Tropical Storm Alex to BP’s Rescue

Posted by Investing Freak on June 22, 2010
General

I Want my life back! I am not the only one as plenty of fishes, birds, and people also want their life back that  BP plc (ADR) has taken away. Not to Worry because BP feels sorry, so sorry that it is donating oil spill revenue to charity (the National Fish and Wildlife Foundation). BP said it would provide $5 million to the group immediately, Based on a current futures price of $77.83 a barrel, the collected oil is worth about $1.2 million. BP hopes to cap the well by August.

With the CEO now out of the picture time to get back to work and stop this drilling insanity. Hmm maybe not thanks to a federal judge who has overturned the Obama administration’s 6-month moratorium on new deepwater offshore drilling projects. What’s the reason for overturning the decision?
The Interior Department said it needed time to study the risks of deepwater drilling but U.S. District Judge Martin Feldman said in his ruling the Interior Department assumed that because one rig failed, all companies and rigs doing deepwater drilling pose an imminent danger.

Come on there has to be more to this story and thankfully there is. Like many judges presiding in the Gulf region, Feldman owns lots of energy stocks, including Transocean, Halliburton, and two of BP’s largest U.S. private shareholders — BlackRock (7.1%) and JP Morgan Chase (28.3%). Here’s a list of Feldman’s income in 2008.  How can he stop drilling when his heart is fully soaked in oil? He can’t because Industry ties among federal judges are so widespread that they are beginning to endanger the courts’ ability to conduct routine business.

More great news!  We don’t need to head to Italy to see the amazing Leaning Tower of Pisa because BP pipe is tilting more.
The Deepwater Horizon riser package that sits on the seabed a mile below the ocean surface weighs over 450 tons, including the 48-foot-tall failed blowout preventer. National Incident Commander Thad Allen announced that the riser package is tilting “10 or 12 degrees off perpendicular (On June 10 it was only tilting by about 2 or 3 degrees). Engineers and geologists fear the stack atop the well could tip over if the well integrity further degrades, leading to the “unlikely, but not implausible” scenario of “oil gushing through the sea floor.”

Hey you say, its unlikely and worst case scenario and BP will get things rolling before something worse happens. What else coulg go wrong? everything is already factored for the worse.
Oh wait! More Great news just arrived! Tropical Storm Alex comes to the rescue (or not) of BP.  The ECMWF model is the most aggressive in developing this system, taking it into the Gulf of Mexico as a hurricane next week. The NOGAPS model keeps the storm weak and farther south, predicting that 93L will bring heavy rains to northern Honduras as a tropical disturbance or tropical depression on Friday and Saturday. But either way this will be fun to watch.

Here is the graph of Invest93 (Tropical Storm Alex)


Check out some previous BP Posts
:
BP Cares about the small people June 17
BP now stands for Bad Publicity June 14

Thats all Folks,
-K

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10 Comments to Tropical Storm Alex to BP’s Rescue

  • This is great. You posted at TT, and I applaud you being able to get it through. I get moderated there, so i cant do this stuff and hope they allow it.

    That 450 ton piece of iron garbage is going to fall, and the spill will blow wide open. just a matter of time. relief drilling or not, I highyl suspect this thing wont be “capped” anytime soon. As in not during this year or maybe next.

  • Hey Mike,
    I try not to do it all the time because I too would mod people who constantly did this and just linked out.

    you didn’t put your website in your name so I cant check it out but glad you stopped by and hope you drop by once in a while and participate in the discussions we have had here the past few days.

    I’m short BP via a put option at 26 for July in case doomsday plays out. Would be amazing to watch it go bankrupt though (most unlikely scenario ever haha).

  • Keeps getting worse. The perfect storm? The revenue obtained from the escaping oil won’t pay for the damage. I would suspect BP hopes it will.

  • Just a note that the situation doesnt always go hand in hand with investing in the stock.
    heck this might take months to turn into a worse catastrophe.

    BP MACD has gone in positive but we’ll see how far it goes.

    USA USA USA! (World cup haha) 10am so nobody will watch the new home sales.

  • tropical storm now has less of a chance at becoming a hurricane. maybe thats why BP is a bit relieved 😛

    still doesnt solve a 12 degree slant which if you’ve tried standing at a 12 degree angle on one foot you will realize you cant do it forever.

  • No Break for BP. Containment cap falls off due to a robot bumping into it. lol more spill.

    ahh fun times.

    NY State Pension Fund To Sue BP Over Investment Losses

    Milberg LLP is Investigating BP Employee 401(k) Retirement Savings Losses

  • K
    June 22nd, 2010 – 15:26
    wow I come back from world cup half time and SPX at 1099?
    Support in the daily is at 1110 if not 1082-88 next and then well skydiving it is.
    ——————————
    HA! what a show. Low 1084 so far today.

  • Covered 26 BP july put (1 week old) for 20% pure profit at BP price 28.71

    Flat flat flat for the upcoming break.