Saturday, June 12, 2010

BP (NYSE:BP) Bankruptcy Plan Wanted by Louisiana State Treasurer

Even though BP (NYSE:BP) has stated they have no plans to go into bankruptcy, Louisiana State Treasurer John Kennedy has pushed for Louisiana officials to prepare for that scenario in case it happens.

Using inflammatory language, Kennedy said, "I know BP's said they won't go into bankruptcy. I hope they're telling the truth. They weren't truthful about the extent of the spill. We need to be ready, and I don't think we are. We can't miss a beat on this cleanup."

Kennedy saying that BP didn't tell the truth about the extent of the oil spill is a fabrication, to be kind. From the beginning they said it was an estimate, and recently confirmed there is no way of accurately measuring the flow of oil entering into the Gulf.

Even government scientists have covered their butts by saying the oil flow is from 20,000 barrels to 40,000 barrels a day. Which one is correct? If it's around 20,000, than the government scientists have lied, as they can't have it both ways using Kennedy's logic.

The scientists released these figures that are so far apart because they are also clueless as to how much oil is seeping into the Gulf on a daily basis.

As far as the bankruptcy goes, the same thing is being said. At this time BP, I believe, has no intention of declaring bankruptcy. But the amount of liability, just like the amount of oil, is unable to be estimated at this time, so while it is a possibility, all BP can do is assert their intentions concerning where things are at now, not somewhere a month or more down the road.

That's not dishonesty, that's dealing with the circumstance and it unfolds.


Anonymous said...

But the initial estimate of 1000
barrels a day was clearly preposterous, and BP almost
certainly knew it

Bruce Williams said...

Use the word "bankruptcy" while a companies stock plunges and you have their attention. BP suddenly has a reason to try to make Louisiana better inclined to them so they will stop talking like this - in other words - a legal maneuver by a smart lawyer.

Anonymous said...

BP seems to have been doing all they can at this time, they only own 65% of the well, the people of the US receive 18.75% royalty on all the oil in the gulf, do we have no liability having 18.75% interest in this whole mess?
Should we not just get the mess cleaned up then work out the cost and who owes what...

Anonymous said...

@anonymous 9:37:

Sure, YOU pay for it and then try reclaiming your money from "the responsible parties" afterwards. Oh, wait, that's a lot of money that you don't want to spend on something that isn't your fault? AHA!