Sunday, May 30, 2010

BP Leaking Oil, Profits

Guest Writer Patrick Harrison

There is more than one dire leak going on for BP. As BP spends approximately $22 million US dollars each day on cleaning the spill and attempting to stop it, funds are been hemorrhaged out of the company at an ever increasing rate. The company's market capitalization has plummeted $53.2 billion or nearly 30% since the Deepwater Horizon rig exploded on April 20th. With repeat failures and no feasible solution in sight, BP seems to been desperately attempting to preserve their their company and capital by reassuring that their efforts are "going to plan" (CEO Tony Hayward on May 26th).

Four days later, BP has openly admitted their top kill plan has failed (without providing any reason) and that their other options including another type of containment device, the LMRP, may not prove successful. Obama's top environmental adviser, Carol Browner, said that shearing the riser pipes could unleash much more oil and questions how possible it would be to achieve a snug fit on the leak. Ultimately, BPs funds for this emergency response will dry up, they'll likely incur more liability to the point that they're insolvent, shareholder's will sue, and the oil may still be gushing. So until other nations and citizens can stop speculating over BPs feeble, unconvincing attempts to contain the spill and contribute to the effort (in terms of funds and human ingenuity), BP will continue to frantically design plans and attempt them with with haste while they try to downplay and deny the gravity of the leak(s).

It's a terrifying situation, each day seems to get worse. Now, BPs workers are being rushed into emergency rooms complaining about symptoms like nausea and dizziness among others. Hopefully more powerful entities and organizations will contribute their resources to contain the spill otherwise they - along with the rest of us - will reach our imminent demise.

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