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

sabretoothtigger

BP deploys Costner's oil machine in Gulf cleanup
Fri Jun 18, 2010 10:14pm EDT
By Jeffrey Jones

PORT FOURCHON La., June 18 (Reuters) - Hollywood star Kevin Costner joined BP (BP.L) (BP.N)'s efforts to clean up the oil-fouled Gulf of Mexico on Friday as the British company began deploying his "dream" machine to separate oil from water.

BP acquired 32 of the centrifuges to help remove some of the oil that has been gushing into the Gulf from its blown-out well in the worst oil spill in U.S. history.

http://www.reuters.com/article/idAFN1814007820100619?loomia_ow=t0:s0:a49:g43:r3:c0.091904:b35028442:z0


BP oil well partner accuses BP of criminal negligence
http://www.reuters.com/article/idAFN1817671520100619?loomia_ow=t0:s0:a49:g43:r4:c0.060964:b35017494:z0
http://www.reuters.com/article/idAFN179715420100619?loomia_ow=t0:s0:a49:g43:r3:c0.103245:b35017494:z0

lvader

JamesU wrote: »

I bought BP early June but they went through a stop loss within days. The shares are trading even lower now, and still an interesting gamble. However, my personal sentiment has changed, too disgusted by the rhetoric and facade in the US which is beyond reasonability. Genuine cases in the US aside, I find the prospect of BP potentially subsidising everybody and his dog on a gravy train with the full backing of deluded politicians and lawyers too unpalatable. Shareholders have to keep abreast of this nonsense and I do not have the stomach for it, irrespective of BP fundamentals, size of future escrow funds/damages vs profits/assets, future drilling etc. BP is in the sales constantly at the moment, but it is no longer on my shopping list. Plenty of other opportunities without the unpleasantness.

JamesU

My thoughts exactly.

1echidna

I was not really happy with disproportionate exposure to one company anyway and had been intending to sell my bp shares for some time. News of the Deepwater Horizon disaster (with no knowledge that there was a continuing leak) made me decide to sell as soon as I was back home and able to do so and I sold at 575p. Knowing a little about what had been said previously by senators and bp in response to Texas City and Prudhoe Bay incidents and ongoing wrangles over regulatory violations together with other examples of congressional hearings on other matters such as Toyota made me convinced that bp would be savaged in the US and its reputation left in tatters. The spill ramped up the emotional intensity surrounding the event involving many other interest groups and to many Americans I would guess that the worst the latest congressional hearing was able to do would appear tame. Unfortunately things are bound to get worse for bp, there just is no magic responses bp can make to stop the pillorying in the US. Hayward protecting his mental health with a little relaxation at a boat race has been unfairly latched upon and he also needs a break from the front line which has been provided for by the appointment of a deputy to front the US operation. No doubt though in due course Hayward and his Chairman will need to carry the can for their roles in the disaster and others will take over, if there is anything left.

worldtraveller

Coffee spill at BP Headquarters:

http://www.youtube.com/watch?v=2AAa0gd7ClM

JamesU

worldtraveller wrote: »

Coffee spill at BP Headquarters:

http://www.youtube.com/watch?v=2AAa0gd7ClM

Very good!

JamesU

RayWolfe

worldtraveller wrote: »

Coffee spill at BP Headquarters:

http://www.youtube.com/watch?v=2AAa0gd7ClM

Brilliant. Thank you.

worldtraveller

BP said Monday it has now spent $2 billion responding to the massive oil spill in the Gulf of Mexico.

And with no end yet in sight, that number is expected to keep rising.

BP PLC agreed last week to set up a $20 billion fund to compensate victims of the disaster on the Gulf coast. The company said Monday it has so far paid out $105 million to 32,000 claimants. Its shares were down 4 percent Monday in early trading in London at $5.12.

The news came as teams drilling the relief wells designed to stop the oil gushing into the Gulf continue a daunting task — hit a target roughly the size of a salad plate about three miles below the water's surface.

If the workers aboard Transocean Ltd.'s Development Driller II or its sister rig DDIII miss or move too slowly, oil will keep pouring into the sea.

No one on the rig has done this before because these deep sea interventions are so rare.

Still, the workers said they're confident they can stop the worst oil spill in U.S. history.

AP

sabretoothtigger

*Subsea operational update*:


---Quote---
For the first 12 hours on June 22 (midnight to noon), approximately 8,195 barrels of oil were collected and approximately 5,045 barrels of oil and 27.2 million cubic feet of natural gas were flared.

On June 21st, total oil recovered was approx. 25,830 barrels:

• approx. 15,560 barrels of oil were collected,
• approx. 10,270 barrels of oil were flared,
• and approx. 52.2 million cubic feet of natural gas were flared.

The next update will be provided at 9:00am CDT on June 23, 2010.
---End Quote---
Updated June 22 at 6:00pm CDT / 12:00am BST

That is alot of oil collected, they are flaring off alot of it also because of logistics problems I suppose or maybe its of such low quality but then it wouldnt burn if that were right.

They have ordered one of the worlds largest oil tankers from scotland to attend to this operation again this seems a bit delayed and was not done soon enough but better late then never I guess

RayWolfe

sabretoothtigger wrote: »

They have ordered one of the worlds largest oil tankers from scotland to attend to this operation again this seems a bit delayed and was not done soon enough but better late then never I guess

Not for want of trying. Apparently "there are no tanker freely available" and US anti trust laws prevent the use of US tankers!
May not be remembered 100% accurately but I believe that is the gist of the problem.

worldtraveller

BP currently down around 7%, with a low earlier today of 300.75.

Shares in BP fell as much as 7.5 percent, hitting a 14-year low on Friday morning, with traders citing investor concerns the oil major may need to raise cash to cover costs on the spill.

BP is continuing its battle to clean up and contain the oil spill, which threatens an ecological and environmental catastrophe in the U.S. Gulf, as bad weather looms.

The company said on Friday it had so far spent $2.35 billion on the response effort to the oil leak.

Nomura said in a note that equity-linked financing could be the attractive short-term solution for BP to help cover the costs.

"A heavy inversion of both credit yield and equity volatility suggests the market is concerned about a near-term credit event around BP," it said in a note.

The broker said pressure was mounting on the oil major to improve its liquidity position to "assure sufficient fund to cap the well and meet "fat tail" scenarios around near-term expenses."

"With debt expensive and asset sales taking time, we consider that equity-linked financing -- perhaps backed by Sovereign Wealth as a show of support -- could prove the attractive short-term solution," it added.

Five-year BP credit default swaps, an insurance-like instrument against debt default, widened 19 basis points to 555 basis points, CDS monitor Markit said.

BP shares were down 7 percent at 0916 GMT.

Traders also cited concerns over looming bad weather, which could hamper BP's efforts to clean up the spill.

A tropical wave over the western Caribbean Sea has a high chance of developing into a tropical depression over the next couple of days, the U.S. National Hurricane Center and other weather forecasters said.

Reuters