Monday, June 21, 2010

Here's What Oil Industry Insiders Are Gossiping About The Oil Spill

Business Insider
The Money Game
The Mad Hedge Fund Trader | Jun. 21, 2010, 4:13 PM
This guest post comes courtesy of The Mad Hedge Fund Trader >

"Over the years, I have invested so much time wildcatting in the oil patch that I will never be wanting for great steaks at Nick & Sam's in Dallas, skyboxes at Cowboys games, and personally signed 8 X 10 glossy photographs of George W. Bush. So to get the skinny on the BP mess, I spent the weekend catching up with old friends who live with a permanent oil stain under their fingernails.

Some of the chatter that came back was amazing. BP has discovered the largest and most powerful well in history, and control of it may be outside existing technology. The previous record gusher was Union Oil Co.'s Lakeview well in Maricopa, California, which spewed out a staggering 100,000 barrels a day at its peak in 1910, and created an enormous oil lake in the central part of the state. Estimates for the BP well now range up to 50% more than that. The pressures at 18,000 feet are so enormous, that drilling two more relief wells might only result in creating two more oil spills.

If Obama doesn't want to take the nuclear option, (click here for my piece), then there will be no other alternative but for the spill to continue until the field exhausts itself or becomes capable, possibly some time next year." More>>>>

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