6 Reasons We Can't Fix The Oil Spill | The Atlantic Wire

You can read all six reasons (according to the article) but here's the bullet points (I have added the comments):


1. Fix-It' Faith in Technology 'Misplaced' - operating in deep water is hard stuff - we're really not that good at it;

2. Not Enough Regulation - safety issues are almost always ignored - regardless of the industry - until something bad happens;

3. Our Limited Knowledge of Deep Sea - we know more about outer space than deep water;

4. Regulators and Industry Are Too Cozy - where do you think they get the regulators? This is no different than the finance industry.

5. White House Too Deferential To BP - the Obama administration hoped BP could just make the problem go away;

6. Regulation Should Emphasize Oversight, Not Bans - we still need the oil.

Former GE exec Jack Welsh said this morning on Twitter that he thought all of this would be a boost for nuclear energy. I think he might be right; if the oil keeps gushing out all summer, it will be hard to see a lot of new drilling occur in the Gulf any time soon.

The tricky part, from an investment standpoint, is how to play BP and the oil drillers. Most of the stocks have lost vastly more than the actual financial impact (e.g., BP has lost $78 billion in market cap since the explosion in April, while its actual costs have been less than $1 billion) but a "worst case" scenario could spell very bad news for the group.

6 Reasons We Can't Fix The Oil Spill | The Atlantic Wire