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Posts Tagged ‘cleanup costs’

BP Inserts Siphon Into Oil Leak, Washington Warns BP; Slick New Videos; Tracking the Spill; Will BP Survive?

BP Inserts Siphon Into Oil Leak, Washington Warns BP; Slick New Videos; Tracking the Spill; Will BP Survive?

Courtesy of Mish 

In what everyone hopes will be the start of sealing the leak, on its second attempt BP Inserts Siphon Into Oil Leak.

BP PLC successfully inserted a tube into the broken pipe leaking oil into the Gulf of Mexico early Sunday, a person close to the containment operation said, increasing the chances that the company will be able to siphon off much of the oil now gushing into the sea.

The tube is designed to capture a large part of the oil spewing from the pipe and direct it securely to a ship on the surface.

Earlier efforts to contain the spill ran into a series of setbacks. BP made a first attempt to insert the tube late Saturday, but it fell out following a collision between two subsea robots. Before that, a huge dome that was to be lowered onto the leak got clogged up with gas crystals or hydrates.

It’s still unclear whether the new siphoning operation will work. Even in the best-case scenario, the tube won’t capture all the leaking oil.

Video of Gushing Leak

4 Ways Considered To Stop The Spill

The Wall Street Journal has graphics showing 4 Ways Considered To Stop The Spill

1. Drilling Relief Wells
2. Treading the Needle, inserting a 6-inch vacuum tube inside the riser to suck up oil
3. Junk Shot, placing golf balls and other junk into the bottom of the blowout preventer before cement is injected into the top
4. Top Hat shown below

In regards to "Junk Shot", it seems to me that golf balls are relatively light as are broken pieces of rubber tires that have also been mentioned. If you are going to try this, why not lead balls?

Right now the focus is on threading the needle

Letter from Secretary of Interior to CEO of BP 

Inquiring minds are reading the letter from Ken Salazar, Secretary of the Interior, to Dr. Anthony Hayward, Group Chief Executive BP.

The BP Deepwater Horizon oil spill may prove to be one of the most devastating environmental disasters this nation has ever faced. As one of the responsible parties for this event, BP is accountable to the American public for the full clean up


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David Kotok: $12.5 Billion Is Just The Start Of The Oil Cleanup Costs, And A Double-Dip Is Now Way More Likely

David Kotok: $12.5 Billion Is Just The Start Of The Oil Cleanup Costs, And A Double-Dip Is Now Way More Likely

oil spillCourtesy of Joe Weisenthal at Clusterstock 

David Kotok of Cumberland Advisors is out with some very gloomy comments about the economic ramifications of the Deepwater Horizon oil spill, and what it will cost. First he notes the ugliest case scenario:

This spew stoppage takes longer to reach a full closure; the subsequent cleanup may take a decade.  The Gulf becomes a damaged sea for a generation.  The oil slick leaks beyond the western Florida coast, enters the Gulfstream and reaches the eastern coast of the United States and beyond.  Use your imagination for the rest of the damage.  Monetary cost is now measured in the many hundreds of billions of dollars.

As for numbers:

Usually, the first estimates in any crises are too low.  That is true here.  1000 barrels a day is now 5000, and some estimates of spillage are trending higher.  No one knows exactly.  The containment and boom mechanism is subject to weather cooperation as we can see this weekend.  Soon we are entering the hurricane season.  The thoughts of a storm stirring up the Gulf, hampering any cleanup or remediation drilling effort and creating a huge 10,000 square mile black stew is frightening to every professional in the business.
 
This will be a financial calamity for many firms, not just BP and its partners and service providers.  Their liabilities are immense and must not be underestimated.  The first estimate of $12.5 billion is only a starter.

As for the economy beyond BP…

Thousands of small and independent businesses as well as larger public companies in tourism are hurt here.  This is not just about the source of half the nation’s shrimp.  That is already a casualty.  It’s also about the bank loans for the $200,000 shrimp boat and the house the boat owner and/or his employees live in and the fact that this shock piles on a fragile financial system that is trying to recover from a three-year financial crisis.  Case study, my fishing guide in the Everglades splits his time between Florida and Louisiana.  His May bookings in LA have cancelled.  His colleagues lost theirs and their lodge will be empty.  They are busy trying to find work in the clean up.  For him, his wife


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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743"

Thank you for you time!

 
 

Phil's Favorites

Excuse Me For Living

Excuse Me For Living Courtesy of James H. Kunstler

Israel has all the proof it needs that world opinion will never consider its right to exist important. The Obama White House, and a lot of the US News Media, portray the Hamas-Israel conflict as something like an amateur soccer match, with the uneven score (40-odd Israeli soldiers killed versus 1000-plus Palestinians, mostly civilians) showing that the contest is unfair, that Israel has “gone too far,” that they have entered the same moral zone as Hitler, Stalin, and Pol Pot, carrying out a “genocide.”

Of course, this is a real hot war, not a diversity training exercise, or a self-esteem course, or any sort of the kinderga...



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Insider Scoop

Report: IBM Rejects Offer For Chip Operations

Courtesy of Benzinga.

Related IBM Blackberry Attempts To Rebound From IBM/Apple Deal The 10 Most-Respected Corporate Brands Can the iRally Endure? (Fox Business)

International Business Machines (NYSE: IBM) rejected an offer for part of its semiconductor manufacturing operations, according to unnamed sources cited by ...



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Zero Hedge

Photos Emerge Of 10 "Active Militia Teams" Securing The US-Mexico Border

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

With 1000s of illegal immigrants crossing the US-Mexico border every day (perhaps even more now some of the border has been washed away), the government quietly dumping them in Tennessee (among other places), and current (recently constructed border protection infrastructure already breaking down), it appears the American people are taking matters into their own hands. Photos showing dozens of members of militia groups on the U.S.-Mexico border carrying semi-automatic rifles a...



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Chart School

What happened the last time someone teased a bear?

Courtesy of Read the Ticker.

Time for a funny, can't be serious all the time!

Is it really smart to poke a Russian bear ?? Seriously!!




NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net Investing Quote...

.."One of the most helpful things that anybody can learn is to give up trying to catch the last eighth – or the first. These two are the most expensive eighths in the world. They have cost stock traders, taken together, enough millions of dollars to build a concrete highway across the continent."..

Jesse Livermore
..“It’s not what you own that will send you bust but what you owe.”..

Anon


...

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Option Review

Kellogg Call Options Active Ahead Of Earnings

Shares in packaged foods producer Kellogg Co. (Ticker: K) are in positive territory on Monday afternoon, trading up by roughly 0.20% at $65.48 as of 2:20 p.m. ET. Options volume on the stock is well above average levels today, with around 12,500 contracts traded on the name versus an average daily reading of around 1,700 contracts. Most of the volume is concentrated in September expiry calls, perhaps ahead of the company’s second-quarter earnings report set for release ahead of the opening bell on Thursday. Time and sales data suggests traders are snapping up calls at the Sep 67.5, 70.0 and 72.5 strikes. Volume is heaviest in the Sep 72.5 strike calls, with around 4,600 contracts traded against sizable open interest of approximately 11,800 contracts. It looks like traders paid an average premium of $0.37 per contrac...



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All About Trends

Mid-Day Update

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Sabrient

Sector Detector: Bold bulls dare meek bears to take another crack

Courtesy of Sabrient Systems and Gradient Analytics

Once again, stocks have shown some inkling of weakness. But every other time for almost three years running, the bears have failed to pile on and get a real correction in gear. Will this time be different? Bulls are almost daring them to try it, putting forth their best Dirty Harry impression: “Go ahead, make my day.” Despite weak or neutral charts and moderately bullish (at best) sector rankings, the trend is definitely on the side of the bulls, not to mention the bears’ neurotic skittishness about emerging into the sunlight.

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable trading ideas, incl...



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OpTrader

Swing trading portfolio - week of July 28th, 2014

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW in the comments below each post. 

Our weekly newsletter Stock World Weekly is ready for your enjoyment.

Read about the week ahead, trade ideas from Phil, and more. Please click here and sign in with your PSW user name and password. Or take a free trial.

We appreciate your feedback--please let us know what you think in the comment section below.  

...

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Digital Currencies

BitLicense Part 1 - Can Poorly Thought Out Regulation Drive the US Economy Back into the Dark Ages?

Courtesy of Reggie Middleton.

An Op-Ed piece penned by Veritaseum Chief Contracts Officer, Matt Bogosian

This past weekend (despite American Airlines' best efforts), Reggie and I made it to the Second Annual North American Bitcoin Conference in Chicago. While there were some very creative (and very ambitious) ideas on how to try to realize the disruptive Bitcoin protocol, one of the predominant topics of discussion was New York Superintendent of Financial Services Benjamin Lawsky's proposed Bitcoin regulations (the BitLicense proposal) - percieved by many participants at the event as an apparent ...



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Market Shadows

Danger: Falling Prices

Danger: Falling Prices

By Dr. Paul Price of Market Shadows

 

We tried holding up stock prices but couldn’t get the job done. Market Shadows’ Virtual Value Portfolio dipped by 2% during the week but still holds on to a market-beating 8.45% gain YTD. There was no escaping the downdraft after a major Portuguese bank failed. Of all the triggers for a large selloff, I’d guess the Portuguese bank failure was pretty far down most people's list of "things to worry about." 

All three major indices gave up some ground with the Nasdaq composite taking the hardest hi...



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Pharmboy

Biotechs & Bubbles

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Well PSW Subscribers....I am still here, barely.  From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so desired....buy a small amount.

First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices.  Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment.  Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer.  For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...



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Promotions

See Live Demo Of This Google-Like Trade Algorithm

I just wanted to be sure you saw this.  There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.

If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.

Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.

Follow this link to register for their training webinar where they’ll demonstrate the tested and proven Algorithm powered by the same technological principles that have made GOOGLE the #1 search engine on the planet!

And get this…had you done nothing b...



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