Return to Transcripts main page
Rick's List
Capping the Oil Disaster
Aired July 15, 2010 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICK SANCHEZ, CNN ANCHOR: And that's what it seems to be as we look at this, but we don't want to read too much into this. And as I was just talking with my colleague Eddie Lavandera, who has been following this from the outset, he says that this is part of the process where they will learn over the next 48 hours whether they can sustain what we're showing you right now.
If that is -- if that is an apt description, please go ahead and amplify it for us. If not, correct it.
DONALD VAN NIEUWENHUISE, GEOLOGIST, UNIVERSITY OF HOUSTON: No, that's an accurate description.
And what they are doing is allowing the pressure now to build. They are watching that pressure closely. If it builds to the acceptable levels, they will be extremely happy, but they will hold it there for a while to make sure that the pressure is maintained. If it's less than what they are looking for, one of the things they will be doing, as the pressure rises, they will be looking for slight drops in the pressure or dramatic increases in the pressure that they could actually use to calculate whether or not there may be a leak somewhere in another part of the well.
And...
SANCHEZ: I'm taken aback by the fact that...
VAN NIEUWENHUISE: I -- I...
SANCHEZ: ... they have shown these pictures of these -- of this well seemingly capped, even if it is just temporarily.
VAN NIEUWENHUISE: Right, and I think it's pretty dramatic, and I think what you're seeing there right now is dispersant as well.
SANCHEZ: You mean the dispersant that they are shooting into the oil as it comes out?
VAN NIEUWENHUISE: I think they have got the -- the little wand that shoots dispersant. That's what you're seeing right now. I don't think it's a leak. I think it's just some dispersant still.
SANCHEZ: I'm glad you mentioned that. I didn't know that.
How significant is the mere fact that we have now been able to see that they can actually cap this thing, even if only for a matter of seconds or minutes?
VAN NIEUWENHUISE: It's absolutely amazing. It's -- they have kind of got the beast under control now.
I think it's really a good sense of optimism that we can get out of this, and I -- and I hope that people do realize, as BP has said and Thad Allen, we still have to wait. It's certainly a nice thing to see in contrast to what we have been seeing over 87 days, with all that oil coming out into the Gulf of Mexico and doing all that damage, damaging environmental impact that we have seen.
SANCHEZ: For those of you just now joining us here on CNN, we welcome all of you. There is a major breaking news development on this story in the Gulf of Mexico.
It may not be the end, but it may very well be, cross your fingers, the beginning of the end, that in fact the spill in the Gulf of Mexico can be stopped and that, at least for now, we know it can be done so in intervals. Whether we can make this last and not let it be temporary, we don't really know yet.
And I suppose over the next 48 hours, we will get that answer from some officials there on the ground and on -- with BP who are talking to our colleagues, like Eddie Lavandera.
Ed, what are you hearing from BP officials at this point, and are you hearing that they feel like they are ahead of the game, as these pictures would make us think?
ED LAVANDERA, CNN CORRESPONDENT: They are feeling good, from what we have just heard from Kent Wells, who you just read that tweet from.
But he says they are feeling good, but they're -- but it's -- it's a cautious sense of optimism at this point, because, as you alluded to, really, this is a question of how long it can be sustained. And they need to be able to sustain it for a while to be able to get the buildup of the pressure.
So, this looks good now, but I don't want to totally rain on this parade, because this is quite a dramatic picture to be able to see, considering what we have seen over the last three months here in covering this story, so, a significant breakthrough.
But, you know, in talking with Thad Allen this morning as well, they hope that this plays out in one of two ways. And Thad Allen seemed less convinced that this cap by itself was going to be the way it was going to work. He seemed to be leaning more toward the idea of being able to -- or having to open up these valves again and collecting the oil.
That seemed to be the way that he was leaning this morning. So, you know, but these initial pictures, it's quite dramatic to see that oil flow stopped, at least -- at least temporarily.
And also I want to point out that if this test can last up to 48 hours, they are going to have to open things back up and then do another seismic reading, which is really incredibly complex to have to explain. But, basically, they need to go back. They have done this before this integrity test started. They have to do it again after this test is all over and compare notes again.
And so there's still several days of decision-making and analysis that needs to be done, all much more complicated than our college degrees can handle, to be...
(CROSSTALK)
SANCHEZ: Well, you know -- you know what would be great? If you guys at some point up here can give me the shot, the animation that we have put together, so that we can take through for the viewers, if we can take through for the viewers what the actual process looks like, the animation that shows the wellhead, the cap, the new blowout preventer, so that we can possibly see if we can get that question answered.
All right. Let's get it up, if we can. I will knock it up. I will get it. I will get it. I will get it. I will get it. I will get it. All right, don't worry about it. I got it.
(CROSSTALK)
SANCHEZ: Here we go. All right. So, all right, here's the one that we're taking about. Go ahead and activate this now and give me a shot of this, Dan. I think this is important.
Professor Nieuwenhuise, can you -- can you see a television where you can help us with this description here?
VAN NIEUWENHUISE: Yes.
SANCHEZ: All right. What Ed just described is that they are going to check for more levels of pressure now to make sure that that can sustain it. Let's wait for the animation to come in.
There's the new cap. Here comes the new BPO, the new blowout preventer. This is where they have essentially capped it. Finally, the oil, as you can see there, has stopped flowing. That's essentially what's happened 5,000 feet below the surface of the Gulf of Mexico.
The -- hold on. The president of the United States will be speaking to what we are talking about here momentarily. In fact, later this hour, we're told the president will speak about the situation in the Gulf of Mexico. And you can expect those of us here at CNN to bring it to you at 4:45.
OK, back to the animation. Pardon me, if you would.
Dan, back to this animation. This is important. Finish the animation, if you would.
Professor, here's the question. VAN NIEUWENHUISE: Yes.
SANCHEZ: If this blowout preventer, where it seems to be working so well right now, for some reason doesn't work, because there is too much pressure, we have heard theories about there being even secondary or tertiary blowouts in this area or in this area.
What is the likelihood that that could happen, or do you feel at this point that we're all but out of the woods from having that happen?
VAN NIEUWENHUISE: I -- I -- I think a lot of the things that can happen in that sense, the catastrophic effects, would happen pretty quickly.
And I think it's really comforting to see that it's holding together right now, that it's absorbed most of this pressure, and -- and it's still maintaining its integrity, at least near the surface.
Now, that doesn't mean we don't have potential leaks down underneath the 18-inch casing string or the nine-and-seven-eighths- inch casing string, but I think what we're seeing right now is that the -- the base of the wellhead or the top of the well itself seems to be holding.
There's a considerable amount of integrity there. But they will have to run the seismic and actually see if the seismic has changed over time. They call that time-lapse seismic. And what they do is, they get a picture beforehand and then a picture afterwards. And when they do that, they are able to see if gas, for example, has filled in or oil has filled in pockets under the earth with oil and gas, rather than the water that is in there normally.
SANCHEZ: Let me ask you about these pictures we're looking at now.
If we could -- for example, this one, this is what is showing up now on the left box of the 12-pack as we have been watching it. What is this, Professor? Can you -- can you -- do you have any indication of what's going on there with all these levers and what almost looks like a bathroom stop plug?
VAN NIEUWENHUISE: Yes. I -- I don't know for sure what that is, but it could be a plug to go on the top of the -- of the actual top of the blowout preventer itself.
But that may just be a weight to hold something down. I think what they are doing is -- is moving some cables around that they need to move around, and it doesn't have a whole lot to do with the specific kill operation, I don't think.
SANCHEZ: This is amazing, I will tell you. I didn't think this would happen as fast as it has.
It's nine minutes after the hour of 4:00 Eastern time, and for those of you joining us now all over the country, it would appear that we're getting the very first extremely hopeful signs that we are near the end of this catastrophe in the Gulf of Mexico.
We're told the president of the United States is going to be addressing the nation in about a half-hour or so. We are going to carry it live for you here. We are under the impression that he is going to be speaking directly to this situation in the Gulf of Mexico.
The best description, I suppose, we can put on this right now is that it looks like they have, for the first time, stopped the oil from flowing in the Gulf of Mexico.
Now, here's the caveat to that, and this is important. This is part of a testing procedure that could last as long as 48 hours. Within that 48 -- within those 48 hours, there's a possibility that they may determine that the pressure is too great and that they would need to allow some of the flow to continue, some of the oil to flow back through.
Only the scientists, the experts, the folks with the government are going to be able to come to that conclusion. In the meantime, we're monitoring what appears to be the very first hopeful signs.
As you look there -- in fact, let's see if we can put some of these other shots up. You have got the four-pack there. Let's go back to the 12-pack, if we possibly can, and there you see all the different angles.
Professor, I'm looking specifically, if we go across the top, one, two, three, four, now we go the second row, one, two, that would be the sixth square, it looks like some kind of device that is going to be turned at some point by these robotic submarines. What is that?
VAN NIEUWENHUISE: I have to tell you I don't know exactly what that is, but it is one of the handles that they can use to actually turn a valve. And I don't know which valve that is. It could be a hydraulic line valve.
SANCHEZ: It's interesting. Moments ago, I noticed that there was a meter that was reading the pressure on one of these valves underground or under the ocean -- under the Gulf, I should say, and I asked the professor, and we showed it to you on television. At the time, it seemed to be reading 3,000 PSI.
We immediately got a response from BP, who tweeted out information, as if they were watching our newscast, to say, wait, wait, wait, don't put just so much attention on that particular one, because that's not the reading for the entire wellhead. That's just a reading for one of the specific tests that we're doing.
So, obviously, this is -- this is very complicated. Who makes -- who is going to ultimately make these decisions, Professor, and how do they go about doing it?
VAN NIEUWENHUISE: Well, they have got a whole team. And I think they sat down together with that team and decided, given the numbers that they see coming up, as the pressure rises to certain levels, but doesn't continue to rise, they have already made decisions ahead of time as to what the response would be.
And I think that's why they had that 24-hour cessation part that we had to wait through while they were trying to decide what their responses would be. And what's going to happen is, if the pressure doesn't reach a certain level, that will mean to them, if it doesn't get, say, above 5,000 PSI, it will mean they already have a leak.
And so what they would be capable of doing is actually opening up some of the other production lines to actually alleviate more of the pressure, in other words, try to get the pressure that's leaking out of the leak to leak into one of the flow lines instead and try to remove the pressure that way.
They could also open the whole thing back up again, if they wanted to, but probably The -- a good way to end this would be to make sure that any of the pressure they think is bleeding off, rather than allow it to bleed additionally into the formations, to actually bleed it into the production lines and alleviate the pressure that way.
SANCHEZ: So, there is a possibility that there is still some kind of leakage somewhere, but there's almost no way to know unless you see a certain pressure reading, right?
VAN NIEUWENHUISE: Right. We -- yes. We would need to be watching that ourselves.
SANCHEZ: And you wouldn't see that visually as much as you would -- unless were you shining a big giant spotlight on it -- you would see it by looking at one of those meters?
VAN NIEUWENHUISE: Exactly, because the leaks could be -- as I was saying earlier, they could be 9,000 feet below the surface. They could be 17,000 feet below the surface. And that's what they are kind of looking for right now, to see if they are getting leaks, particularly in the weaker parts of the casing string that they have been worried about all along.
SANCHEZ: And, interestingly enough, this is already having an effect on Wall Street. I guess they are watching televisions as well.
Look at this tweet. We will split the screen, if we possibly can, and show you this. We don't want to take your eyes off this historic operation that's going on right now at the bottom of the Gulf of Mexico.
But look at this. CNN Money now reporting stocks end flat after recovering from early losses, as BP says it has capped the well. BP shares are up 7.6. Dow loses seven points, but BP again up 7.6. Interesting.
Back to that shot now. This looks like something is going on now. And, you know, it's interesting. We -- we -- we -- Bob Riley, governor of Alabama -- Bob Riley, the governor of Alabama -- I'm sharing this information with you as I'm getting it from my own executive producer -- and Doug Suttles will be heading to the microphones any moment now to speak as well. Doug Suttles, as you know, is the CEO of -- of BP, Bob Riley, the governor of Alabama.
We understand both of them will speak momentarily.
Have we got a shot set up? Is that it? That's it. OK. That's it. That's -- OK, that's the venue where we're going to see Bob Riley and Doug Suttles any moment now.
And we're also told that we are going to be hearing from the president of the United States shortly.
We normally would be taking you through what is the gist of our news on this day, those items that we have listed for you and taken you through.
On this day, given what we have learned just about 15, 20 minutes ago, we will stay with this story and bring you every development as it comes in.
Most importantly, if we can get back, Dan, to that big shot that we had showing that activity 5,000 feet below the surface of the Gulf of Mexico, and it looked like it was a series of -- of operations going on.
And all of us grew up, or if -- or if we maybe didn't have a very modern home, or maybe had a chance to visit our grandma, we know that there's those old bathtubs that literally have like a rubber plug that you put in it to stop the water from going out. We were just shown something there that looked just like that.
And I was speaking to Professor Nieuwenhuise from the University of Houston, who was telling us that very well may be just that, a plug that is going to be used at some point to maybe put another stop on some of this oil that we have seen flowing, although I have got to tell you -- all right, now -- now, what is that?
Oh, it looks like that is part of the blowout -- the new blowout preventer.
Is that right, Professor?
VAN NIEUWENHUISE: Yes, what you're seeing there, yes, that's underneath the ram section, I believe. It's a little bit hard to see the picture.
And that thing that looked like a -- a plug actually probably was a tethering weight to help tether down cables and stuff like that. But...
(CROSSTALK)
SANCHEZ: Oh, there you go.
VAN NIEUWENHUISE: It does look -- yes.
SANCHEZ: Yes. I know, it's hard to tell.
VAN NIEUWENHUISE: It's hard to see.
SANCHEZ: Thank you. Yes, it's hard -- well, and, you know, this is -- this is not like something that -- I imagine to you this has to be even more fascinating, because we're really in unknown territory here, right? I mean, we're -- we're in uncharted waters literally with this operation.
(CROSSTALK)
VAN NIEUWENHUISE: Absolutely.
And, you know, watching these things is a little difficult, because, the other day, I thought the new cap had clap rates in it, and then I realized they were looking at the old -- the old cap. And so it can be tough sometimes to figure these out when you just kind of drop in on them.
SANCHEZ: How -- how is it possible that these submersibles, these little mini-submarines, for lack of a better term, are able to do such dexterous work down there? It almost looks like someone's hands.
VAN NIEUWENHUISE: Oh, it is. And, of course, a lot of the biometrics that are done have taken a lot of time to develop. So the abilities that these have actually are part of the reason why we can drill so deep, because we used to do all this in shallower water with -- with divers that would have to decompress for days on end.
SANCHEZ: Hmm. So, there you have it, that 12-pack once again.
We're talking to a professor from the University of Houston, a story that will have implications, not just here in the United States, but people all over the world have been watching this story. And I know, at times, it seems like it's been incessant, but it is easily the worst oil spill ever seen in the history of the United States, and we may not be at the end yet.
But it appears right now that we may be at the beginning of the end, as far as stopping the oil spill in the Gulf of Mexico.
We are staying with breaking news coverage of this story, every angle that we can learn. We have got correspondents who have been following this.
I'm told now Ed Henry, our White House correspondent, is on the line now to bring us up to date on what's going on in Washington.
Ed, what's going on?
ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, Rick, we're expecting the president to land. You know, he was in Michigan today. He's going to be arriving on the South Lawn of the White House about 4:45 Eastern or so.
He's going to be making a statement. Now, we know, at the very least, he will be talking about this passage of Wall Street reform on Capitol Hill. It's going to be heading towards his desk. We're told he will sign it into law, have a signing ceremony here, probably late next week, a big thing to get off of his agenda, so a big accomplishment for him.
We're still trying to confirm with White House aides whether or not he will mention what's going on in the Gulf. I can tell you, I just walked through the West Wing of the White House, was talking to some staffers.
There's absolutely no celebrating or high-fives going on there. They have seen other moments in this where it's looked like maybe things are turning the corner. And I can tell you, over the last 48 hours or so, I have been talking to senior aides here, even before this development, who were telling me they were feeling like maybe it's finally about to turn the corner.
But they have not been ready to celebrate, because they have seen too many other setbacks here. So, it's still unclear whether the president will mention this big development in the Gulf, because they want to make sure this sticks. They want to make sure there's not another leak. He doesn't want -- they don't want him going too far out on a limb before they know for sure that this oil really has stopped flowing -- Rick.
SANCHEZ: That sounds to me like very, very sage advice.
I want to welcome now our viewers from all over the world on CNN International, as well as our viewers who are watching overseas on -- from the United States -- United States armed forces air. And I also want to welcome everyone who is watching in the United States proper, because the news that we're sharing with you now seems like very hopeful information.
And that is that it appears that there are the very first signs that they can at least on a temporary basis stop the oil from leaking in the Gulf of Mexico. The question now, the question now is, can they sustain this, and, if so, for how long?
The buzz word, as far as quantitative measurements go, is 48 hours. If they can go the next 48 hours doing different tests, measuring the pressure inside that wellhead, and making sure that there's not so much pressure that they could probably get a blowout of oil somewhere else or possibly even in that new blowout preventer that they have put in, if they can be assured that's not going to happen, then they can, as Ed Henry will tell you, perhaps celebrate in the White House.
But I want to bring Ed Henry back now.
Ed, you're there following this story from a political standpoint. How much of a drain has this been on this White House, this president, given everything else that he was dealing with just before this situation developed?
HENRY: It's been a huge drain. In fact, I have spoken to senior Democrats who say just a couple of nights ago, when the president had a group of Senate Democrats over here at the White House behind closed doors, he admitted to them that this has been a big drain, and he felt like there was some momentum going for the administration a month or two ago, before, first of all, the Gulf situation really got worse and worse, and the Greece debt situation got worse and worse, because it really became a drag on the economy here in the United States.
But let me tell you, I just got new information, an e-mail from a senior White House aide telling me it's highly unlikely, as I was suggesting a moment ago, unlikely the president will address the Gulf situation in these remarks in a few moment this, this aide telling me it's premature, since the test is ongoing, just as we suspected, that, look, they want to make sure that, as these tests move forward, that in fact the oil has stopped flowing and will keep on, you know, staying in that condition for the foreseeable future.
They want to make sure there's no leaks. They want to make sure this is actually sticking, because, as you suggest, it has been a huge drag on this White House. They certainly want to turn the page on this, but they are not going to celebrate early, Rick.
SANCHEZ: Let me tell you who we have standing by now for us.
Obviously, as this information gets out and percolates throughout the world and throughout the country, we're going to get as many resources as we can here.
Ed Henry is standing by. He's at the White House, and he's going to be checking with his sources there. We also have Professor Nieuwenhuise, who is joining us from the University of Houston. He's been remarkable taking us through explanation in ways that only a scientist can and many of us have a hard time putting our hands around. Eddie Lavandera is standing by right there off the coast in the Gulf of Mexico. He's been trying to talk to BP officials and get us explanations of what's happening.
And now we have Alison Kosik as well. She's joining us from Wall Street to talk about the financial impact on this. And, boy, I will tell you, it has been.
Alison, I think I will start with you.
I imagine just the signs that we're seeing now that there's a possibility that this thing may finally have a resolution has got to have some traders suddenly looking at BP stocks in a little bit of a different way than they were looking at it days prior, right?
ALISON KOSIK, CNN CORRESPONDENT: Oh, they definitely are.
You know, you probably hear cheering if you're on the Gulf Coast now, cheering from people there who live there, who work there. I'm sure investors are cheering that, too, especially since shares of BP closed up more than 7 percent. Just to give you an idea, shares right now closed at $38.92. Earlier this month, they were at 30 bucks. So, yes, this was a huge jump for BP shares today on the news that oil is no longer flowing into the Gulf of Mexico -- Rick.
SANCHEZ: Let's go back to the professor, if we possibly can, to give us a sense of where we are.
Professor, those of us who are now joining us from around the world haven't had a chance to listen to your explanation of exactly where we are in this process. Suffice it to say the oil has stopped flowing, but that does not mean that the -- the leak has been stopped permanently.
Explain to our viewers what the process is that's going to be taking place for the next 48 hours or so, if you would.
VAN NIEUWENHUISE: OK.
Well, for the next 48 hours, of course, they are going to be watching this pressure and they are going to be watching to see if it comes up and reaches those levels of 8,700 PSI, pounds per square inch. And if it gets to that level, that will suggest that the well is in very, very good shape.
And that will not only be helpful in that sense, but it also will help them know what kind of condition the pipe is when they do the kill procedure. And I think one of the things that will happen when they get ready to do this kill procedure now is, they will have to open it up a little bit to bleed off the oil that's in there and displace that oil with mud.
And, of course, the oil, once it's displaced, will come out into the ocean, but it will be a limited amount of oil. And then the mud will fill up the pipe. And that mud will be much heavier than the oil and gas mixture. And, because of that, it will help control most of the pressure.
There will be a little pressure exerting on this cap, but now that we know that it's working, they will actually be able to use the -- closing the pressure valve on the cap and actually hold the mud down and stabilize the pressure completely.
Now, once that's happened, they will want to displace the mud with cement and fill the entire column in the wellbore with cement. And, once that happens and they stop it, when the cement stops flowing, it will set, and that will really kill this thing, and it will alleviate the whole problem.
SANCHEZ: And it's not until we get to that point that we can really say we're out of the woods, right? Because, look, we're looking into the possibility of having tropical storms and hurricane season coming around the corner.
And, in the condition that we're in right now, if we were to stop time right now and we had to deal with the eventuality of a storm in that area right now, this entire procedure would literally have to break down, right?
VAN NIEUWENHUISE: Well, actually, if this holds, they could actually shut it in during a hurricane and move the vessels that needed to be moved out of the way. They wouldn't have to be concerned with production or flow lines and -- and unconnecting them.
So, this is also helpful in the case of a hurricane. If we know that the well has excellent integrity and we know that the cap will hold, they will be able to keep this cap on until they need to evacuate some of the oil and gas and then later on the mud to actually complete the cement job and seal it up for good.
SANCHEZ: We're getting tweets from politicians and beyond now here at RICK'S LIST, as we normally share with you. We share on social media the comments from people that are coming in.
One politician after another is now sending tweets, knowing that we are going to share this on the air, and many of them are sending tweets that look a lot like Darrell Issa's tweet.
Here's Darrell Issa, California. He's writing: "Well capped. Fantastic news. Let's stay focused on cleanup and getting displaced Gulf workers back to their jobs." That's from Darrell Issa just moments ago.
Now, you notice he says, well capped. Well, he's right. I mean, it -- but if you parse it, it may be capped, but it's not capped permanently. I mean, this is a temporary situation we're going through now. We won't be able to actually say it's capped, per se, until we have done enough tests on the pressure.
But I'm wondering, Ed Henry -- Ed, are you still with us there at the White House?
Ed Henry is gone.
Ed Lavandera is still joining us, though.
Ed, we're hear -- Ed Lavandera, we're going to be hearing from Bob Riley and Doug Suttles shortly. Do you have any sense of what we're going to be hearing from these two men? Have they released any information on what they are going to be talking about?
LAVANDERA: Well, actually, the press conference -- they had had a press conference originally scheduled for today, but it wasn't pertaining to this particular event going on. And, clearly, we would imagine that the tone of this press conference for them will change dramatically.
They had some other announcements that they -- that they were -- that they were going to make. So, we have been involved deeply in what we're seeing right now, Rick. And, so, you know, I would be shocked if nobody -- nobody asked Doug Suttles about exactly what we're witnessing right now.
SANCHEZ: Well, you know, and, obviously, I think there's some surprise that the president of the United States, seeing that everybody else is commenting on this, wouldn't make a comment on it himself.
That doesn't mean that the president of the United States needs to come out and say that the -- the leak has been capped and all is good again, but he could possibly mention that it's appearing that things are moving forward and that things look positive, and we're just going to have to wait. He could almost even sound a cautionary tone.
In fact, I would be surprised if he doesn't say something, although, again, Ed Henry reported moments ago that sources in the White House are telling him that the president will not talk about this. The reason he's talking is because he wants to talk about the passage of financial reform, a bill that he will pass -- pardon me, sign, our understanding, sometime next week.
Ed, you wanted to get in?
LAVANDERA: Well, I think that kind of probably speaks to the very delicate moment that we're in right now. So nobody wants to get too far ahead and over-promise what we might be seeing here.
So, I really, you know, sense that you can imagine in rooms that we aren't able to see right now, that there are dozens and dozens of scientists, experts monitoring everything that is going on right now, and this is the very early stages. And it's my understanding -- we're double-checking this with BP officials and the federal government, but even -- we will likely see the reopening of these valves after this integrity test is done, so it's not like we're not going to see oil again, very likely, because they need to redo some seismic testing and compare before and after, and all that sort of thing.
Then they will figure out which way to go. Will they close it back up or try to use the containment part and bring oil to the surface?
SANCHEZ: We get that. And I think we have a frequent guest on this newscast, Senator Bill Nelson, who has joined -- is a part of RICK'S LIST oftentimes. He's been with us since the very beginning of this.
Senator, I'm not quite sure what to say other than the fact that I'm not sure we get to a point where we start to see where appears to be -- and I'm careful in the usage of that word -- appears tonight beginning of the end in the Gulf crisis.
SEN. BILL NELSON (D), FLORIDA: At the end of three months, we're beginning to see the light at the end of the tunnel, Rick, and I am so grateful. We still have to make sure.
You see all the apprehension. Now I know why they haven't answered my letter from several weeks ago, because they have been apprehensive that this well casing has been breached, but apparently it has not on the basis that we're not seeing the pressure go down since the well has been capped. But that's the test that they are doing every six hours now. And if the pressure doesn't go down, and, therefore, meaning that oil is leaking out the side of the well casing under the sea bed, then that means that they have got it capped, they can keep it capped until they can kill the well a month from now with the cement down close to the oil reservoir some 18,000 feet.
SANCHEZ: Yes. That's the relief well, Senator.
We're talking to Senator -- Florida Senator Bill Nelson, former astronaut Bill Nelson. He has been particularly peeved by this crisis in the Gulf of Mexico because he represents a district that has got as long a coastline as any state in the United States, and also makes a lot of its -- well, a lot of its money on tourism and its beaches.
And this -- Senator, I can tell you that this situation has had a severe impact on many of Florida's beaches, all the way from Pensacola to the Florida Keys, going up back the other side, through Jacksonville, et cetera, St. Augustine. And it's not because of the reality of the oil spill, but rather the perception of the oil spill.
NELSON: That's exactly right. When people saw Pensacola Beach covered up with oil in those photographs, it just all the more added to the angst of any potential visitor that wanted to come and enjoy those beautiful beaches. And as a result, a lot of the tourism has fallen off, the restaurants are not full.
The tax revenues from the sales tax are not coming in to local governments. We've really taken a hit.
Now, the good news is that there is the $20 billion trust fund that the president has set up with BP's money, and people can get some compensation. But that's going to be a long, arduous, painful process.
In the meantime, what we need to do is to kill this well, scoop up the rest of the oil that's on the surface, and then do the extensive studies for what is the effect of the oil underneath the surface on the long-term health of the Gulf of Mexico?
SANCHEZ: We've got Philippe Cousteau sending us this tweet. You know, Philippe Cousteau has been a very important part of our coverage. He sent this information just moments ago.
He agrees with the Florida senator. He says, "BP says lead stopped. Great news, but disaster it s not over. Now focus on restoration, education, reform and getting off oil."
That's interesting, getting off oil. At a time -- and I'll go ahead and follow up with this question. I think it's important that we do so, especially with you, as a Florida senator, and that is this: we have fought wars, arguably, for oil. We learned just this morning that BP may have been involved in a process to let a terrorist get out of prison so that they can get drilling rights just off the coast of Libya.
The things that have happened besides this crisis regarding oil are enough to make many Americans start to at least wonder whether we shouldn't be looking at another direction. And it does seem that this has almost gotten to a boiling point, this conversation.
Do you believe the American people have the wherewithal to actually change the way we've gotten energy in this country, and should we?
NELSON: You hit the nail on the head, Rick. If anything that this tragedy has done, it should have shocked us into the reality that we are addicted to oil, and especially to foreign oil, and that we better get serious about developing alternative energy source sources.
And out of this tragedy, that's the one good thing that could come if we can marshal the political will to get the votes to overcome the oil industry's stranglehold on dominating the energy source. We've got to do it gradually because you just can't move off oil overnight. But if we get serious about unleashing America's ingenuity, we can do this.
SANCHEZ: Senator Bill Nelson, who has joined us before.
Senator, hold on just a minute. I want to get back to -- can you stay with us for just a little bit?
NELSON: Yes, sir.
SANCHEZ: Thank you, sir.
Let's go back to Ed Lavandera, who is following the situation down there in the Gulf.
Ed, what's the QTA, as we used to say in police jargon, for this news conference from the CEO of BP and the governor of Alabama? Do we know?
LAVANDERA: Hey, Rick, sorry. I'm having a couple of people talking in my ears. Repeat that for me.
SANCHEZ: I was just wondering where these guys are, Doug Sutles, Bob Riley. Do we know when they're going to be appearing before the cameras at this point? Do we know where or even when?
LAVANDERA: I think -- off the top of my head, I think it was the top of the hour. Now, I know they're in Alabama, so I'm not exactly sure of all of the logistics behind all of that. I'll see if we can get someone to pass that along to -- all right. Dauphin Island, I'm told, momentarily -- Rick.
SANCHEZ: Oh, thank you, Ed.
Has BP been -- it seems interesting that we reported this story moments ago, and we broke the news here on RICK'S LIST when we looked up and saw that there was no oil pouring out of that new blowout preventer. Did you get word before we went on the air and notice that?
LAVANDERA: Did we get word that they had noticed that? SANCHEZ: I guess my question is -- the question is very simple, actually, and maybe I overstated it. Pardon me. Did BP put out any information saying, hey, folks, it's temporary, but there's no oil gushing out right now?
LAVANDERA: Well, as you were starting to report this, as we were just getting -- wrapping up a phone call from a technical briefing which essentially has been something we've been doing twice a day with officials from BP, and that news was all kind of breaking here at the exact same time. So there was kind of a confluence of events, and we were wrapping up that phone call when we rushed on to jump on with you.
SANCHEZ: Let me bring our viewers back to something you said just before I started talking to Senator Nelson, and I think this is important.
For those of you who are now watching us from around the world on CNN International, we welcome you. We also welcome all of our viewers here in the United States.
You said, Ed, that you have reason to believe that just because we're seeing no oil coming out of that blowout preventer now, that BOP, that we won't see oil spewing from it again. That they have stopped it now, but they may start it again before they stop it again.
LAVANDERA: Right.
SANCHEZ: Take us back through that explanation so our viewers can understand that, and that there isn't a heightened sense of disappointment, in fact, if we start seeing the oil coming out once again.
LAVANDERA: All right. Happy to.
Basically, what they did before they started the integrity test -- remember it was delayed before about 24 hours before they started doing it -- one of the things that they were doing was a complex series of pretests, seismic readings and other sorts of things that are much more complicated to explain than we really need to understand. So, basically, what they were doing, it was taking a snapshot of the earth and the area around where this wellbore is to kind of get a picture of what it looked like in its condition before they increased the pressure.
Now, what's going to happen is, is if they can do this test for 48 hours -- and they keep stressing to themselves over and over again that the purpose of this test is to learn what the pressure will do to the entire wellbore and the casing and all of that. They need to go back and do another round of those tests, the seismic readings and a couple of other things, and be able to compare the snapshot before and after.
And that will let all the scientists and the experts kind of learn, all right, can we pull this off? Can we shut all the valves and let it cap by itself? To do that, they're going to have to reopen the valves, is my understanding. And so that's why I'm saying, you know, in a day or so, or whenever this integrity test is over, which could take up to 48 hours, we will probably very likely see that.
Then I understand they will make the decision about which way to proceed forward. And one of those two ways will be either to close everything back up, let the cap work by itself, which would be the ideal situation, an ideal scenario, or start hooking up all the pipes and the risers back out of those five escape routes to the blowout preventer and the containment cap, and begin the process of containing the oil and bringing it up to the surface.
So they have got four massive ships up there that they say can contain up to 80,000 barrels a day. And remember, the flow rate that we've gotten from the federal government is up to 60,000 barrels a day. So that's why they would say that they are happy with either way, because that way they say if the first one works, we've got it all cut off. If the second route works, we're capturing all the oil. And it's the same conclusion, just a different way of doing it.
SANCHEZ: Before we let him go, I want to bring Senator Bill Nelson back.
I know you're a busy man, you have a lot of issues to take care of.
I can't imagine though that anything has been more pressing for you of late here on the heels of hearing from -- Nancy Pelosi and Senator Reid as well, we understand, are going to precede the president's comments on that legislation passed today on Wall Street reform. But I can't imagine there's been anything that's been more pressing for you than this situation in the Gulf of Mexico, and especially for states like yours, there along the Gulf and the Atlantic sea coast.
Do you think -- we've been talking a lot, Senator, about moratoriums. Do you think there's any possibility now going forward that the state of Florida will ever allow this type of drilling off their shores?
NELSON: Well, not as long as I'm senator, because you know that we passed a law four years ago that prohibits oil drilling off the Gulf coast of Florida. And we're just simply not going to let the oil industry drill out there where there's very little oil anyway, and also at the same time mess up the largest military --
SANCHEZ: Senator, I'm going to stop you because here's the president. And I'll get your reaction when he's done.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The United States Congress has now passed a Wall Street reform bill that will bring greater economic security to families and businesses across the country.
It was clear from the moment it began that this recession was not the result of your typical economic downturn. It was a result of recklessness and irresponsibility in certain corners of Wall Street that infected the entire economy, irresponsibility that cost millions of Americans their jobs and millions more their hard-earned savings.
It's why businesses can't get credit and why families haven't been able to see appreciation in their home values. In fact, the values of their homes have plummeted.
Even before the financial crisis that led to this recession, I spoke on Wall Street about the need for commonsense reforms to protect consumers and our economy as a whole, but the crisis came and only underscored the need for the kind of reform the Senate passed today, reform that will protect consumers when they take out a mortgage or sign up for a credit card, reform that will prevent the kind of shadowy deals that led to this crisis, reform that would never again put taxpayers on the hook for Wall Street's mistakes.
The reform that Congress passed today will accomplish these goals. It is a bill that was made possible, first and foremost, by the tireless efforts of Chairman Chris Dodd and Congressman and Chairman Barney Frank, as well as the leadership of Harry Reid and Nancy Pelosi.
I am extraordinarily grateful for their determination in the face of a massive lobbying effort from the financial industry, and I'm also grateful for all of the members of Congress who stood on the side of reform, including three Republican senators who put politics and partisanship aside today to vote for this bill.
The financial industry is central to our nation's ability to grow, to prosper, to compete and to innovate. This reform will foster that innovation, not hamper it.
It's designed to make sure that everyone follows the same set of rules so that firms compete on price and quality, not on tricks and traps. It demands accountability and responsibility from everybody. It provides certainty to everyone from bankers, to farmers, to business owners, to consumers, and unless your business model depends on cutting corners or bilking your customers, you have nothing to fear from this reform.
For all those Americans who are wondering what Wall Street reform means for you, here's what you should expect.
If you've ever applied for a credit card, a student loan, a mortgage, you know the feeling of signing your name to pages of barely understandable fine print. It's a big step for most families and one that's often filled with unnecessary confusion and apprehension. As a result, many Americans are simply duped into hidden fees and loans they just can't afford by companies who know exactly what they are doing.
Those days will soon end. From now on every American will be empowered with the clear and concise information you need to make financial decisions that are best for you. This bill will crack down on abusive practices and unscrupulous mortgage lenders. It will reinforce the new credit card law we passed banning unfair rate hikes and ensure that folks aren't unwittingly caught by overdraft fees when they sign up for a checking account.
It will give students who take out college loans clear information to make sure lenders don't cheat the system. And it will ensure that Americans will receive a free credit score if they are denied a loan or insurance because of that score.
All told, this reform puts in place the strongest consumer financial protections in history, and it creates a new consumer watchdog to enforce those protections. Because of this reform, the American people will never again be asked to foot the bill for Wall Street's mistakes. There will be no more taxpayer-funded bailouts, period.
If a large financial institution should ever fail, this reform gives us the ability to wind it down without endangering the broader economy. And there will be new rules to end the perception that any firm is too big to fail so that we don't have another Lehman Brothers or AIG.
Because of the reform, the kind of complex, backroom deals that helped trigger this financial crisis will finally be brought into the light of day. And from now on shareholders and other executives can know that shareholders will have greater say on the pay of CEOs so that they can reward success instead of failure and help change the perverse incentives that encouraged so much reckless risk-taking in the past.
In short, Wall Street reform will bring greater security to folks on Main Street, to families who are looking to buy their first home or send their kids to college, to taxpayers who shouldn't have to pay for somebody else's mistakes or irresponsibility, to small businesses, community banks and credit unions who play by the rules, to shareholders and investors who want to see their companies grow and thrive.
Now, already the Republican leader in the House has called for repeal of this reform. I would suggest that America can't afford to go backwards, and I think that's how most Americans feel as well. We can't afford another financial crisis just as we're digging out from the last one.
Now, I said when I took office we can't simply rebuild this economy on the same pile of sand, on maxed-out credit cards, houses used like ATM machines, or over-leveraged firms on Wall Street. We need to rebuild on a firmer, stronger foundation for economic growth.
That's why we invested in renewable energy that's currently creating new jobs all across America. That's why we're reforming our education systems so that our workers can compete in the global economy. That's why we passed health reform that will lower costs for families and businesses. And that's why I'm about to sign Wall Street reform into law, to protect consumers and lay the foundation for a stronger and safer financial system, one that is innovative, creative, competitive and far less prone to panic and collapse.
Along with the steps we're taking to spur innovation, encourage hiring and rein in our deficits, this is how we're ultimately going to build an economy that is stronger and more prosperous than it was before, and one that provides opportunity for all Americans.
Thanks very much.
QUESTION: Sir, (INAUDIBLE) oil has stopped flowing in the Gulf?
OBAMA: I think it is a positive sign. We're still in the testing phase. I'll have more to say about it tomorrow.
SANCHEZ: There you go. The president touting the Wall Street reform legislation, and then he goes on to mention as well that it is a positive sign, what's going on in the Gulf, but the testing continues and he'll have more to say about it, he says, tomorrow.
Meanwhile, the gentleman on the right of your screen, as you look at it, that's Doug Suttles. He's the CEO, chief operating officer -- pardon me, COO of BP, and moments ago he said they will -- they may, depending on the pressure readings, they may have to indeed open the oil flow again just as our Ed Lavandera had reported earlier.
Let's go ahead and dip in and listen to him answer reporters' questions.
(JOINED IN PROGRESS)
DOUG SUTTLES, COO, BP: As we move forward though, not only will we have contractors here with us, you'll see BP people in these communities for a long time, well beyond this year.
We've set up this Gulf Coast restoration organization, and that's what they are here to do. This isn't just about the current spill, stopping the flow, cleaning up on the water and on the shoreline, but it's actually about the long-term impacts, too.
QUESTION: (OFF-MIKE)
SUTTLES: Right. He clearly, like -- I think everybody is pleased at the fact that, at least for the moment, there's no oil going out. And, you know, I think he was very pleased for that. But I think he stressed to me the job is not finished, and if any message I had today, that would be mine, too. The job is not finished.
We've got to be here for a long time. And mainly, the things we were talking about is, you know, how do we do better now?
And the other thing is I know the 100 days of the summer is so important to communities like this, and we're halfway through. And how can we work together to make the very best of the second half of the summer, those last 50 days? Because those are the things we need to impact right now.
QUESTION: (OFF-MIKE). But after that, let's say this works for a week or so. What's next? What can we expect to see next?
SUTTLES: So, with this test, if it's successful, hopefully we'd be able to keep the flow contained. If it's not, as I said, we'll have to reinitiate the flow. And we need to recognize that we're nowhere near making those decisions yet.
The next step is, actually, we have to complete these relief wells. We have to actually go in with the relief well and seal this well off so it can no longer flow. So that activity will continue until this well no longer has the capability to ever flow again.
And that, as we've said, could happen at the very end of this month or sometime through the first couple of weeks of August. So we'll have to do that.
Then, of course, we continue to have to pick up the oil that's on the water, the shoreline here, and then mitigate the impacts to these communities. And actually, what we were here for today, which is to make sure we understand the long-term impacts, which today was partly about that.
QUESTION: (OFF-MIKE)
SUTTLES: We said 48 hours all along, so, you know, we're talking about today -- what is today, Thursday? So, hopefully sometime on Saturday we will have been through that period.
If we're seeing the right indications and the right people study it, and we're going to shoot additional seismic data, we'll do lots of analysis to make sure that it looks like everything is as it should be. So I think it's going to be several more days.
You know, we need to be, you know, cautious right now. It's a great sight, but it's far from the finish line.
QUESTION: The tests started about three hours ago. So, in another three are we going to hear pressure readings? Is that something that will be released?
SUTTLES: I don't know exactly how we're going to provide regular updates. The well, I think, was -- I don't have the exact time, but I think somewhere around 2:30 is when it was fully closed in. And that's the point, of course, we monitor the data.
We will -- we're going to continue -- I think we've made the commitment just an hour or two ago to continue at least twice-daily press briefings. And as you know, Admiral Allen has been doing very regular press briefings. We've also been updating our Web site.
So I don't know the answer to your question, but we will provide regular information, because I know everyone is so interested in what we're seeing here. But I do think we have to be very cautious through this 48-hour period at not jumping to the conclusion that the flow won't have to resume.
QUESTION: Is this a day to celebrate here on the Gulf Coast? SUTTLES: No, I don't think so, actually. I think it's an encouraging sign. In a couple of more days, it may be even more encouraging. But, no, celebrations -- if you go talk to these people that live here, "celebration" is the wrong word.
But it could be -- we could be very close, whether it's through this activity or through the relief wells, to the point where we feel like -- I think everyone feels like we've begun to turn a corner, and an important corner. But, no, it's not the time to celebrate, I don't think.
UNIDENTIFIED MALE: Any more questions? There's time for one more.
QUESTION: You said that you talked to the governor about the claims process. Can you be more specific?
SUTTLES: Yes. What the governor talked to me about was our claims process. We're continuing to try to improve it, but about two- thirds of the claims here in Alabama that have been filed and have yet to -- the claimants have yet to receive a check is due to issues with documentation.
So what we agreed to do is take a hard look at that, and what could we do working together to try to resolve those documentation issues? He wants to help. He's very much looking out for Alabamans in this process. So what we committed to do was go look at that very, very closely and see how working with the governor and his team, how we could try to resolve those documentation issues and get checks in people's hands.
QUESTION: Will stopping the flow make (INAUDIBLE) easier?
SUTTLES: Having this ceiling cap on should make what we call the well kill operations a bit simpler to do than they would without, and the reason for that is, is we can now actually manage what would come out of the top of the well during that -- because, as you know, we'll be pumping into the well from the relief well, and so by having the top cap, it will allow us to control what flows upwards.
So it should make it simpler. It should help improve that.
UNIDENTIFIED MALE: All right, Ladies and Gentlemen. Thank you very much. We appreciate you being with us today.
SUTTLES: Thank you.
SANCHEZ: And there you have it, the chief operating officer for BP, Doug Suttles, explaining in many ways what we have just talked about.
I want to bring in our expert, Professor Nieuwenhuise, petrol expert from the University of Houston.
Did you glean anything from anything that he said that would lead you to be less or more optimistic than where we were when we first started this conversation, when we heard the news around 3:00?
VAN NIEUWENHUISE: I'm feeling neutral. And I don't sense anything panic or anything of that nature.
And he keeps saying they're going to keep this shut in for a while. And, of course, the longer they keep it shut in, that means that the well integrity is holding up, at least at this point in time. And that's a good sign.
He also mentioned the need to have that cap for the kill well, which I've been trying to say, and thank you for letting me say that. And also, I think you actually have said it the best of anyone so far, Rick. You mentioned that this could be the beginning of the end, and I think it's a point in time that we should all mark.
And as things proceed, if all goes well, it's going to be great. And I think they finally have gotten their hands around this beast, and they have shown that they can at least control it for a little while. And I think that's absolutely significant here.
SANCHEZ: You notice he said it's an encouraging sign, but there's no reason for celebration here. And he was quite adamant about that.
VAN NIEUWENHUISE: Oh, yes.
SANCHEZ: He really is trying to make the point or drive the point home that the next 48 hours are crucial.
Why is that?
VAN NIEUWENHUISE: Well, it's not just that. I think his comment was also with respect towards the people that are being harmed by this.
SANCHEZ: Yes.
VAN NIEUWENHUISE: And he's very concerned about everyone in Louisiana, Mississippi, Florida, and even Texas, in terms of loss of revenues and lost jobs and that sort of thing. He's very concerned about the whole package.
SANCHEZ: You know what? You've been a delight to have on. My thanks to you for being able to share your expertise with us through this process. Hopefully we'll continue these discussions, but this certainly has been an interesting last couple of hours, when we first got that picture that I didn't expect we'd be getting of the actual wellhead or the blowout preventer with nothing coming out of it, which is, if nothing else, one of the finest and most exciting things we've seen around here in a long time, because at least it offers some real hope.
Professor, thanks again for your time. We appreciate it.
VAN NIEUWENHUISE: Well, thank you, Rick.
SANCHEZ: All right.
Well, as we move forward here, I can let you know that we're going to be committed to this story, stay on top of it. We've got our crews in place.
And Wolf Blitzer will be joining us in just a little bit here.
In fact, here's Wolf now from your "SITUATION ROOM."
I'm Rick Sanchez. I'll see you tomorrow.
