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Farewell BP Macondo Well, We Knew You Too Well

NEW YORK ( TheStreet) -- R.I.P. BP (BP - Get Report) Macondo well.

Over the weekend, the final relief well drilling was completed by BP putting an end to the BP oil spill that began on April 20. Cement has now sealed off the busted BP well for good, even though for all intents and purposes the well had been shut off since July 15.

Outgoing BP CEO Tony Hayward gave what might be his final statement on the oil spill -- outside of a courtroom or governmental commission chamber -- saying, "This is a significant milestone in the response to the Deepwater Horizon tragedy and is the final step in a complex and unprecedented subsea operation -- finally confirming that this well no longer presents a threat to the Gulf of Mexico."

Yet drilling operations in the Gulf of Mexico, the fortunes of many exploration companies and their investors, and the Gulf economy as a whole are still threatened.


BP was able to present a tale of the tape -- the oil spill by the numbers -- as it plans to abandon the relief well and begin the process of dismantling and recovering containment equipment and decontaminating vessels. The BP containment and cleanup price tag will go down from this point on. The cost to BP has reached $9.5 billion, including the cost of the spill response, containment, relief well drilling, static kill and cementing, grants to the Gulf states, claims paid and federal costs.

The Gulf Coast Claims Facility, which took over for BP in paying claims on Aug. 23, has received more than 68,000 claims, with more than 19,000 claims totaling over $240 million being paid. BP had made 127,000 claims payments, totaling approximately $399 million.

There are still 25,200 personnel, more than 2,600 vessels and dozens of aircraft still working as part of the Gulf of Mexico oil spill response.

How many jobs will be lost as a result of the BP oil spill, and how much oil remains in the Gulf of Mexico, though, remain controversial points of debate. BP states that no volumes of oily liquid have been recovered from the surface of the Gulf of Mexico since July 21 and the last controlled burn operation occurred on July 20.

The White House said in a recent report that most of the oil was gone from the surface of the Gulf of Mexico, but accounting for natural breakdown of oil, use of dispersants, controlled burns and other cleanup methods, skeptics say the all the oil is far from accounted for by the White House and BP. At peak, approximately 3.5 million feet of containment boom was deployed in response to the oil spill. Currently 670,000 feet of containment boom remains deployed.
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