Posts Tagged ‘BP’

BP Floods Gulf of Mexico with Oil, Is Subsequently First in Line to Receive Offshore Drilling Permit

Wednesday, March 9th, 2011

“(Reuters) – BP Plc (BP.L)(BP.N), whose Macondo well blowout in the Gulf of Mexico caused the worst offshore oil spill in U.S. history last year, co-owns the well that received the first deepwater drilling permit since the disaster.

BP is Noble Energy Inc’s (NBL.N) partner in the well, holding a 46.5 percent interest, BP said.”

What do you think?

If BP owns less than 50% of Noble Energy, how much influence do BP executives have over Noble’s business activities? Would an ownership percentage like this affect your decision to invest in a company like Noble?

Ban On Deepwater Drilling Lifted

Friday, October 15th, 2010

The ban is lifted, but it’s not business as usual for deepwater oil drillers...

  • President Obama halted deepwater drilling after a BP oil rig exploded and started dumping millions of gallons of oil into the Gulf of Mexico this summer. Now the ban is being lifted, but the oil industry will be forced to comply with new, stricter regulations before they’ll be issued permits to drill.
  • According to the oil industry, the main problem isn’t increased oversight or costs related to the new regulations – that they expected. Instead, they’re concerned that without knowing the new rules in advance, they won’t be able to plan for the profitable reopening of their drilling operations.
  • Environmentalists are worried that the ban is being lifted too soon, without proper study of what caused the Deepwater Horizon oil rig explosion. The new rules are okay, they say, but not nearly thorough enough.

Best Quote

“The truth is, there will always be risks associated with deep-water drilling.” – Interior Secretary Ken Salazar

A New CEO, New Plan For BP

Thursday, August 5th, 2010

With Robert Dudley as BP’s new CEO, the company plans a much needed face-lift.

  • BP’s CEO has just been replaced (from Tony Hayward to Robert Dudley).
  • BP plans to pay $32.2 billion for the oil spill but may face later fines if found negligent over the spill.
  • Looking forward, BP promises to be more focused on safety and reliability.
  • Dudley encourages the entire global oil and gas industry to rethink its safety systems and equipment used in deep water.

Facts & Figures

  • The oil spill wiped out almost 40% of BP’s market value.
  • BP reported a 2nd quarter loss of $17.12 billion.
  • BP is assuming that it won’t be found guilty of gross negligence.

Best Quote

“Mr. Dudley is not a new broom. As an insider, one wonders if he has the appetite to push for radical change at BP.” -Ivor Pether, Fund Manager, Royal London Asset Management

BP May Have Something To Be Optimistic About

Wednesday, July 14th, 2010

BP originally planned to cap the oil leak in the Gulf of Mexico in mid-August, but they now plan to do so by the end of July.

  • BP claims that the clean-up efforts are ahead of schedule.
  • July 27 – the target cap date – is also the day 2nd quarter earnings are reported.
  • BP states that they have several back up plans in case primary capping efforts fail.
  • BP was encouraged by the Environmental Protection Agency to create a new device – an “autonomous subsea dispersant system”– to monitor and measure chemicals used underwater to break up the oil.

Facts and Figures

  • BP has lost almost half of its market capitalization since the spill in April.
  • BP is currently drilling 2 relief wells.
  • Hurricane season – which directly affects the Gulf – is imminent and worrisome.

Best Quote

“Force yourself to think each one will fail. We’re in new territory full of perils, and nothing is a slam dunk.” – Steve Chu, United States Secretary of Energy

Obama Attempts To Repair An Environmental Disaster

Tuesday, June 22nd, 2010

President Obama reacts with strict environmental regulations in response to the BP oil disaster.

  • On Tuesday night, the president addressed the United States regarding his plans to repair, repay, and prevent damage caused by the BP oil spill in the Gulf of Mexico.
  • Obama is proposing a multi-billion dollar compensation plan for Gulf residents that BP seems unlikely to agree to.
  • In order to prevent more harm to the environment, Obama says he will develop new energy sources, expand nuclear power, and is considering a tax on carbon to reduce pollution.

Best Quote

“Make no mistake, we will fight this spill with everything we’ve got for as long it takes. We will make BP pay for the damage their company has caused. And we will do whatever’s necessary to help the Gulf Coast and its people recover from this tragedy.” – President Barack Obama

Oil Disaster Ignites Innovation, Ingenuity, Entrepreneurial Spirit

Wednesday, June 16th, 2010
Over 20,000 people responded to BP’s call for suggestions, proving that creativity prevails amid relentless Gulf damage.
  • Countless environmental entrepreneurs are stepping up to offer solutions to the Deepwater Horizon crisis in the Gulf of Mexico.
  • C.I. Agent Solutions, a Kentucky-based company that makes oil-blocking polymer, has created a technology that stops the oil by changing it from liquid to solid. When the polymer and oil meet, the oil becomes a non-toxic rubber-like material, making it easy to pick up.
  • A Florida-based company, C.W. Roberts Contracting,, takes a more basic approach, using hay as an absorbent.
  • While the oil industry has invested billions of dollars in finding new oil, hardly any new research or improvements have been been made or funded in the realm of regulation and cleanup.

Facts & Figures

  • A YouTube demonstration of the oil-absorbing hay has gotten over 1.5 million hits.

Best Quote

“Traditional cleanup companies sell time and material. Our method takes less time and uses less material so they don’t like it.”  - Dan Parker, President Of C.I. Agent Solutions

BP’s Forecast: Cloudy At Best

Tuesday, June 8th, 2010

Bankers, lawyers, and Wall Street are all anticipating the oil superpower’s next move. The consensus? Bankruptcy.

  • Between the rapidly declining value of BP shares, the cleanup costs, and the anticipated lawsuits from gulf fisherman and tourism companies, it seems likely that BP is being primed for a takeover.
  • Who’s interested? Both Shell and Exxon have the means to buy BP, and bankers believe now is the time to strike. Only problem is how to separate the deal from all the legal exposure.
  • BP’s chief executive, Tony Hayward, insists that BP will foot the whole bill.
  • According to the Oil Pollution Act of 1990, BP’s financial responsibility for the cleanup is capped at $75 million. But if it’s determined that safety regulations were violated (which is very likely), the cap is no longer relevant.

Facts & Figures

  • BP has lost more than a third of its value since the Deepwater Horizon catastrophe.
  • BP generated nearly $17 billion of profit last year.
  • One estimate of the BP cleanup bill is more than $40 billion.
  • If a court rules against the company, the cost of the spill could skyrocket into the hundreds of billions, almost guaranteeing the end of  BP.

Best Quote

“The strength of cash-flow generation in recent quarters has provided us with a balance sheet that allows us to fully take on the responsibility for the Gulf of Mexico response.” – Tony Hayward, Chief Executive of BP

Some Perspective on Giant Oil Disasters

Tuesday, June 8th, 2010

Gavin Potenza created this graphic to illustrate some of the world’s great oil spills. We’re not sure if having a smaller drop of oil on the map actually makes the Deepwater Horizon spill better than any other spill, but so far it’s smaller than some of the other disasters…

(via psfk.com)