I've heard this argument from a number of places that BP is working to keep producing oil from this rather than just cap it and abandon it. I've seen a number of technical descriptions that it is not going to stop leaking at least some oil until the relief well is completed. It seems to make sense that it is very difficult to just "plug the hole" but some would argue that BP is just a greedy oil company looking to profit at any cost.
What I haven't seen is some explanation for the economic justification of keeping the well producing if BP could seal and abandon it right now. It would seem that this well would need to produce more than any other well in the gulf and the price of oil to skyrocket in order to offset the costs of collecting the oil, processing the oil, containing the still leaking oil, and cleaning up the gulf. Even if you take out the liability for the current damage done, I don't see BP being able to profit from this venture by salvaging some oil that costs them more than the ongoing costs of this operation. Perhaps, there is some magic reasoning that I'm missing that I don't understand a greedy oil company working so hard to lose money by spending and risking possibly over a billion $ to make a few million $.
Nailed it. BOP was failsafe A, failsafe B is relief well. Which hopefully those are ahead of schedule.
“What I haven’t seen is some explanation for the economic justification of keeping the well producing if BP could seal and abandon it right now. It would seem that this well would need to produce more than any other well in the gulf and the price of oil to skyrocket in order to offset the costs of collecting the oil, processing the oil, containing the still leaking oil, and cleaning up the gulf. Even if you take out the liability for the current damage done, I don’t see BP being able to profit from this venture by salvaging some oil that costs them more than the ongoing costs of this operation. Perhaps, there is some magic reasoning that I’m missing that I don’t understand a greedy oil company working so hard to lose money by spending and risking possibly over a billion $ to make a few million $.”
The talk that BP prefers to produce rather than seal the well is conspiratorial talk without any basis in logic as you indicate. Most of the talk comes from the left but conservatives are piling on somewhat based on BP’s support for green energy and Democrats. Most businesses saw the Democrat rise to power so they know that it is important to pay tribute to deflect the wrath of Democrats.