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

artha

sabretoothtigger wrote: »

BP killed the supply, its not an argument completely without merit. It depends how far bp will be held responsible. It seems likely they would have to pay every gulf business the difference in profits from last year, every hotel without tourists and so on which is pretty costly.

Do they pay that bill alone or 65% as partial owner, Im not sure because all usa officials refuse to mention any party being responsible apart from bp

As I see it with my limited knowledge of how legal processes work but taking a rational viewpoint BP, as the overall manager, have management responsibility for ensuring that the leak is stopped. Liability for subsequent claims is something different that may not be resolved for years until a formal enquiry is carried out. Just look at the Amoco Cadiz spill in Brittany where, with current estimates, is actually the biggest spill in US history to date (although not on US soil) by an American company. It took 10 years to sort out.

sabretoothtigger

The exxon spill from the 80's was still in court a few years ago and oill still still washes on shore apparently though as easily removed tar balls

worldtraveller

sabretoothtigger wrote: »

The exxon spill from the 80's was still in court a few years ago and oill still still washes on shore apparently though as easily removed tar balls

This was largely over the question of punitive damages.

I believe that after the spill significant punitive damages were awarded, but subsequently reduced considerably (including quite recently) by various appeals to the U.S. courts. Many people think that this was due to the judiciary siding with U.S. industry.

Therefore one has to wonder how this will pan out with the current situation with [STRIKE]British Petroleum[/STRIKE] BP, especially with the southern U.S. states propensity to award relatively high punitive damages.

artha

sabretoothtigger wrote: »

The exxon spill from the 80's was still in court a few years ago and oill still still washes on shore apparently though as easily removed tar balls

What people forget is that oil is a natural material and nature copes with it. Certain bacteria thrive on it and will eventually resolve it. What nature cannot do is cope with the man made materials that are ditched as rubbish and will take generations to degrade. The US is probably the greatest throw away society and polluter in history yet takes not a jot of notice when anyone else complains about its actions. We(UK) follow in the same vein but at least make some token effort to acknowledge that there is a problem

97trophy

Bloomberg June 15, Matthew Simmons, founder of the Ocean Energy Institute, talks with Bloomberg's Lori Rothman about BP Plc's oil leak in the Gulf of Mexico and his view that the use of a "small-bore nuclear device" is now the "only option" to stop the flow of oil.


http://www.youtube.com/watch?v=mb2u4_QSblo

Sceptic001

So BP gives away $20 billion and scraps its dividend and its NYSE share price jumps $2 on the news. Strange times we live in!

97trophy

Sceptic001 wrote: »

NYSE share price jumps $2 on the news. Strange times we live in!

Not really, markets prefer information over not knowing.

worldtraveller

Sceptic001 wrote: »

So BP gives away $20 billion and scraps its dividend and its NYSE share price jumps $2 on the news. Strange times we live in!

A small reduction in the uncertainty of the overall situation, which always plagues markets. However, I don't see that this will last, as there still remains no end point to the main issue - the leak!

Thrugelmir

Sceptic001 wrote: »

So BP gives away $20 billion and scraps its dividend and its NYSE share price jumps $2 on the news. Strange times we live in!

BP paid out $10.5 billion in dividends last year. So to create a $20 billion fund could be done with no dividends paid for 2 years or a halved dividend over 4 years.

Of course oil prices might rise and that would reduce the timeframe.

The most important fact is that $20 billion appears to be considered sufficent to meet the liability. So there's a quantified sum.

Thrugelmir

worldtraveller wrote: »

A small reduction in the uncertainty of the overall situation, which always plagues markets. However, I don't see that this will last, as there still remains no end point to the main issue - the leak!

The amount of oil that leaks now makes little difference to the potential claims from fisherman, hoteliers, businessess etc. The damage is done.

BP is capturing some 15,000 BPD now. At $75 per barrel thats gross income of $1,125,000 per day.