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

worldtraveller

The worst oil spill in U.S. history has created an unprecedented financial, legal, regulatory and environmental crisis for companies that operate in the Gulf of Mexico, Moody's Investors Service said on Monday.

"The accident could have an international impact as well, as other governments that oversee offshore production adopt these new, stricter U.S. standards," Moody's said in a report.

"We believe it could take up to two years before producers, rig operators, and service firms in the deepwater Gulf can resume activity to pre-spill levels," said Steven Wood, a managing director at Moody's.

U.S. President Barack Obama and top BP executives are set for a showdown over the Gulf of Mexico oil spill this week, as the likely damages bill piles more pressure on the oil giant's shares.

The U.S. has imposed a six-month moratorium on deepwater drilling in the Gulf of Mexico that is set to last through November, "posing uncertainties that could last well beyond this date for producers, drillers and service companies operating in the region," Wood said.

Congress is considering a measure that would lift or remove liability caps for deepwater producers, which could lead some companies in the Gulf to reevaluate whether to continue operating there, Moody's said.

New rules also could make it too expensive for small producers to do business, Moody's said.

The rating company said major offshore drillers are likely to have a "more muted credit-rating effect" due to their ability to do business in different regions.

BP shares extended losses after the U.S. market opened on Monday, falling 8 percent.

"In the short term, the blowout has reduced asset valuations in the Gulf and hit company valuations," Moody's said. "Although these valuations are expected to rebound eventually, it is difficult to tell when the market will regain its appetite for the risk involved in deepwater production."

Reuters

amcluesent

Sadly, it looks like BP is finished. If they roll over and put the divi into an escrow fund, then a $20 BILLION pork-barrel will get Obama's Demoratic snouts in the trough for years, doling out baksheesh to buy votes across the USA. Fair enough the USA is hated by Muslims the world over, after this I say they can go hang too. I won't be helping America, an American or any of their companies again.

NB Notice how Obama is bigging this up as a tipping point to get USA away from on oil-based economy. Who has massive investments in green technology? Yep, Democrat Al Gore.

I wonder how how many of the usual suspects in the Kennedy clan, Rothschilds, all the Bilderberg members, Carlyle Group etc. have got a long position in alternative energy, have been nursing loses, and see this as a way of funnelling $$ TRILLIONS their way from the Federal 'green' tax tsunami?

Talking of which, I can see the Democrat strategy here. As Republicans/Bush family are synonymous with 'big oil', by destroying oil Obama must reckon to wreck Republican influence, funding and patronage. It's his version of Labour flooding England with uncounted millions of ethnics to destabilise society and making a Tory majority impossible. For ever.

1echidna

The American president is making it clear that he is angry, very angry about the situation in the gulf and that bp is the butt of his anger. This can only be because he is about to embark on what some may consider to be disreputable behaviour against bp. The lead he gives will be taken up in spades by the rest of the US establishment, expect a complete damnation of bp and its operations from top to bottom, massive cleanup costs will be dwarfed by damages and punitive criminal fines beyond even one of the wealthiest company's on the planet ability to pay. It is true that there will be elements, especially in the UK who will see this rather as an act of vandalism but in all probability , given the hysteria in the US, the view in America will be that it is fully justified and right - don't expect sympathy for bp there. My prediction is that the Americans as well as convicting a number of bp employees of criminal offences will be hell bent on extracting every last dollar that they can from bp, which were they to succeed would leave the share value a big fat zero (and it may be no simple task to prevent an angry president from doing just that)

amcluesent

As it appears the an out-of-control Executive is going to destroy BP without any regard to due process, the Board need to take immediate action by any means necessary. Their ONLY duty is to the shareholders, not to pelicans, clam fisherman and certainly not to the criminal Obama.

The Board should find a means, such as creating a Swiss registered shell company or a joint-stock company with PetroChina, by which to remove as many of BP assets as possible from American jurisdiction. And then simply walk away from the Gulf. 100% walk away. And tell Obama he can sort it all out and we'll see how far bull-shi**ing and bluster go in killing the well.

ffacoffipawb

amcluesent wrote: »

Fair enough the USA is hated by Muslims the world over, after this I say they can go hang too. I won't be helping America, an American or any of their companies again.

This is how I feel !

MBNA account - closed yesterday.
Asda - Won't go there again.
McDonalds and KFC - Nein danke

Citibank ex Shell, to close after the latest full payment DD is taken.

Ditto egg money card, despite the cashback.

Guess Amex will have to go to.

Leaves me with Lloyds TSB credit card, Barclaycard cashback and HSBC Visa. Good enough for me.

amcluesent

It certainly highlights the complete nonsense of us paying ££ BILLIONS for the so-called 'independent' nuclear system of Trident.

FACT - we can't do anything with those missiles as the Americans have ALL the launch codes. And whose side at they on these days?

The elite fool Liam Fox talks about Trident as being 'ring fenced' from budget cuts. Rubbish, we should decommission the missiles ASAP, keep the subs, and re-fit with an Anglo-French missile system that has NO American controlled technology or reliance on their GPS system.

ffacoffipawb

amcluesent wrote: »

It certainly highlights the complete nonsense of us paying ££ BILLIONS for the so-called 'independent' nuclear system of Trident.

FACT - we can't do anything with those missiles as the Americans have ALL the launch codes. And whose side at they on these days?

The elite fool Liam Fox talks about Trident as being 'ring fenced' from budget cuts. Rubbish, we should decommission the missiles ASAP, keep the subs, and re-fit with an Anglo-French missile system that has NO American controlled technology or reliance on their GPS system.

... and make sure they are pointing the right way, as I doubt very much that they are.

97trophy

ffacoffipawb wrote: »

911 - Bring another one on !!!!

You are a very sick individual.

Thrugelmir

amcluesent wrote: »

Sadly, it looks like BP is finished. If they roll over and put the divi into an escrow fund, then a $20 BILLION pork-barrel will get Obama's Demoratic snouts in the trough for years

That's not how an escrow fund works.

dealer_wins

My opinion for what its worth is that although this spill wont be forgotten for a long time, it will cease to be big news once the leak is stopped and the majority of oil cleaned up.

BP in my eyes seem to be behaving very well and doing as much as they can to help. Imagine if it was a small company, then who would pay?

And I have read a lot about BP has only leased the well from a 3rd party. I would have thought that the 3rd party would be the "guilty party" as it is responsible for the well overall?

I think the shares will bounce around for a while, but in 12/24 months things will be 90% back to normal. I have even bought 300 shares purely as a punt. (the last time I did this was in Northern Rock just before they folded so I know what im taking about- NOT)