Rising Tension Week
This is the week when we are supposed to 'feel' (as much as read in headlines) a transition into 'rising tensions' which should carry us forward to July 11th-ish period, which will mark when we should see a saw-
tooth kind of period of 'release language' begin; ultimately we get to the biggest release events we've ever seen in modelspace (drawfing 9/11, the KatRita Hurricanes, China quake, Banda Aceh, and all the rest combined. Should be quite a show. Barf bags and aspirin at the ready kind of thing.
If you have no clue what this means, run (don't walk) over to www.halfpasthuman.com with $10 and get the "Shape of Things to Come" report which is a 50+ page 'light reading' of how language has been changing over time and signaling astute readers about future events. It won't help you feel any better but at least you'll have a clue what we're talking about as we natter on about rising tensions, emotional release events, modelspace happenings and the movement of events/linguistics hints within modelspace.
We're in a period of so much 'building tension' right now that about all we can hope to do is list the 'rising tension' events - those events which bring massive lifestyle change in slow-motion. Today's short list:
President Obama's posse and oil company execs are working the problem of how to shut down that gushing oil rig which caught fire/exploded off the Louisiana coast and which is threatening to wreck beachfront property values (oh, and the environment, too, I suppose I should mention that) along a swath from LA to FL.
Key thing about the oil leak is we are now around 70% fulfillment on the predictive linguistics call for "dead/dying oceans and the 'blue flue" as reports warn that "Mother of all gushers could kill Earth's oceans" which is right in line with the linguistics, but remember (this won't be pleasant, so drop the Wheaties for a sec): This is only the first of what should be a trifecta of events between now and November which will show any thinking person with 13¢ worth of brains that government has only very limited ability to cope with Ma Nature and her sidekicks... You haven't lost sight of the fact we've still got 3-4 major earthquakes to go this year of the "Great Quake" type in modelspace? That 5.9 in Japan this morning's tiny compared to what's out there.
Taliban-Chef Mehsud erklärt US-Städte zum Terrorziel
6. The valve which was supposed to stop any spillover does not work and is a product of Cameron plus Halliburton made plenty of work to name 2 out of 4 - the point is so far all the costs are with BP (which is a Rothschild company) but they will turn around and go for Cameron and or Halliburton. They will on the other side trigger their insurance policies which can easily end up with Berkshire hence this might turn in to a disaster for Buffett as well but very likely cause some reinsurance companies plenty of damage.
Cost of US Oil Spill Could Exceed $14 BillionThe total bill related to the oil spill drifting toward Louisiana from a well operated by BP in the Gulf of Mexico, could exceed $14 billion, analysts said.
Erica Berenstein | AFP | Getty Images
A clean-up worker laying booms beside a fragile wetlands near the town of Venice that is in the path of the oil spill that is creeping towards the coast of Louisiana.
Since an explosion almost two weeks ago on the Deepwater Horizon rig, a disaster scenario has emerged with hundreds of thousands of gallons of crude oil spewing unchecked into the Gulf and moving inexorably northward to the coast.
The responsibility for the cleanup operation lies with the owners of the well, led by 65 percent shareholder, London-based oil company BP [BP 52.15 --- UNCH (0) ].
BP said last week that it was spending $6 million a day on the clean up but admitted this figure would rise sharply when the slick hits land.
Neither the company or its 25 percent partner, explorer Anadarko Petroleum [APC 62.16 --- UNCH (0) ], have put an estimate on total costs, although BP CEO Tony Hayward told Reuters in an interview on Friday that he would pay all legitimate claims for damages.
The final bill for cleaning up the spill could be $7 billion, Neil McMahon, analyst at investment firm Bernstein said.
Analysts at Morgan Stanley put the figure at $3.5 billion, while analysts at Citigroup, Evolution Securities and Panmure Gordon put cleanup costs at under $1.1 billion.
Compensation that must be paid to those impacted by the slick could also amount to billions of dollars.
The cost to the fishing industry in Louisiana could be $2.5 billion, while the Florida tourism industry could lose $3 billion, Bernstein predicted.
BP will also have to spend $100 million to drill a relief well to try and stem the flow of the well, while the loss of the Deepwater Horizon well represents a hit of around $1 billion for its owner, Swiss-based drilling specialist Transocean [RIG 72.32 --- UNCH (0) ].
Compensation for Workers
Eleven workers are missing, presumed dead, following the rig explosion and compensation will have to be made to their families.
BP was forced to pay out $2 billion in compensation after 15 workers died in an explosion at its Texas City refinery in 2005, although Peter Hitchens at Panmure said it was likely liabilities related to the rig would be Transocean's responsibility.
BP and its partners in the oil block where the leaking well is located will have to cover the cleanup costs and damages on a basis proportionate to their shareholdings, which will leave BP with 65 percent of the bill.
The company self-insures through its own insurance company, named Jupiter. Contrary to press reports, Jupiter does not lay off risks onto reinsurers or syndicates at Lloyds of London, a spokesman said on Sunday.
Hence, BP will end up paying any costs out of its own pocket.
However, it is possible BP and Anadarko could seek to reclaim any damages from Cameron International [CAM 39.46 --- UNCH (0) ], the supplier of the well head equipment which has been blamed for the accident or companies involved in maintaining the drilling machinery.
The oil is leaking because a shut-off valve that should automatically kick in when a problem occurs, has not functioned.
The valve, known as a blow-out preventer, was supplied by Cameron and operated, as an integral part of Transocean's rig.
A boat works uses a protective boom to collect oil that has leaked from the Deepwater Horizon wellhead in the Gulf of Mexico.
Oil services provider Halliburton [HAL 30.65 --- UNCH (0) ] said it performed a variety of work on the rig.
If BP could prove that Halliburton or Cameron did something wrong, they could lay part of the blame on them, Mike Breard, an energy analyst with Hodges Capital Management in Dallas said last week.
Shares in BP have fallen around 13 percent since the accident, wiping out $20 billion of the company's market value.
Shares in Anadarko, Transocean, Cameron and Halliburton have also been hit.
If regulators find any wrongdoing or incompetence on the part of the companies involved, it could levy fines, although analysts said that going by previous fines, these would likely be in the range of tens of millions -- immaterial to the total bill.