BP - off the hook ? ...and a BUY ?

RHB

97trophy wrote: »

http://www.marketwatch.com/story/bps-market-value-halves-as-spill-costs-loom-large-2010-06-09

Does he realise its June 10th, not April 1st?

BP have something like $70bn in assets, and have so far spent a little over $1bn since something like late April when the spill started. Their postponed-unpostponed dividend payment alone was going to be/will be $10bn. All even vaguely serious commentators generally agree that the main damage to BP will be from loss of reputation in a market they were already perceived as foreign, when the impetus to "Buy American"/be generally nationalistic is far greater than in most of Europe, and the consequent potential revocation of contracts by the federal government and lack of consideration for future contracts. Rather than the frankly pennies in comparison of clearing up this spill, compensating workers for anything up to decades of lost earnings and compensating states or at least helping them secure their coastlines from or remove it.

Plus Transocean/Halliburton/Cameron et al may end up sharing some of the final burden.

amcluesent

Obamalamadingdong has now ended-up wrecking America's energy security.

In his fit of pique, his announcement of a 6 month ban on deep water drilling is already causing rigs to be sent elsewhere. Looks like it'll be a minimum of two years before lost production can be recovered.

Gas prices at the pumps will be zooming upwards for sure and America will be even more dependent on unfriendly regimes to supply oil. I guess that the closet Marxist on the White House won't mind.

Jonbvn

amcluesent wrote: »

Obamalamadingdong has now ended-up wrecking America's energy security.

In his fit of pique, his announcement of a 6 month ban on deep water drilling is already causing rigs to be sent elsewhere. Looks like it'll be a minimum of two years before lost production can be recovered.

Gas prices at the pumps will be zooming upwards for sure and America will be even more dependent on unfriendly regimes to supply oil. I guess that the closet Marxist on the White House won't mind.

Now Norway have suspended deep water drilling as well. How long before the UK and other countries follow suit?

Can we drive the oil price even higher? YES WE CAN!;)

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7812225/BP-oil-spill-fears-hit-North-Sea-as-Norway-bans-drilling.html

BTW, I would like to personally thank OBlama for ensuring my job security, given that I work in the onshore/near offshore side of the business.

worldtraveller

Opened in London at 346, now recovering slightly to around 357, down 9%.

Jonbvn

worldtraveller wrote: »

Opened in London at 346, now recovering slightly to around 357, down 9%.

They look like a screaming buy to me now.:cool:

tradetime

StevieJ wrote: »

They should just cut it in half, that would still be a decent yield based on the current share price.

I think they should suspend the dividend and re-direct it to a "legal warchest fund" BP has acknowledged that they will exceed the compensation cap, they will pay all legitimate claims, and they will pay for the cleanup. Unfortunately all the dumbass politicians just want to make the incident into a political stage to showboat, as this administration has done since it came to power. They have made it clear day after day that they are at war with BP. So be it. If you're going down, go down fighting.
Maybe the unfortunate result of that is the people of Louisiana get caught in the crossfire even more than they have already, but they can thank their govt for that. Sometimes you just have to accept the consequences of electing idiots.

top_banana

yeah now 364. not sure to buy or not to buy!

Old_Slaphead

From the beeb,

"In his latest comments, President Obama suggested that the oil company should pay unemployment benefits to thousands of oil workers laid off during a moratorium on deep-sea drilling triggered by the spill".

Some Senator also said that BP (aka UK pension funds) should pay salaries of oil workers laid off due to US government policy decisions (brought on by lack of adequate supervision).

Hey, why shouldn't they also be expected to pay for the banking crisis, the war in Afganistan, the Bopal disaster and anything else that the US government has cocked up

tradetime

BP's Credit Default Swaps have soared 200 basis points, trading at a level indicative of the company losing it's investment grade rating. It could be that the US administration has decided to attempt to force BP to insolvency whereby they could justify an asset grab.

StevieJ

97trophy wrote: »

http://www.marketwatch.com/story/bps-market-value-halves-as-spill-costs-loom-large-2010-06-09

I think he the one that wanted to use a Nuclear bomb to stem the leak :eek:


http://peakoil.com/enviroment/matt-simmons-tells-bloomberg-only-way-to-contain-oil-leak-is-with-small-nuclear-bomb/