Matthew Simmons: BP Won't Last The Summer, And There's Another Big Hole 7 Miles Away

[Celebration]

Matthew Simmons is sticking by his story that there's another giant leak in the Gulf of Mexico blowing massive amounts of oil into the Gulf of Mexico.

On CNBC's Fast Money, he says he'd be surprised if BP lasted this summer, saying this is disaster is entirely BP's fault.

Simmons has been all over cable news lately -- yesterday he descirbed to Dylan Ratigan how the next nightmare will be when a Hurricane picks up the oil and paints the Gulf Coast region black.

Read more: http://www.businessinsider.com/matthew-simmons-bp-wont-last-the-summer-theres-another-hole-7-miles-away-blowing-massive-amounts-of-oil-each-day-2010-6#ixzz0qIggnSk2

[chill_wind]

1. We can't afford a whole summer yet of BP.

BP shouldn't last another week.

[Catshrink]

2. Obama needs to seize their assets NOW

before they make that dividend payment. Once it's in the hands of stockholders, it's gone.

Carpe cash!

[Incitatus]

3. What is the evidence of this other leak?

And what was the cause?

[Celebration]

5. I heard it

It wasn't a long enough interview. He kept calling BP frauds. He intimated that they were trying to steal the oil--I didn't understand that either.

"perpetrating a fraud" is how he put it.

All I know is that the CNBC people think he is extremely knowledgeable about the industry.

[ShamelessHussy]

7. they 'just' picked up a large plum in fly-over images from the other leaking well

Another Gulf rig has been leaking oil for 5 weeks

As if there wasn't enough oil pouring into the Gulf of Mexico, satellite images have revealed a 10-mile-long slick from another drilling rig, which apparently began leaking days after the Deepwater Horizon disaster began.

Citing an environmental group and federal documents, the Mobile, Ala., Press- Register reports that the smaller leak, from the Ocean Saratoga platform, apparently began around April 30 and was noted by federal officials May 15. But they and Diamond Offshore officials aren't saying anything else about it.

The spill was first reported by SkyTruth, which said it accidentally discovered the separate slick while scrutinizing Deepwater Horizon images. Photos taken during overflights "appear to show a large oil crew boat pumping dispersants into the water at the spill site," the Press- Register writes.

Officials at the National Response Center, which is coordinating the massive BP spill, said the Ocean Saratoga leak had been reported, but they would not say exactly when it began. The Coast Guard has not yet responded either.

more...
http://content.usatoday.com/communities/ondeadline/post/2010/06/another-gulf-rig-has-been-leaking-oil-for-5-weeks/1

[jwirr]

9. Does BP own both wells?

[Robbien]

4. BP is stronger financially than most countries and most other businesses

BP generates $30 billion a year in profit from operations. It reinvests $20 billion a year in its business and pays $10 billion a year in dividends to shareholders.

On top of BP's colossal ability to make money, it has a fortress balance sheet. BP has equity on the balance sheet of $104 billion, but only $24 billion in debt. With this low debt ratio, it has room to add at least double its debt load. BP also has $8 billion in spare cash to cover immediate expenses relating to the oil slick.

BP generates billions of profits each year on top of an awesome pile of accumulated wealth. In short, even if the oil spill ends up costing BP $37 billion, it won't have trouble paying the bill.

http://www.marketoracle.co.uk/Article20143.html


BP isn't going anywhere soon. Except it may curtail US activities.

[Celebration]

6. He also says

If there is a hurricane the oil will go all over the south, and that all oil refineries in the Gulf will have to shut down.

There isn't enough money to make the Gulf whole, he says. Because they were fraudulent and criminal there won't be limits on liability, is what I guess he thinks. The damages would be far greater than their net worth in such circumstances.

He's not an optimist.

[kenny blankenship]

11. He is being an optimist - a huge optimist

-not to say a pipe hitting fool - if he thinks there's any chance that this govt will hold BP to criminal standards of liability.

[JackRiddler]

12. How many divisions do they have? All their bank accounts belong to US.

[xchrom]

8. recommend

[Celebration]

10. about verbatim what he said

http://www.businessandmedia.org/articles/2010/20100608185200.aspx