Friday, July 16, 2010

BP (NYSE:BP) Oil: Sealing Cap Testing Shows Success

On Thursday afternoon BP (NYSE:BP) finally tested the sealing cap that was placed on the Macondo well. The test showed no oil flow and the leak found earlier in the week was successfully repaired.

Although, this is the preliminary phase of their testing. It is expected for the testing to continue on anywhere from the next six hours to two days, possibly longer. Even though there is much to be optimistic about, anything can go wrong as the pressure inside the containment cap continues to be raised. As the testing continues, it will show weather the sealing cap can handle the intense pressure of oil without breaking and causing a new leak.

This is very good new for BP, especially after prior failed attempts to contain the oil leak in the Gulf. After each failed attempt, the company's share prices continued to drop, losing over half of their market value since April 20th. Plus due to the disaster, lawmakers have taken several steps in implementing new safety measures as well as banning new offshore exploration.

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