Thursday, June 17, 2010

As with derivatives, there's no bottom to the Macondo Prospect

CNN’s first mention of concerns about the structural integrity of BP’s blown-out well occurred on the June 16 edition of the Situation Room with Wolf Blitzer, during an interview with a member of the government’s Flow Rate Technical Group, Professor Steven Wereley.

Blitzer described a conversation he had with an expert who said, “They’re still really concerned about the structural base of this whole operation.” “This thing could really explode,” added Blitzer, “And they’re sitting, what, on — on a billion potential barrels of oil.”

Wereley responded, “I’ve heard concerns about the structural integrity of the well.” More precisely, the structural concerns were if “the casing of the well is — is faulty at some point.”

The one billion barrels in estimated reserves mentioned by Blitzer is similar to the number stated by Bush Energy Adviser Matthew Simmons during a June 15 interview with Bloomberg TV.

Simmons concluded BP’s ruptured well could flow for 25 to 30 years at a rate of 120,000 barrels a day.

Meanwhile, Congress is quite content to let BP, the criminal organization that in my opinion deliberately caused the disaster on behalf of the British oligarchy, control the supposed efforts to stop it. What are they going to do if BP's relief wells fail? Ask for bigger campaign donations to continue to let the gusher flow?