Is The Spill Capped?

Posted: Jul 19, 2010 7:53 AM
BP's latest cap has stopped oil leak for several days — but how much has it stopped it? The company and National Incident Commander Adm. Thad Allen have differed in their assessments. BP claimed that steady pressure buildup under the cap had indicated success, but late yesterday, Allen raised questions about a possible leak that was found "a distance from the well."

BP says that leak might not be their fault. Allen say more tests are needed. The stock market was harsh on BP, dropping their shares 7% in London markets early Monday morning. From WSJ:

"I authorized BP to continue the integrity test for another 24 hours and I restated our firm position that this test will only continue if they continue to meet their obligations to rigorously monitor for any signs that this test could worsen the overall situation," said the National Incident Commander Adm. Thad Allen in a statement Monday. "Full analysis of both the seepage and methane will continue in coordination with the science team."

If a leak is found, it would lead to the well being reopened, but, "the new cap appears to be working well with pressure in the system building up steadily," said Evolution Securities analyst Richard Griffith. "The testing of the system may continue for some time longer though before BP and the U.S. authorities are satisfied that it is working properly."

Meanwhile, BP has signed a new $9 billion deal in Egypt for offshore oil exploration. We might as well mourn the end of the industry here in the U.S.