Government’s Expert Witness: Over 42 million gallons of dispersant used during BP oil disaster

Posted: July 15, 2010 in Oil Spill

The picture in this post will be the new picture in all post’s that discuss BP.  The reason is when I think of BP “f*ck you”  is the first thing that comes to my mind.  BP has completely demolished the gulf region and destroyed the lives of 100’s of thousands if not millions of people.  As I continue to research this spill it is obvious this disaster is much worse than what we hear in the media. 

This blog was created to discuss mainly financial matters however the current events are often hard to ignore.  With that said lets look at this disaster from an investment point of view and figure out what we may expect.  The article referring to the title of my post is below.

1. Overtime this will cause much higher oil and gas prices.  I believe the spill alone will eventually cause $5 to $6 gasoline, if you add cap-and-trade we may be looking at $7 – $8 dollar gasoline.  I know that is hard for some to imagine but remember this post.  USO and USL are tools to invest in oil if you are interested. Please  do your homework.

2. I believe BP will ultimately go bankrupt or forced to sell, you heard me correctly.  This cap will not work.  In fact the leak we see in the media everyday is minor.  The problem is BP hit what is known as a strata  which possibly cracked the ocean floor here, here, here, here . 

BP put aside $20 billion for this clean up which is a complete joke.  The Exxon Valdez in 1989 cost $7 billion to clean.  This disaster is the equivalent of an Exxon Valdez spill every four days!!  Do the math we are well past day 80.  Keep in mind the purchasing power of the dollar is much lower today than in 1989 terms. Factor in legal fees for civil and possible criminal charges, destroyed reputation and medical cost means BP goes bankrupt or is forced to sell.  Investment idea #2 short BP.  Do your own homework.

3.  BP is pumping millions of gallons of the chemical Corexit into the Gulf.  This chemical is four times more toxic than the oil!!  There is mounting evidence that this chemical may be creating a toxic rain and killing crops here.   If this is true food prices are going higher.  Investment idea #3 CORN, DBA, POT.  Note CORN is an ETF, please do your homework.

NOTE: These are only ideas and I could be completely wrong.  Do your own homework and make a decision based on what you discover not what I noted above.

Florida Oil Spill Law
July 14, 2010

More dispersant applied “than the amount of OIL spilled in any single accident prior to the BP disaster”

Presidential oil spill commission urged to address dispersant issue promptly, New Orleans Times Picayune, July 13, 2010:

Christopher Reddy, an associate scientist of marine chemistry and geochemistry at the Woods Hole Oceanographic Institution, said the use of surface dispersants is extremely typical and well understood to be safe, but some concern remains about their use in the sea’s depths. …

Reddy said he is also concerned about the total amount of dispersants used, which is unprecedented. He noted that 1 million barrels [42 million gallons] of dispersants have been applied to the Gulf of Mexico to fight this spill, more than the amount of oil spilled in any single accident prior to the BP disaster.

Reilly also said the dispersants’ unknown effect on fisheries is troublesome. “You know a lot of fishermen have very strong reservations about dispersants, that it hides the oil under the surface and makes it hard for the fish to avoid it,” Reilly said. “That’s what we found in Prince William Sound” after the 1989 Exxon Valdez tanker spill in Alaska, during Reilly’s time as EPA chief.

Another report in the Times Picayune restates the massive 42 million gallon figure:

Reddy said the total amount of dispersants used is unprecedented and cause for more study. He noted that 1 million barrels of dispersants have been applied to the Gulf of Mexico to fight this spill, more than the amount of oil spilled in any single accident prior to the BP disaster.

Previous reports have put the amount of dispersants used at between 1-2 million gallons (25,000-50,000 barrels).

Was the 1 million BARRELS an error by the Picayune?

The scientist noted the amount of dispersants applied to date are “more than the amount of oil spilled in any single accident prior to the BP disaster”. The Exxon Valdez released at least 10 million gallons (approximately 250,000 barrels) of crude oil. The widely reported 1-2 million gallon dispersant figure is no where near the 10 million gallons spilled during the Valdez

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