There are two deals that have been agreed to by Chevron (NYSE:CVX) and Conoco Phillips (NYSE:COP) , according to Indonesia's energy watchdog BPMIGAS. Chevron is Indonesia's largest oil producer and the final deal entails Chevron purchasing their natural gas from Conoco Phillips.
One of the deals was an amendment to a previous deal, which was meet with resistance by politicians because it was said to be unfair due to the current hike in the prices of oil. The gas supply will come from Conoco Phillips fields in South Sumatra.
The terms are for a four year time period, where Conoco Phillips will be supplying 77.9 trillion British thermal units total. As well as an additional 12 year agreement for 1,177 trillion British thermal units.
This deal will replace a prior deal which entailed swapping crude oil for natural gas among the two companies. Chevron is currently producing 370,000 barrels of crude oil daily from Sumatra.
As production has decreased due to not being able to tap new fields quickly enough, Indonesia has become a net importer of crude oil in recent years.
Monday, May 31, 2010
BP (NYSE:BP) Third Oil Containment Attempt, Riskier Than Top Kill
Here we go again, BP (NYSE:BP) is on their third attempt to get some sort of control over the worst oil spill in U.S. history. Jon Pack, a BP spokesman said the cutting will commence soon.
This oil containment procedure includes using underwater robots which will cut the damaged pipe from the leaking well. This does risk causing the crude oil flow to become even worse. This latest procedure was approved by Interior Secretary Ken Salazar and U.S. Energy Secretary Stephen Chu.
Once the damaged pipe is cut, then they will try and attach a pipe onto the leak which if successful, would cause the oil to flow to the surface and then be stored. Pack stated that currently the preparation is being done. If everything goes as planned, it should be completed by June, 6th.
This attempt is considered riskier than the "top kill" attempt, because the whole pipe will be cut off at the riser. If unsuccessful, even more oil will be flowing nonstop into the ocean.
This oil containment procedure includes using underwater robots which will cut the damaged pipe from the leaking well. This does risk causing the crude oil flow to become even worse. This latest procedure was approved by Interior Secretary Ken Salazar and U.S. Energy Secretary Stephen Chu.
Once the damaged pipe is cut, then they will try and attach a pipe onto the leak which if successful, would cause the oil to flow to the surface and then be stored. Pack stated that currently the preparation is being done. If everything goes as planned, it should be completed by June, 6th.
This attempt is considered riskier than the "top kill" attempt, because the whole pipe will be cut off at the riser. If unsuccessful, even more oil will be flowing nonstop into the ocean.
BP's (NYSE:BP) New Plans, Will Make Spill Worse
As BP (NYSE:BP) is putting together a new plan, after the failed "top kill" attempt, it could only make things worse. Although it would only be temporarily.
Carol Browner, the White House energy czar said, "the American people need to know that it is possible we will have oil leaking from this well until August, when the relief wells will be finished." The other complication is that storm season is moving into the Gulf. As storms move in, this causes the oil recovery operations to come to a halt.
Michael Dixon, a lieutenant in charge of oil recovery operations at the Coast Guard Venice staging area said, "the way that the currents are treating this, and the ongoing leaking of oil, this is basically small spills all over the place. It's a series of a lot of small oil spills. We're fighting on a lot of fronts."
So our worst fears are being realized, our oceans will continue to be polluted, our shorelines destroyed, stocks will continue to fall, and the full effects on humans has yet to be fully realized.
Carol Browner, the White House energy czar said, "the American people need to know that it is possible we will have oil leaking from this well until August, when the relief wells will be finished." The other complication is that storm season is moving into the Gulf. As storms move in, this causes the oil recovery operations to come to a halt.
Michael Dixon, a lieutenant in charge of oil recovery operations at the Coast Guard Venice staging area said, "the way that the currents are treating this, and the ongoing leaking of oil, this is basically small spills all over the place. It's a series of a lot of small oil spills. We're fighting on a lot of fronts."
So our worst fears are being realized, our oceans will continue to be polluted, our shorelines destroyed, stocks will continue to fall, and the full effects on humans has yet to be fully realized.
Sunday, May 30, 2010
Chevron (NYSE:CVX) Oil Leak, Will Pay All Oil Cleanup Costs
Chevron's (NYSE:CVX) engineers are frantically trying to find out the cause of their oil leak, which has been going on since April. So far, it's reporting to have lost at least 50 liters of oil and gas into the Burrard Inlet.
The company has said it is putting together a plan to extract and treat the pollutants stemming from their refinery. Although, this plan will not be put into effect until sometime in the Summer.
Ray Lord, Chevron's spokesman said they will put into place extraction wells as well as absorption blooms in the Inlet for now to help contain and recover the leak. Even though Lord would not give an estimate of what the fuel cleanup would cost, he assures that Chevron will be paying for everything in full.
"How long the wells and booms need to be there is difficult for us to say right now. It'll depend on how much of the ground water is appearing, what the transmission rate is and how effective our
interception systems are," said Lord.
The company has said it is putting together a plan to extract and treat the pollutants stemming from their refinery. Although, this plan will not be put into effect until sometime in the Summer.
Ray Lord, Chevron's spokesman said they will put into place extraction wells as well as absorption blooms in the Inlet for now to help contain and recover the leak. Even though Lord would not give an estimate of what the fuel cleanup would cost, he assures that Chevron will be paying for everything in full.
"How long the wells and booms need to be there is difficult for us to say right now. It'll depend on how much of the ground water is appearing, what the transmission rate is and how effective our
interception systems are," said Lord.
Top Kill Failed, Wildlife Fatalities Continue Thanks To BP (NYSE:BP)
As the devastating news came Saturday evening that BP's (NYSE:BP) "top kill" attempt failed, this only means continued disaster to the delicate ecosystems that the oil spill is already destroying. Not to mention the wildlife and sea life that this will continue to devastate for years to come.
Among these are the Gulf of Mexico's 8,300 species, from the smallest plankton to the birds that live, breed, and eat from these waters. There are also numerous animals on the verge of extinction that the crude oil could wipe out all together, such as the Atlantic blue fin tuna and the Kemp's ridley sea turtle, to name just a couple.
Paul Montagna, professor of ecology, said, "instead of creating a typical spill, where the oil goes to the surface and you can scoop it up, this stuff has been distributed throughout the water column, and that means everything, absolutely everything is being effected."
As if the oil isn't enough, the toxic chemicals being dispersed a mile below the surface, are changing the composition of the oil entirely. The effects of this are preventing the oil from breaking down, as well as changing the consistency to being much oilier and much gooier.
"It's probably going to be one of the worst disaster we've ever seen," said Montagna.
Among these are the Gulf of Mexico's 8,300 species, from the smallest plankton to the birds that live, breed, and eat from these waters. There are also numerous animals on the verge of extinction that the crude oil could wipe out all together, such as the Atlantic blue fin tuna and the Kemp's ridley sea turtle, to name just a couple.
Paul Montagna, professor of ecology, said, "instead of creating a typical spill, where the oil goes to the surface and you can scoop it up, this stuff has been distributed throughout the water column, and that means everything, absolutely everything is being effected."
As if the oil isn't enough, the toxic chemicals being dispersed a mile below the surface, are changing the composition of the oil entirely. The effects of this are preventing the oil from breaking down, as well as changing the consistency to being much oilier and much gooier.
"It's probably going to be one of the worst disaster we've ever seen," said Montagna.
BP (NYSE:BP): Failure Of Top Kill, New Attempt In Progress
Much anticipation built on Saturday as the conclusion was drawing near of BP's (NYSE:BP) "top kill" attempt. The devastating news came Saturday evening when BP announced their attempts to stop the oil spill were a failure.
BP's chief operating officer Doug Suttles said, "after three full days, we have been unable to stop the oil flow from the well, so we now believe it is time to move on to another option." He also stated their new effort will be "a very complex operation."
The new effort by BP, known as the "lower marine riser package," is as unsure of a oil containment procedure as the "top kill" was. It also has never been tried at such depths of over a mile below sea level. It will take a minimum of 4 days to install and even if successful, will still only be a band-aid effort.
Suttles also stated, it would aid in capturing "a great majority" of the spilling oil. The bottom line is only the relief well that is being drilled will put the spewing oil to a complete halt. The downside is that the relief well is not expected to be done until sometime in August. Which means that the devastation that the oil has caused will continue on for at least the next 2-3 months. Not to mention how much more of the crude oil will be in the ocean at that time. As well as hitting our shorelines, and killing more marine life.
BP's chief operating officer Doug Suttles said, "after three full days, we have been unable to stop the oil flow from the well, so we now believe it is time to move on to another option." He also stated their new effort will be "a very complex operation."
The new effort by BP, known as the "lower marine riser package," is as unsure of a oil containment procedure as the "top kill" was. It also has never been tried at such depths of over a mile below sea level. It will take a minimum of 4 days to install and even if successful, will still only be a band-aid effort.
Suttles also stated, it would aid in capturing "a great majority" of the spilling oil. The bottom line is only the relief well that is being drilled will put the spewing oil to a complete halt. The downside is that the relief well is not expected to be done until sometime in August. Which means that the devastation that the oil has caused will continue on for at least the next 2-3 months. Not to mention how much more of the crude oil will be in the ocean at that time. As well as hitting our shorelines, and killing more marine life.
Saturday, May 29, 2010
Randgold (Nasdaq:GOLD) Upbeat on Production
Randgold (Nasdaq:GOLD) says it should beat its gold production for 2009, which came in at 488.255 ounces, although they didn't give specific numbers or guidance to where they think production could rise to.
But looking into the years ahead, Randgold said they estimate by the end of 2014 gold production should reach about 1.2 million.
This isn't a bad outlook when you consider some of the recent challenges they've had, including higher costs at their Loulo, Mali flagship mine, production issues and other significant setbacks.
Production is the strength of Randgold at this time, as the gold miner is increasingly find quality deposits, which point to more grams of gold found per ton of ore they mine.
So if they can get things under better control operationally and with costs, they could be a solid company in the years ahead.
But looking into the years ahead, Randgold said they estimate by the end of 2014 gold production should reach about 1.2 million.
This isn't a bad outlook when you consider some of the recent challenges they've had, including higher costs at their Loulo, Mali flagship mine, production issues and other significant setbacks.
Production is the strength of Randgold at this time, as the gold miner is increasingly find quality deposits, which point to more grams of gold found per ton of ore they mine.
So if they can get things under better control operationally and with costs, they could be a solid company in the years ahead.
Updates On Top Kill and BP (NYSE:BP) Oil Spill Live Feed
As many are anxiously watching the BP (NYSE:BP) oil spill live video for any change with BP's "top kill" attempts, there aren't visible signs of much change.
Being close to 96 hours into the "top kill" attempt, most were thinking it would be stopped by now. Looking at the video of the oil spill, there appears to be a dark substance coming out of it again which looks like oil. When BP started their procedure, there was a visible change in what was spewing out of the two broken areas on the pipe. Rather than the dark crude oil there was what looked like mud, the thick engineer mud that was being pumped in.
Originally, by BP's statements, the "top kill" process was only going to take a couple days but it is now on their third day. Although BP seems to still be optimistic. They said, there's a "number of options" in case the "top kill" fails. BP also said things seem to be "promising" as they continue on with their efforts.
If BP is successful, they could then turn their full focus on cleaning up the oil that has already spilled into the ocean and is devastating shorelines, among other things.
Being close to 96 hours into the "top kill" attempt, most were thinking it would be stopped by now. Looking at the video of the oil spill, there appears to be a dark substance coming out of it again which looks like oil. When BP started their procedure, there was a visible change in what was spewing out of the two broken areas on the pipe. Rather than the dark crude oil there was what looked like mud, the thick engineer mud that was being pumped in.
Originally, by BP's statements, the "top kill" process was only going to take a couple days but it is now on their third day. Although BP seems to still be optimistic. They said, there's a "number of options" in case the "top kill" fails. BP also said things seem to be "promising" as they continue on with their efforts.
If BP is successful, they could then turn their full focus on cleaning up the oil that has already spilled into the ocean and is devastating shorelines, among other things.
Gammon Gold (TSE:GAM) Invests in Golden Queen Mining (TSE:GQM)
Gammon Gold (TSE:GAM) (NYSE:GRS) has reportedly invested $7.57 million in Golden Queen Mining (TSE:GQM) (OTC:GQMNF.PK). That'll give them a 6.1 percent stake in the company.
Golden Queen issued 5 million shares priced at $1.51 each, equal to an 8 percent premium over where it closed on Friday.
They are also issuing 1.5-year warrants to acquire 1.25 million shares for $1.66 a share, and another 1.25 million shares for $1.89 a share.
Golden Queen said they're raising the capital to help fund the operations at their Soledad mining project, located in Mojave, California, as well as working capital.
For Gammon, this continues their expansion strategy of investing in what they identify as quality companies with assets based in North America.
Golden Queen issued 5 million shares priced at $1.51 each, equal to an 8 percent premium over where it closed on Friday.
They are also issuing 1.5-year warrants to acquire 1.25 million shares for $1.66 a share, and another 1.25 million shares for $1.89 a share.
Golden Queen said they're raising the capital to help fund the operations at their Soledad mining project, located in Mojave, California, as well as working capital.
For Gammon, this continues their expansion strategy of investing in what they identify as quality companies with assets based in North America.
Citigroup (NYSE:C): $1,500 Gold May Come by End of Year
Citigroup (NYSE:C) said if continual concerns over the sovereign debt crisis with Greece and much of the European Union continues to weigh on investors, gold could reach as high as $1,500 an ounce by year's end.
Analyst Alan Heap said, “Certainly $1,500 an ounce is possible. Gold’s rallying despite dollar strength and it’s rallying because investors are once again concerned about sovereign risk.”
Even so, Citigroup is officially on record as saying gold will go to $1,250 an ounce.
Seems they're hedging both sides. Either way, if investor fears ease, the latter figure is expected, if they increase, we could see $1,500 and ounce, or possibly higher, depending on what happens over the next several months.
Analyst Alan Heap said, “Certainly $1,500 an ounce is possible. Gold’s rallying despite dollar strength and it’s rallying because investors are once again concerned about sovereign risk.”
Even so, Citigroup is officially on record as saying gold will go to $1,250 an ounce.
Seems they're hedging both sides. Either way, if investor fears ease, the latter figure is expected, if they increase, we could see $1,500 and ounce, or possibly higher, depending on what happens over the next several months.
Centerra (TSE:CG) Seeking Quality Acquisition
Strong gold prices has helped Centerra Gold (TSE:CG) reach the enviable position of being debt-free and flush with cash, which allows them to search out some quality acquisitions.
After the first quarter, Centerra had cash and short-term investments valued at $384.2 million, and adding to it on a consistent basis.
According to CEO Stephen Lang, he doesn't see it as absolutely vital to the company, but admits there would be value in adding a project which would bring them up to two million ounces a year.
“I don't think that with the projects we have in front of us that acquiring a third one is a necessity. However, we see value in getting up to a critical size of a million-and-a-half, two-million ounces a year,” Lang commented in an interview.
Lang added he would prefer a project in the later stages of exploration or early stage of development, and which would be located in Asia generally or central Asia more specifically.
After the first quarter, Centerra had cash and short-term investments valued at $384.2 million, and adding to it on a consistent basis.
According to CEO Stephen Lang, he doesn't see it as absolutely vital to the company, but admits there would be value in adding a project which would bring them up to two million ounces a year.
“I don't think that with the projects we have in front of us that acquiring a third one is a necessity. However, we see value in getting up to a critical size of a million-and-a-half, two-million ounces a year,” Lang commented in an interview.
Lang added he would prefer a project in the later stages of exploration or early stage of development, and which would be located in Asia generally or central Asia more specifically.
Friday, May 28, 2010
Goldcorp (TSE:G) BBB Rating Reaffirmed by Fitch
Fitch Ratings reaffirmed their BBB ratings on Goldcorp (TSE:G) (NYSE:GG), with their Issuer Default Rating, $862.5 million senior unsecured convertible notes, and $1.5 billion senior unsecured revolving credit facility, all retaining a BBB rating.
Goldcorp ratings are largely reflected in their mining locations, which are considered as being low in geopolitical risk; their strong project pipeline and large reserves, and their low-cost production, all of which produce the solid rating from Fitch.
A press release stated, "Fitch does not expect Total debt/EBITDA to exceed 2 times (x) when borrowing is at its peak and generally expects leverage to be below 1.5x. Should internal cash generation fall behind expectations, Fitch expects expenditures to be cut or to be supported by new equity issuance or asset sales."
Goldcorp guidance for gold production for 2010 is 2.6 million at a cash cost average of $350 an ounce.
Goldcorp ratings are largely reflected in their mining locations, which are considered as being low in geopolitical risk; their strong project pipeline and large reserves, and their low-cost production, all of which produce the solid rating from Fitch.
A press release stated, "Fitch does not expect Total debt/EBITDA to exceed 2 times (x) when borrowing is at its peak and generally expects leverage to be below 1.5x. Should internal cash generation fall behind expectations, Fitch expects expenditures to be cut or to be supported by new equity issuance or asset sales."
Goldcorp guidance for gold production for 2010 is 2.6 million at a cash cost average of $350 an ounce.
Gold Prices Finish May Up 3.1 Percent
Even with the massive correction in the third week of May, gold prices rose for the fifth day in a row, and in May have increased by 3.1 percent.
Gold prices Friday added another $1.11, or 0.1 percent, ending the day and week at $1,214.14.
For the month of May, gold prices rose $36.24, and for the year are up 10.9 percent, or $118.81.
Even if the sovereign debt crisis in Europe hadn't happened, the economic conditions would have still been right for gold to have continued on its upward run, but now with that enormous threat hanging over the market, it should spur it on even more, possibly at quicker rates than expected, depending on how the crisis unfolds.
Fitch Ratings just downgraded Spain debt from AAA to AA+, generating more concern, which should cause investors to pour more money into gold to protect their capital.
Gold prices Friday added another $1.11, or 0.1 percent, ending the day and week at $1,214.14.
For the month of May, gold prices rose $36.24, and for the year are up 10.9 percent, or $118.81.
Even if the sovereign debt crisis in Europe hadn't happened, the economic conditions would have still been right for gold to have continued on its upward run, but now with that enormous threat hanging over the market, it should spur it on even more, possibly at quicker rates than expected, depending on how the crisis unfolds.
Fitch Ratings just downgraded Spain debt from AAA to AA+, generating more concern, which should cause investors to pour more money into gold to protect their capital.
Citigroup (NYSE:C) Likes Barrick (TSE:ABX) Best Among Gold Miners
After attending the Investor Day of Newmont Mining (NYSE:NEM), a number of analysts were impressed, but Citigroup (NYSE:C) said even after the positive outlook, their top pick among gold miners is Barrick Gold (TSE:ABX) (NYSE:ABX).
While reiterating their "Hold" rating on Newmont, a Citigroup analyst said, "our top pick in gold is Barrick."
Barrick was down in New York and Toronto before the onset of Memorial Day weekend, usually considered the start of summer vacation time in the U.S.
In New York Barrick closed at $42.08, down 36 cents, or 0.85 percent, while in Toronto they closed the day at $44.30, down 31 cents, or .69 percent.
Volume for Barrick Gold on both exchanges was far below their 3-month average.
While reiterating their "Hold" rating on Newmont, a Citigroup analyst said, "our top pick in gold is Barrick."
Barrick was down in New York and Toronto before the onset of Memorial Day weekend, usually considered the start of summer vacation time in the U.S.
In New York Barrick closed at $42.08, down 36 cents, or 0.85 percent, while in Toronto they closed the day at $44.30, down 31 cents, or .69 percent.
Volume for Barrick Gold on both exchanges was far below their 3-month average.
Newmont Mining (NYSE:NEM) Confirms Guidance
At a Thursday analyst day, Newmont Mining (NYSE:NEM) confirmed its 2010 production guidance of 5.3 million to 5.5 million ounces of gold at a cash cost of $450 to $480 an ounce.
Gold production at the gold miner will be maintained at levels of over 5 million annually, generating speculation as to whether the company may be looking to increase its acquisition activity.
Being flush with cash, Newmont is also may increase its regular dividend, and possibly issue a special dividend which would give more cash to the company's shareholders.
Analyst Tanya Jakusconek, from National Bank, increased her price target on Newmont Mining from $60 a share to $66 a share, while maintaining a “Sector Perform” rating.
Gold production at the gold miner will be maintained at levels of over 5 million annually, generating speculation as to whether the company may be looking to increase its acquisition activity.
Being flush with cash, Newmont is also may increase its regular dividend, and possibly issue a special dividend which would give more cash to the company's shareholders.
Analyst Tanya Jakusconek, from National Bank, increased her price target on Newmont Mining from $60 a share to $66 a share, while maintaining a “Sector Perform” rating.
Citigroup (NYSE:C) On Gulf Lawsuits, Lobbying
While we hear a lot about BP (NYSE:BP) and Transocean (NYSE:RIG) in the Gulf oil crisis, there are a lot of oil companies who could have exposure to the fallout from the oil spill, which could result in some significant pressure in the months ahead, according to a Citigroup (NYSE:C) analyst.
The analyst said, In the Independent Oil & Gas industry, Anadarko (NYSE:APC), Apache (NYSE:APA), Newfield (NYSE:NFX), Nexen (NYSE: NXY) and Noble Energy (NYSE:NBL) have offshore Gulf of Mexico exposure. Of the US integrated oil industry, Chevron (NYSE:CVX) and Marathon (NYSE:MRO) have the highest level of activity taking place in the deep waters of the GOM. ExxonMobil (NYSE:XOM) and Hess (NYSE:HES) have limited exposure. Occidental Petroleum (NYSE:OXY) has zero exposure and is likely to benefit from the current environment."
Ultimately what some consider an over-response from the Obama administration, this could be devastating to the overall U.S. economy at a time when it continues to struggle to recover from the great recession.
The analyst said, In the Independent Oil & Gas industry, Anadarko (NYSE:APC), Apache (NYSE:APA), Newfield (NYSE:NFX), Nexen (NYSE: NXY) and Noble Energy (NYSE:NBL) have offshore Gulf of Mexico exposure. Of the US integrated oil industry, Chevron (NYSE:CVX) and Marathon (NYSE:MRO) have the highest level of activity taking place in the deep waters of the GOM. ExxonMobil (NYSE:XOM) and Hess (NYSE:HES) have limited exposure. Occidental Petroleum (NYSE:OXY) has zero exposure and is likely to benefit from the current environment."
Ultimately what some consider an over-response from the Obama administration, this could be devastating to the overall U.S. economy at a time when it continues to struggle to recover from the great recession.
Barrick (TSE:ABX), Red Back Mining (TSE:RBI), Iamgold (TSE:IMG) Down in Toronto
Barrick Gold (TSE:ABX), Red Back Mining (TSE:RBI), Iamgold (TSE:IMG) were all down today, as Candian stocks fell, led by commodities producers and banks. This is the first drop in the Canadian market in three days.
This follows gold investors again selling off some of their gold and other precious metal holdings in order to cover equity losses.
The dollar also rose in value, which put some downward pressure on gold futures, which are down slightly on the day.
All three gold miners remain down as of 1:00 p.m. EDT.
This follows gold investors again selling off some of their gold and other precious metal holdings in order to cover equity losses.
The dollar also rose in value, which put some downward pressure on gold futures, which are down slightly on the day.
All three gold miners remain down as of 1:00 p.m. EDT.
BP (NYSE:BP): 22 Mile Long Oil Plume Heading To Florida
Off the BP (NYSE:BP) work site, a 22 mile long and 6 mile wide oil plume has been discovered by the University of South Florida college of Marine Sciences researchers. They say it is preparing to enter a underwater canyon. The effects of this would be devastating.
This massive plume is dangerously close to entering a large underwater canyon, once the crude oil enters this canyon the plants and animals that feed larger organisms will be bathed in a toxic chemical and oil soup. This canyon is responsible for fueling the food chain off the Gulf in Florida.
David Hollander, associate professor of chemical oceanography said, "the plume was detected just beneath the surface down to about 3,300 feet." He said their team found the thickest amounts of hydrocarbons at around 1,300 feet below in the same spot on two separate days this week.
Further testing by the researchers is planned to determine if the hydrocarbons they discovered are from the emulsification of oil or results of dispersants used as they made their way from the well into the sea.
This massive plume is dangerously close to entering a large underwater canyon, once the crude oil enters this canyon the plants and animals that feed larger organisms will be bathed in a toxic chemical and oil soup. This canyon is responsible for fueling the food chain off the Gulf in Florida.
David Hollander, associate professor of chemical oceanography said, "the plume was detected just beneath the surface down to about 3,300 feet." He said their team found the thickest amounts of hydrocarbons at around 1,300 feet below in the same spot on two separate days this week.
Further testing by the researchers is planned to determine if the hydrocarbons they discovered are from the emulsification of oil or results of dispersants used as they made their way from the well into the sea.
BP (NYSE:BP) Risks Making Oil Spill Worse
BP (NYSE:BP) engineers are proceeding with extreme caution, as they continue on their containment efforts for the fuel spill. This was after stopping their "top kill" endeavors for a day, this is apparently just part of the process according to BP officials.
This gives the engineers time to review the effects or lack there of. At that time, Doug Suttles, BP's chief operating officer said, "we have not yet stopped the flow. You stop pumping. If the pressure begins to rise you pump again. If it doesn't rise, you have some sign of success."
As well as analyzing the spill containment results on Thursday, BP was also restocking their oil spill equipment with close to 15,000 barrels of the heavy engineering mud in preparation for their next oil cleanup attempt, which began Thursday evening.
Tony Hayward, BP's head, indicated the "top kill" attempt could make the oil leak worse, this is one of the risks of this endeavor.
This gives the engineers time to review the effects or lack there of. At that time, Doug Suttles, BP's chief operating officer said, "we have not yet stopped the flow. You stop pumping. If the pressure begins to rise you pump again. If it doesn't rise, you have some sign of success."
As well as analyzing the spill containment results on Thursday, BP was also restocking their oil spill equipment with close to 15,000 barrels of the heavy engineering mud in preparation for their next oil cleanup attempt, which began Thursday evening.
Tony Hayward, BP's head, indicated the "top kill" attempt could make the oil leak worse, this is one of the risks of this endeavor.
Thursday, May 27, 2010
The Evil of Forced Ethanol
It's unbelievable what America and the radical environmentalists are getting away with. Ethanol is the latest attempt to force Americans to adhere to what can only be called a religion, with their god being the earth and the environment.
To even resist the monster is to be called a name, and that name is now a derisionary "gas purist."
Here's one example:
"Eric “Ric” Foster, the owner of a Gardner gasoline station, doesn’t like ethanol. No, that’s not quite right. He despises the stuff.
"A sign in front of the station alerts motorists that his gas contains no ethanol, and in case you miss it, an electronic sign in the window boasts of the station’s ethanol-free fuel."
The misguided regulations that force ethanol upon Americans is evil People have a right to the type of gas they want to buy, and the government has no place in telling them any different.
There are a growing number of people resisting this forced ethanol policy, and even by the standards of honest researchers, developing the ethanol industry on the back of corn is far worse for the environment than not doing it.
Once the monster that government is becoming puts something into law, only the bold and wise will be able to get a hearing on it, let alone make some real changes.
With so many things happening around us, it's hard to keep up with all this grab for power by the government, but we need to keep up the good fight, and this is really an issue of freedom.
People should be able to put into their cars what they deem the best fuel, and in a number of cars ethanol can damage them. And the damage done to power equipment is well documented.
The government blending the lines between them and industry is called fascism. This is the road we are increasingly traveling on in America, and we need to battle it every step of the way.
To even resist the monster is to be called a name, and that name is now a derisionary "gas purist."
Here's one example:
"Eric “Ric” Foster, the owner of a Gardner gasoline station, doesn’t like ethanol. No, that’s not quite right. He despises the stuff.
"A sign in front of the station alerts motorists that his gas contains no ethanol, and in case you miss it, an electronic sign in the window boasts of the station’s ethanol-free fuel."
The misguided regulations that force ethanol upon Americans is evil People have a right to the type of gas they want to buy, and the government has no place in telling them any different.
There are a growing number of people resisting this forced ethanol policy, and even by the standards of honest researchers, developing the ethanol industry on the back of corn is far worse for the environment than not doing it.
Once the monster that government is becoming puts something into law, only the bold and wise will be able to get a hearing on it, let alone make some real changes.
With so many things happening around us, it's hard to keep up with all this grab for power by the government, but we need to keep up the good fight, and this is really an issue of freedom.
People should be able to put into their cars what they deem the best fuel, and in a number of cars ethanol can damage them. And the damage done to power equipment is well documented.
The government blending the lines between them and industry is called fascism. This is the road we are increasingly traveling on in America, and we need to battle it every step of the way.
SPDR Gold Trust (NYSE:GLD) Offering 239 Million More Shares
SPDR Gold Trust (NYSE:GLD) has filed with the SEC for a follow-on offering of 239.3 million shares, a huge 57.5 percent increase in shares of the gold ETF.
Shares available now are 416.4 million, and after the offering, would increase to 655.7 million.
This could temporarily dilute the share value in the company, but the extraordinary demand for gold should help balance that off and overall increase the value of the company, and it shouldn't take long for the added number of shares to retain and increase in value.
SPDR ended Thursday session at $118.69, up $0.22, or 0.19 percent.
Shares available now are 416.4 million, and after the offering, would increase to 655.7 million.
This could temporarily dilute the share value in the company, but the extraordinary demand for gold should help balance that off and overall increase the value of the company, and it shouldn't take long for the added number of shares to retain and increase in value.
SPDR ended Thursday session at $118.69, up $0.22, or 0.19 percent.
Jaguar Mining (TSE:JAG) ,Gabriel Resources (TSE:GBU), Greystar Resources (TSE:GSL) Down, on Otherwise Good Gold Day
While most gold miners continue their upward climb, that was unfortunately not true for all of them, as Jaguar Mining (TSE:JAG), Gabriel Resources (TSE:GBU) and Greystar Resources (TSE:GSL) all bucked the trend in negative way, at least on the Toronto exchange.
Jaguar was in the positive side in New York, ending the session up by $0.06, or 0.66 percent. They closed at $9.16.
There was no apparent reason for the drop in the price of these gold miner's share, as no news came out which would have caused the share prices to fall.
In Toronto, Greystar closed at $3.83, down $0.02 or 0.52 percent; Gabriel closed at $3.94, a loss of $0.19 or 4.6 percent; and Jaguar closed at $9.64, down $0.12, or 1.23 percent.
Jaguar was in the positive side in New York, ending the session up by $0.06, or 0.66 percent. They closed at $9.16.
There was no apparent reason for the drop in the price of these gold miner's share, as no news came out which would have caused the share prices to fall.
In Toronto, Greystar closed at $3.83, down $0.02 or 0.52 percent; Gabriel closed at $3.94, a loss of $0.19 or 4.6 percent; and Jaguar closed at $9.64, down $0.12, or 1.23 percent.
Silver Standard Resources' (Nasdaq:SSRI) New CEO
Silver Standard Resources (SSRI) announced today they appointed John Smith as Chief Executive Officer of the company, with his official starting day August 6, 2010.
Until the time Smith assumes his responsibilities, Interim President and CEO Mike Anglin will continue to serve in that capacity. At that time, Anglin will resume his role as director.
Smith comes from BHP Billiton (NYSE: BHP) where his last position was as Vice President, Resourcing and Development.
He was also CEO of BHP Billiton Mitsubishi Alliance, which operates a large coal operation in Queensland, Australia.
SSIR finished the day at $18.14, an increase of $0.35, and a 1.97 percent rise.
Until the time Smith assumes his responsibilities, Interim President and CEO Mike Anglin will continue to serve in that capacity. At that time, Anglin will resume his role as director.
Smith comes from BHP Billiton (NYSE: BHP) where his last position was as Vice President, Resourcing and Development.
He was also CEO of BHP Billiton Mitsubishi Alliance, which operates a large coal operation in Queensland, Australia.
SSIR finished the day at $18.14, an increase of $0.35, and a 1.97 percent rise.
Seabridge Gold (AMEX:SA) Begins KSM Drilling
Today Seabridge Gold (AMEX:SA) said it has started to drill at its KSM project in the Stewart, British Colombia, Canada area.
KSM, which is 100 percent owned by Seabridge, said the purpose of the drilling will be to convert its existing mineral resources to proven and probable reserves to a larger amount.
The Iron Cap zone of the project will also resource definition drilling conducted in it, in areas where previous drilling had identified the possibility of a fourth significant deposit at KSM.
Seabridge ended the session at $35.14, up $0.73, or 2.12 percent.
KSM, which is 100 percent owned by Seabridge, said the purpose of the drilling will be to convert its existing mineral resources to proven and probable reserves to a larger amount.
The Iron Cap zone of the project will also resource definition drilling conducted in it, in areas where previous drilling had identified the possibility of a fourth significant deposit at KSM.
Seabridge ended the session at $35.14, up $0.73, or 2.12 percent.
MMS Steps Down, BP (NYSE:BP) Oil Spill Worst In History
It is official, BP (NYSE:BP) is the worst oil spill in U.S. History, this is by the governments task force findings of new estimates of the oil flow. The estimation by the task force is three times more than what was being estimated.
This estimation was given by the scientific team of President Obama who were given the job to determine the accurate amount of oil flowing from the Gulf oil spill. Their original estimate was between 12,000 and 19,000 barrels being lost of oil daily. This is much higher than what the U.S. Coast Guard and BP kept insisting on, 5,000 gallons a day being lost.
The new estimate is no comparison to what was originally estimated. The new oil spill estimate is up to 798,000 gallons daily.
The most conservative estimate, since the April 20th fuel oil spill disaster would be a total of close to 17 million gallons deposited into the ocean. The high end of the estimate, would equal to a total of 29.5 million gallons.
This surpasses the Exxon Valdez Disaster which spilled a total of 11 million gallons of oil.
This estimation was given by the scientific team of President Obama who were given the job to determine the accurate amount of oil flowing from the Gulf oil spill. Their original estimate was between 12,000 and 19,000 barrels being lost of oil daily. This is much higher than what the U.S. Coast Guard and BP kept insisting on, 5,000 gallons a day being lost.
The new estimate is no comparison to what was originally estimated. The new oil spill estimate is up to 798,000 gallons daily.
The most conservative estimate, since the April 20th fuel oil spill disaster would be a total of close to 17 million gallons deposited into the ocean. The high end of the estimate, would equal to a total of 29.5 million gallons.
This surpasses the Exxon Valdez Disaster which spilled a total of 11 million gallons of oil.
Obama's Minerals Management Service Director Steps Down in Midst of Heavy Criticism
Minerals Management Service Director Elizabeth Birnbaum has stepped down after heavy criticism from all sides after the explosion on the Deepwater Horizon oil rig has resulted in oil spreading across the Gulf of Mexico.
It was announced at a congressional hearing by Interior Secretary Ken Salazar where Birnhaum was scheduled to testify but didn't appear for.
Salazar alleged that Birnbaum's resignation was "on her own terms and her own volition."
While Obama at least is taking some responsibility for the agency, saying there should have been a "greater sense of urgency" in reference to better regulating the industry, some seemingly borderline psychotic Democrats like Nick Rahall, still can't stop blaming President Bush for even this incident, 18 months after he left office. Incredible!
Rahall, who for some reason is the chairman of the House Natural Resources Committee said this, "The departure of Elizabeth Birnbaum from MMS does not address the root problem. She has only been the public face of MMS for 11 months and the most serious allegations occurred prior to her tenure."
Rahall should step down after that unbelievable comment, as he's obviously on the defensive by going on the offensive, after this happening under his watch.
It was announced at a congressional hearing by Interior Secretary Ken Salazar where Birnhaum was scheduled to testify but didn't appear for.
Salazar alleged that Birnbaum's resignation was "on her own terms and her own volition."
While Obama at least is taking some responsibility for the agency, saying there should have been a "greater sense of urgency" in reference to better regulating the industry, some seemingly borderline psychotic Democrats like Nick Rahall, still can't stop blaming President Bush for even this incident, 18 months after he left office. Incredible!
Rahall, who for some reason is the chairman of the House Natural Resources Committee said this, "The departure of Elizabeth Birnbaum from MMS does not address the root problem. She has only been the public face of MMS for 11 months and the most serious allegations occurred prior to her tenure."
Rahall should step down after that unbelievable comment, as he's obviously on the defensive by going on the offensive, after this happening under his watch.
Rubicon Minerals (AMEX:RBY) Announces Gold Discovery
Rubicon Minerals Corp. (AMEX:RBY) (TSE:RMX) is up over 10 percent today as they announced a gold discovery in the Red Lake Gold District of Ontario, at their Phoenix Gold Project.
The Phoenix Gold Project is 100 percent owned by Rubicon, adding to the potential value of the discovery for them.
They desribed the actual discovery this way: "...results from drill hole 305-05 at its 100%-owned Phoenix Gold Project. Reported lengths are thus interpreted to be true thicknesses. The hole intersected 1.24 oz/ton gold over 22.6 feet (42.5 g/t gold over 6.9 metres) part of a broad vein zone grading 0.59 oz/ton gold over 49.2 feet (20.1 g/t gold over 15.0 metres).
"This is a very important as well as impressive drill hole. It demonstrates excellent horizontal thickness and outstanding gold grade in the F2 Core Zone and is significant from a potential mining standpoint. Drilling to date extends the F2 Core Zone vertically for at least 1968 feet (600 metres). This suggests significant tonnage potential can be developed in this zone alone, which is only one of numerous zones we have discovered to date within the F2 Gold System. We are excited to have commenced drifting and we look forward to seeing the F2 Core Zone up close underground. In the meantime, we have a total of six rigs exploring the F2 Gold System" said David Adamson, President and CEO, in a press release.
The Phoenix Gold Project is 100 percent owned by Rubicon, adding to the potential value of the discovery for them.
They desribed the actual discovery this way: "...results from drill hole 305-05 at its 100%-owned Phoenix Gold Project. Reported lengths are thus interpreted to be true thicknesses. The hole intersected 1.24 oz/ton gold over 22.6 feet (42.5 g/t gold over 6.9 metres) part of a broad vein zone grading 0.59 oz/ton gold over 49.2 feet (20.1 g/t gold over 15.0 metres).
"This is a very important as well as impressive drill hole. It demonstrates excellent horizontal thickness and outstanding gold grade in the F2 Core Zone and is significant from a potential mining standpoint. Drilling to date extends the F2 Core Zone vertically for at least 1968 feet (600 metres). This suggests significant tonnage potential can be developed in this zone alone, which is only one of numerous zones we have discovered to date within the F2 Gold System. We are excited to have commenced drifting and we look forward to seeing the F2 Core Zone up close underground. In the meantime, we have a total of six rigs exploring the F2 Gold System" said David Adamson, President and CEO, in a press release.
Freeport-McMoRan (NYSE:FCX), Newmont (NYSE:NEM) Up Early
Although gold futures have been quiet and level today, gold miners Freeport-McMoRan (NYSE:FCX) and Newmont Mining (NYSE:NEM) are up, with Freeport rising almost five percent and Newmont increasing by a little over 3 percent as of 1:00 p.m. EDT.
These are evidently investors and not speculators and traders mostly driving the prices, as volume was about normal for the 3-month average for both companies.
A growing number of analysts are recommending larger gold miners for investors, even though it seems the junior gold miners will make investors more money.
But the large miners like Freeport and Newmont are much safer and have a more predictable future, whereas junior miners will continue to be all over the place until they receive the type of financing which brings them to more stable players.
Watch the investment money in the companies to see who will emerge in the case of the miners, as if the projected resources their mining can be confirmed as real, then it's just a matter of finding those willing to invest in them to bring the resources out.
These are evidently investors and not speculators and traders mostly driving the prices, as volume was about normal for the 3-month average for both companies.
A growing number of analysts are recommending larger gold miners for investors, even though it seems the junior gold miners will make investors more money.
But the large miners like Freeport and Newmont are much safer and have a more predictable future, whereas junior miners will continue to be all over the place until they receive the type of financing which brings them to more stable players.
Watch the investment money in the companies to see who will emerge in the case of the miners, as if the projected resources their mining can be confirmed as real, then it's just a matter of finding those willing to invest in them to bring the resources out.
Obama Bans Drilling Of Offshore Oil Wells, Huge Blow To Shell (LSE:RDSA)
An aide of President Obama, under anonymity said, Obama is going to announce that he will not let Shell Oil Company (LSE:RDSA) continue exploratory drilling off the coast of Alaska. At least until the commission, in charge of "how to prevent this from ever happening again," is able to do a full review. This is just one of the topics Obama will cover at his press conference this afternoon.
The President is also going to announce that intends to extend an existing memorandum for six months on any new drilling. He will also cancel lease sales planned for August off the Coast of Virginia as well as off the Coast of Alaska. The sale in Virginia was highly supported by state officials, until environmental groups as well as the large military population did not share the same opinion.
These announcements from the president are expected to be meet with some resistance. Like from the energy industry officials who feel like the effects of the Deepwater Horizon incident should not prompt a nationwide ban on offshore oil and gas drilling.
Shell officials have stated that they should not have the same restrictions because their plans were to drill in shallower water unlike BP.
The President is also going to announce that intends to extend an existing memorandum for six months on any new drilling. He will also cancel lease sales planned for August off the Coast of Virginia as well as off the Coast of Alaska. The sale in Virginia was highly supported by state officials, until environmental groups as well as the large military population did not share the same opinion.
These announcements from the president are expected to be meet with some resistance. Like from the energy industry officials who feel like the effects of the Deepwater Horizon incident should not prompt a nationwide ban on offshore oil and gas drilling.
Shell officials have stated that they should not have the same restrictions because their plans were to drill in shallower water unlike BP.
BP's (NYSE:BP) "Top Kill" Oil Spill Containment Efforts Show No Change
There's been much anticipation and hope as BP (NYSE:BP) started it's "top kill" attempt yesterday afternoon. There was a fluctuation in the trading market as well as investors nerves mirrored this fluctuation.
As of today on the live oil spill video, you cannot see a whole lot of change. Even though the containment equipment has been put into place and the oil cleanup efforts are in full force. The only visible difference seems to be rather than thick black crude oil spewing out of the two breaks in the pipe, there's now what appears to be brown mud barreling out.
BP chief executive, in a statement Wednesday evening said, "the operation is proceeding as we planned it."
Doug Suttles, BP's chief operating officer said at a new conference Wednesday night, "it's too early to know if its going to be successful." He also stated that it would be at least a day or two before any conclusive results would be known. He said that there's 7,000 barrels of thick drilling mud being forced into the well at varying rates of speed.
As of today on the live oil spill video, you cannot see a whole lot of change. Even though the containment equipment has been put into place and the oil cleanup efforts are in full force. The only visible difference seems to be rather than thick black crude oil spewing out of the two breaks in the pipe, there's now what appears to be brown mud barreling out.
BP chief executive, in a statement Wednesday evening said, "the operation is proceeding as we planned it."
Doug Suttles, BP's chief operating officer said at a new conference Wednesday night, "it's too early to know if its going to be successful." He also stated that it would be at least a day or two before any conclusive results would be known. He said that there's 7,000 barrels of thick drilling mud being forced into the well at varying rates of speed.
Wednesday, May 26, 2010
David Einhorn Adds African Barrick Gold (LON:ABG), Increases Gold Exposure
David Einhorn, hedge fund manager of Greenlight Capital, said he's increasing his exposure to gold, and has bought African Barrick Gold (LON:ABG) shares, primarily because they're lower priced than other miners.
Einhorn recently said at an investment meeting of Greenlight Capital, that 'We tend to think of gold as a currency, I think there's going to be a lot of inflation."
Citing the sovereign debt crisis in Greece, and by extension, the overall European Union, Einhorn added that Greece could be the initial signal that the "sovereign debt bubble" is bursting, and it could easily expand to the United States.
One problem Einhorn recognizes correctly, is the difficulty in finding out the real conditions of American banks, which he says in many cases are nowhere near capitalized enough.
That was pointed out recently in an article in the Wall Street Journal, which noted that even the usual practices of hiding the real numbers before a quarterly report seems to have prolificated with some of the major banks in the country, making it even harder to know they're real level of health.
All the more reason to invest in gold and gold miners.
Einhorn recently said at an investment meeting of Greenlight Capital, that 'We tend to think of gold as a currency, I think there's going to be a lot of inflation."
Citing the sovereign debt crisis in Greece, and by extension, the overall European Union, Einhorn added that Greece could be the initial signal that the "sovereign debt bubble" is bursting, and it could easily expand to the United States.
One problem Einhorn recognizes correctly, is the difficulty in finding out the real conditions of American banks, which he says in many cases are nowhere near capitalized enough.
That was pointed out recently in an article in the Wall Street Journal, which noted that even the usual practices of hiding the real numbers before a quarterly report seems to have prolificated with some of the major banks in the country, making it even harder to know they're real level of health.
All the more reason to invest in gold and gold miners.
NovaGold (AMEX:NG) Attracts Big Players, Money
NovaGold Resources (AMEX:NG) (TSE:NG) President and Chief Executive Officer, Rick Van Nieuwenhuyse, seems to have a gift for attracting big players and big money to invest in the company, and that has paid large dividends for them at crucial times of their growth cycle.
Some of those investing in NovaGold Resources include billionaire Thomas Kaplan through his Tigris Financial Group, John Paulson with his Paulson & Co. hedge fund, and George Soros with Quantum Partners Ltd.
In the early part of 2009 they also reached a financing agreement with Electrum Strategic Resources, which saved their major Donlin Creek and Galore Creek projects.
Assuming good gold finds, the secret to success for junior gold miners really isn't a secret, it's who can secure financing for their projects in order to bring them online.
With the track record of Rick Van Nieuwenhuyse and his team, it looks like NovaGold will have a long and successful run, as he recently stated they have enough financing for the next three years.
If they're operationally sound and focus on cutting costs, once they are in strong gold production they should get some great returns for their shareholders.
In addition to gold, they also have copper, silver and zinc resources.
Some of those investing in NovaGold Resources include billionaire Thomas Kaplan through his Tigris Financial Group, John Paulson with his Paulson & Co. hedge fund, and George Soros with Quantum Partners Ltd.
In the early part of 2009 they also reached a financing agreement with Electrum Strategic Resources, which saved their major Donlin Creek and Galore Creek projects.
Assuming good gold finds, the secret to success for junior gold miners really isn't a secret, it's who can secure financing for their projects in order to bring them online.
With the track record of Rick Van Nieuwenhuyse and his team, it looks like NovaGold will have a long and successful run, as he recently stated they have enough financing for the next three years.
If they're operationally sound and focus on cutting costs, once they are in strong gold production they should get some great returns for their shareholders.
In addition to gold, they also have copper, silver and zinc resources.
BP (NYSE:BP) Stock Plummets Then Rises
BP (NYSE:BP) share prices reflect peoples uncertainty of what will happen as BP starts their "top kill" endeavor. Earlier in the day, BP's stocks fell 1.6 percent. This was as many were waiting in anticipation to hear of news on what BP was going to do.
Than BP shares started rising, seeing an increase of up to 2.6 percent to 498 pence. This being overall in Britain's FTSE 100 index seeing a 2.8 percent increase. This increase was as market talk was optimistic to hear that BP was close to giving a positive update on the situation.
Panmure Gordon analyst Peter Hitchens said, "this week is going to be fairly crucial for the company. If the top kill doesn't work the stocks going to continue to languish.
"Once you get this well under control the stock will recover a lot of lost ground, but until that happens people are just going to be nervous."
Since the oil spill disaster started April 20th, the company has lost $50 billion of its market value. That's about a quarter of its total value.
Than BP shares started rising, seeing an increase of up to 2.6 percent to 498 pence. This being overall in Britain's FTSE 100 index seeing a 2.8 percent increase. This increase was as market talk was optimistic to hear that BP was close to giving a positive update on the situation.
Panmure Gordon analyst Peter Hitchens said, "this week is going to be fairly crucial for the company. If the top kill doesn't work the stocks going to continue to languish.
"Once you get this well under control the stock will recover a lot of lost ground, but until that happens people are just going to be nervous."
Since the oil spill disaster started April 20th, the company has lost $50 billion of its market value. That's about a quarter of its total value.
BP (LON:BP) Adds Independent Claims Mediator
BP (LON:BP) (NYSE:BP) said they've appointed an independent claims mediator to handle the myriad of damage claims coming from the large oil spill after the explosion on the Deepwater Horizon oil rig.
BP Chief Executive Tony Hayward said in a statement, "We are absolutely committed to a simple, fair claims process that gets funds to people who have been hurt by this disaster as quickly as possible."
So far over 26,000 claims have been filed, with payments of over $36 million being awarded to date.
BP Chief Executive Tony Hayward said in a statement, "We are absolutely committed to a simple, fair claims process that gets funds to people who have been hurt by this disaster as quickly as possible."
So far over 26,000 claims have been filed, with payments of over $36 million being awarded to date.
AngloGold Ashanti (NYSE:AU), Newmont (NYSE:NEM) Not Affected by Ghana Royalty Increase
AngloGold Ashanti (NYSE:AU) and Newmont (NYSE:NEM) will not be immediately affected by the increase in royalties from Ghana, the second-largest gold producer in Africa, behind South Africa.
Royalties for other gold miners in the country have been increased from 3 percent to 6 percent, with some like AngloGold Ashanti and Newmont Mining receiving temporary exemptions.
Gold production in Ghana stood at 2.9 million ounces in 2009, with gold prices increasing from $930 at the end of 2008 to $1,100 at the end of 2009, a 11.5 percent rise.
Ghana Chamber of Mines Chief Executive Joyce Aryee said this to Reuters about the situation, "Ghana does not have all the infrastructure in place ... so the government signed such stability agreements with the mines to promote their investment and also to ensure that too many goal posts will not be changed too quickly."
It's unclear as to how long AngloGold Ashanti and Newmont Mining will be exempt from the increased royalties, as official stated the stability agreement is under review in order to see if the exemptions need to be changed in any way.
I haven't heard anything, but I'm sure their competitors are putting pressure on Ghana officials to change the exemptions.
Royalties for other gold miners in the country have been increased from 3 percent to 6 percent, with some like AngloGold Ashanti and Newmont Mining receiving temporary exemptions.
Gold production in Ghana stood at 2.9 million ounces in 2009, with gold prices increasing from $930 at the end of 2008 to $1,100 at the end of 2009, a 11.5 percent rise.
Ghana Chamber of Mines Chief Executive Joyce Aryee said this to Reuters about the situation, "Ghana does not have all the infrastructure in place ... so the government signed such stability agreements with the mines to promote their investment and also to ensure that too many goal posts will not be changed too quickly."
It's unclear as to how long AngloGold Ashanti and Newmont Mining will be exempt from the increased royalties, as official stated the stability agreement is under review in order to see if the exemptions need to be changed in any way.
I haven't heard anything, but I'm sure their competitors are putting pressure on Ghana officials to change the exemptions.
Exxon Mobil (NYSE:XOM) Continues BP (NYSE:BP) Aid
With the best interests of the oil industry at stake, Exxon Mobil (NYSE:XOM) continues to help BP (NYSE:BP) in attempting to contain the Gulf of Mexico oil spill.
Exxon Chairman and CEO Rex Tillerson tooted his horn for his company a little more, saying that the drilling plans of Exxon are built to "anticipate risk at every step of the operation," when talking a the annual shareholder meeting of the company.
This probably was an attempt to calm investor fears on the consequences to their share value if Exxon was to experience a similar incident, which they of course have in the past.
Exxon has several new offshore drilling projects ready to launch, including some in the Beaufort Sea, which is off the coast of Alaska and Canada.
Details on how Exxon was helping BP with the Gulf oil spill weren't given.
Exxon Chairman and CEO Rex Tillerson tooted his horn for his company a little more, saying that the drilling plans of Exxon are built to "anticipate risk at every step of the operation," when talking a the annual shareholder meeting of the company.
This probably was an attempt to calm investor fears on the consequences to their share value if Exxon was to experience a similar incident, which they of course have in the past.
Exxon has several new offshore drilling projects ready to launch, including some in the Beaufort Sea, which is off the coast of Alaska and Canada.
Details on how Exxon was helping BP with the Gulf oil spill weren't given.
Third of Goldcorp (TSE:G) Cashflow to Come From Mexico
About a third of future cashflow for Goldcorp (TSE:G) (NYSE:GG) is projected to come from Mexico, which is ramping up its latest project in Mexico, the Penasquito mine, in the third quarter.
Goldcorp invested about $1.7 billion in the project, which is expected to produce close to 1 million gold equivalent ounces a year for the company.
By the early part of 2011, the company should be working 130,000 tons a day.
Penasquito will match the largest existing gold project of Goldcorp, their Red Lake project in Ontario, which includes the expansion they're doing there over the next two years.
Investors are excited about Goldcorp because of their growth profile, which is estimated to bring up to 2.6 million ounces of gold in 2010, at a cash cost of $350 an ounce, an increase from the 2.4 million ounces produced in 2009 at $295 an ounce.
For the next five years the company is projecting a 50 percent increase in production, based for the most part on the Penasquito project, although they have other mines scheduled to come on line, like the Pueblo Viejo in the Dominican Republic, where gold production should launch in 2011, and estimates of 400,000 ounces of gold produced in the first five years.
Rising costs have put some pressure on margins and earnings, but the company still looks very solid, and with gold prices sure to continue rising, that'll be largely widened.
Costs have come under better control at Goldcorp and the gold mining industry in general, as energy and equipment costs has risen in response to growing demand.
Going forward, analysts are looking for profits for the year to grow 46 percent over 2009, to $1.17 a share, and another 41 percent in 2011.
Goldcorp invested about $1.7 billion in the project, which is expected to produce close to 1 million gold equivalent ounces a year for the company.
By the early part of 2011, the company should be working 130,000 tons a day.
Penasquito will match the largest existing gold project of Goldcorp, their Red Lake project in Ontario, which includes the expansion they're doing there over the next two years.
Investors are excited about Goldcorp because of their growth profile, which is estimated to bring up to 2.6 million ounces of gold in 2010, at a cash cost of $350 an ounce, an increase from the 2.4 million ounces produced in 2009 at $295 an ounce.
For the next five years the company is projecting a 50 percent increase in production, based for the most part on the Penasquito project, although they have other mines scheduled to come on line, like the Pueblo Viejo in the Dominican Republic, where gold production should launch in 2011, and estimates of 400,000 ounces of gold produced in the first five years.
Rising costs have put some pressure on margins and earnings, but the company still looks very solid, and with gold prices sure to continue rising, that'll be largely widened.
Costs have come under better control at Goldcorp and the gold mining industry in general, as energy and equipment costs has risen in response to growing demand.
Going forward, analysts are looking for profits for the year to grow 46 percent over 2009, to $1.17 a share, and another 41 percent in 2011.
BP: (NYSE:BP) No To Live Video Feed of "Top Kill"
Apparently, BP (NYSE:BP) has changed their mind. Originally, BP was among much hesitation , going to allow the live oil spill video to run uninterrupted throughout their "top kill" attempt. They're now saying no, and have already cut the oil spill video as of early this morning. This is leading many to wonder why BP wants to shut out the millions of people that their oil leak has, is, and will continue to effect for generations.
BP ensures it will report on the progress and on the outcome once complete. Part of the reasoning for this secrecy is to help shield the public from making rash decisions on what they may assume by what they see. Especially when it comes to stocks, this would not be adequate information.
If BP is successful, Gordan Gray from Collin Stewart analyst gives his opinion on the effect this would have on BP's shares. He says we would see an initial incline in the shares around mid 500's p/sh level after their 14 percent under preformance of the global sector. Any further recovery can be expected to take much longer though. A short term rise would be a good opportunity to switch from BP to Royal Dutch Shell which is seen as having a good valuation upside, a strong free cash flow turnaround, and a much stronger outlook for dividends.
BP ensures it will report on the progress and on the outcome once complete. Part of the reasoning for this secrecy is to help shield the public from making rash decisions on what they may assume by what they see. Especially when it comes to stocks, this would not be adequate information.
If BP is successful, Gordan Gray from Collin Stewart analyst gives his opinion on the effect this would have on BP's shares. He says we would see an initial incline in the shares around mid 500's p/sh level after their 14 percent under preformance of the global sector. Any further recovery can be expected to take much longer though. A short term rise would be a good opportunity to switch from BP to Royal Dutch Shell which is seen as having a good valuation upside, a strong free cash flow turnaround, and a much stronger outlook for dividends.
BP's (NYSE:BP) "Top Kill" Attempt Delayed
BP's (NYSE:BP) plan had been to start their attempt to cap the massive oil spill known as "top kill" early this morning. Now BP is saying it could be a day or two at least, this is due to their testing that was still going on in the early hours of the morning.
The "top kill" method has a good record onshore, but it has never been attempted at the depth of 5,000 feet offshore. The test that BP is currently doing is pumping drilling fluids into the BOP. This is to measure flow paths as well as to measure the pressure. Once their testing concludes, a decision will then be made on what direction the "top kill" efforts will take.
Originally, company officials estimated the time to complete the "top kill" attempt was one day, now they've changed that to two days. BP has also agreed, following much contemplation and discussion, to continue the live oil spill feed. This feed will continue uninterrupted as BP attempts their "top kill" effort.
The "top kill" method has a good record onshore, but it has never been attempted at the depth of 5,000 feet offshore. The test that BP is currently doing is pumping drilling fluids into the BOP. This is to measure flow paths as well as to measure the pressure. Once their testing concludes, a decision will then be made on what direction the "top kill" efforts will take.
Originally, company officials estimated the time to complete the "top kill" attempt was one day, now they've changed that to two days. BP has also agreed, following much contemplation and discussion, to continue the live oil spill feed. This feed will continue uninterrupted as BP attempts their "top kill" effort.
Tuesday, May 25, 2010
BP (NYSE:BP) Paying for Florida Commercials Saying They Aren't Affected by Oil Spill
In one of the more bizarre shakedowns I've seen and heard of, Florida pressured and got from BP (NYSE:BP), $25 million, in order to advertise that the state hasn't been harmed by the oil spill. Unbelievable that BP caved on this one.
Think of it. Florida hasn't had any negative effects from the oil spill, so now BP is responsible to pay for the Florida Restaurant and Lodging Association to put out ads declaring that!
What BP should have thought of first was the effects of the recession and gas prices on tourism before allowing themselves to be pressured into this strange payout.
Tourism has been down for several years, and more than likely will continue this year. For the industry to use the figures they did, saying the drop in Florida tourism business was about 30 percent so far, and then tying that into the oil spill - while being creative - was ugly and taking advantage of the situation to get some more money to advertise their state to the nation at a time when state budgets everywhere are low on money.
Florida has now began their ad campaign at the expense of BP, and are getting the word out that the company has done nothing to harm their state. Why not have Minnesota shake down BP in order to say the same thing? Or any other state for that matter.
Maybe I'm dumb or something. But isn't there something wrong with the picture of a company paying a state for something that had absolutely no impact upon them but one the made up and created?
They can use any numbers they want. Let them prove their assertions though, and they'll come up way short. Let's go over the last couple of years to see how the Florida tourism industry was doing in order to see if they numbers hold up. I doubt very much that they would.
BP responded to this to eliminate a minor headache and publicity, but paying $25 million for doing nothing to someone is one of the more strange things I've seen in my lifetime.
These companies need to get a little more backbone than they have, and realize people are using the shock factor to extract things out of them they don't need to pay.
Think of it. Florida hasn't had any negative effects from the oil spill, so now BP is responsible to pay for the Florida Restaurant and Lodging Association to put out ads declaring that!
What BP should have thought of first was the effects of the recession and gas prices on tourism before allowing themselves to be pressured into this strange payout.
Tourism has been down for several years, and more than likely will continue this year. For the industry to use the figures they did, saying the drop in Florida tourism business was about 30 percent so far, and then tying that into the oil spill - while being creative - was ugly and taking advantage of the situation to get some more money to advertise their state to the nation at a time when state budgets everywhere are low on money.
Florida has now began their ad campaign at the expense of BP, and are getting the word out that the company has done nothing to harm their state. Why not have Minnesota shake down BP in order to say the same thing? Or any other state for that matter.
Maybe I'm dumb or something. But isn't there something wrong with the picture of a company paying a state for something that had absolutely no impact upon them but one the made up and created?
They can use any numbers they want. Let them prove their assertions though, and they'll come up way short. Let's go over the last couple of years to see how the Florida tourism industry was doing in order to see if they numbers hold up. I doubt very much that they would.
BP responded to this to eliminate a minor headache and publicity, but paying $25 million for doing nothing to someone is one of the more strange things I've seen in my lifetime.
These companies need to get a little more backbone than they have, and realize people are using the shock factor to extract things out of them they don't need to pay.
Hecla Mining (NYSE:HL) Declares Quarterly Dividend
Hecla Mining Company (NYSE:HL) announced their Board of Directors has declared a regular quarterly dividend for their Series B Cumulative Convertible Preferred Stock.
For each share of those shares, the owner will receive $0.875, equivalent to about $138,000.
Shareholders of record as of June 15, 2010 will be paid on July 1, 2010.
Total shares outstanding of Preferred B Stock is 157,816.
Also declared was the regularly quarterly dividend on the outstanding 6.5 percent Mandatory Convertible Preferred Stock. That amount will be $1.625 a share, which the dividend will be paid in common stock of Hecla. That comes to about $3.27 million, in addition to cash for fractional shares.
Hecla has a 52-week range of $2.26 - $7.47 a share, and recently plunged, as did most mining stocks, with the correction in gold and metals emerging last week.
For each share of those shares, the owner will receive $0.875, equivalent to about $138,000.
Shareholders of record as of June 15, 2010 will be paid on July 1, 2010.
Total shares outstanding of Preferred B Stock is 157,816.
Also declared was the regularly quarterly dividend on the outstanding 6.5 percent Mandatory Convertible Preferred Stock. That amount will be $1.625 a share, which the dividend will be paid in common stock of Hecla. That comes to about $3.27 million, in addition to cash for fractional shares.
Hecla has a 52-week range of $2.26 - $7.47 a share, and recently plunged, as did most mining stocks, with the correction in gold and metals emerging last week.
US Gold Coin Sales Explode
As confidence in paper currencies continue to wain, sales of gold coins in the U.S. has soared in May, already twice what it was in May 2009, with several more days to go before the month ends.
So far in May, 158,000 ounces of gold coins have sold in the U.S., according to the U.S. mint.
Gold coins aren't used primarily for investment purposes, but for an alternative currency for those who believe geopolitical events, or the debasing of the currency could render paper money worthless, or at minimum, of little value.
When news of the bailout of Greece was agreed to by German officials, the people of Germany bought up all the available physical gold they could, and there wasn't near enough to go around, and supply wasn't close to meeting demand.
Germany has experienced the failure of their currency in the past, and the people of Germany know it could happen again, the reason why they ordered or bought every coin available.
Gold coin demand will continue to soar, as there's nothing out there that will change the direction we're going, and politicians have committed to extraordinary debt and printing of money in order to keep their jobs at all costs, as the general public still doesn't realize what the endless bailouts, government debt, and printing of paper money is going to them in the long run.
That is slowly changing, and hopefully enough will learn to not only make it through this crisis, but to help change things forever.
At this time, all of us should have some gold coins put away somewhere in case of emergency, and it'll hold its value no matter what happens to the existing currencies.
Make your decision before it gets impossible to acquire gold coins. If things continue to get worse, it'll get harder and harder to get hold of gold coins, and a lot more expensive as well.
So far in May, 158,000 ounces of gold coins have sold in the U.S., according to the U.S. mint.
Gold coins aren't used primarily for investment purposes, but for an alternative currency for those who believe geopolitical events, or the debasing of the currency could render paper money worthless, or at minimum, of little value.
When news of the bailout of Greece was agreed to by German officials, the people of Germany bought up all the available physical gold they could, and there wasn't near enough to go around, and supply wasn't close to meeting demand.
Germany has experienced the failure of their currency in the past, and the people of Germany know it could happen again, the reason why they ordered or bought every coin available.
Gold coin demand will continue to soar, as there's nothing out there that will change the direction we're going, and politicians have committed to extraordinary debt and printing of money in order to keep their jobs at all costs, as the general public still doesn't realize what the endless bailouts, government debt, and printing of paper money is going to them in the long run.
That is slowly changing, and hopefully enough will learn to not only make it through this crisis, but to help change things forever.
At this time, all of us should have some gold coins put away somewhere in case of emergency, and it'll hold its value no matter what happens to the existing currencies.
Make your decision before it gets impossible to acquire gold coins. If things continue to get worse, it'll get harder and harder to get hold of gold coins, and a lot more expensive as well.
Republicans Boldly Battling Democrats on "Arbitrary" Oil Liability Cap
Republicans have been strongly and boldly battling the anti-business Democrats who are using the oil spill in the Gulf of Mexico to increase the oil spill liability cap from $75 million to $10 billion, something Obama has already called "arbitrary." If this incredibly stupid legislation was imposed, major oil companies like BP (NYSE:BP), Shell (NYSE:RDS-A), Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM) and ConocoPhillips (NYSE:COP) would be put out of the offshore oil drilling business, and replaced by nationalized, or socialized, oil companies around the world.
Evidently the Democrats think the pursuit of this agenda will cause people to abhor Republicans who oppose it, but people are a lot smarter and informed today, and know that they would end up bearing the brunt of the outrageous costs of insuring that much liability, which would also put smaller offshore drilling companies out of business.
The latest incredibly ignorant Democrat bill even took the $10 billion cap off, which would have exposed the oil companies to unlimited liability.
I can only think this is being done in an attempt to make an excuse to nationalize American or other oil companies, which would have to be done if they were to be able to compete with the already-existing national oil companies.
The Democrats, if they even want to be taken seriously anymore, need to drop their pretentious and stupid tactics and spend their time working on legitimate regulations, not the type that are only put forth as politically motivated ploys that have no relationship to the existing problem, but are an attempt to position themselves for a different agenda.
Evidently the Democrats think the pursuit of this agenda will cause people to abhor Republicans who oppose it, but people are a lot smarter and informed today, and know that they would end up bearing the brunt of the outrageous costs of insuring that much liability, which would also put smaller offshore drilling companies out of business.
The latest incredibly ignorant Democrat bill even took the $10 billion cap off, which would have exposed the oil companies to unlimited liability.
I can only think this is being done in an attempt to make an excuse to nationalize American or other oil companies, which would have to be done if they were to be able to compete with the already-existing national oil companies.
The Democrats, if they even want to be taken seriously anymore, need to drop their pretentious and stupid tactics and spend their time working on legitimate regulations, not the type that are only put forth as politically motivated ploys that have no relationship to the existing problem, but are an attempt to position themselves for a different agenda.
SPDR Gold Trust (NYSE:GLD) Record Holdings, Increased Short Interest
SPDR Gold Trust (NYSE:GLD) continues to increase their holdings at a record level, as each time the add to their physical holdings, they are now breaking a record, although occasionally they do divest of gold for a variety of reasons.
I doubt if we'll see much of that going forward though, as demand for physical gold continues to go up in the face of the devaluing of currencies around the world and potential social unrest, which has already begun in some nations.
For SPDR, they continue to move in step with gold prices, and there was also an increased short interest in the gold ETF in the first half of May, with close to 29 million shares being shorted, up from around 14 million shares from the last reporting period.
Physical holdings in gold as of about 6:50 p.m. EST, stood at 1,267.32 tons, or 40,745,654.26, another all-time record.
The value of the gold at today's gold prices is $48,806,853,742.68.
I doubt if we'll see much of that going forward though, as demand for physical gold continues to go up in the face of the devaluing of currencies around the world and potential social unrest, which has already begun in some nations.
For SPDR, they continue to move in step with gold prices, and there was also an increased short interest in the gold ETF in the first half of May, with close to 29 million shares being shorted, up from around 14 million shares from the last reporting period.
Physical holdings in gold as of about 6:50 p.m. EST, stood at 1,267.32 tons, or 40,745,654.26, another all-time record.
The value of the gold at today's gold prices is $48,806,853,742.68.
Today's Gold Prices Flirt with $1,200
Almost everything happening in the world today lends itself to gold continuing to rise, and even when traders and speculators enter the market (or leave it) like they did last week, the strength of gold is such that even now it's poised to resume its upward run, as gold prices today close just beloew $1,200, and have surpassed it in after-hours trading.
With the end of the recession nowhere in sight, sovereign debt crisis in Europe, China dealing with inflation, and now the psychotic North Korean leaders rattling their sabers again, this time beyond what they've done in a long time, gold is becoming the place to be, and those companies connected to the gold market, like gold miners and ETFs, etc, will continue to rise, as the only surety we have now is that there will continue to be volatility across all of life, which makes gold the only reliable source of safety left for people to put their money in.
Once gold breaks $1,200 an ounce again, there shouldn't be much resistance to it approaching its previous high, and test the $1,250 mark again.
The only thing that kept it from soaring past that already was the covering of positions speculators did last week, which made them sell off their gold assets in order to do that, as well as some taking profits as well from the prior runup in prices. Absolutely nothing has changed since then, and economic and geo-political situations are even more concerning in the last few days, with Spain taking over their first bank in the country over the weekend, reinforcing the legitimacy of concerns over the region.
With the end of the recession nowhere in sight, sovereign debt crisis in Europe, China dealing with inflation, and now the psychotic North Korean leaders rattling their sabers again, this time beyond what they've done in a long time, gold is becoming the place to be, and those companies connected to the gold market, like gold miners and ETFs, etc, will continue to rise, as the only surety we have now is that there will continue to be volatility across all of life, which makes gold the only reliable source of safety left for people to put their money in.
Once gold breaks $1,200 an ounce again, there shouldn't be much resistance to it approaching its previous high, and test the $1,250 mark again.
The only thing that kept it from soaring past that already was the covering of positions speculators did last week, which made them sell off their gold assets in order to do that, as well as some taking profits as well from the prior runup in prices. Absolutely nothing has changed since then, and economic and geo-political situations are even more concerning in the last few days, with Spain taking over their first bank in the country over the weekend, reinforcing the legitimacy of concerns over the region.
BP (NYSE:BP) Suing Transocean (NYSE:RIG)
BP (NYSE:BP) has filed a claim with a U.S. Court trying to get damages against Transocean, (NYSE:RIG) the company in charge of drilling the oil well.
Court documents say Transocean is arguing that the contract they had with BP makes it only liable for environmental damage caused by any spill from its rig. The insurer, Lloyd's of London is asking the Court to block the claim. Even though it was Transocean's oil rig that exploded, sank, thus causing the pipe to break and has been spewing crude oil for coming to the close of five weeks now.
BP said it has filed a claim against the insurers but declined further comment.
Even if BP gets the full $700 million in insurance, it is a minute amount considering the compensation that will have to be paid out to people who have experienced losses during the oil spill catastrophe. Not to mention what the total bill will be for the cleanup efforts and environmental damages. USB analysts put the amount at around $12 billion.
Court documents say Transocean is arguing that the contract they had with BP makes it only liable for environmental damage caused by any spill from its rig. The insurer, Lloyd's of London is asking the Court to block the claim. Even though it was Transocean's oil rig that exploded, sank, thus causing the pipe to break and has been spewing crude oil for coming to the close of five weeks now.
BP said it has filed a claim against the insurers but declined further comment.
Even if BP gets the full $700 million in insurance, it is a minute amount considering the compensation that will have to be paid out to people who have experienced losses during the oil spill catastrophe. Not to mention what the total bill will be for the cleanup efforts and environmental damages. USB analysts put the amount at around $12 billion.
Newmont Mining (NYSE:NEM) Retains "Buy" from Deutsche Bank (NYSE:DB)
In the gold mining space, Newmont Mining (NYSE:NEM), along with major competitor Barrick Gold (NYSE:ABX) (TSE:ABX), are considered the top gold companies for value investing, with expectations they'll outperform rivals Goldcorp (NYSE:GG) and Kinross Gold (NYSE:KGC), according to Deutsche Bank (NYSE:DB) analyst Jorge Beristain.
Deutsche Bank retained its "Buy" rating on Newmont, which Barrick Gold was upgraded to, while Goldcorp and Kinross have "Hold" ratings on them now.
Newmont fell last week as speculators and traders had to sell off some of their gold to cover losses elsewhere, but they will rebound with the price of gold, and volume of trading shows that investors have re-entered the market, while the speculators and traders - at least for now - seem to have stayed on the sidelines.
Deutsche Bank retained its "Buy" rating on Newmont, which Barrick Gold was upgraded to, while Goldcorp and Kinross have "Hold" ratings on them now.
Newmont fell last week as speculators and traders had to sell off some of their gold to cover losses elsewhere, but they will rebound with the price of gold, and volume of trading shows that investors have re-entered the market, while the speculators and traders - at least for now - seem to have stayed on the sidelines.
Goldcorp (NYSE:GG), Kinross (NYSE:KGC) Should be Outperformed by Barrick (NYSE:ABX), Newmont Mining (NYSE:NEM) says Deutsche Bank (NYSE:DB)
Deutsche Bank (NYSE:DB) analyst Jorge Beristain probably didn't win any friends from Goldcorp (TSE:G) (NYSE:GG) and Kinross Gold (NYSE:KGC) today, as he upgraded major rival Barrick Gold (TSE:ABX) (NYSE:ABX), and reiterated their "Buy" rating on Newmont Mining.
What he added I'm sure ruffled their feathers, as he said Barrick and Newmont should outperform Goldcorp and Kinross in the current economic environment.
Beristain also said the changes in the macro economic picture makes the gold situation even more compelling, as he raised his price targets for gold in 2011 to $1,450, and in 2012 to $1,600 an ounce.
His price target was raised on Barrick from $45 to $53.
What he added I'm sure ruffled their feathers, as he said Barrick and Newmont should outperform Goldcorp and Kinross in the current economic environment.
Beristain also said the changes in the macro economic picture makes the gold situation even more compelling, as he raised his price targets for gold in 2011 to $1,450, and in 2012 to $1,600 an ounce.
His price target was raised on Barrick from $45 to $53.
BP (NYSE:BP) Ready For "Top Kill" Attempt
BP's (NYSE:BP) has moved equipment in and is ready for its "top kill" attempt on Wednesday. This has never been attempted before at these depths of 5,000 feet below the surface. BP is estimating the success rate being only about a 60 - 70 percent.
If the attempt is a failure, BP has a couple other options they could implement. The first being they would try and cut the damaged riser pipe on the top of the blowout preventer, they would then attach a cap to the riser from the above drillship. The company said if successful this would capture most of the oil.
Another option is to lower a second blowout preventer or a valve. We're heading into the sixth week now since the explosion of the Deepwater Horizon on April 20th and the sinking April 22nd.
If the attempt is a failure, BP has a couple other options they could implement. The first being they would try and cut the damaged riser pipe on the top of the blowout preventer, they would then attach a cap to the riser from the above drillship. The company said if successful this would capture most of the oil.
Another option is to lower a second blowout preventer or a valve. We're heading into the sixth week now since the explosion of the Deepwater Horizon on April 20th and the sinking April 22nd.
BP: (NYSE:BP) We'll Reduce Use By 50-80 % Of Corexit
BP (NYSE:BP) continues its use of the dispersant Corexit, ignoring the EPA and federal government. BP says it will reduce the amount of Corexit it is currently using in the Gulf. Serious questions are being raised on the effects this chemical will have long term on wildlife and humans.
Due to BP's continued excuses and lack of action, the EPA is setting up its own research and testing in their lab in Gulf Breeze, FL. The purpose of this testing will be to find a less toxic dispersant that can aid in the safe breakup of the oil. Among these is included, a biodegradable tests and well as toxicity testing.
Lisa Jackson, the EPA Administrator said she meet with BP officials Sunday night to get the company to cut back on it use of the chemical dispersant. She feels confident that there will be a 50 - 80 percent reduction over the next few days as they proceed with their testing.
This reduction will mainly be on the surface. Jackson said, putting the dispersant directly into the stream of oil underwater has proven to be far less toxic and more effective than it's effects on the top of the water.
Due to BP's continued excuses and lack of action, the EPA is setting up its own research and testing in their lab in Gulf Breeze, FL. The purpose of this testing will be to find a less toxic dispersant that can aid in the safe breakup of the oil. Among these is included, a biodegradable tests and well as toxicity testing.
Lisa Jackson, the EPA Administrator said she meet with BP officials Sunday night to get the company to cut back on it use of the chemical dispersant. She feels confident that there will be a 50 - 80 percent reduction over the next few days as they proceed with their testing.
This reduction will mainly be on the surface. Jackson said, putting the dispersant directly into the stream of oil underwater has proven to be far less toxic and more effective than it's effects on the top of the water.
Monday, May 24, 2010
Golden Star Resources (AMEX:GSS) Surges 4.2 Percent
Golden Star Resources (AMEX:GSS) had a big day today, along with other gold miners and gold futures as well, ending the session up 4.2 percent, or 17 cents, closing at $4.22.
Volume was down from the 3-month average of 3,488,360, with 2,437,232 share changing hands.
Many of the gold miners acted this way today, and it's probably from the exit of traders and speculators from the market, and investors moving back in to grab up some bargains.
Last week they took their profits or sold their gold to cover losses in other markets, which brought down the price of gold and gold miners significantly, as most of you know.
That should change this week, but there are so many economic variables again out there, we'll have to wait and see. Overall though, I anticipate better upward movement in gold prices and gold mining stocks this week.
Volume was down from the 3-month average of 3,488,360, with 2,437,232 share changing hands.
Many of the gold miners acted this way today, and it's probably from the exit of traders and speculators from the market, and investors moving back in to grab up some bargains.
Last week they took their profits or sold their gold to cover losses in other markets, which brought down the price of gold and gold miners significantly, as most of you know.
That should change this week, but there are so many economic variables again out there, we'll have to wait and see. Overall though, I anticipate better upward movement in gold prices and gold mining stocks this week.
Eldorado Gold (NYSE:EGO), Iamgold (NYSE:IAG) Move Up
After last Friday seemed to indicate speculators and traders had pretty much left the gold market, as gold prices began to rebound then, that continued on today, with gold futures prices moving up nicely, with Eldorado Gold (NYSE:EGO) and Iamgold (NYSE:IAG) joining in the rebound.
Eldorado finished the session at 16.10, up $0.37, or 2.35 percent. Volume was about level with the 3-month average.
Iamgold (NYSE:IAG), coincidentally, was up the same $0.37 Eldorado was, a 2.3 percent gain for them. They finished today's session in New York at $16.45.
Volume for them, like a number of gold miners today, was off, down to 3,173,540, from the 3-month average of 4,289,440.
Eldorado finished the session at 16.10, up $0.37, or 2.35 percent. Volume was about level with the 3-month average.
Iamgold (NYSE:IAG), coincidentally, was up the same $0.37 Eldorado was, a 2.3 percent gain for them. They finished today's session in New York at $16.45.
Volume for them, like a number of gold miners today, was off, down to 3,173,540, from the 3-month average of 4,289,440.
Barrick Gold (TSE:ABX), Newmont Mining (NYSE:NEM) Rebound
Barrick Gold (TSE:ABX) (NYSE:ABX) and Newmont Mining (NYSE:NEM) rebounded with gold prices today, which reached toward the $1,200 an ounce mark again, before falling back some later in the day.
Barrick pushed hard during the day, but dropped in the latter part of trading as well, although though still finishing the session up a little, and increasing more in electronic trading. Barrick finished at $41.12, up a dime or 0.24 percent.
Volume plunged from its three-month average in New York, with 6,721,617 share trading hands, far below the average 11,310,300. In Toronto Barrick finished down by a little over 1 percent, ending the trading day at $43.48.
Newmont had been up most of the day, but also dropped near the end of the session to break even, closing at $52.34. After hours they started up again, hitting $53.40 a share at 5:30 p.m. EST.
Barrick pushed hard during the day, but dropped in the latter part of trading as well, although though still finishing the session up a little, and increasing more in electronic trading. Barrick finished at $41.12, up a dime or 0.24 percent.
Volume plunged from its three-month average in New York, with 6,721,617 share trading hands, far below the average 11,310,300. In Toronto Barrick finished down by a little over 1 percent, ending the trading day at $43.48.
Newmont had been up most of the day, but also dropped near the end of the session to break even, closing at $52.34. After hours they started up again, hitting $53.40 a share at 5:30 p.m. EST.
Glenn Beck Clobbers Gold "Weiner"
Glenn Beck in an interview with Bill O'Reilly made New York congressman look just what his names says he is, a big "Weiner," as proof of the quality gold company Beck represents was given, and obviously this clown is running for cover.
The worst thing about it is that Anthony Weiner may have been backed by some higher ups to make Beck look bad, and he's the typical leftist, socialist who believes he has the right to tell Goldline, the company in question, how much profit they should make on their antique coins.
Since when did the big Weiner get some expertise in business and the gold market? All types like him can do is push to tax the productive to redistribute their money in the usual socialist wet dream of a utopian society.
So what type of rating does Goldline have in the industry? According to the New York Times, it is A+.
This was a stupid move by Weiner, who is losing all credibility in the attempted oppresion of Beck, and is looking unusually stupid, even for an anti-business liberal, socialist like he is.
The worst thing about it is that Anthony Weiner may have been backed by some higher ups to make Beck look bad, and he's the typical leftist, socialist who believes he has the right to tell Goldline, the company in question, how much profit they should make on their antique coins.
Since when did the big Weiner get some expertise in business and the gold market? All types like him can do is push to tax the productive to redistribute their money in the usual socialist wet dream of a utopian society.
So what type of rating does Goldline have in the industry? According to the New York Times, it is A+.
This was a stupid move by Weiner, who is losing all credibility in the attempted oppresion of Beck, and is looking unusually stupid, even for an anti-business liberal, socialist like he is.
Transocean: (NYSE:RIG) Cement Work Cause Of Blowout
While many are pointing the finger at BP (NYSE:BP) others are investigating what is showing a common thread with improperly oil well cementing jobs. Sealing offshore oil wells has failed numerous times in the past according to the American Press Association.
Another example of poor regulations is federal regulators giving drillers a free hand in crucial safety steps. These federal regulators leave the decision of what type of cement is used up to the oil and gas companies. There are simple guidelines from the American Petroleum Institute that drillers are encouraged to follow.
Yet, state and federal standards and controls are comparably much more strict on cement projects such as bridges, roads, and buildings. Transocean feels that the cement work is one of the main causes for of the blowout.
An AP review of the federal accident and incident reports on offshore wells shows that there have been at least 34 times the cementing process has been implicated since 1978. Many of the reports simply state the cause as "poor cement job."
Another example of poor regulations is federal regulators giving drillers a free hand in crucial safety steps. These federal regulators leave the decision of what type of cement is used up to the oil and gas companies. There are simple guidelines from the American Petroleum Institute that drillers are encouraged to follow.
Yet, state and federal standards and controls are comparably much more strict on cement projects such as bridges, roads, and buildings. Transocean feels that the cement work is one of the main causes for of the blowout.
An AP review of the federal accident and incident reports on offshore wells shows that there have been at least 34 times the cementing process has been implicated since 1978. Many of the reports simply state the cause as "poor cement job."
Sarah Palin, BP (NYSE:BP) and Obama
Growing concern over Barack Obama and his connection to big oil is emerging, as BP (NYSE:BP) has given Obama the largest single donation in two decades to Obama, $77,051, according to the Center for Responsive Politics.
Sarah Palin has openly started asking why there isn't as much scrutiny over the slow response of the Obama administration to the Gulf of Mexico oil spill as there was over the alleged slow response of the Bush administration to Katrina.
Palin likens Obama's lack of response in the beginning to the Katrina situation, citing Obama's ties to big oil as the reason behind it.
"I don't know why the question isn't asked by the mainstream media and by others if there's any connection with the contributions made to president Obama and his administration and the support by the oil companies to the administration," said Palin.
Others have questioned Obama's slow response as well as possibly being related to his strong connections to the oil industry, which he is now trying to distance himself from.
Sarah Palin has openly started asking why there isn't as much scrutiny over the slow response of the Obama administration to the Gulf of Mexico oil spill as there was over the alleged slow response of the Bush administration to Katrina.
Palin likens Obama's lack of response in the beginning to the Katrina situation, citing Obama's ties to big oil as the reason behind it.
"I don't know why the question isn't asked by the mainstream media and by others if there's any connection with the contributions made to president Obama and his administration and the support by the oil companies to the administration," said Palin.
Others have questioned Obama's slow response as well as possibly being related to his strong connections to the oil industry, which he is now trying to distance himself from.
Fronteer Gold (AMEX:FRG) Ready to Break Out?
Fronteer Gold (AMEX:FRG) has made a nice move this year, with a 52-week range of 2.85 - 6.37, and as of today standing at $5.57 a share, a gain of 26 cents, or 4.90 percent. That was as of 1:05 p.m. EST.
A number of analysts and investors think Fronteer has a lot of upside to it, and that could be the case.
Fronteer reported a new resource estimate for its Long Canyon Gold project last week:
-- A Measured and Indicated (M&I) resource of 672,000 ounces at an averagegrade of 1.71 g/t gold (12,240,000 tons); and,-- An additional Inferred resource of 552,000 ounces at an average grade of1.65 g/t gold (10,394,000 tons).
A couple of good things Fronteer has going for them is their projects are primarily located in stable regions, including Turkey, and in the U.S. - California and Nevada.
They're also in a strong cash position, where they won't have to incur any more debt, with cash and Short-term deposits coming to $147. million, as of December 2009.
According to Fronteer, this should provide the majority of, if not all, cash they need for operations, exploration and acquisitions for a least a year, and probably longer.
A number of analysts and investors think Fronteer has a lot of upside to it, and that could be the case.
Fronteer reported a new resource estimate for its Long Canyon Gold project last week:
-- A Measured and Indicated (M&I) resource of 672,000 ounces at an averagegrade of 1.71 g/t gold (12,240,000 tons); and,-- An additional Inferred resource of 552,000 ounces at an average grade of1.65 g/t gold (10,394,000 tons).
A couple of good things Fronteer has going for them is their projects are primarily located in stable regions, including Turkey, and in the U.S. - California and Nevada.
They're also in a strong cash position, where they won't have to incur any more debt, with cash and Short-term deposits coming to $147. million, as of December 2009.
According to Fronteer, this should provide the majority of, if not all, cash they need for operations, exploration and acquisitions for a least a year, and probably longer.
Gold Future Prices Driven Up by Haven Demand
Gold futures prices are on the rebound today as a demand for a safe haven again has dominated the market, and investors invest to preserve their wealth. This was the highest gain for gold, which may be at the end of the correction, after speculators took their profits after a strong increase in price.
Another reason for taking gold profits last week was investors had incurred losses in other markets, so they had to cover those losses with the strong profits they received from gold, which had been on a roll. Gold ended the week down by 4.2 percent, the deepest plunge since December.
Continued economic concerns in the European Union are also contributing to today's rise, making gold again the choice as the most safe place to stash our money.
The market is still regurgitating the news that the Bank of Spain has taken over a major savings bank in the country, CajaSur, which has experienced major defaults because of the ongoing recession. Most believe this is just the first of many which will fail, with the depth of the failure an unknown, but one that will continue to rock the markets, and drive up the price of gold.
Gold was up to $1193.50 an ounce, or $16.50 as of 12:30 p.m. Est.
Another reason for taking gold profits last week was investors had incurred losses in other markets, so they had to cover those losses with the strong profits they received from gold, which had been on a roll. Gold ended the week down by 4.2 percent, the deepest plunge since December.
Continued economic concerns in the European Union are also contributing to today's rise, making gold again the choice as the most safe place to stash our money.
The market is still regurgitating the news that the Bank of Spain has taken over a major savings bank in the country, CajaSur, which has experienced major defaults because of the ongoing recession. Most believe this is just the first of many which will fail, with the depth of the failure an unknown, but one that will continue to rock the markets, and drive up the price of gold.
Gold was up to $1193.50 an ounce, or $16.50 as of 12:30 p.m. Est.
Oil Prices Today: BP (NYSE:BP) Leads In Falling Percentages
BP (NYSE:BP) is getting hit hard with criticism, anger, and rising doubt, but they're feeling it hardest in stock prices among oil companies. As of Monday BP has fallen to a 52 week low.
BP's shares have fallen another 4 percent at the open bringing it to $42.08. Bringing the New York Stock Exchange Arca oil index down 1.7 percent to 948 points. Royal Dutch Shell shares are also feeling the heat at a 2.4 percent drop at $51.52.
Transocean has also hit a 52 week low dropping 2.2 percent at $57.95. With Transocean being the biggest percent decliner, its put the Philadelphia Oil Service Sector Index down 1 percent to 176 points.
There is not much optimism of if and when these percentages will increase.
To add to the loss, crude oil price were low overnight. Though the July crude features contract bounced back from the overnight low of $69.55 a barrell to $70.23 a barrell. That's a 19 cent increase on the New York Mercantile Exchange.
BP's shares have fallen another 4 percent at the open bringing it to $42.08. Bringing the New York Stock Exchange Arca oil index down 1.7 percent to 948 points. Royal Dutch Shell shares are also feeling the heat at a 2.4 percent drop at $51.52.
Transocean has also hit a 52 week low dropping 2.2 percent at $57.95. With Transocean being the biggest percent decliner, its put the Philadelphia Oil Service Sector Index down 1 percent to 176 points.
There is not much optimism of if and when these percentages will increase.
To add to the loss, crude oil price were low overnight. Though the July crude features contract bounced back from the overnight low of $69.55 a barrell to $70.23 a barrell. That's a 19 cent increase on the New York Mercantile Exchange.
BP (NYSE:BP) Delaying Attempts To Cap Oil Spill
As the frustration and anger continues to mount, BP's (NYSE:BP) planned attempt to cap the oil spill today known as "top kill," is now delayed until possibly Wednesday at the earliest.
"It could slip to Wednesday because it has to be a day operation," said U.S. Coast Guard Rear Adm. Mary Landry on a conference call Sunday. Landry also added that she has visited the BP offices and confirms that "BP is working around the clock" on their attempts to resolve the fuel oil spill. "We are doing everything we can, everything I know," said Doug Suttles, chief operating officer at BP, on NBC's Today Show.
All the while, the oil siphoning attempts continue to drop daily. John Curry, BP's spokesperson told the Associated Press on Monday that the tube collected about 47,040 gallons of oil on Sunday. That's a significant drop from Saturday's collection of oil which was 57,120 gallons. Friday's siphoning brought in 92,400 gallons from the oil spill.
In a news release, BP said the mile long tube is "a new technology and both its continued operation and its effectiveness in capturing the oil and gas remain uncertain."
"It could slip to Wednesday because it has to be a day operation," said U.S. Coast Guard Rear Adm. Mary Landry on a conference call Sunday. Landry also added that she has visited the BP offices and confirms that "BP is working around the clock" on their attempts to resolve the fuel oil spill. "We are doing everything we can, everything I know," said Doug Suttles, chief operating officer at BP, on NBC's Today Show.
All the while, the oil siphoning attempts continue to drop daily. John Curry, BP's spokesperson told the Associated Press on Monday that the tube collected about 47,040 gallons of oil on Sunday. That's a significant drop from Saturday's collection of oil which was 57,120 gallons. Friday's siphoning brought in 92,400 gallons from the oil spill.
In a news release, BP said the mile long tube is "a new technology and both its continued operation and its effectiveness in capturing the oil and gas remain uncertain."
Sunday, May 23, 2010
Government Panel Reviewing BP (NYSE:BP) Oil Spill Video
An independent panel of experts has been created by the government to review and study the live oil spill video from BP (NYSE:BP) . This is to determine the amount of oil flowing into the water. Nobody from BP is on this panel.
Scientist are saying BP has been dishonest and that they are trying to distort the accurate results of the oil flow rate. They are doing this to prevent their full liability for environmental damage.
Bob Dudley, BP's managing director told CNN, "I've used the analogy that this is a little bit like popping a soda can rushing out with lots of gas and oil. There's lot of gas in this crude, the rate is unclear." Dudley also insists that the company has been as transparent as possible.
The justice department sent officials to the Gulf to look into the progress of the oil spill. Robert Gibbs, the White House spokesman would not elaborate if there will be criminal charges filed against BP as well as the other companies that were working on the Deepwater Horizon.
Scientist are saying BP has been dishonest and that they are trying to distort the accurate results of the oil flow rate. They are doing this to prevent their full liability for environmental damage.
Bob Dudley, BP's managing director told CNN, "I've used the analogy that this is a little bit like popping a soda can rushing out with lots of gas and oil. There's lot of gas in this crude, the rate is unclear." Dudley also insists that the company has been as transparent as possible.
The justice department sent officials to the Gulf to look into the progress of the oil spill. Robert Gibbs, the White House spokesman would not elaborate if there will be criminal charges filed against BP as well as the other companies that were working on the Deepwater Horizon.
Scientist's Saying BP's (NYSE:BP) Losing 850,000 Gallons Daily
As the debate continues, independent scientists are estimating that BP (NYSE:BP) is losing at a minimum, 850,000 gallons a day. There are many scientist that are in agreement that BP and Obama's administration continue to downplay the actual amount of oil that is spewing at a massive rate.
"This is an all hands on deck crisis, and we need to use every asset the U.S. has, including the defense department and all of its most sophisticated technology," said Rep. Ed Markey.
There has been many members of Congress, local officials, as well as environmental organizations in the effected states, that are pushing for the federal government to take over the oil response efforts.
Sen. Lamar Alexander, on CBS's Face the Nation, seemed to advocate the government simply taking over BP as a whole.
"This is an all hands on deck crisis, and we need to use every asset the U.S. has, including the defense department and all of its most sophisticated technology," said Rep. Ed Markey.
There has been many members of Congress, local officials, as well as environmental organizations in the effected states, that are pushing for the federal government to take over the oil response efforts.
Sen. Lamar Alexander, on CBS's Face the Nation, seemed to advocate the government simply taking over BP as a whole.
BP's (NYSE:BP) Oil Leak Control Efforts Have Declined
Despite the continued efforts of BP (NYSE:BP) to contain the massive oil leak, it is not working as well as before. BP's PLC officials stated Sunday that the mile long tube that was inserted into the spewing oil, is not as effective.
John Curry, BP's spokesman told the Associated Press Sunday that there has been a substantial drop in the amount the tube is siphoning to the surface. As of Friday there was a reported 92,400 gallons a day being collected. On Sunday there was a big drop, down to 57,120 gallons a day.
Three of Obama's top administration officials are heading back to the Gulf Coast to monitor the ongoing oil spill cleanup efforts.
Meanwhile, engineers continue on in their efforts to try and get some control over the oil disaster. This is as the crude oil continues to wash into our shores, wildlife is at a continued high danger, and anger with BP and the government continues to grow.
John Curry, BP's spokesman told the Associated Press Sunday that there has been a substantial drop in the amount the tube is siphoning to the surface. As of Friday there was a reported 92,400 gallons a day being collected. On Sunday there was a big drop, down to 57,120 gallons a day.
Three of Obama's top administration officials are heading back to the Gulf Coast to monitor the ongoing oil spill cleanup efforts.
Meanwhile, engineers continue on in their efforts to try and get some control over the oil disaster. This is as the crude oil continues to wash into our shores, wildlife is at a continued high danger, and anger with BP and the government continues to grow.
Saturday, May 22, 2010
Obama Unleashes Commission To Investigate BP's (NYSE:BP) Disaster
President Obama did not hold back on voicing his continued dissatisfaction with how the BP (NYSE:BP) disaster has been handled as a whole, in his weekly television and Internet address. He said that offshore oil drilling would not continue unless there were assurances that such an incident would not happen again.
It is not only BP Obama had strong words for, Halliburton and Transocean were also recipients. He also is holding Washington accountable for mending its ways. Obama is unleashing a commission to investigate the disaster.
As political stakes continue to grow, President Obama said, "first and foremost, what led to this disaster was a breakdown on the part of BP and perhaps others, including Transocean and Halliburton."
"And we will continue to hold the relevant companies accountable not only for being forthcoming
and transparent about the facts surrounding the leak, but for shutting it down, repairing the damage it does, and repaying Americans who have suffered a financial loss, said Obama."
It is not only BP Obama had strong words for, Halliburton and Transocean were also recipients. He also is holding Washington accountable for mending its ways. Obama is unleashing a commission to investigate the disaster.
As political stakes continue to grow, President Obama said, "first and foremost, what led to this disaster was a breakdown on the part of BP and perhaps others, including Transocean and Halliburton."
"And we will continue to hold the relevant companies accountable not only for being forthcoming
and transparent about the facts surrounding the leak, but for shutting it down, repairing the damage it does, and repaying Americans who have suffered a financial loss, said Obama."
Alamos Gold (TSE:AGI), Agnico Eagle (TSE:AEM) Fall with Gold Price Drop
Gold miners are probably all glad the brutal gold correction of last week seems to have taken a breather, as gold prices, along with the price of gold mining shared plunged, and gold miners like Alamos Gold (TSE:AGI) and Agnico Eagle Mines NYSE:AEM)(TSE:AEM) participated strongly in that drop in share price, along with most of their colleagues.
Alamos Gold ended their week on the upswing, gaining 0.41 percent, or 6 cents a share in Toronto. Volume also fell, seeming to imply traders may have taken their profits during the last week, and are for the most part out of the gold market temporarily. That would be good news overall for gold prices and gold miners, which should start to move upward again now that speculators, for now, are largely gone.
Alamos finished the week at $14.87 a share.
Agnico Eagle (TSE:AEM) had a tougher week, dropping 0.35 percent in New York, or $0.20 a share. As usual, volume as measured by percentage and numbers was higher in New York for Agnico, finishing Friday with 3,956,943, up from the 3-month average of 2,994,710. Share price closed the week in New York at 56.56.
In Toronto, Agnico was also down, dropping 1.22 percent, or $0.74 a share. Volume by percentage was much lower than the 3-month average, ending the day at 576,366, down from the 3-month average volume of 821,027. Shares finished the week at $60.09.
Alamos Gold ended their week on the upswing, gaining 0.41 percent, or 6 cents a share in Toronto. Volume also fell, seeming to imply traders may have taken their profits during the last week, and are for the most part out of the gold market temporarily. That would be good news overall for gold prices and gold miners, which should start to move upward again now that speculators, for now, are largely gone.
Alamos finished the week at $14.87 a share.
Agnico Eagle (TSE:AEM) had a tougher week, dropping 0.35 percent in New York, or $0.20 a share. As usual, volume as measured by percentage and numbers was higher in New York for Agnico, finishing Friday with 3,956,943, up from the 3-month average of 2,994,710. Share price closed the week in New York at 56.56.
In Toronto, Agnico was also down, dropping 1.22 percent, or $0.74 a share. Volume by percentage was much lower than the 3-month average, ending the day at 576,366, down from the 3-month average volume of 821,027. Shares finished the week at $60.09.
BP (NYSE:BP): Natural Gas Distorting Oil Leak Estimates
People without knowledge of the oil leak in the Gulf of Mexico, are inflating the amount of oil leaking into the region because they aren't taking in a number of factors relevant to the situation, said BP (NYSE:BP).
Alarmists have been calling them liars and the media and Obama administration cluelessly says they're not being transparent enough, again, based on seeming inability to get their facts straight, and also caving to their base, which wants this disaster to be worse than it really is in order to pursue their private agendas.
One of the major elements that are going to make these so-called researchers and scientists look stupid and ignorant is the fact that about half of what is leaking into the ocean is natural gas. They are basing their inflated numbers on all the liquid being oil, which totally makes the flow far higher than it really is.
Other things not being taken into consideration, are these, according to BP in a statement: "For instance, while the original riser was 19.5 inches in diameter prior to the Deepwater Horizon accident, damage sustained during the accident distorted the diameter at the end of the pipe by about 30 percent. In addition, a drill pipe currently trapped inside the riser has reduced the flow area by an additional 10 percent."
The mainstream media is also reporting that so-called exerts are saying the amount of oil being released is far more than the 5,000 barrels thought to be leaking in the ocean on a daily basis by BP. Experts? How is anyone an expert in oil leaking from the ocean floor at about a mile below the surface? There is no such thing as an expert in this, which is the reason why BP is having so much trouble plugging the leak, and you can be sure others in the industry are giving them input on the matter as well, as it has a negative impact on the industry as a whole.
I don't believe BP is trying to hide anything at all, what they're doing is syphoning through all the data, and the number of variables involved, plus changes circumstances, make it an extremely difficult job to do.
For that reason, they prefer to release information on certain things in 24-hour cycles rather than in smaller time frames, as it makes it appear like they're trying to hide something, when in fact the circumstances are changing at such a rapid pace, that when they report it, it seems they're hiding something or being coy, when they are in reality adjusting their statement and thinking as the events occur and additional information is discovered and understood.
Alarmists have been calling them liars and the media and Obama administration cluelessly says they're not being transparent enough, again, based on seeming inability to get their facts straight, and also caving to their base, which wants this disaster to be worse than it really is in order to pursue their private agendas.
One of the major elements that are going to make these so-called researchers and scientists look stupid and ignorant is the fact that about half of what is leaking into the ocean is natural gas. They are basing their inflated numbers on all the liquid being oil, which totally makes the flow far higher than it really is.
Other things not being taken into consideration, are these, according to BP in a statement: "For instance, while the original riser was 19.5 inches in diameter prior to the Deepwater Horizon accident, damage sustained during the accident distorted the diameter at the end of the pipe by about 30 percent. In addition, a drill pipe currently trapped inside the riser has reduced the flow area by an additional 10 percent."
The mainstream media is also reporting that so-called exerts are saying the amount of oil being released is far more than the 5,000 barrels thought to be leaking in the ocean on a daily basis by BP. Experts? How is anyone an expert in oil leaking from the ocean floor at about a mile below the surface? There is no such thing as an expert in this, which is the reason why BP is having so much trouble plugging the leak, and you can be sure others in the industry are giving them input on the matter as well, as it has a negative impact on the industry as a whole.
I don't believe BP is trying to hide anything at all, what they're doing is syphoning through all the data, and the number of variables involved, plus changes circumstances, make it an extremely difficult job to do.
For that reason, they prefer to release information on certain things in 24-hour cycles rather than in smaller time frames, as it makes it appear like they're trying to hide something, when in fact the circumstances are changing at such a rapid pace, that when they report it, it seems they're hiding something or being coy, when they are in reality adjusting their statement and thinking as the events occur and additional information is discovered and understood.
BP (NYSE:BP) CEO Frustrated Over Lack of Progress
BP (NYSE:BP) chief executive officer Tony Hayward said in an email to his people that he was frustrated over the lack of progress in plugging the oil leak in the Gulf of Mexico.
Probably in an attempt to manage expectations, Hayward added that the attempt to plug the well permanently next week isn't guaranteed either, somewhat reflecting the somber mood hanging over the ordeal as a whole.
An attempt to plug the oil well at that depth has never been attempted before, and since there is no road-map to follow, the variables that could rise from the attempt are simply not known.
He said in the email, it "would be another first for this technology at these water depths and so, we cannot take its success for granted."
In the email Hayword also pointed out that next week the Marine Board investigation will migrate toward interviewing "survivors from the rig" in hopes of getting a clear picture of what happened on the Deepwater Horizon.
Probably in an attempt to manage expectations, Hayward added that the attempt to plug the well permanently next week isn't guaranteed either, somewhat reflecting the somber mood hanging over the ordeal as a whole.
An attempt to plug the oil well at that depth has never been attempted before, and since there is no road-map to follow, the variables that could rise from the attempt are simply not known.
He said in the email, it "would be another first for this technology at these water depths and so, we cannot take its success for granted."
In the email Hayword also pointed out that next week the Marine Board investigation will migrate toward interviewing "survivors from the rig" in hopes of getting a clear picture of what happened on the Deepwater Horizon.
Rand Paul Right on BP (NYSE:BP)
While all the liberals, progressives and socialists are out in force trying to use the tragic accident on the oil rig Deepwater Horizon as an excuse to bash BP (NYSE:BP), business and the oil industry, Rand Paul is one of the few voices of sanity calling out from the political wilderness that the response of their demi-god Obama in saying he's going to keep his foot on the throat of BP is inappropriate and "un-American," and he's right of course.
The attempt to bring and demand perfection in any human endeavor, no matter what type it is is ridiculous and unattainable, as any sane, healthy and honest person will admit. All that happens when government steps in in the way Obama has is to make things more expensive and harder to do, and usually the endless number of regulations will have unintended consequences which do more harm overall than good.
Big government-loving liberals, progressives and socialists are now using this as an attempt to derail Rand Paul's run to be the senator from Kentucky because they know he will be one of their worst political nightmares, like his dad Ron Paul is, because he'll vote against the majority of the policies which only grow government larger, destroy the moral fabric of the nation, and turn more and more toward socialism and crony capitalism than ever before in our history.
All they're trying to do is paint Paul as a kook, because these kooks don't want to be found out for what they are, and as the tactics they use dictate to them, they never want to waste a tragedy or incident to further and promote their agenda.
They also know Rand Paul is highly popular in Kentucky, and leads their Democratic opponent as much as he led and beat his Republican opponent in the primary.
This is just noise and sound bites they're throwing out in a way they hope the public will start to believe based on nothing else than repetition.
Rand Paul is right about BP. The response is way over the top by the Obama administration and his media lapdogs, and BP is doing everything they can to stop the oil leak and start to clean it up.
What these people are doing is taking the opportunity to make so much noise that the idea of continuing to drill offshore oil will be disallowed. That's not going to happen, but that's part of their agenda.
The other part of their agenda is the additional regulations which will inevitably come could cause the price of oil, and by extension, gasoline, to raise, that would give their environmental projects more of a chance to move forward, especially their alternative energy garbage, which isn't cost competitive, even at the high price of gas and oil today.
You know Rand Paul is hitting on the truth when you hear these socialists screaming and yelling over comments he makes which the majority of normal Americans like us, agree with him on.
The attempt to bring and demand perfection in any human endeavor, no matter what type it is is ridiculous and unattainable, as any sane, healthy and honest person will admit. All that happens when government steps in in the way Obama has is to make things more expensive and harder to do, and usually the endless number of regulations will have unintended consequences which do more harm overall than good.
Big government-loving liberals, progressives and socialists are now using this as an attempt to derail Rand Paul's run to be the senator from Kentucky because they know he will be one of their worst political nightmares, like his dad Ron Paul is, because he'll vote against the majority of the policies which only grow government larger, destroy the moral fabric of the nation, and turn more and more toward socialism and crony capitalism than ever before in our history.
All they're trying to do is paint Paul as a kook, because these kooks don't want to be found out for what they are, and as the tactics they use dictate to them, they never want to waste a tragedy or incident to further and promote their agenda.
They also know Rand Paul is highly popular in Kentucky, and leads their Democratic opponent as much as he led and beat his Republican opponent in the primary.
This is just noise and sound bites they're throwing out in a way they hope the public will start to believe based on nothing else than repetition.
Rand Paul is right about BP. The response is way over the top by the Obama administration and his media lapdogs, and BP is doing everything they can to stop the oil leak and start to clean it up.
What these people are doing is taking the opportunity to make so much noise that the idea of continuing to drill offshore oil will be disallowed. That's not going to happen, but that's part of their agenda.
The other part of their agenda is the additional regulations which will inevitably come could cause the price of oil, and by extension, gasoline, to raise, that would give their environmental projects more of a chance to move forward, especially their alternative energy garbage, which isn't cost competitive, even at the high price of gas and oil today.
You know Rand Paul is hitting on the truth when you hear these socialists screaming and yelling over comments he makes which the majority of normal Americans like us, agree with him on.
EPA May Allow BP's (NYSE:BP) Corexit Use
On Thursday, the EPA had given BP (NYSE:BP) 24 hours to pick a less toxic dispersant, and 72 hours to start using it. Now today, they told ABC News that they may allow BP to continue the use of Corexit, the dispersant that they deemed far to toxic.
Apparently, the EPA has done some testing and said that Corexit has killed up to 25 percent of organisms living 500 feet down where the dispersant was used.
As we are coming upon the 72 hour deadline, the EPA says there will be consequences for failing to meet it. The EPA will then demand to see the records of BP's research, including proof that it
sufficiently investigated other dispersant options, as well as the explanation of why each one was not chosen. That was the extent EPA would comment on the full consequences of failing to meet the deadline.
Adora Andy, EPA spokeswoman told ABC News, "it's not that Corexit is banned, it's not that they have to stop using it because they're using it right now. But it's just that they need to switch over."
Apparently, the EPA has done some testing and said that Corexit has killed up to 25 percent of organisms living 500 feet down where the dispersant was used.
As we are coming upon the 72 hour deadline, the EPA says there will be consequences for failing to meet it. The EPA will then demand to see the records of BP's research, including proof that it
sufficiently investigated other dispersant options, as well as the explanation of why each one was not chosen. That was the extent EPA would comment on the full consequences of failing to meet the deadline.
Adora Andy, EPA spokeswoman told ABC News, "it's not that Corexit is banned, it's not that they have to stop using it because they're using it right now. But it's just that they need to switch over."
Friday, May 21, 2010
Ivanhoe (TSE:IVN) Oyu Tolgoi Financing Deal
Ivanhoe (TSE:IVN) (NYSE:IVN) is close to securing financing for its Oyu Tolgoi project, one which will bring them into the top tier of mining companies in the world.
On Friday they signed a preliminary agreement with the World Bank Group's International Finance Corp. and the European Bank for Reconstruction and Development.
Each financial institution could provide up to $300 million each to finance the project, while also working to garner another $1.2 billion from commercial lenders.
The package with the two financial institutions would be offered in two stages.
Other financing for the $4.6 billion project could come from export credit agencies, which could bring another $500 million for the project.
Ivanhoe is partners with the Mongolian government, and Rio Tinto (LON:RIO) (ASE:RIO) in the venture.
On Friday they signed a preliminary agreement with the World Bank Group's International Finance Corp. and the European Bank for Reconstruction and Development.
Each financial institution could provide up to $300 million each to finance the project, while also working to garner another $1.2 billion from commercial lenders.
The package with the two financial institutions would be offered in two stages.
Other financing for the $4.6 billion project could come from export credit agencies, which could bring another $500 million for the project.
Ivanhoe is partners with the Mongolian government, and Rio Tinto (LON:RIO) (ASE:RIO) in the venture.
Novagold Resources (AMEX:NG) Ends Week Up
Novagold Resources (AMEX:NG) (TSE:NG) ended the week with a nice gain, as it partook of the brutal week for gold prices and gold mining stocks, which got hammered after a strong run-up, which set record gold prices levels.
This wasn't unexpected, as speculators took profits after the extraordinary increase in gold prices.
Novagold ended Friday up by $0.12, or 1.82 percent in New York, finishing at $6.72 a share. They did lose some of that in after hours trading. They almost mirrored that in Toronto with gains of $0.11, or 1.55 percent.
Volume in New York was well above the 3-month average of 2,974,610, rising to 4,595,657.
This wasn't unexpected, as speculators took profits after the extraordinary increase in gold prices.
Novagold ended Friday up by $0.12, or 1.82 percent in New York, finishing at $6.72 a share. They did lose some of that in after hours trading. They almost mirrored that in Toronto with gains of $0.11, or 1.55 percent.
Volume in New York was well above the 3-month average of 2,974,610, rising to 4,595,657.
Kinross Gold (NYSE:KGC) Slightly Up Friday
Kinross Gold (NYSE:KGC) (TSE:K) finished the Friday session slightly up in New York, as a number of gold miners began to rebound a little after a brutal week where they were down, as speculators took profits after a stretch where gold prices surged to record highs, reaching the all-time high of $1,249.70 an ounce before the sell-off.
The gold producer didn't do quite as well in Toronto, but that was the pattern for Friday.
In New York, Kinross ended the day up 4 cents, or $0.24 percent higher.
After a large number of gold miners had volume much higher throughout the week, things settled a little back more toward normal, and that was the case with Kinross, which was a little above the 3-month average of 6,162,850, ending at 7,040,665 for the day.
The gold producer didn't do quite as well in Toronto, but that was the pattern for Friday.
In New York, Kinross ended the day up 4 cents, or $0.24 percent higher.
After a large number of gold miners had volume much higher throughout the week, things settled a little back more toward normal, and that was the case with Kinross, which was a little above the 3-month average of 6,162,850, ending at 7,040,665 for the day.
Barrick Gold (NYSE:ABX) Noses Up in New York
Barrick Gold (NYSE:ABX) (TSE:ABX) was able to end the week on a positive note, after a tough week of following the price of gold down, dropping to $39.95 today before rebounding to close at $41.02, small increase of $0.02, or 0.05 percent rise.
That was a significant move in that the price of gold continued its correction, dropping $6.31 to $1,177.65. For the week gold was down 4.3 percent, or $52.78, after breaking an all-time high last week of $1,249.70.
This could be a sign that things are beginning to level off as speculators and traders take profits.
We may see gold begin to rise again next week, as the fundamentals causing the rise haven't changed, and there's nothing to indicate they'll change anytime soon.
With Barrick being a bellwether of the industry, it probably signals a rebound in gold prices and gold mining stocks is about to begin, but that assumes nothing unusual happens over the weekend that could change that outlook.
That was a significant move in that the price of gold continued its correction, dropping $6.31 to $1,177.65. For the week gold was down 4.3 percent, or $52.78, after breaking an all-time high last week of $1,249.70.
This could be a sign that things are beginning to level off as speculators and traders take profits.
We may see gold begin to rise again next week, as the fundamentals causing the rise haven't changed, and there's nothing to indicate they'll change anytime soon.
With Barrick being a bellwether of the industry, it probably signals a rebound in gold prices and gold mining stocks is about to begin, but that assumes nothing unusual happens over the weekend that could change that outlook.
Gold Plunges Most for Week in Five Months
Gold prices today dropped another $6, bringing the ending total $1,177 an ounce, after falling as low as $1,176.10 on the Comex in New York. For the week, gold prices fell by 4.2 percent, the worst decline since early December.
There were a variety of reasons for the fall, with some of it being traders had large losses in equities, and had to cover the losses by selling gold.
A correction in gold prices was expected, and the metal had been surging for some time, and after reaching an all-time high of $1,249.70 on May 14, it was inevitable it would have to correct, and the correction has been steep because of other factors like the EU debt debacle and rising inflation in China.
But for the most part, this probably not much more than the speculators taking profits after the big run-up in gold prices, and once that settles, we'll see gold prices resume their upward climb, as nothing in the fundamentals has changed.
It's also a good time to take a larger position in gold with the prices down so much.
There were a variety of reasons for the fall, with some of it being traders had large losses in equities, and had to cover the losses by selling gold.
A correction in gold prices was expected, and the metal had been surging for some time, and after reaching an all-time high of $1,249.70 on May 14, it was inevitable it would have to correct, and the correction has been steep because of other factors like the EU debt debacle and rising inflation in China.
But for the most part, this probably not much more than the speculators taking profits after the big run-up in gold prices, and once that settles, we'll see gold prices resume their upward climb, as nothing in the fundamentals has changed.
It's also a good time to take a larger position in gold with the prices down so much.
First Beach Closed, Thanks To BP (NYSE:BP)
The first beach has been closed in Louisiana thanks to the BP (NYSE:BP) oil spill. Officials in Grand Isle, LA. said this is due to thick gobs of oil being washed up onshore. Until now, only light sheen and tar balls had been washing up.
Now there is also orange colored splotches and heavier brown sheets, the consistency of latex paint says Chris Roberts, a local official who surveyed the area this morning. "You can scrape it off the beach but it's coming right back," said Roberts. As well as an awful stench, it's also coating the grasses and reeds of the Louisiana wetlands.
Doug Suttles, BP executive in charge of fighting the oil spill told CBS Early Show, the gusher could continue on until early August, this would be the worst case scenario. That's when a new well being drilled to permanently cap the flow could be finished.
Now there is also orange colored splotches and heavier brown sheets, the consistency of latex paint says Chris Roberts, a local official who surveyed the area this morning. "You can scrape it off the beach but it's coming right back," said Roberts. As well as an awful stench, it's also coating the grasses and reeds of the Louisiana wetlands.
Doug Suttles, BP executive in charge of fighting the oil spill told CBS Early Show, the gusher could continue on until early August, this would be the worst case scenario. That's when a new well being drilled to permanently cap the flow could be finished.
BP's (NYSE:BP) Second Leak Spewing 25,000 Barrels Daily
Finally after weeks of denial, BP (NYSE:BP) owns up to the true amounts being lost from the fuel oil spill. They had been sticking to the U.S. Coast Guard estimate of 5,000 barrels a day for three weeks now. Now BP is saying in reality, they are capturing 5,000 barrels a day from the first leak alone.
By their own live video feed, which the government required them to make public, it shows extremely large amounts of oil continuing to leak onto the sea floor.
On this video it highlights one leak, but there is actually a second break in the pipe, known as a riser, also leaking oil. A scientist told Markey's committee that the second leak looks to be spewing 25,000 barrels a day.
Mark Proegler, a BP spokesman said they have no idea how much oil is leaking out of the secondary break. "We've said from the beginning it's difficult if not impossible to measure it at the riser, but more importantly our response is not dependant on what that rate is, said Proegler."
By their own live video feed, which the government required them to make public, it shows extremely large amounts of oil continuing to leak onto the sea floor.
On this video it highlights one leak, but there is actually a second break in the pipe, known as a riser, also leaking oil. A scientist told Markey's committee that the second leak looks to be spewing 25,000 barrels a day.
Mark Proegler, a BP spokesman said they have no idea how much oil is leaking out of the secondary break. "We've said from the beginning it's difficult if not impossible to measure it at the riser, but more importantly our response is not dependant on what that rate is, said Proegler."
BP (LON:BP) Says Flow Estimates Inaccurate
BP (LON:BP) (NYSE:BP) said oil flow estimates from theorists claiming it could be ten time higher than the daily rate of 5,000 barrels released into the ocean is inaccurate.
What these theorists are doing is assuming the flow is far higher based on the diameter of the pipe, which was 19.5 inches. BP said the reason they're so far off is because the width of the pipe narrowed as a result of the accident by 30 percent.
There is also a broken drill pipe inside the riser, which has reduced the flow by another 10 percent.
The other reason the assumption is so faulty, is approximately half the flow releasing from the pipe is natural gas, and not oil, according to BP.
To get a real and more accurate estimate of the flow, the government has set up a Flow Rate Technical Team, which is expected to come up with more precise answers sometime later on Saturday.
What these theorists are doing is assuming the flow is far higher based on the diameter of the pipe, which was 19.5 inches. BP said the reason they're so far off is because the width of the pipe narrowed as a result of the accident by 30 percent.
There is also a broken drill pipe inside the riser, which has reduced the flow by another 10 percent.
The other reason the assumption is so faulty, is approximately half the flow releasing from the pipe is natural gas, and not oil, according to BP.
To get a real and more accurate estimate of the flow, the government has set up a Flow Rate Technical Team, which is expected to come up with more precise answers sometime later on Saturday.
Has BP (NYSE:BP) Covered Up Extent of Oil Spill?
The idea that BP (NYSE:BP) is attempting to cover up the extent and degree of the oil spill has been thrown out there by the media, but in truth, it's ridiculous when you think about it.
There they are in the public and media eye attempting to do everything they can to stop the flow of oil, and to think they're concerned about the exact amount of oil leaking rather than trying to stop it, would be irresponsible on their part.
It makes no difference whatsoever how much oil is spreading throughout the ocean, from the point of view of trying to plug it oil well, as it's going to keep coming until it's plugged, no matter what the figures are.
BP has rightly said there's no way to know exactly how much is coming, and have stated that's not their priority, and rightly so.
The only priority and focus BP should have is on working as efficiently and effectively as they can to stop the oil leak, and from there work on the rest.
There's a growing suspicion on what the agenda is for those pushing this cover-up idea out there. What is there to cover-up? BP has already said they're going to pay for legitimate claims, and are obviously paying for the attempt to stop the leak, and will pay for cleanup efforts.
Conspiracy theorists evidently don't think this is good enough, and are trying to make something out of nothing, in order to attack the overall oil drilling industry at a weak moment. There can be no doubt this is part of the agenda.
The big, bad oil company hiding the exact amount of oil leaking in the ocean while the entire world watches. That really makes sense.
There they are in the public and media eye attempting to do everything they can to stop the flow of oil, and to think they're concerned about the exact amount of oil leaking rather than trying to stop it, would be irresponsible on their part.
It makes no difference whatsoever how much oil is spreading throughout the ocean, from the point of view of trying to plug it oil well, as it's going to keep coming until it's plugged, no matter what the figures are.
BP has rightly said there's no way to know exactly how much is coming, and have stated that's not their priority, and rightly so.
The only priority and focus BP should have is on working as efficiently and effectively as they can to stop the oil leak, and from there work on the rest.
There's a growing suspicion on what the agenda is for those pushing this cover-up idea out there. What is there to cover-up? BP has already said they're going to pay for legitimate claims, and are obviously paying for the attempt to stop the leak, and will pay for cleanup efforts.
Conspiracy theorists evidently don't think this is good enough, and are trying to make something out of nothing, in order to attack the overall oil drilling industry at a weak moment. There can be no doubt this is part of the agenda.
The big, bad oil company hiding the exact amount of oil leaking in the ocean while the entire world watches. That really makes sense.
Rand Paul on BP (NYSE:BP) Criticism from Obama
Rand Paul took a swipe at Obama for his outrageous verbal attack when he said he would put "his boot heel on the throat of BP." Paul called it "really un-American." Paul is right of course.
"What I don't like from the president's administration is this sort of, 'I'll put my boot heel on the throat of BP,'" Paul said in an interview with "Good Morning America." "I think that sounds really un-American in his criticism of business."
Paul's proper defense of BP comes is based on the fact that accidents happen, and when you think of those you propose endless regulations, thinking a rule or law can stop accidents from happening, are only fooling themselves.
There's always going to be accidents; that's part of being human and doing business.
BP, almost from the beginning, has said they're more than willing to pay for the damages, and they're working hard to take care of the incident, which has cost them millions in lost revenue, as well as millions more in cleanup costs.
So for Obama to say he will put his foot on the neck of the company is a lie, as it implies BP has been fighting taking responsibility for their part in the matter.
Paul said, "I think it's part of this sort of blame-game society in the sense that it's always got to be somebody's fault instead of the fact that maybe sometimes accidents happen."
Every time an accident happens, as Paul notes, especially in mining and drilling industries, it is attacked with a ferocity that is unwarranted, and points to an agenda by radical environmentalist and earth worshippers who are offended by the fact people need to use the commodities the produce to better their lives.
To demonize businesses who are providing much-needed products and services in dangerous situation and environments should be applauded, and how they respond practically to the circumstances should be how their judged, not because there's an accident.
It's good to see someone emerge like Rand Paul who has the courage to point out the obvious, and help rein in the ridiculous faux outrage of the mainstream media and Obama in their opposition to business.
"What I don't like from the president's administration is this sort of, 'I'll put my boot heel on the throat of BP,'" Paul said in an interview with "Good Morning America." "I think that sounds really un-American in his criticism of business."
Paul's proper defense of BP comes is based on the fact that accidents happen, and when you think of those you propose endless regulations, thinking a rule or law can stop accidents from happening, are only fooling themselves.
There's always going to be accidents; that's part of being human and doing business.
BP, almost from the beginning, has said they're more than willing to pay for the damages, and they're working hard to take care of the incident, which has cost them millions in lost revenue, as well as millions more in cleanup costs.
So for Obama to say he will put his foot on the neck of the company is a lie, as it implies BP has been fighting taking responsibility for their part in the matter.
Paul said, "I think it's part of this sort of blame-game society in the sense that it's always got to be somebody's fault instead of the fact that maybe sometimes accidents happen."
Every time an accident happens, as Paul notes, especially in mining and drilling industries, it is attacked with a ferocity that is unwarranted, and points to an agenda by radical environmentalist and earth worshippers who are offended by the fact people need to use the commodities the produce to better their lives.
To demonize businesses who are providing much-needed products and services in dangerous situation and environments should be applauded, and how they respond practically to the circumstances should be how their judged, not because there's an accident.
It's good to see someone emerge like Rand Paul who has the courage to point out the obvious, and help rein in the ridiculous faux outrage of the mainstream media and Obama in their opposition to business.
How Low Gold Prices Going?
We continue on in the gold correction, and it of course generates the question of how low gold prices will go before they start their move upward again.
The best thing to consider at this time with gold prices is not how low they will go, but using it as a buying opportunity as it falls, as there's absolutely no doubt gold will rebound, and when it does, those getting in on the lower prices will benefit strongly from it.
In other words, resist the temptation to try to time the gold price drop in the sense of how low it will go, trying to get in at the absolute bottom, and instead buy in at a good point, which now has already dropped from the high which reached just under $1,250 an ounce, to $1,183.70 an ounce as of 12:00 p.m. EST today.
How long that kind of fall will continue is unknown of course, but when you have a correction of almost $50 an ounce, you want to take a seriously look at buying more gold for sure, as the plunge can't continue with the favorable conditions for gold we're in at this time.
The best thing to consider at this time with gold prices is not how low they will go, but using it as a buying opportunity as it falls, as there's absolutely no doubt gold will rebound, and when it does, those getting in on the lower prices will benefit strongly from it.
In other words, resist the temptation to try to time the gold price drop in the sense of how low it will go, trying to get in at the absolute bottom, and instead buy in at a good point, which now has already dropped from the high which reached just under $1,250 an ounce, to $1,183.70 an ounce as of 12:00 p.m. EST today.
How long that kind of fall will continue is unknown of course, but when you have a correction of almost $50 an ounce, you want to take a seriously look at buying more gold for sure, as the plunge can't continue with the favorable conditions for gold we're in at this time.
BP (NYSE:BP) Spill Cleanup, Wildlife Fatalities
As BP (NYSE:BP) continues on with spill cleanup attempts, the pollution caused by oil and chemicals is proving fatal to wildlife. This is just the beginning as oil is hitting our shore lines.
Kim Hubbard, a Audubon photo editor just arrived in Louisiana. She's already seeing the effects of the oil spill on animals, one of her photos include an oiled Kemp's Ridley sea turtle. This is a daily occurrence and collection of oiled wildlife.
On a conference call today with several NOAA officials and U.S. Fish and Wildlife officials, it was reported that eight turtles have been collected, two later died. Of the 66 birds that have come in, 43 have died and 23 are alive and being rehabbed. There is much concern for marine animals as well like manatees, whales, and dolphins.
Robert Weisberg, a physical oceanographer and modeler from the University of South Florida, reported that once the oil hit the loop current it was only a matter of a week before it was carried to Florida's straits and then just another week after that before reaching Miami's straits. The NOAA reported Wednesday that the oil slick had already reached the loop current.
Kim Hubbard, a Audubon photo editor just arrived in Louisiana. She's already seeing the effects of the oil spill on animals, one of her photos include an oiled Kemp's Ridley sea turtle. This is a daily occurrence and collection of oiled wildlife.
On a conference call today with several NOAA officials and U.S. Fish and Wildlife officials, it was reported that eight turtles have been collected, two later died. Of the 66 birds that have come in, 43 have died and 23 are alive and being rehabbed. There is much concern for marine animals as well like manatees, whales, and dolphins.
Robert Weisberg, a physical oceanographer and modeler from the University of South Florida, reported that once the oil hit the loop current it was only a matter of a week before it was carried to Florida's straits and then just another week after that before reaching Miami's straits. The NOAA reported Wednesday that the oil slick had already reached the loop current.
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