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New Estimates Double Rate of Oil Flowing Into Gulf
Key Excerpts from Article on Website of New York Times
Posted: June 14th, 2010
http://www.nytimes.com/2010/06/11/us/11spill.html
A government panel on [June 10] essentially doubled its estimate of how much oil has been spewing from the out-of-control BP well, with the new calculation suggesting that an amount equivalent to the Exxon Valdez disaster could be flowing into the Gulf of Mexico every 8 to 10 days. The new estimate is 25,000 to 30,000 barrels of oil a day. That range, still preliminary, is far above the previous estimate of 12,000 to 19,000 barrels a day. The higher estimates will ... most likely increase suspicion among skeptics about how honest and forthcoming the oil company has been throughout the catastrophe. The new estimate appears to be a far better match than earlier ones for the reality that Americans can see every day on their televisions. As investors have fled BP stock over uncertainties about the company’s future and its ability to pay what it will end up owing, BP has lost nearly half its market capitalization since April, and its bonds are now trading at junk levels. Credit Suisse estimates the cleanup costs could end up at $15 billion to $23 billion, plus an additional $14 billion of claims. Ira Leifer, a researcher at the University of California, Santa Barbara, and a member of the flow-rate group, said the new figures confirmed a suspicion he had developed, based on looking at satellite data, that the rate of flow for the well was increasing even before BP cut the riser pipe. “The situation is growing worse,” Dr. Leifer said.
Note: For an analysis of the series of false estimates by BP and the US government of the size of the catastrophic Deep Horizon oil blowout, click here.
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