The Casing is Breached?

That certainly appears to be oil coming out of cracks on the sea floor, and that is very bad news.

In other news, it looks like Tony Hayward will get his life back, and BP Chairman Carl-Henric 'We care about small people" Svanberg will take over day-to day management of the gusher in the Gulf.

The reservoir below the goo geyser may have enough petroleum to continue spewing for the next two to four years, unless some way is found to plug the well. If the casing is breached, the only hope lies with the so-called relief wells.

Followup: you won't very often see me link to Faux News (unless I'm snarking on them) but there's a piece with a little more info on BP management changes:

Asked about Hayward's ongoing role, Svanberg said: "He is now handing over the operation to Bob Dudley."

(...)

"This has now turned into a reputation matter, financial and political and that is why you will now see more of me," Svanberg said.