Amazingly, both the Feds and BP (NYSE:BP) continue to claim that only 5,000 barrels, or 200,000 gallons, of crude oil is seeping from BP’s damaged riser pipe into the Gulf of Mexico each day. However, following intense media pressure, BP has just released a weeks-old video showing its damaged pipe in action, and folks, this is indeed a gusher spewing many times more than what they’re telling us.
Although we have no sense of scale in the video, the hollow core of a typical deep-sea riser pipe is roughly 18 to 24 inches wide, and occasionally wider. Are we to believe that this geyser is putting out only 200,000 gallons a day, or 2.3 per second if you do the math? Note that the pipe is also leaking in other places not shown in the video.
It seems that the independent experts who estimated the damage to be in the tens of thousands of barrels per day were right all along, as per my last article. Keep in mind that not only BP, but also the Feds have had access to this video (or others like it) for weeks.
As per the Soviet playbook at Chernobyl, they are hiding as much as they can for as long as they can, playing "extend and pretend." To what end? Has the government been so co-opted by industry that it is now a full-fledged accessory in covering up perhaps the worst technological accident in modern US history?
One thing is certain — if this flow continues for months, as feared, not only will BP be liable for hundreds of billions (and perhaps trillions) of dollars in civil damages, but the Obama administration will have no choice but to put the screws to BP to an almost unimaginable degree. Is this a company in which you want to hold stock right now?
Disclosure: No positions