New Technology May Cut Oil Leak As Legal Actions Against BP Grow

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By Douglas A. McIntyre Updated Published
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Experts attempting to slow the flow of oil from the Deepwater Horizon rig collapse may have found a way to slow the pace at which oil reaches the surface of the Gulf of Mexico. The NOAA reports that oil continues to flow into the Gulf of Mexico at an estimated to 5000 barrels (210,000 gallons) per day from three leaks in damaged piping on the sea floor.

The new approach was suggested by Exxon Mobil (NYSE: XOM) now aiding BP plc (NYSE: BP) and the federal government in their attempts to contain the size of the spill.  NOAA tested the technique which is to apply dispersants to oil at the source which is 5000 feet below the surface. The dispersants may be able to break up the crude in a way that keeps it from rising through the water.

New drilling rigs are being sent to the area in the event that a second well needs to be made to relieve the pressure of the oil that is coming from the Deepwater Horizon leak. That process is expected to take several months

In the meantime, the NOAA trajectory map of the area from early on May 2 shows the oil slick has begun to reach shore.

The direction of the wind in the area is exacerbating the problems containing the spill. The National Weather Service forecasts southeast winds through the weekend which will push surface oil towards shore and hamper surface recovery efforts until a forecast shift on Monday. Reuters reported that “coastline from Louisiana to Florida is threatened by the slick, estimated to be some 130 miles by 70 miles in size and still growing.”

President Obama is expected to visit the site today.

Aside from the clean-up costs which BP estimates cost its $6 million a day, several groups have filed suits against the company. News services report that “At least four lawsuits naming all or some of the companies have been filed in U.S. District Court in New Orleans.” These suits include one by shrimpers in Louisiana. The Telegraph puts the number of suits at 36.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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