BP Has Taken Us Down For The Last Time

If there is one positive out there I can point to it is that BP has taken us down for the last time. Expectations are now that the well will not be plugged until August so it will be difficult to surprise us with worse news. I am almost tempted to take a speculative long in BP as those hoping for a quick solution puke up their stock.

4 comments:

Anonymous said...

August is the best case scenario, and I wouldn't be surprised if it's not plugged for another 6-9 months. The relief well takes 3 months, and there's a very high probability that they miss the mark. Remember, they're trying to hit a 7-inch diameter casing that's 5 miles below the water surface, and then another 30,000 feet below the seabed. In the past, they never make it on the first try. Then we hit hurricaine season, which makes it even more challenging.

By then, the environmental damage will be enormous. Drilling moratorium will also have a material impact on the business.

Short ME.

Tsachy Mishal said...

I am not at all familiar with the mechanics of drilling for oil. The likelihood that we hear about a delay in the next few weeks is small in my opinion. If you are correct that there will be more delays the announcement is likely months away. For now, I believe the news is out and it will be hard for this news story to drive us down over the next few weeks.

Tsachy Mishal said...

That doesnt mean there wont be other stories.

Random Thoughts said...

Mammary Monday (Tuesday)- Marta Gut