Looks like Haliburton and Schlumberger walk free, Trans Ocean = grey area and BP is toast.
Wow, the comments regarding the centralizers is pretty scathing. Hard to explain that one if you're BP.
This just confirms the feeling I was left with after working in the industry.
Safety is #1, build equipment with high safety factors and test the hell out of it.... but we'll just throw together recommended practices on how to actually use this stuff and not make it mandatory. On top of that, mandatory procedures were not performed correctly or at all, leaving the "safety is #1" motto a laughing matter because in the end, things needed to be done yesterday not today and for as cheap as possible.
Wow, the comments regarding the centralizers is pretty scathing. Hard to explain that one if you're BP.
This just confirms the feeling I was left with after working in the industry.
Safety is #1, build equipment with high safety factors and test the hell out of it.... but we'll just throw together recommended practices on how to actually use this stuff and not make it mandatory. On top of that, mandatory procedures were not performed correctly or at all, leaving the "safety is #1" motto a laughing matter because in the end, things needed to be done yesterday not today and for as cheap as possible.
I think one of the reasons is that design work is often done on a reembursable basis so it is easier for engineering firms to get compensated for extra hours spent designing things safe whereas on the construction side alot is bid fixed cost so the incentive is to cut cut cut. Its gets even worse on the operating side as procedures increase annual costs and add to bottom lines each year rather than just one time capital expendatures.
Reuters was reporting a source from Bank of America Merrill Lynch as saying that their traders have been advised not to enter into any oil trades with BP that extend beyond 2011. Once this spreads around Wall Street this could leave BP without the ability to hedge their positions and it will become harder for them to operate. Counterparty risk is becomming an issue. The government is going at them, the capital markets are going at them, the shorts are going at them, and the market cap is off 48% since the spill started and that is over $100 Billion in market cap. Based on the new spill estimates I heard a new clean up estimate to be between 80-100 billion. True that it took 20 years of litigation for Exxon but I don't see the US government treating this like a Leons don't pay a cent event....I guess this is why companies like Suncor are up over 10% since last week....
All oil companies are up aren't they, mirroring the oil price as it usually does. Oil up 10% too.
No...there is a decoupling here. Depending how you are getting the commodity/risk management etc. Ex : BP along with a few other companies were all using the same blueprint that detailed what they would do in the case of a spill and how they would protect Walruses even though they haven't been in the Gulf for 3 million years. No contingency plan = Flight to quality....
No...there is a decoupling here. Depending how you are getting the commodity/risk management etc. Ex : BP along with a few other companies were all using the same blueprint that detailed what they would do in the case of a spill and how they would protect Walruses even though they haven't been in the Gulf for 3 million years. No contingency plan = Flight to quality....
according to cnn BP is putting $20 billion aside for a relief fund. Its a good start, lets see what they do after that.
On a side note, if you can get 5% interest per year (i'm no finance guy) that equates to 1billion per year for ongoing relief effords, not too bad. My uncle won a decent amount in the lottery a few years back, now just sips the interest every year.
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Stuck in Edmonton until my degree is done, which sucks. Cheering for the flames in Edmonton, oh so much fun!
Wonder how the British Government is going to react to Obama's speech. BP is a major employer and corporate tax payer in GP. If they go down, or declare bankruptsy you would think that it would completely warp Great Britain's economy.
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My name is Ozymandias, King of Kings;
