Gulf Coast Oil Spill

[macker]

Originally Posted by Slava

C'mon the markets are wrong a lot, and misprice things all the time. I'm not saying that BP won't drop, but don't pile in just because everyone else is either!

You are right the market isn't efficient and that is why I trade it. My comment was kinda sarcastic as even though the options market is leaning one way does anyone really know. Leo Tse "He who thinks he knows doesn't know, he who knows that he doesn't know, knows. Even though whenever there is a crisis there is also an opportunity I am not getting on either side of the BP trade and want no part of this company as it is permanently in the penalty box as far as I am concerned. Why not pile in? The BP situation is an outrage. I hope they stay solvent just long enough to pay for what they have caused. At this stage it isn't about profits and the company isn't efficient

[Regorium]

http://news.yahoo.com/s/ap/20100614/...l_washington_5

So the latest reports say BP cut a lot of corners and they actually came up with some specifics. Any O&G experts here weigh on whether or not this is actually legit or if it's more just media pulverization of BP? ie. Do most companies do these "shortcuts"? I wish I knew enough about this stuff to make an educated conclusion =/

In an e-mail on April 16, a BP official involved in the decision explained: "It will take 10 hours to install them. I do not like this." Later that day, another official recognized the risks of proceeding with insufficient centralizers but commented: "who cares, it's done, end of story, will probably be fine."

[Mr.Coffee]

Originally Posted by Pinner

http://money.cnn.com/2010/06/09/news...spill.fortune/
BP was so certain that there wasn't any risk that three years ago they thought the insurance industry was ripping them off, so they're self-insured on this. How stupid! It was the best thing that ever happened to the insurance industry.
Quote:
One really smart thing that Obama did was about three weeks ago he forced BP CEO Tony Hayward to put in writing that BP would pay for every dollar of the cleanup. But there isn't enough money in the world to clean up the Gulf of Mexico. Once BP realizes the extent of this my guess is that they'll panic and go into Chapter 11.

Something sounds really not quite accurate about that insurance thing. I wouldn't believe that one bit...... I'd get into detail but it would be long and kind of boring for everyone here as far as oil and gas contracts go, but I'm extremely skeptical and I think he's misunderstanding the reference to being self insured as it applies to oil and gas agreements. They'll have insurance, but it will be maxed out at something like $20 to $50MM and it will be BP's insurance 100% and Anadarko's insurance 100%... separate items for their own liabilities they end up with, not BP/Anadarko joint insurance as to their working interests (which is 75/25) as per their Operating Agreement that covers this drill. That's typically what a "self-insure" mechanism is about... that you'll provide your own insurance in a joint agreement.

As for the Obama letter agreement with Hayward, who's to say what's in the agreement as to what BP will cover?? Pretty sure any lawyer could tear apart what "all costs" means as far as this disaster is concerned. Furthermore I'm pretty sure there's a max liability that BP will certainly be hit up to, but anything beyond that number and BP will see the US gov. in court.

Also everyone keeps chirping about the "end of BP", which obviously is a huge story... but this definitely is super bad news for Anadarko, one of the larger American oil and gas companies out there as well. I'm sure there will be some lawsuits between them and BP coming up too.

[Mr.Coffee]

Originally Posted by Regorium

http://news.yahoo.com/s/ap/20100614/...l_washington_5

So the latest reports say BP cut a lot of corners and they actually came up with some specifics. Any O&G experts here weigh on whether or not this is actually legit or if it's more just media pulverization of BP? ie. Do most companies do these "shortcuts"? I wish I knew enough about this stuff to make an educated conclusion =/

I've heard / read / seen a LOT of stuff claiming a lot of shortcuts were cut, just not sure which stories to believe are totally accurate.

If anything this oil spill has taught me:
a) just HOW bad of a job the energy industry does to educate people and;
b) just HOW bad your worst case in a blowout is and;
c) an interesting lesson in business, politics, regulations and how everything is coming to a grinding halt and;
d) how important safety is when operating

it's really quite sad but... there are a lot of lessons being learned here I think. One of the more important ones being maybe society takes a more serious look at how we can live more efficiently and what other energy sources we can use safely and that are sustainable.

[macker]

Originally Posted by Mr.Coffee

I've heard / read / seen a LOT of stuff claiming a lot of shortcuts were cut, just not sure which stories to believe are totally accurate.

If anything this oil spill has taught me:
a) just HOW bad of a job the energy industry does to educate people and;
b) just HOW bad your worst case in a blowout is and;
c) an interesting lesson in business, politics, regulations and how everything is coming to a grinding halt and;
d) how important safety is when operating

it's really quite sad but... there are a lot of lessons being learned here I think. One of the more important ones being maybe society takes a more serious look at how we can live more efficiently and what other energy sources we can use safely and that are sustainable.

All sad but true. No contingency plan says it all. Somehow I think that this is going to be just the wake up call that many individuals/companies/nations need to force the next steps to a cleaner more sustainable approach to things. Great book on just this topic :
http://www.amazon.com/Cul-Sac-Syndro.../dp/1576603202 Who cares about the billions in profits that some of these companies make when you think about the true cost of things. It will take years to make this type of shift but it has to happen.

[RT14]

Originally Posted by Mr.Coffee

it's really quite sad but... there are a lot of lessons being learned here I think. One of the more important ones being maybe society takes a more serious look at how we can live more efficiently and what other energy sources we can use safely and that are sustainable.

This is really the only positive thing we can hope for throughout all this. It's a wakeup call. A kick in the ass this world has needed for quite some time. It's the same old story; warnings are made, top officials don't listen, worst case scenario occurs before changes are made. It's unfortunate, but it seems to take catastrophic events to introduce change so I truly hope this is that event. I'm not a religious person to any extent, but if this event was not big enough or catastrophic enough to bring about a change in our sources of energy, and we just clean this up as best we can and continue down the path we're on, god help us.

[RougeUnderoos]

Originally Posted by Dan02

~643 quadrillion gallons of water in the gulf, 6 million gallons cleaned per day, 293 million years to clean them all not too shabby.

I hate to admit it, but this made me laugh out loud.

I thought quadrillion was a made-up number like "bazillion" but apparently (according to the googles) not.

[macker]

As information becomes available this just keeps getting worse and worse... http://www.youtube.com/watch?v=SYhugmaAL3A&NR=1 There is an entire series of Lindsey Williams clips on youtube but the above is the first one. Melodramatic but he has a 35 year track record of accurate inside information. Also I would note that what he is saying has been affirmed on MSNBC (Countdown/Bob Cavnar). Also New York Times and Washington Post. I really hope that they are all wrong.

[Canuck-Hater]

Originally Posted by mikey_the_redneck

It looks like they have completely lost control of the situation.

The Gulf will never be the same.......this could get ugly.

The Gulf will pretty much be a gooey wasteland for many years to come.

[Sluggo]

And when you thought it couldn't get any worse.... The gods are pissed.

[photon]

Thank you BP, all is forgiven.

[User Name]

Estimates have risen to between 35,000-60,000 barrels/day... a far cry from the original 5,000 estimates from bp

http://www.cnn.com/2010/US/06/15/oil...pt=T1&iref=BN1

[CaptainCrunch]

AS much as Aquaman is pretty much worthless, thats got to be one of the most depressing things that I've seen.

[burn_this_city]

Originally Posted by User Name

Estimates have risen to between 35,000-60,000 barrels/day... a far cry from the original 5,000 estimates from bp

http://www.cnn.com/2010/US/06/15/oil...pt=T1&iref=BN1

If the figures keep going up they might just turn a profit off all this

[CaptainCrunch]

so at the top end we're talking about 137,500,000,000 gallons leaked.

Wow.

[Dan02]

Originally Posted by CaptainCrunch

so at the top end we're talking about 137,500,000,000 gallons leaked.

Wow.

me think you're off by a factor of about 1000.... 60k per day is about 2.5 million, I don't think it's been leaking for 150 years yet.

[CaptainCrunch]

Originally Posted by Dan02

me think you're off by a factor of about 1000.... 60k per day is about 2.5 million, I don't think it's been leaking for 150 years yet.

They mentioned in the article that it was the equivalent of 2.5 million gallons per day. I think that this has been leaking for about what 55 days.

Whoops, stupid calculators decimal point isn't working

Still pretty dishearening

[macker]

http://www.miamiherald.com/2010/06/1...-ceo-tony.html

Looks like Haliburton and Schlumberger walk free, Trans Ocean = grey area and BP is toast.

[CaptainCrunch]

[burn_this_city]

Originally Posted by macker

http://www.miamiherald.com/2010/06/1...-ceo-tony.html

Looks like Haliburton and Schlumberger walk free, Trans Ocean = grey area and BP is toast.

I dont think the blame falls on anyone but BP. It was their show, and clients often get what they want, regardless of what the contractor says. It looks like they cut a lot of corners to save time/money. I hope a bunch of them end up in prison. Its obvious that after Texas city BP learned almost nothing about operating with safety in mind. I feel bad for everyone affected by this, including the other owner companies who have a black eye they didnt deserve.