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Matt Simmons Shorting At Least 8,000 BP Shares - Oil Spill Conflict Of Interest
Daily Markets ^ | June 17, 2010 | Static Chaos

Posted on 07/16/2010 9:40:44 AM PDT by Ernest_at_the_Beach

After busy making several outrageous comments regarding BP (BP: 37.48 -1.44 -3.70%) and the Gulf oil spill as recent as last evening, Matt Simmons abruptly announced today that he would retire from the board of Simmons & Co.–the company he founded in 1974–effective June 30.

Meanwhile, Simmons & Co. also issued a statement in an apparent attempt to distance itself from its founder.  As Houston Business Journal reports:

“..on June 14, [Simmons & Co] issued a statement dated May 12 in which [CEO Mike Frazier] distanced himself from the founder, saying that the former chairman’s views were not those of Simmons & Co. Frazier referred to Simmons’ comments related to the Deepwater Horizon rig explosion and the implications for the industry and the individual companies.”

You might recall in a Bloomberg interview on May 28, Matt Simmons endorsed the nuclear option as the only viable solution for the oil spill.  later on, BP shares slid to a 14-year low, around the same time Fortune magazine (on June 9) quoted Simmons as saying BP had a month before it would file for bankruptcy.  As recent as last evening in a CNBC interview (at around 6-minute mark) Simmons also intimated that the Gulf oil leak was at 120,000 bpd, instead of the official estimate of 60,000 bpd.

Being a devil’s advocate, my suspicion only grew each day when Simmons seemed to have become increasingly “passionate” about preaching the worst possible outcome and solution (a nuke bomb? come on!) to this unprecedented disaster.

Well, say it isn’t so, but according to Barron’s,

“Simmons has a 4,000-share short sale on BP that he picked up when the stock hit $37. That’s in addition to a prior 4,000-share short sale he made at $48 a couple weeks prior. “It’s going to zero,” he says of BP stock. Mind you, Simmons has an interest and a deep investment in moving beyond fossil fuels.”

The Barron’s article went on to note that Simmon’s Ocean Energy Institute, a renewable energy think-tank and venture capital fund he started in 2007, is involved in a project to develop off-shore wind power facilities and other alternative energies.

If Barron’s assertion is true, it would appear that Simmons, an energy industry veteran and expert, could have had a serious conflict of interest when he went onto so many TV and magazine interviews talking his book about BP and the Gulf oil spill.

From that perspective, his remarks would seem irresponsible and only added to the existing despair and chaos, which is nothing the nation, particularly the Gulf Coast residents, need right now.

One has to wonder if this potentially unethical and maybe illegal act could have been easily deterred if only the media would require a disclosure before putting Simmons on TV and quoting him?


TOPICS: Business/Economy; Extended News; News/Current Events; US: Louisiana
KEYWORDS: bp; deephorz; deepwaterhorizon; energy; offshore; oil; oilspill; simmons

1 posted on 07/16/2010 9:40:47 AM PDT by Ernest_at_the_Beach
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To: All
Picked this up from a post on todays Oil Drum report:

BP's Deepwater Oil Spill - Results as the Testing Begins - and Open Thread

2 posted on 07/16/2010 9:42:43 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: Ernest_at_the_Beach
Simmons is in my neck of the woods (midCoast Maine) now: Ocean Energy Institute is Open For Business

Big Ammonia is the next Big Oil.

3 posted on 07/16/2010 9:55:49 AM PDT by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
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To: All
Notice the date on this report of June 17, 2010.

***********************************************************

I believe that Simmons has made appearances on MSNBC in July.

Todays TOD has a poster rpclarke defending Simmons comments about the Oil Leak occuring some 5 or 6 miles away from the site where we view ROV's operating.

I think all of the reports from the Dooms Day crowd are going to require a substantial effort to counter...their profits are considerable.

****************************************************************

One such story :

Gulf Oil Cover Up: Underneath Gaping Chasm of Gulf Floor is a Mt Everest Sized Cavern

And another:

Why BP is Readying a 'Super Weapon' to Avert Escalating Gulf Nightmare

4 posted on 07/16/2010 9:58:21 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: Sub-Driver; BOBTHENAILER; SunkenCiv; Marine_Uncle; onyx; NormsRevenge; Grampa Dave; SierraWasp; ...

fyi


5 posted on 07/16/2010 9:59:39 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: Izzy Dunne
Big Ammonia is the next Big Oil.

Had not heard about that.

6 posted on 07/16/2010 10:02:02 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: Ernest_at_the_Beach

Wow, a whole 8000 shares short. For this guy this is worthy of a yawn.


7 posted on 07/16/2010 10:08:44 AM PDT by Bogeygolfer
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To: Bogeygolfer
That was my thought too....

but it is easy to hide info on shorting ...as I understand it.

Now the writer Terrence Aym seems to pick up change from supplying sensational news to the various media outlets.

8 posted on 07/16/2010 10:13:53 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: All
And this story ties into the giant dome of oil...

A Black Swan in more ways than One. The Gulf Mega Disaster

*****************************************EXCERPT*********************************************

What BP achieved was to drill down about 5 Miles into the Earths Crust, under thousands of feet of Ocean. When the Drill finally penetrated the cavity containing the Oil the pressures they encountered were on the order of 60,000 PSI added to that the pressure of the water above another 22,000 PSI for a Total of 70 to 80 Thousand PSI. (A Car Tire has 30 PSI, a Gas Bottle about 100 PSI Max. Hence the difficulties in capping the Well. Imagine trying to push Drilling Mud or Cement down against these pressures pushing back.

Hence all efforts to Cap it have failed, the best they can do is put a “Funnel” over the top and pump as much as you can into a surface ship. Judging by the numbers of Tankers they have not been overly successful even in this. Images of Crack and Fissures breaking open in places away from the Drill Head have been seen. When BP broke into that cavity it landed on a new Planet, a place of impossible pressures, Temperatures and Chemistry.

Soundings have detected a 20 Mile wide ‘Dome’ tens of feet high forming around the Drill Head. This is a giant compressed (80,000 PSI) bubble of Gas and other muck. A very real fear of this bubble reaching a point of bursting and releasing a cloud of Toxic Gas across the lower SE United States. Rainfall containing Toxins from the Oil and from the Dispersant “Correctcit” (Spelled wrong …Corrects it.) A great label for a very toxic substance, apart from Benzene, Hydrogen Sulfide and a dozen others. A Hurricane in the Gulf this year that will cross the Gulf , pick up the Ocean and dump it across the Coastal Cities would be the equivalent of a Chemical Warfare attack on the USA. The chance of a Hurricane of Force 3 to 5 hitting somewhere this season is 100% or as close as you can get. That’s probably one of the few certainties we can be sure of.

This entire event from start till present has been a ‘Whitewash’ / Suppression / Downplay / Spin of Media and Govt. Apart from telling the World the truth (That there is a probability of not being able to Cap the well, even using Nukes is a consideration to ‘Pinch Off’ the well.) We have an Event in motion that threatens the Planet. Its that serious.

Investors should start thinking in terms of BP’s Derivative Exposure and the Counter Parties who will be left hold the Bankrupt Bag, It will cost Hundreds of Billions of Dollars to clean this up, the area (Thousands of miles of coast, fishing, Tourism, the living space of Millions of people. ) People will soon come to their own correct assumption that this is an Oil Chernobyl, in fact Chernobyl would be an easier fix.

9 posted on 07/16/2010 10:34:27 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: Izzy Dunne; Bogeygolfer
From your link:

Matthew Simmons, founder of the Ocean Energy Institute, has taken a vision of a post oil-dependent world and put it into action. The Ocean Energy Institute plans to put offshore wind power, and midcoast Maine, on the global front edge of energy exploration and development. photo courtesy ocean energy institute

10 posted on 07/16/2010 10:42:31 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: Ernest_at_the_Beach

First pic of Ole Matt I’ve seen. He even LOOKS like a kook.


11 posted on 07/16/2010 10:56:27 AM PDT by Wonder Warthog
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To: Wonder Warthog
He has some substantial credits...

From Wikipedia:

Matthew Simmons

***********************************************EXCERPT*****************************************

Matthew Simmons, founder and chairman emeritus of Simmons & Company International, is a prominent oil-industry insider and one of the world's leading experts on the topic of peak oil. Simmons was motivated by the 1973 energy crisis to create an investment banking firm catering to oil companies. In his previous capacity, he served as energy adviser to U.S. President George W. Bush.

Matthew Simmons believes the Club of Rome predictions are more accurate than usually acknowledged [1]. Simmons is an adviser to the Oil Depletion Analysis Centre. He is a member of the National Petroleum Council and the Council on Foreign Relations. He believes a careful assessment of Saudi Arabian oil reserves is the most significant issue shaping petroleum politics.

Simmons is the author of the book Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy. His examination of oil reserve decline rates helped raise awareness of the unreliability of Middle East oil reserves as the published reports have never been verified.

12 posted on 07/16/2010 11:05:43 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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For links go to Wikipedia....


13 posted on 07/16/2010 11:08:04 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: Ernest_at_the_Beach
the pressures they encountered were on the order of 60,000 PSI added to that the pressure of the water above another 22,000 PSI for a Total of 70 to 80 Thousand PSI.

That must be some special kind of water.

I don't know about the oil pressure down below, but my scuba training taught me that it's 1 atmosphere for every 33 feet you go down.

5000 feet / 33 feet = 151.5 intervals = 152.5 atmospheres = 2227 PSI.

NOT 22,000.

14 posted on 07/16/2010 11:12:54 AM PDT by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
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Yep. I figured he had an interest and mentioned my suspicions on several blogs.

However, his sensationalistic commentary was useful, I think, for other, various, vested interests.

Shameful. There should be disclosures for anyone discussing investments. And they should just out with it.

When it is an obvious short sale situation- rather than long held shares in a portfolio, maybe the ‘expert’ should just keep their mouth shut.


15 posted on 07/16/2010 11:13:39 AM PDT by FreeStateYank (I want my country and constitution back, now!)
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To: Izzy Dunne

Well if the writer was good at math he might have a real job....(snarky comment).


16 posted on 07/16/2010 11:14:45 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: Ernest_at_the_Beach
the pressures they encountered were on the order of 60,000 PSI added to that the pressure of the water above another 22,000 PSI for a Total of 70 to 80 Thousand PSI.

WTF? If anything the water weight counters the flow rate pressure. ANOTHER crap article.

17 posted on 07/16/2010 11:19:36 AM PDT by HoustonCurmudgeon ("I'll try to be NICER, if you will try to be SMARTER!" ~ MNJohnnie, FReeper)
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To: hennie pennie

fyi


18 posted on 07/16/2010 11:21:53 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: HoustonCurmudgeon
The DoomsDay crowd is busy....the imaginative writers are helping...
19 posted on 07/16/2010 11:24:14 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: HoustonCurmudgeon
From the link at post #4:

*************************************EXCERPT*******************************************

According to Kutcherov, a leading specialist in the theory of abiogenic deep origin of petroleum, “What BP drilled into was what we call a ‘migration channel,’ a deep fault on which hydrocarbons generated in the depth of our planet migrate to the crust and are accumulated in rocks, something like Ghawar in Saudi Arabia.”[2]

20 posted on 07/16/2010 11:27:21 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: HoustonCurmudgeon; Wonder Warthog; Izzy Dunne
A serious paper:

Dominant geological element of migration and accumulation about Silurian oil reservoirs in central Tarim

Received: 20 December 2006  Accepted: 8 May 2007  

Abstract  Based on the migration track of the Silurian oil pools along the faults in central Tarim by the nitrogen compounds and the maturity parameters of saturated hydrocarbon and aromatic hydrocarbon, the formation of the Silurian oil pools was totally concerned with vertical migration that faults were the dominant migration channels. The comprehensive analysis shows that the dominant geological element, which contributed to the migration and accumulation of the Silurian oil pools in central Tarim, was the strike-slip fault, which developed from Ordovician to Permian. The future work will focus on conducting a more intensive study of the formation, evolution and distribution of the strike-slip faults for making sure of favorable hydrocarbon accumulation and favorable exploration targets.

Keywords  hydrocarbon accumulation - vertical migration - petroleum population - nitrogen compound - fault - Tarim Basin

21 posted on 07/16/2010 11:33:49 AM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: All
A youtube interview of Simmons...in June...have not seen it before:

TruNews Interview of Matt Simmons-BP Oil Crisis June 2010 Pt. 2 of 6

A very revealing, informative and provocative interview conducted by Rick Wiles of TruNews.com on 28 June 2010 of Matthew Simmons, renowned Houston oil investor and founder and chairman emeritus of Simmons & Company International. He is the author of the best seller, Twilight In The Desert: The Coming Saudi Oil Shock and the World Economy. In this interview, Mr. Simmons sheds light on the lies, mismanagement, and potential dangers such as methane gas related to the BP gulf oil disaster. He states that the real blowout is 10 miles from where BP is stating and showing on CNN and other news organizations and is gushing over 120,000 barrels of oil per day from an open hole in the seafloor, along with methane gas. He further states that 40% of the Gulf of Mexico is covered by oil at a depth of 4500 feet below the surface due to the open hole blowout and that we are only seeing less than 1% on the surface.

22 posted on 07/16/2010 12:29:06 PM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: Ernest_at_the_Beach
No sure what this one is about:

Breaking - Matt Simmons - In Obscurity! - Lie By Omission?

Reinterates what Simmons is saying.,

23 posted on 07/16/2010 12:50:47 PM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: Ernest_at_the_Beach
This one is dated June 16, 2010:

Matt Simmons Believes Oil Covers 40% Of Gulf Beneath The Surface

Zero Hedge
June 16, 2010

A d v e r t i s e m e n t
Matt Simmons was on Bloomberg earlier, adding some additional perspective to his original appearance on the station, in which he initially endorsed the nuclear option as the only viable way to resolve the oil spill. Simmons refutes even the latest oil spill estimate of 45,000-60,000 barrels per day, and in quoting research by the Thomas Jefferson research vessel which was compiled late on Sunday, quantifies the leak at 120,000 bpd. What is scarier is that according to the Jefferson the oil lake underneath the surface of the water could be covering up to 40% of the entire Gulf of Mexico. Simmons also says that as the leak has no casing, a relief well will not work, and the only possible resolution is, as he said previously, to use a small nuclear explosion to convert the rock to glass. Simmons concludes that as punishment for BP's arrogance and stupidity the government "will take all their cash." Now if only our own administration could tell us the truth about what is really happening in the gulf...

Category:

News & Politics


24 posted on 07/16/2010 12:54:59 PM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: All
In the Interview above see link at post #24....he makes the claim that the BP well has no casing and therefore the Relief wells will NOT WORK.
25 posted on 07/16/2010 1:01:25 PM PDT by Ernest_at_the_Beach ( Support Geert Wilders)
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To: Ernest_at_the_Beach
#23.
I don't buy it. Some of his statements where not scientifically grounded. Just the mention of a supposed low lying dense plume of methane mixed with oil emulsions keeped deep to the sea floor due to the very cold temps., then somehow being ignited or allowed to undergo their solid to liquid gas phase from some 900 degree temps,He quoted, is bull shit.
Just where does he think those 900 degree temps lie within the strata vertically. The plume is on the ocean floor not a few dozen miles under the strata where such temps can be found.
Just on that one observance I believe this guy is as full as crap as this Simmens guy. Simmens wants to invest in clean energy. Need I say any more regarding Simmens. And the research vessel to throw in another one... no vessels less those the gov currently permits in the area reside within those waters. So how would that research vessel know about some super lake of oil/gas some ten miles from the main Horizon site be detected. And if it where something well known earlier on. We surely would have been seeing this crop up on a regular basis via. FreeRepublic as well as other sites, and the L/MSM.
That is my two cents on these continued reports from people not immediately attached to the current operation.
26 posted on 07/16/2010 6:36:35 PM PDT by Marine_Uncle (Honor must be earned....)
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