Environment

BP Oil Spill: Cut and Cap Attempt as Shares Plunge

by Jordan Yerman | June 1, 2010 at 09:38 am

845 views | 12 Recommendations | 12 comments

BP Attempts 'Cut and Cap' to Plug Oil Spill

In the wake of the failure of Top Kill, BP is attempting a "cut and cap" fix to stop the ongoing leak from the Deepwater Horizon. The cut-and-cap strategy will see robotic submarines descend to the source of the leak and cut the leaking pipe, which would then be plugged with a containment cap.

Even if the four-day operation is successful, all of the oil would not be captured, and two relief wells would have to be drilled. Those would not be complete until August.

Nearly 50 Million Gallons Spilled So Far

So far, up to 43 million gallons have been spilled, according to some estimates, and BP does not know how much oil still remains.

According to government estimates, anywhere from 20 million to 43 million gallons of oil have spilled into the Gulf. And officials say BP's latest fix, to cut the leaking riser pipe, may in the short term cause 20 percent more oil to gush out of the well until a cap is put in place.

BP Stock Plummets, Endangers Company

BP stock is in free fall, and the oil giant has lost over $70 billion in market value since the oil spill began. Beyond the loss of the oil itself and the cleanup costs, BP faces massive legal costs which will hang an albatross around its neck for a long time to come.

Additionally, criminal charges against BP are not off the table. These factors spell trouble for a floundering company that's losing friends as quickly as it leaks oil.

Dougie Youngson, oil analyst at Arbuthnot, said: "This situation has now gone far beyond concerns of BP's chief executive Tony Hayward being fired, or shareholder dividend payouts being cut – it's got the real smell of death. This could break BP.

"Given the collapse in the share price and the potential for it to fall further, we expect that it could become a takeover target – particularly if its operating position in the US becomes untenable."

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Inside the Rock Poster Frame

at 10:01 on June 1st, 2010

I created the prints to benefit the clean up in the gulf. If you would like to purchase them please go here to see pics and purchasing info http://www.flickr.com/photos/89249696@N00/

Thanks

Iffy (not verified)

at 11:25 on June 1st, 2010

From toxic derivatives to toxic oil spills, the United Kingdom's rotten businesses and sleazy and corrupt businessmen have done so much damage to the world. Let's recap: exporting the worst economic catastrophe to hit the world since the Great Depression, courtesy of British business in London's City and the dreadful Labour Party leader Gordon Brown. And then this, the worst environmental disaster in US history. Boycott British business; boycott Brits: you know it is right!

Inside the Rock Poster Frame

at 11:34 on June 1st, 2010

There is no reason to boycott British business, only one company is responsible for this and its bp.

René

at 11:55 on June 1st, 2010

Can't boycott BP in Louisiana. they cut and ran months ago. guess they saw trouble coming.

Inside the Rock Poster Frame

at 12:01 on June 1st, 2010

Did anyone see the fox news interview tony did, saying he wanted to get this fixed so he could have his life back ? What a jackass

Jordan Yerman

at 15:10 on June 1st, 2010

I can imagine that quite a few sea animals echo his sentiment.

Inside the Rock Poster Frame

at 15:45 on June 1st, 2010

And the 11 guys on the oil rig that lost their lives

Iffy (not verified)

at 12:14 on June 1st, 2010

Anyone who has dealt with British business folks will know this behaviour cold. Sleazy, arrogant, nose-in-the-air as they pass jobs to their mates from private school, creepy private deals and hiding from public exposure (notice how they never want to go on the public record?). Who can name a prominant money-making Brit apart from Tony Blair?

aman helsini (not verified)

at 12:35 on June 1st, 2010

Hello I like the event

testxyz (not verified)

at 12:37 on June 1st, 2010

nice reporting

unknown?xyz (not verified)

at 12:43 on June 1st, 2010

nice reporting

Brennan Cavanaugh

at 13:03 on June 1st, 2010

5/28/10, BP station protest, Lafayette and Houston Sts. NYC. Dozens of protesters dumped an oily substance on themselves and chanted at this busy intersection and gas station in NYC. See more at http://www.flickr.com/photos/breca/sets/72157624057824775/

Brennan Cavanaugh has contributed a photo to this story.