US Hurricane Season and BP’s Spilled Oil.

by | May 15, 2010 | Economic Intrigue, Environment

Accuweather has interesting predictions about what effect a landfall hurricane could have on the thousands (or indeed millions) of gallons of oil sloshing around off the US coast courtesy of BP but first, a look at their 2010 Hurricane Season Forecast (emphasis mine) :

The upcoming hurricane season could be a top 10 active year, a stark contrast from the relatively calm 2009 season.

AccuWeather.com Chief Hurricane Meteorologist Joe Bastardi predicts a total of 16-18 storms this season. To put that in perspective, only eight years in the 160 years of records have had 16 or more storms in a season.

The season should start early with one or two threats by early July, and stay late with additional threats extending well into October.

What a crackign name for the Chief Hurricane Forecaster!

Anyway, the point of the post :

Depending on the approach of a tropical storm or hurricane, increasing winds and building, massive seas would first halt containment operations.

Rough seas would dislodge or destroy protective booms, rendering them useless as the storm draws closer.

Depending on the approach of a tropical storm or hurricane, increasing winds and building, massive seas would first halt containment operations.

Rough seas would dislodge or destroy protective booms, rendering them useless as the storm draws closer.

All of which could add quite substantial amounts to BP’s already eyewatering costs :

BP plc (NYSE: BP) says the costs of cleaning up and attempting to cap the oil flow from what is left of the Deepwater Horizon have risen above $450 million.  According to The Wall Street Journal, “Jason Kenney, a U.K.-based analyst at ING, thinks BP’s total costs stemming from the spill, including environmental cleanup and litigation, could top $5.1 billion. Some analysts estimate that BP’s total costs could be more than twice that amount.” These numbers are based on the forecast that the leak a mile down in the ocean will be remedied at some time in the next few weeks. What if that does not happen?

Nearly half a billion dollars and still no nearer to sorting it out.

0 Comments

Trackbacks/Pingbacks

  1. Will the US consider the nuclear option for oil spill? « The Waspsnest - [...] the costs for BP pass half a billion dollars and the hurricane season approaches as I wrote about here…