Tuesday, July 6, 2010

BP (NYSE:BP) Has $1 Billion in Pentagon Fuel Contracts

BP (NYSE:BP) reportedly has about $1 billion in contracts to provide fuel for the US military over the fiscal year. Data from the Defense Logistics Agency values the contracts at a minimum of $980 million during that time.

In the last fiscal year, BP was the largest individual supplier of fuel to the Pentagon, and their numbers this year are close to what they were last year when measured by percentages.

For 2009 they provided 11.7 percent of the fuel used by the US military.

Some media outlets are attempting to make a big deal of this and attempt to influence American policy be pressuring Congress to bar BP from getting any of these contracts.

This makes no sense as only a strong BP can pay for the liabilities incurred by the oil spill. Weakening them would only make it that much harder for them to survive and not meet those obligations.

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