"Some experts are beginning to worry about whether BP, or any company, has enough strength to pay the eventual price for one of the worst environmental disasters in U.S. history — a tab that may continue to run for two or three decades.
"One of the problems is that we don't even know if $20 billion will be enough. This is all on an unprecedented scale," said Joe Hahn, a professor at Pepperdine University's Graziadio School of Business and Management who formerly worked as an engineer in the oil industry.
Hahn said the company might face the additional problem of severe fines from its decisions before and after the oil rig exploded.
"Initially, I thought they would be able to survive this, but they are in serious financial trouble. Their future is very questionable right now," Hahn said." LA Times
This article mentions 20 billion in BP assets that have been "set aside" as a "kind of collateral" for payment of the "trenches"of the $20 billion dollar fund. What assets are these? How well are they secured from the possibility of a Chapter 11 bankruptcy or dissolution of the BP Group elements within the reach of US law?
Hayward's performance yesterday made me think that he was "buying time" for BP, buying time for them to come to grips with whatever they decide is the best course of action for their stockholders.
Dylan Ratigan yesterday interviewed one Matthew Simmons on the subject of the actual condition of the hole that BP is trying to plug. Simmons, evidently a leader of the "Peak Oil" people, insists that the down hole pressure is not 11,000 PSI as Hayward said to Congress. Simmons maintains that the pressure is really more like 60,000 PSI. If that is the case then it would seem that both the present leak and the relief wells may be ineffective. What do you all know of this?
Simmons also says that USGS scientists in the Gulf have determined that there is no casing (metal pipe) left in the bore hole. He says that the pipe has been blown out by the extreme pressure.
His solution? A small yield nuclear explosive in the bore hole. Opinions? plhttp://www.latimes.com/business/la-fi-oil-spill-bp-20100617,0,2351140.story