Whether you love em' or hate em' BP (NYSE:BP) isn't going anywhere, according to CEO Bob Dudley, speaking of his commitment to continue drilling in the deep waters off of the U.S. coast.
Talking to a gathering in Britain, Dudley said the company was "part of the American community," and contrary to pulling out, would be getting even more involved in the production of energy in the region.
Dudley also reminded the audience that BP was a major employer in America, providing 23,000 jobs for the country, and is the biggest oil and gas producer in the States.
"I did not become chief executive of BP in order to walk away from the US. BP will not be quitting America," said Dudley.
Correctly citing the important of offshore deep water areas as crucial to providing energy, Dudley concluded, "The deep waters are becoming an increasingly important source of energy to fuel the global economy."
With the oil industry and governments of Gulf states putting pressure on the Obama administration to resume drilling in the Gulf after the oil moratorium was lifted, BP could be back drilling and extracting oil and gas from the region in the early part of 2011.
Showing posts with label BP America. Show all posts
Showing posts with label BP America. Show all posts
Tuesday, October 26, 2010
Thursday, July 1, 2010
Will BP (NYSE:BP) Continue Operating in America?
A lot of conjecture has been thrown around about the future of BP (NYSE:BP), especially recently on whether or not it'll be taken over by one of the larger rivals, specifically Exxon Mobil (NYSE:XOM) or possibly Royal Dutch Shell (NYSE:RDS-A).
But as the idea is continually bantered about, a different possible scenario is emerging, and this is one of BP selling off its American division in light of the lost good will in the country.
The cost and distraction related to building up its reputation and moving into new markets in the nation like shale oil and gas, could be more time, cost and effort than it is worth for BP.
It would also probably deal with the payout and bankruptcy concerns, as it would fetch a steep price; probably easily more than they would have to pay out, although that remains to be seen and proven.
BP has had reputation problems in the U.S. since the oil refinery explosion in Texas City, and that, along with other problems will make it difficult, if not impossible to do business in the U.S. in the future, as the scrutiny would be extraordinary, and ongoing reminders of the Gulf spill would constantly be thrown at them.
The problem for BP is they've been looking at the U.S. shale gas market particularly as one of their main engines of growth. But without the goodwill of the American people, along with the temptation of U.S. politicians to garner political points by resisting the energy giant, it'll be hard for them to secure and/or work the areas profitably.
This scenario will probably be the narrative for BP going forward, and it depends upon whether or not they believe they can successfully navigate the problems they face in the U.S. over the long term, as to whether they try to keep doing business there.
But as the idea is continually bantered about, a different possible scenario is emerging, and this is one of BP selling off its American division in light of the lost good will in the country.
The cost and distraction related to building up its reputation and moving into new markets in the nation like shale oil and gas, could be more time, cost and effort than it is worth for BP.
It would also probably deal with the payout and bankruptcy concerns, as it would fetch a steep price; probably easily more than they would have to pay out, although that remains to be seen and proven.
BP has had reputation problems in the U.S. since the oil refinery explosion in Texas City, and that, along with other problems will make it difficult, if not impossible to do business in the U.S. in the future, as the scrutiny would be extraordinary, and ongoing reminders of the Gulf spill would constantly be thrown at them.
The problem for BP is they've been looking at the U.S. shale gas market particularly as one of their main engines of growth. But without the goodwill of the American people, along with the temptation of U.S. politicians to garner political points by resisting the energy giant, it'll be hard for them to secure and/or work the areas profitably.
This scenario will probably be the narrative for BP going forward, and it depends upon whether or not they believe they can successfully navigate the problems they face in the U.S. over the long term, as to whether they try to keep doing business there.
Subscribe to:
Posts (Atom)