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Farewell BP Macondo Well, We Knew You Too Well

BP and the White House say the BP Macondo well is sealed for good, but things won't be back to normal in the Gulf of Mexico for a long time.

NEW YORK (

TheStreet

) -- R.I.P.

BP

(BP) - Get BP Plc 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.

>>Obama: Stop Crying Foul Over Undrilled Oil

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.

With the oil spill official a closed case -- or at least a permanently sealed well -- another major point of debate is when drilling in the Gulf will get back to normal. Indeed, last week, the White House followed up its earlier report stating that there was little unaccounted for oil left in the Gulf of Mexico with a report stating that the job losses predicted by the oil and gas industry as a result of the federal moratorium on deepwater drilling never materialized.

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"There is no evidence of declining employment after the moratorium was announced," the White House report stated.

President Barack Obama's moratorium on deep-water drilling is costing no more than 8,000 to 12,000 jobs, as offshore rig operators have retained skilled workers during the suspension, according to the Obama administration report. The White House report stated that the average number of rig workers fell by about 2,000 and spending by drillers declined by $1.8 billion since the drilling ban began in May.

Yet oil industry executives presented a different view last week at an industry conference.

Noble Energy

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management said at a Barclays Capital energy conference that its exploration program in the Gulf of Mexico won't resume until later in 2011 due to new permitting requirements. Speaking to

Reuters

, the CEO of

Seadrill

(SDRL) - Get Seadrill Ltd. Report

said that recovery in the Gulf was "years away." The Seadrill CEO predicted a two-year delay until things are back to normal in Gulf of Mexico drilling operations.

In an interview with the

Wall Street Journal

,

Total

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CEO Christophe de Margerie said oil companies are facing 20% higher costs in drilling in the Gulf of Mexico due to expected permitting delays.

Indeed, with the BP Macondo well finally and officially killed, the more important question is,

Will Gulf of Mexico drilling operations get back to normal sooner or later?

Take our poll below to see what

TheStreet

thinks.

--Written by Eric Rosenbaum in New York.

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