Oil Keeps Gushing, As US Dithers

BP plc (NYSE; BP) has delayed putting its new cap in place over the pipe that is spewing oil 5,000 feet below the Gulf of Mexico’s surface. It believes that it can begin to shut vents and have a containment system that will capture all the leaking crude. Until that happens as much as 60,000 barrels of oil a day will continue to cover the water and coasts in the region.

According to the AP, “No explanation was given for the decision, and no date was set for when testing would begin on the new, tighter-fitting cap BP installed on the blown-out well Monday.”One theory that the press has put forward is the government and BP scientists have looked at maps of the ocean bottom and the rock just under it and have become worried that pressure on the pipe caused by a new cap could cause a second rupture. “As a result of these discussions, we decided that the process may benefit from additional analysis,” said National Incident Commander Thad Allen

What the statement means is that the new cap may not be installed at all. There has been a large amount of hope that within a day or two, the leaking would be over and relief wells could permanently end the danger that the well would continue to release any oil. Those plans have hit a red light, and neither the government or BP will say why.

The expression that good news travels fast is probably as true with the oil leak as anything else. Those trying to fix the leak have found something that profoundly troubles them. What else could cause them to allow another 60,000 barrels, or 120,000 barrels, or more to foul the water and shorelines? Certainly each barrel that leaks increases BP’s costs and does some damage to the Administration’s reputation.

The well won’t be capped today, and there is a good chance now that it won’t be capped at all. When no one is talking, the talk must be bad.

Douglas A. McIntyre