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Very suspicious… The oil rig explosion, subsequent oil spill and the circumstances that caused it are of some interest to me. It is getting even more interesting as I read reports by experts in various aspects of oil rigs and offshore drilling.  Some are questioning if it was sabotage.

“Last month, as a crumb thrown to Republicans for his Cap & Trade plan, Obama proposed new offshore oil exploration in the Atlantic Ocean from Delaware to central Florida, plus the northern waters of Alaska. Obama also suggested lifting a drilling ban in the oil-rich eastern Gulf of Mexico, 125 miles from Florida beaches.

This hyperbole goes against everything Obama stands for and has done since usurping the presidency. They had to create a reason to renege on this proposal or lose the support of his radical environmentalist base. How convenient that the BP rig would choose this particular time to blow up and cause a massive oil spill. The White House now says it “will not go forward with new offshore drilling until the oil spill cause has been reviewed,” and then what?

Obama said he has ordered Interior Secretary Ken Salazar to review what happened and report within 30 days. In the mean time, he has ordered the shut down of all Gulf oil production rigs. How does $5.00/gal gasoline for the summer sound to you?”

Sabotage?

Sabotage is not outside the realm of possibility when trillions of dollars are at stake.  The question to ask is:  With “climate-gate” throwing a wrench in the works of Cap and Trade, and the (potentially) extremely lucrative carbon-credit market about to go down the drain, were drastic measures taken?  (Here and Here)

Are there any “movers and shakers” connected with Chicago’s CCX scam, who also happen to be connected to Halliburton, BP, or…well you get the idea.  Just asking.

The oil spill after one week covers approximately 130 by 70 miles.  What is it going to cover after several months—with thousands a barrels of oil being added each day?  (Source)

First coal, now oil—I suggest you folks at the nuclear power plants be on your toes.

Blogger Director Blue posts about someone who is excoriating the Obama Administration for waiting eight days to begin burning off the oil slick that’s been spreading in the Gulf of Mexico.

OilGate: Former Federal Spill Response Coordinator Blasts White House Reaction as ‘Unconscionable’ — Was It Incompetence or Malice?

On April 29th, Ron Gouget, who once managed Gulf spill response teams, publicly pilloried the administration’s response to the tragic oil rig explosion in the Gulf of Mexico. Gouget is an expert when it comes to these matters: he helped created the 1994 plan that allowed expedited burning of oil as soon as a major spill had occurred — without having to wait for permission or approvals.

Here’s a fascinating piece by Byron W. King, that explains in simple, easy-to-understand terms what goes into the drilling process, the equipment used, an analysis on what might have caused the explosion, the proposed fix, and how this tragic accident (occurance?) might impact the market. King worked as a geologist in the exploration and production division of a major international oil company and has followed developments in the oil and gas industry for almost three decades. He is currently a practicing attorney in Pittsburgh, Pennsylvania.  He writes a subscription financial newsletter and contributor to Whiskey & Gunpowder blog.
April 26, 2010

Transocean Rig Disaster: The Well From Hell

Dear Outstanding Investments Reader,

Once more unto the breach, dear friends, once more. Here’s another update on the disaster that befell Transocean Ltd. (RIG: NYSE) and BP (BP: NYSE) last week in the Gulf of Mexico . (Thanks to OI reader Steve, in Texas , for sending some of the photos in today’s alert.)

As you know by now, the drilling vessel Deepwater Horizon exploded, burned and sank last week, with the loss of 11 workers and injuries to many more. What happened? What’s happening now? What’s going to happen? I’ve spent the weekend working to piece things together.

To read King’s very informative piece, click here.