Deepwater Horizon oil spill 4202010
light Louisiana crude oil shows the color of orange to red. I suspect the black part of crude was lost to solidification under high pressure under sea.
How bad is the situations
The gusher, now estimated by the quasi-official
Flow Rate Technical Group to be flowing at 20,000 to 40,000 barrels per day URL
http://en.wikipedia.org/wiki/Deepwater_Horizon_oil_spill Accessed Monday, June 14, 2010
At 30,000 barrels/day the amount of = 44 kiloton of TNT/day
Place Date Y
ield of the explosion Hiroshima A-bomb 广岛 08/06/1945 15 kilotons TNT
Nagasaki A-bomb 长崎 08/09/1945 21 kilotons TNT
Deepwater Horizon Rig 04/20/2010 44 kilotons TNT/per day^a
^a leak based on 30,000 barrels/day . 1 Barrel = 42 US gallons = 5,800,000 Btu .
What is going to happen?
- the effect of oil contamination is long term. It will take more than 100 years for the nature to digest the crude. It takes millions years for the crude to form. The crude is kinetically stable, and thermodynamically unstable with chemist's parlance. Most of them are fused benzene rings.
- The crude will coagulate into balls with diameters ranging from millimeters to inches. And those tar balls will settle into holes of beaches.
- Those chemicals are toxic, carcinogin. They are water insoluble and soluble in fat. Therefore no more fish oils from Gulf.
- Fish will die. Fish gill will be neutralized by the radicals generated from the bio-degradation of crude oil, rendering fish cannot get oxygen from water.
- the damage is in the trillions US dollars. Therefore, BP has to file bankruptcy, and sell to a third party, such as Exxon Mobil or PetroChina. Sale to PetroChina is politically dead since last time CNOOC failed to buy Unocal because US Congress was vehemently against it. When the news announces, Exxon Mobil buys BP US interests, Exxon Mobil stock will dive. A buying opportunity for XOM for average investors?
- The current $3/gallon US gasoline at 06/14/2010 is too low, it doesn't cover the risk factor of crude production.
- higher cost for gasoline. Bad news for American drivers. Exxon and Saudis will laugh all the way to the bank.
Winners
Saudis > Exxon.
Losers
Environment > car drivers > Obama.