In an exclusive for Oilprice.com, the Wayne Madsen Report (WMR) has learned from Federal Emergency Management Agency (FEMA) and U.S. Army Corps of Engineers sources that U.S. Navy submarines deployed to the Gulf of Mexico and Atlantic Ocean off the Florida coast have detected what amounts to a frozen oil blob from the oil geyser at the destroyed Deep Horizon off-shore oil rig south of Louisiana. The Navy submarines have trained video cameras on the moving blob, which remains frozen at depths of between 3,000 to 4,000 feet. Because the oil blob is heavier than water, it remains frozen at current depths.

FEMA and Corps of Engineers employees are upset that the White House and the Pentagon remain tight-lipped and in cover-up mode about the images of the massive and fast-moving frozen coagulated oil blob that is being imaged by Navy submarines that are tracking its movement. The sources point out that BP and the White House conspired to withhold videos from BP-contracted submersibles that showed the oil geyser that was spewing oil from the chasm underneath the datum of the Deep Horizon at rates far exceeding originally reported amounts. We have learned that it was largely WMR's scoop on the existence of the BP videos that forced the company and its White House patrons to finally agree to the release of the video footage.

The White House is officially stating that it does not know where the officially reported 10 miles long by 3 miles wide "plume" is actually located or in what direction it is heading. However, WMR's sources claim the White House is getting real-time reports from Navy submarines as to the blob's location. We have learned that the blob is transiting the Florida Straits between Florida and Cuba, propelled by the Gulf's Loop Current, and that parts of it that is encountering warmer waters are breaking off into smaller tar balls that are now washing ashore in the environmentally-sensitive Florida Keys and Dry Tortugas.

Corps of Engineers and FEMA officials are also livid about the cover-up of the extent of the oil damage being promulgated by the National Oceanic and Atmospheric Administration (NOAA) and its marine research vessel in the Gulf, RV Pelican. NOAA stands accused by the aforementioned agencies of acting as a virtual public relations arm for BP. NOAA is a component of the business-oriented Department of Commerce.

Similarly, the Coast Guard, which takes its orders from the cover-up operatives at the Homeland Security Department, is denying the tar balls washing up on the Florida Keys are from the oil mass. WMR has been told the Coast Guard is lying in order to protect the Obama administration, which has thoroughly failed in its response to the disaster. The White House's only concern is trying to limit political damage to its image in the electorally-important state of Florida while the Pentagon has spent between $25 and $30 billion on oil spill operations in the Gulf and the Atlantic to date.

WMR sources also report that the oil mass has resulted in dead zones in the Gulf of Mexico that have cut off oxygen and killed massive numbers of marine creatures and plant life. Seafood wholesalers from the Gulf Coast to New Jersey and New York have been told that the supply of shrimp, oysters, and other seafood from the Gulf is severely in short supply and that they can expect a possible total cut-off as the situation worsens. The shortage will also affect the supply of seafood, especially shrimp, to national seafood restaurant chains like Red Lobster and Long John Silver's.

There is also evidence that BP, Halliburton, and Transocean sank a drill to a depth of 35,000 feet at the Deep Horizon site some six months ago without the required permits from the federal government. WMR has learned from U.S. government sources that the drilling at 35,000 feet caused a major catastrophic event that required the firms' oil rig personnel to quickly pull up the drill and close the drill hole.

However, the Deep Horizon re-sank the drill some six months after the unspecified "catastrophe," resulting in another, more destructive chain of events following the explosion that destroyed the rig, killing eleven workers. When the Deep Horizon blew up, WMR has been told it also "blew down," cracking the the sub-seabed pipe that may have been re-drilled to a depth of between 25,000 to 30,000 feet, again, without a government permit.

Government sources also report that BP is intent on recovering as much oil as possible from the undersea geyser rather than simply plugging and capping the well, which would then place it off-limits to further drilling. The Corps of Engineers reports that BP is playing a game with Obama, convincing him of the feasibility of "shooting junk" into the subterranean pipe, which would stop up the pipe with a manufactured chemical compound called "MUD." However, WMR has been informed that BP actually intends to shoot cement into the pipe in an attempt to cap the well with the later intention of digging a trench for side drilling from the pipe to recover as much oil as possible. The technology that would be employed by BP is the same technology that was used by Kuwait to conduct slant drilling of Iraq's Rumallah oil field -- an event that helped trigger Iraq's invasion of Kuwait.

Corps of Engineers and FEMA sources also give a failing grade to both Homeland Security Secretary Janet Napolitano, who stands accused of being woefully incompetent in handling the disaster, and Interior Secretary Ken Salazar. Government sources say both secretaries should immediately step down or be fired.

Source: http://oilprice.com/Environment/Oil-Spills/White-House-Covers-Up-Menacing-Oil-Blob.html

By the Wayne Madsen Report for Oilprice.com who offer detailed analysis on Crude oil, Natural Gas, Geopolitics, Gold and most other Commodities. They also provide free political and economic intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit: http://www.oilprice.com