Wednesday, May 26, 2010

BP (NYSE:BP) "Top Kill" Begins

In an attempt to finally stop the oil spill in the Gulf of Mexico, BP (NYSE:BP) said they've started the "Top Kill" procedure which they conclude has about a 60 percent to 70 percent chance of success.

As of about 1 p.m. local time, BP started their attempt to fill the well with heavy drilling fluids through the blowout preventer.

Uncertainty surrounds the operations because there is no road map for the company, as it has never been attempted at ocean depths like this. This would be a huge win for BP, and relief, as frustration all around has accompanied the consequences of the accident, which claimed 11 lives.

There are several alternatives if this fails, one of which would involve placing a containment system over the well in order to attempt to capture the oil and direct it to a surface ship.

Although there is one method that is guaranteed to work, it could take a couple of months to implement, which is to drill a relief well. The obvious pressure from the media coverage and public response would be enormous if that's what eventually happens.

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