This has just been confirmed by BP.
Specifically, BP's Chief Operating Officer Doug Suttles told CNN last Thursday that BP's data indicates that BP can't cap the leaking oil, or it might cause the well casing to blow out:
Suttles denies that there is evidence that the well casing has already blown out beneath the sea floor.
But many experts - including experts working for BP - say that there is damage beneath the sea floor. Indeed, Matt Simmons told Bloomberg today that America's top research vessel - the Thomas Jefferson - found that the well casing is gone, and can no longer even be seen on the sea floor, having been destroyed:
That way you always have room to maneuver and lying needs lots and lots of Lebensraum.