BP Permanently Seals Gulf Oil Well

rexjoec writes "BP has finally plugged the Macondo well. This announcement came yesterday after $9.5 billion (through September 17) in expenditures and five months of continuous effort." From the LA Times: "Of the estimated 4.9 million barrels of oil that gushed from the well, 25% was burned, skimmed or piped to tanker ships. A second 25% has evaporated or dissolved, according to government estimates. Another 25%, classified by the government as 'residual oil,' consisted of light sheens on the water, thick goo on the shore and tar balls. The tar balls, though not harmful to humans, are likely to wash up on shore for some time."

Comments

Re:You know what I find hilarious?

[bill_mcgonigle]

Millions of gallons leaking into the Gulf, however, seem to have had pretty much zero effect on gas prices. Am I wrong?

The Maconodo well was in the process of being converted from exploration to production. A non-producing well didn't come into production, not 'a producing well went out of production'. So, the supply wasn't impacted. If demand was level then the price should have stayed mostly level.

Only if oil futures had figured in the Macondo production already, or speculators thought that BP's costs would somehow drive up the world market costs (why would Exxon increase its prices?, e.g. - they wouldn't) would this have affected oil prices. The biggest supply risk right now is from the US Government, but it seem unlikely they're going to undertake the draconian options at this point.