Friday, August 13, 2010

Did BP (NYSE:BP) Kill Well with 'Top Kill' on Purpose?

Some may wonder why it matters if BP (NYSE:BP) attempted to permanently kill the oil well on purpose with the 'top kill.' Technically it doesn't matter, as the goal is to permanently plug the well, not the methodology used.

But it does matter from the point of view of the purpose in doing it, as it could reveal there were intentions from the beginning by the Obama administration and BP to have an out if they want to extract oil from the well at a future date, or sell the oil assets to another company.

If the well were to be plugged with the top kill, and there was no need to use the relief well to do a bottom kill, there would be a perfect situation for BP or a company coming in to use the relief well for extracting oil and gas still in the well.

For about a week BP and the government have given indications permanently plugging the well may not be the way to go.

Pressure tests will be enacted to determine if the cement leaked into the annulus, which is the goal of the bottom kill, and the definition of permanently plugging it.

If that indeed did happen, or is even being tested as to possibly happened, it surely was planned that way for the purposes mentioned above.

Why would they do that? To lower public resistance to the well being accessed again for oil and gas; whether by BP or another corporation.

If cement "accidentally" seeped into the well and performed the bottom kill results, then there is a convenient relief well in place to extract the oil and gas.

While this is not a surety as to whether it'll work or not, I do think it was attempted on purpose in an effort to give it a realistic chance of working.

There can be no doubt the Obama administration and BP are attempting to salvage the oil and gas under the Gulf floor. They're just attempting to do it in a way that's palatable to the public.

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