Monday, July 19, 2010

Matt Simmons on the Gulf Oil Leak

I have refrained from commenting on the oil leaking in the Gulf of Mexico but the time has come to do so. The oil leaking into the Gulf, as anyone with a functioning room temp IQ should know is a major big time issue. I am no missile or in this case petro-chemical engineer but were I in charge, fixing this Gulf oil issue would absolutely, unequivocally be priority number one!

That said, one person in the oil industry I have some respect for is Matt Simmons. He is extraordinarily knowledgeable on the industry and when he speaks you would do well to pay attention. Many might recognize his name as the oil industry financier but he also is the author of the fantastically enlightening book Twilight in the Desert.

I realize some may disagree with my assessment of him and that is fine. What I do know is that Matt is unafraid to communicate facts of the industry, as unpleasant as they may or may not be, facts that many yes men out there haven't the onions to.

Simmons has claimed from the get go that this was not a rig fire but a blowout. He also contends that the real leak is not from the riser pipe but rather miles away on from the compromised sea floor where oil and methane are gushing into the gulf and that BP is concealing this.

Matt has stated the only way to stop the flow is to detonate a nuke below the sea bed to encase the oil below. This stuff is way over my head but what I do know is that Matt has access to and is in contact with many of the sharpest minds in the industry who do know what is going on.

This article from Reuters reports that Methane in Gulf 'astonishing high' according to U.S. scientist. Recently BP announced claims to much fanfare that they have sealed the leak but today we get this news Gulf oil spill sea floor leak now confirmed confirming what Simmons has been saying all along.

I came across an interview over the weekend with Matt Simmons by Eric King of King World News where Mr. Simmons covers all of these details along with some other shocking news. The interview is not long and I consider it absolutely must listening. Please, I urge you to click on the link below:

Eric King interview with Matt Simmons July 17, 2010

I sure do hope Matt Simmons is very wrong but I truly worry that he isn't.

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
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