Friday, July 23, 2010

BP (NYSE:BP): Jindal Declares State of Emergency as Bonnie Approaches Gulf

In light of the second named storm of the season, Tropical Storm Bonnie, heading toward the Gulf, Louisiana Gov. Bobby Jindal has declared a State of Emergency, as fears mount much of the cleanup work done to this point in the region could be threatened.

Concerns are the tropical storm will become a hurricane, as warm waters can cause that to happen when they meet.

Either way, the drilling on the relief well will stop, and boats taken from the area for safety.

The threat isn't so much to the well, unless something happens which can't be monitored during the storm, which is highly unlikely, now that BP has been cleared to keep the containment cap on. More threatening is the potential damage it could do to the shorelines, where oil from the past storm, Alex, more than doubled along the shorelines after it left the area.

Wind direction is expected to come from the southeast and east, which would drive the oil right into the shoreline of Louisiana.

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