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Strategies & Market Trends : The Residential Real Estate Crash Index
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From: Les H6/5/2010 2:05:15 PM
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BP, feds could make millions from runaway well's oil

By Erika Bolstad | McClatchy Newspapers
WASHINGTON — BP's runaway deepwater well could still become a moneymaker for the company, even as it tries to stem the gush of crude oil that's fouling the Gulf of Mexico.

If the current containment effort works — and BP and the government say they're optimistic that it will — the oil giant will salvage much of the oil that's now spewing from the crumpled pipes on the ocean floor. That captured oil, McClatchy estimates, could generate more than $1.4 million in revenue for BP each day.

Once the oil is piped to the surface to the drill ship Discoverer Enterprise, it will be processed and sent by tanker to a refinery to be sold.

"It's exactly the same as if it's normally produced oil," BP spokesman Graham MacEwen said.

Based on government estimates of the flow rate, the mangled well could produce oil valued at as much as $85 million over the next 60 days, until a relief well is complete and the well is capped permanently.

The people who own the deepwater site that's leased to BP — U.S. taxpayers — could see a more modest windfall. The Treasury could be due as much as $328,125 in royalties daily, or $19 million total over 60 days. Further, under its lease BP also must pay royalties on the oil lost in the spill, which would mean another $13.5 million.

mcclatchydc.com
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