Re: Jack was right, about BP



"Jack Linthicum" <jacklinthicum@xxxxxxxxxxxxx> wrote in message news:339bc5b6-3f86-4a21-9577-54b03c2019d4@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
On May 16, 8:52 am, "Keith Willshaw"
<keithnos...@xxxxxxxxxxxxxxxxxxxxx> wrote:
"Jack Linthicum" <jacklinthi...@xxxxxxxxxxxxx> wrote in message

news:f0f02ab5-86d6-4eb5-b6df-9d96c40120a3@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx



> On May 16, 7:38 am, "Keith Willshaw"
> <keithnos...@xxxxxxxxxxxxxxxxxxxxx> wrote:
>> "Ray OHara" <raymond-oh...@xxxxxxxxxxx> wrote in message

>>news:hsngel$rq9$1@xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

>> > Jack called it last week. he note BP wasn't trying to strm the leak
>> > they
>> > want to recover the oil.
>> > they are fine with it continuing to spill until they can figure a >> > way
>> > to
>> > get it into tankers.

>> You are out of your tiny mind.

>> The cost of the cleanup and fines likely to be levied will exceed the
>> value
>> of the oil recovered by an order of magnitude.

>> Keith

> But what is recovered will partially justify the risky operation and
> the inadequate attempts at stopping the flow.

The recovery is aimed at mitigating the effects. The cost of processing
oil that is heavily contaminated with salt water is very high and the
residual value is unlikely to meet even the costs of its collection

If we assume that the flow rate is 5000 barrels per day and they recover
100% and got the full market price for gulf crude that would yield
around $350,000 dollars per day.

The costs of the clean up operation and drilling are currently running at
round around $33 million per day.

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7721...

Work it out for yourself.

Keith

You are off by a factor of 20 or more, the number is now 2.9 million
barrels a day. Works out to about $7m a day which should pay for the
overtime.

http://seminal.firedoglake.com/diary/47534


Go back and read it again, it says 2.9 million GALLONS
not barrels.

Even if we assume the figure of 70,000 barrels at the full value
with 100% recovery rates would barely yield $5 million, the reality is that
the value of recovered oil is a fraction of the market price and
the yield will be far less than 100%.

Its not just a matter of paying overtime. They have around
500 vessels and aircraft on charter. The wages of the 5000
local fisherman alone are likely to wipe out any revenue
from recovered oil.

Then there are the considerable costs of cleaning up the discharge
after the oil has been separated from it. These are not trivial

Analysts are currently assessing BP's total cost by the end of the
incident at between 5 and 10 BILLION dollars. The notion that
BP are allowing the spill to continue to recover the oil is
frankly ridiculous.

Keith

.

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