Friday, May 28, 2010

Obama & BP -- Hang em High

The oil addict junkie is trying to discipline the drug pusher.

BP (BP) may have choked off its errant Gulf of Mexico oil well. They will now become the whipping boy of the Obama administration. The politicians have to hang someone and satisfy the angry villagers. There is no question that BP fumbled the ball. The shareholders are paying with a significant decrease in wealth. There will be huge lawsuits and vexatious legal manoeuvring.

Obama’s administration is behind the curve in regulating off shore drilling. If they had real time information and knew what to do with it they would have shut the well down long before she blew.

Obama will make compelling speeches. The regulators are not in a position to follow through and back him up. The next major off shore drilling crisis will cost Obama big time.

In the meantime we continue to consume huge amounts of oil.

Disclosure: No position in this stock