Archive for Friday, June 11, 2010

Analysts: BP can still cover Gulf oil spill costs

June 11, 2010


Wall Street analysts continue to believe that BP can pay for its Gulf mess, although their confidence level has been dinged by the company’s inability to stem the spill.

Shares of BP PLC rose more than 10 percent Thursday. But at $32.20, the shares are still trading at levels last seen 14 years ago.

Spurred by pressure to fully compensate economic victims of the Gulf spill, BP officials Thursday reiterated that the company has enough cash to cover Gulf spill costs. Analysts agree, saying that BP will have around $5 billion this year to pay damages and clean-up costs once dividends and capital expenditures are covered.


Ron Holzwarth 7 years, 11 months ago

This sounds like spin to me by some who have a vested interested in propping up the value of the stock. The entire Gulf Coast is going to be cleaned up with only $5 billion "this year"?

"Enough cash to cover Gulf spill costs"? What's the cost of the wildlife that is already lost? Nothing?

What about next year? And the year after that? The Exxon Valdez mess was in litigation for 19 years. (5 x 19 = $95 billion) And this is a MUCH bigger mess than that. I've also read other analyst's opinions that BP is about a month away from bankruptcy. Only time will tell.

I think the dividends should be cancelled this year - you buy a stock, you take a risk. There is no FDIC for stocks.

Scott Drummond 7 years, 11 months ago

Those have suffered the brunt of the damage from this criminal negligence are going to find out what a bad idea it was to let george bush and the right wing crazies put judges in the federal judiciary for all those years. The screwing of the American public by BP is only just begun.

Ron Holzwarth 7 years, 11 months ago

"Only just begun"? I think you're right! Somewhat like the leak in the ocean floor that has "only just begun" after all these weeks! They are hoping to have it plugged by this fall, and summer is not even here yet!

Here's another analyst's opinion: "They have about a month before they declare Chapter 11," Texas banker and oil industry expert Matt Simmons flatly declared to Fortune magazine. "There isn't enough money in the world to clean up the Gulf. Once BP realizes the extent of this, my guess is that they'll panic and go into Chapter 11."

I don't know much about the stock market, but I think the amazing thing is that the value of BP stock has not yet fallen to zero.

The article began: "The Gulf oil spill is making the Exxon Valdez disaster look like a mere grease spot."

Ron Holzwarth 7 years, 11 months ago

P.S. A.P. said "Analysts". I quoted a specific source. Does anyone besides me realize the difference?

msavage 7 years, 11 months ago

The crude oil is toxic!! Workers cleaning the oily Gulf beaches need to know the danger. Don't become BP's Collateral Damaged, like Exxon’s Collateral Damaged.

My name is Merle Savage, a female general foreman during the Exxon Valdez oil spill (EVOS) beach cleanup in 1989. I am one of the 11,000+ cleanup workers from the Exxon Valdez oil spill (EVOS), who is suffering from health issues from that toxic cleanup, without compensation from Exxon.

Dr. Riki Ott visited me in 2007 to explain about the toxic spraying on the beaches. She also informed me that Exxon's medical records and the reports that surfaced in litigation by sick workers in 1994, had been sealed from the public, making it impossible to hold Exxon responsible for their actions.

Exxon developed the toxic spraying; OSHA, the Coast Guard, and the state of Alaska authorized the procedure. Beach crews breathed in crude oil that splashed off the rocks and into the air -- the toxic exposure turned into chronic breathing conditions and central nervous system problems, neurological impairment, chronic respiratory disease, leukemia, lymphoma, brain tumors, liver damage, and blood disease.

My web site is devoted to searching for EVOS cleanup workers who were exposed to the toxic spraying, and are suffering from the same illnesses that I have. There is an on going Longshoreman’s claim for workers with medical problems from the oil cleanup. Our summer employment turned into a death sentence for many -- and a life of unending medical conditions for the rest of Exxon’s Collateral Damaged.

Flap Doodle 7 years, 11 months ago

Sounds like the feds shouldn't have dismissed Holland's first offer of aid.

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