Monday, June 7, 2010

BP (NYSE:BP) Update: Containment Berms and Oil Skimming

Although there is optimism over BP'S (NYSE:BP) containment cap that was successful placed on Thursday, the harmful effects of the estimated 23 million to 50 million gallons that have already polluted the ocean and now our shorelines despite placing containment berms, cannot be denied. Not to mention in an already bad economy oil stocks and investments have plummeted. These are just a couple of the constant reminders of just the beginning effects of the oil spill tragedy.

Kelcey Forrestier, a biology graduate visiting Florida's Okaloosa area said, "oil doesn't just go away, oil doesn't disappear. It has to go somewhere and its going to come to the Gulf beaches." He said its obvious that this oil damage will go on for years to come.

The oil is also making its appearance in Texas. Government officials stated Sunday that for the first time, oiled and dead birds are being seen there. The governments wildlife report did not go into any details on the circumstances. Jim Suydam, Texas General Land Office spokesman, said he hadn't heard about the birds and the oil was still around 100 miles away from the border. It's also reported that the oil sheen is around 150 miles from Tampa, Florida.

Alabama's coastlines continue to get hammered with oil as well. Thad Allen, the Coast Guard Administrator for the government, has ordered more oil cleanup crews for oil skimming and additional containment berms, after surveying the area by air. "It's so widespread, and its intermittent. That's what is so challenging about this. Everyone wants certainty. With an oil spill like this, there isn't any," said Allen.

BP stated that they are planning a $360 million plan to put up six sand berms. This effort is being done with the intention to prevent oil from spreading, thus protecting the Louisiana wetlands. Although this is a grand gesture, it may be to little to late.

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