Most Pro-Stock Market President Ever? - 13th Dec 24
Interest Rates, Unemployment and the SPX - 13th Dec 24
Fed Balance Sheet Continues To Decline - 13th Dec 24
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

BP's Incentive To Not Capture All the Oil

Companies / Oil Companies Jul 20, 2010 - 04:37 AM GMT

By: Global_Research

Companies

Robert L. Cavnar writes: In an interview, Bob Dudley, CEO of BP's New Gulf Coast Restoration Organization (whatever that is) finally admitted yesterday that their first relief well could be completed far in advance of the mid-August date that they have been insisting on since May, enabled by the Coast Guard and other government officials. 


We've heard the mantra now for months; even as the relief well, spud on Sunday, May 2, has stayed ahead of schedule, BP has steadfastly stuck to the mid-August completion date.  In the interview, Dudley said that the well could be ready for the kill attempt by July 20th to 27th, but hedged, though, that storms and seas could delay that date.  BP tried walking back his statement this morning, saying,

"He (Dudley) gave that as the very, very best scenario if everything went absolutely superbly according to plan and there are no interruptions but the expectation is that it will be
August."

Coincidently, July 20th is the date that new British Prime Minister, David Cameron, is scheduled to meet with President Obama.  July 27th is the date set for BP to publicly release quarterly financial information.

BP has every incentive to get this well killed.  As you know, I've been calling next week Kill Week, and since they are almost there now, only 245 feet from the objective as of yesterday, I still believe that is doable.  The mid-August date never made any sense, unless they took a direct hit from a major hurricane, shutting down operations for 10 to 14 days.  Right now, short of the low pressure area that will come ashore around Brownsville over the weekend, there is no tropical activity even out in the open Atlantic.  Of course, that could always change, as we all know.

I've been resisting calling their delays in getting a better recovery system installed footdragging, but I now believe that's exactly what they're doing.  As my friend over at Daily Kos, Fishgrease, says, every bit of unmeasured oil that is spilled into the Gulf is later negotiable.  The volume estimates from the Flow Rate Technical Group are just that, estimates, and estimates are arguable in court.  Flow rates and recovered volume reports are bewildering, coming from BP, the Coast Guard, the Unified Command, and the DOE, sometimes matching and never consistent.  Sometimes BP will do a relief well update on their website, sometimes it comes from the Unified Command, sometimes from the Coast Guard in a hastily called press conference.  There is no central place for all information, and you have to know how to navigate the sites that do exist.  You need a degree in quantum physics to compile the information into anything that is deciferable and its a full time job trying to keep up with all of the numbers.   The only source of reliable continuous data is on the DOE Oilspill Data page, but it's in oilfieldese, so only bewildering to the public.  No wonder everyone is so confused.  I'm paying attention all day every day, know what I'm looking for, and I get confused.   

While they have every incentive to get the well killed, BP also has every incentive to not capture 100% of the well flow until they do.  As soon as they do capture all the flow, then a real, measurable number will be in front of the public, and that's the last thing BP wants, since that number will then be used to extrapolate environmental damage, hence per barrel fines that will likely run to the tens of billions anyway.  What bewilders me is why the government is letting them get away with it. Where is the Coast Guard, Steve Chu, the EPA, and the new Bureau of Ocean Energy Management? Where is the White House? Where is the main stream media? Are industry bloggers the only ones who are asking these questions?

Don't be surprised if the Helix system and the floating riser systems are not completed by kill date.  Also don't be surprised when the kill attempt happens far in advance of mid-August before the larger system is operational.

I'll certainly be watching.

More on The Daily Hurricane Energy page.

Global Research Articles by Robert L. Cavnar

© Copyright Robert L. Cavnar , Global Research, 2010

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in