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Ships work near the site of the BP Deepwater Horizon oil spill in the Gulf of Mexico off the coast of Louisiana. BP is to begin plugging the damaged oil well today with a 'static kill', by pumping mud into it. A new estimate puts the total amount of oil leaked into the Gulf at 205.8 million gallons.
Environmentalists and Gulf Coast residents are reeling after news of yet another oil rig explosion not far off the Louisiana coast and only 200 miles west of the site of BP's Deepwater Horizon drill site. All 13 crew members were rescued, but an oil slick has already begun to appear on the surface of the water. The rig was managed by Mariner Energy, which, along with related companies, has been cited 10 times for accidents in the Gulf of Mexico over the last 10 years. The extent of a spill is not yet know, but it will be easier to clean up, because the well is in much shallower waters. And where does BP stand now? The company has been criticized for its expensive ad campaign, and as of now, crews are set to remove the cap that finally plugged the 3 month leak so they can finally extract the piece of equipment that failed and caused the leak. Two leaks in one area in less than 6 months... how will the off-shore drilling movement be affected?
Dave Pursell, Managing Director, head of the macro-research department at Tudor, Pickering, Holt & Co., which is an energy investment banking company in Houston, Texas