The oil rig disaster in the Gulf of Mexico has damaged BP's reputation will they manage to avoid a share collapse to 350p.?



472p to buy this morning.

Don't tell him your name Pike ...... lol

Pikey's are squatter scum

SUSPENSION OF LMRP CAP CONTAINMENT OPERATIONS





This morning at approximately 0845 CDT a discharge of liquids was observed from a diverter valve on the drillship Discoverer Enterprise, which is on station at the MC252 wellsite. As a precautionary measure, the lower marine riser package (LMRP) containment cap system, attached to the Discoverer Enterprise, has been moved off the Deepwater Horizon's failed blow-out preventer (BOP) to ensure the safety of operations and allow the unexpected release of liquids to be analysed.



Capture of oil and gas through the LMRP cap is therefore temporarily suspended until such time that the cap can be re-installed. Capture of oil and gas through the BOP's choke line via a manifold to the Q4000 vessel on the surface continues.

More problems ahead for BP...



More oil gushing into Gulf after problem with cap.


NEW ORLEANS Tens of thousands of gallons more oil gushed into the Gulf of Mexico on Wednesday after an undersea robot bumped into the cap that had been containing some of the crude, forcing BP to remove it.

The setback, yet another in the nine-week effort to stop the gusher, came as the Obama administration tried to figure out how to resurrect a six-month moratorium on deepwater drilling and thick pools of oil washed up on beaches in Florida.

Removing the containment cap meant about 29,000 extra gallons of oil an hour were spewing, based on the record amount that had been captured in the previous 24 hours. Under the current worst-case scenario, as much as 104,000 gallons an hour 2.5 million gallons a day is flowing when there are no devices stopping some of it.

The robot bumped the cap just before 10 a.m. Wednesday, sending gas rising through a vent that carries warm water down to prevent ice-like crystals from forming inside it, Coast Guard Adm. Thad Allen said.

Crews were checking to see if crystals had formed before putting the cap back on. BP spokesman Bill Salvin could not say how long that might take.

"We're doing it as quickly as possible," he said.

A similar problem doomed the effort to put a bigger containment device over the blown-out well in May. BP had to abandon the four-story box after the crystals called hydrates clogged it, threatening to make it float away.

The smaller cap, which had worked fine until now, had been in place since early June and was sucking oil up to a ship on the surface. To get it there, though, crews had to slice away a section of the leaking pipe, meaning the flow of oil could be stronger now than before.

Before the problem with the cap, it had collected about 700,000 gallons of oil in 24 hours. Another 438,000 gallons was burned on the surface by a different system that was not affected.

Anywhere from 67 million to 127 million gallons has spilled since the April 20 explosion on the Deepwater Horizon rig that killed 11 workers and blew out the well 5,000 feet underwater. BP PLC was leasing the rig from owner Transocean Ltd.

The Obama administration was plotting its next steps Wednesday after U.S. District Judge Martin Feldman in New Orleans overturned a moratorium on new drilling, saying the government simply assumed that because one rig exploded, the others pose an imminent danger, too.

Feldman, appointed by President Ronald Reagan in 1983, has reported extensive investments in the oil and gas industry, including owning less than $15,000 of Transocean stock, according to financial disclosure reports for 2008, the most recent available. He did not return calls for comment on his investments.

The White House promised an immediate appeal of his ruling. The Interior Department imposed the moratorium last month in the wake of the BP disaster, halting approval of any new permits for deepwater projects and suspending drilling on 33 exploratory wells.

Interior Secretary Ken Salazar said in a statement that within the next few days he would issue a new order imposing a moratorium that eliminates any doubt it is needed and appropriate.

"It's important that we don't move forward with new drilling until we know it can be done in a safe way," he told a Senate subcommittee Wednesday.

Several companies, including Shell and Marathon Oil, said they would await the outcome of any appeals before they start drilling again.

Asked about it Wednesday on NBC's "Today" show, BP managing director Bob Dudley said his company will "step back" from the issue while it investigates the rig explosion.

BP said Wednesday that Dudley has been appointed to head the new Gulf Coast Restoration Organization, which is in charge of cleaning up the spill. He takes over from BP CEO Tony Hayward, who has been widely criticized for his handling of the crisis.

In Florida, thick pools of oil washed up along miles of national park and Pensacola Beach shoreline as health advisories against swimming and fishing in the once-pristine waters were extended for 33 miles east from the Alabama/Florida border.

"It's pretty ugly, there's no question about it," said Gov. Charlie Crist, who toured Pensacola on Wednesday morning.

The oil had a chemical stench as it baked in the afternoon heat. The beach looked as if it had been paved with a 6-foot-wide ribbon of asphalt, much different from the tar balls that washed up two weeks earlier.

"This used to be a place where you could come and forget about all your cares in the world," said Nancy Berry, who fought back tears as she watched her two grandsons play in the sand far from the shore line.

press release





June 23, 2010



UPDATE ON LMRP CAP CONTAINMENT OPERATIONS



The lower marine riser package (LMRP) cap containment system was successfully reinstalled on the Deepwater Horizon's failed blow-out preventer (BOP) at approximately 1830 CDT on June 23. This containment system is connected to the drillshipDiscoverer Enterprise on the surface.



The system resumed collecting oil and gas at 1900 CDT on June 23.



The LMRP cap containment system was moved off the BOP at approximately 0845 CDT on June 23 as a precaution following observation of an unexpected discharge of seawater from a diverter valve on the Discoverer Enterprise.



Capture of oil and gas through the BOP's choke line via a manifold to the Q4000 vessel on the surface has continued uninterrupted throughout the day.



---



BP Press Office London +44 20 7496 4076

BP Press Office, Houston: 1 281 366 0265

www.bp.com/gulfofmexicoresponse



- ENDS -

The very "brand" name of BP is coming under heavy pressure now; what with American motorists boycotting their outlets/ gas stations ..........cant see ANY upside on BP whatsoever.... but given that most Americans have a memory span of about 10 seconds their boycotting BP pumps maybe nothing more than a little sabre rattling

Gone long - small position with a tight stop. Probably daft, but there seems to be a bit of support forming around 332.

I reckon there's an 80% chance the trade will fail, but the stop's so tight and the target so much higher that the risk reward ratio still makes the trade worthwhile.

G

Edit - originally in at 332.8, just added a few more at 330.8. Stop is at 329.8. Target 356.

what with hurrican season almost upon us and american millitary meteorologists predicting some real baddies i hate to think where this slick the size of jamaica will end up ......Can you imagine the effect another katrina would have on environment / s/p? .........................edit ....trouble with such tight sl is a few sells and your sold out ...........but there again keeping trades small is your best bet in going long and not loosing your shirt

Thanks for the advice French.

Not worried about predicted hurricanes, lawsuits, leak containment failures, price of oil, court cases or anything like that - as a chartist, so far as I'm concerned, it's all in the price.

The only reason I considered the BP chart is because everywhere you look in the media you see doom and gloom - there seems to be negative sentiment in every corner. And the one thing we know about the markets for sure is that they will always do whatever hurts the most people. And you have to assume in this case that 'most people' are now either short, capitulated long, or are long and stubborn but considering capitulation.

And yet the chart is showing support at 330/332 - it may well be part of a pennant signalling a drop to 300/290, or it may be a bottom forming before a trip back to 380ish. If you have level 2, check out the massive support on the order book between 330 and 330.25.

The long side looks the less risky trade to me simply because the stop loss is better defined.

G

sold a few at 335.8 - part banked and the rest of the profit pays for the risk on the remaining position - assuming I'm not spiked out below my stop.

If we retest today's lows I'll probably build the position a little; otherwise I'm pretty happy with the morning's trading and will let things run.

Unlucky Boy - since nobody as answered your question, the problem is for the next 20 years you wont see a Dividend, There are talks of all BP. assets being seized in the US of A = 20 Billion wont last 10 mins when the Lawyers start raping the Account and basically the Company is F*****. And like someone earlier mentioned, imagine a Hurricane spreading the slick - might even be able to claim here on the East Coast of the U.K, Now wheres them claim forms !!

Thanks Nord - that's an extreme (some might say 'nutcase') version of the sort of negative sentiment that's out there in spades. It means that the markets expect mildly bad news and so the BP sp wouldn't react significantly to such news. Unexpected good news, on the other hand, would have a huge impact.

nordcaperen, I fear yr a tad too depressed. Sure BP is in heck of a mess, but it's not all BP's fault, IMHO. The company isn't reckless beyond reason, paerticularly as few of us have been there. When things start to change decisions have to be taken; on average BP appears to have done reasonably well in the past - and this is an entirely new situation. Sureely reality will strike at the hearts of US citizens as they fill up their SUV...that they are the root cause of oil-demand and the consequence is risk. It was the US Gov that wants home-based exploration - and I'm not convinced that all these "poverty" claims are on the level - witness the delays the US Government has seen fit in the Mississippi flooding - that was years ago!.
Also, BP has set aside money, so it's more-like sharing it out, rather than starting a new claim....anyone that tries that may find they do have a long drawn-out (expensive) wait - Let's not forget BP had a cap on their liability, something that's been forgotten short-term.

Once this oil is pumping--clean, plus the anticipated hurricane may do more good than harm (by dispersing the oil, so nature can cope?), the reality is that with BP operating, they are "probably" the best chance USA has for this (and other) deep drilling, if only a competant source of BOP can be sourced......my suspicion is that a NEW approach will be needed, perhaps so smaller (conventional) BOP's can be used- or maybe the depth demands a new approach, dunno.

What is sure is, there really is a lot of oil down there.
You suggest " ...20-years before the dividend is reinstated ..."
.... BP's is more likely to go belly-up IMHO. The "Sentiment" will turn quite quickly (this is only yet another spill, it's nothing new) also there are many US-citizens dependent on BP for employment and their pension funds . . . . My guess is two years should see some restoration . . . . Well, hope so, I bought a few a week ago at 3.57
but who knows?
Maybe Gausie is right about the sp movemenmt, I'm agreed . . .

Gausie, what good news is that then, Do you mean the Guy who's just blown his own brains out because he's lost his Livelyhood - Sure that'll get the sp flying, Hang on though, get any 25 Million people with claims to do the same and hey presto you might get a Dividend in 10 years not 20. Even BP. as big as they are will not survive this in the long term - Obama WILL seize assets, BP will cease to exist as is, that is a fact. By all means take your gamble and buy the shares, just dont be crying when you get a 'Told you so' in the future. Now stop inter-rupting me Im filling my BP. Claim Form out for cleaning the Hulls of my Super-Yatch.

Nord - "what good news is that then?" - that's the point. I have no idea what good news might come, nor indeed whether any will. Nobody expects any good news, everybody expects bad news. Bad news will consequently do little to shift the sp. Good news will put a rocket up its arse. Ask a competent trader what the word 'sentiment' means.

I don't give a toss about obama or dividends or long term industry prospects - all that nonsense is in the price. And so far as your 'super yacht' (or 'super yatch' or whatever you call it) is concerned, I wish you the very best of luck with your insurance claim.

So far as regretting the trade is concerned, there's little chance of that. I opened the position expecting a loss and I traded the opening position reasonably succesfully this morning. If you check back you'll see I posted the trades as I made them. I have banked a small profit (just a couple of hundred pounds) and have used the additional profit from this morning to bankroll any prospective losses on the remaining position. It's now a win or win trade for me. If I do cry when you give me your 'told you so' speech, it's likely to be tears of laughter at your inability to understand the simple methods that traders use to spot opportunities to make money whilst sheep and bunnies like you stare frozen into the oncoming headlights.

Have you never traded against strong sentiment before? It usually offers the very best of all market opportunities.

Now go finish cleaning your yacht. And do the little yellow duck too. It'll be bath time soon.

G

On the other hand a hurricane or two might be the best thing to happen, it could well have the effect of naturally dispersing the oil natures way. Not disputing the fact that oil is still gushing and until stopped is still the problem. In my naieve mind I would have thought with todays specialty explosives, they could have sealed the well with a charge in the right place and drilled again for a new well.....any comments? BB

Whatever, for 200 profit mate - Give up you'll be telling me next you do spread betting as well !!! You end up losing all your Benefit Money playing them games, buy yourself The Sun , Throw a dart in the Horsey section and put your dole money on that, you'll have more chance. You Big Spender you !!!!!! Roflmao

If that was the 'told you so' speech, then I'm already crying with laughter. 250 profit is the downside of the trade.

What's the downside on your short, oh great Sensei?

250, Wow, what a player you are - Probably what it cost you in charges when you lost a packet on your Jarvis shares, seem to be a bit of a chancer to me - Did you buy them on sentiment as well !!

>>Nordcaperon

I seem to remember doing alright on Jarvis over the years - are you referring to any particular trade? It would be awfully flattering to see you're researching me. At least it would be if you mattered.

250 profit as downside is small beer to you? Wow. You must have such a massively huge ePenis! I am truly in awe at its size.