Tuesday, July 20, 2010

BP (NYSE:BP): Pressure Rising with New Containment Cap

Even though stories have been circulating about a leak in the Macondo well, the fact that the pressure continues to rise is an indicator the well isn't leaking.

This is why the company has been looking for the pressure to continue rising to close to 8,000 pounds a square inch, as it would bring the conclusion there isn't a leak.

If the well wasn't rising in pressure, or the pressure was low, it would indicate a leak in the well, and the need to take further action to plug it.

The latest figures had the well pressure at close to 6,800 pounds a square inch, a good number going forward, which implies the integrity of the well is being retained, and/or there are no leaks at other parts of the well.

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