SHORT BP (and go long detergents)

lvader

1echidna wrote: »

They have zero chance of recovering the money from Transocean, contracts specifically preclude it. As has been said expect BP to be taken to the cleaners.

Nonsense. Transocean are already getting sued over the incident and their share price has also dropped to close to 20%. It doesn't sound to me that they are protected.

1echidna

lvader wrote: »

Nonsense. Transocean are already getting sued over the incident and their share price has also dropped to close to 20%. It doesn't sound to me that they are protected.

I should have said they are protected from liability on the costs of the pollution not liability in connection with the explosion and loss of life.

lvader

They are being sued as are BP for the pollution element of the disaster.

PS BP are currently trading higher than when the day started. but still down around 2% due to pre-martket trading.

1echidna

lvader wrote: »

They are being sued as are BP for the pollution element of the disaster.

PS BP are currently trading higher than when the day started. but still down around 2% due to pre-martket trading.

I will take your word for it, perhaps the contractual thing was only so far as the relationship between BP and Transocean, not third parties.

I notice the recovery of the share price in New York

I still feel, unfortunately, that there is a strong possibility, that BP will be stitched up by the Americans over this, so tightly that you can't see the stitches, but we will see.

ess0two

Texas city all but screwed BP.

http://www.texascityexplosion.com/site/headlines?post_id=792

1echidna

ess0two wrote: »

Texas city all but screwed BP.

http://www.texascityexplosion.com/site/headlines?post_id=792

Indeed and rather the same as with Toyota, once their boffins get their teeth into it they seem to come up with a plethora of additional failings to throw at the company in the dock (particularly if is a foreign competitor). The Alaskan pipeline leaks didn't help keep BP clear of the US bloodhounds either.

JamesU

Inevitable that liability issues will involve substantial cross litigation for a very long time. Quantification on the likely costs involved is also tricky until the oil flow is capped. In the meantime I guess it is a lottery as to where the BP share price should be, or will be. But possibly opportunity knocks for the brave;)

JamesU

ess0two

Always talk about BP+Shell merging in some fashion,events like this may make it a viable option.

ess0two

1echidna wrote: »

I will take your word for it, perhaps the contractual thing was only so far as the relationship between BP and Transocean, not third parties.

I notice the recovery of the share price in New York

I still feel, unfortunately, that there is a strong possibility, that BP will be stitched up by the Americans over this, so tightly that you can't see the stitches, but we will see.

BP got off lightly over Texas city,inherant flaws in H+S,plus a p iss poor safety culture from the management down.
BP knew they had problems but failed to address them,plenty of evidence to support this in audits etc.
I'm in the industry,unfortunately you dont get many chances when processing petro-chemicals.

1echidna

ess0two wrote: »

BP got off lightly over Texas city,inherant flaws in H+S,plus a p iss poor safety culture from the management down.
BP knew they had problems but failed to address them,plenty of evidence to support this in audits etc.
I'm in the industry,unfortunately you dont get many chances when processing petro-chemicals.

Take my comment about being "stitched up" as you will. I was in the industry and know better than to argue over this kind of thing. Which is why I say expect things to look pretty black for BP once the enquiries start.