Administrator of the BP (NYSE:BP) compensation fund, Kenneth Feinberg, received a standing ovation from a convention or Realtors on Sunday, as he reiterated his reversal on allowing the compensation fund to be used to pay those legitimately hurt from the oil spill.
Feinberg has been blasted by many who believe they are being short-changed from the fund, but there have been so many illegitimate claims, and claims made which don't include proof of anything, that Feinberg has found it difficult to go through the massive amount of material he has to in order to make a decision and pay out legitimate claims.
For the Realtors, Feinberg has set aside $60 million of the $20 billion committed for the fund to pay out temporary claims to them.
That means those Realtors believing they are owed more in damages from BP will be able to pursue lawsuits if they feel they can win the cases.
Feinberg has given his opinion in the matter that they will have a hard time winning these types of cases, but at least they're getting some compensation short term and will have some relief in these difficult times.
Realtors were actually damaged more from the Obama moratorium in the Gulf than they were from the oil spill, and Feinberg said there's nothing he can do to alleviate the fallout from that.
Showing posts with label BP Oil Spill. Show all posts
Showing posts with label BP Oil Spill. Show all posts
Monday, November 8, 2010
Tuesday, October 26, 2010
BP (NYSE:BP) CEO Bob Dudley Strikes Back
Although still expressing regret over the consequences of the BP (NYSE:BP) oil spill, CEO Bob Dudley did strike back some at the excessive media reports that made it look like the world was going to end.
Now that the extent of the damage isn't anywhere close to what was projected, Dudley blasted those who irresponsibly reported the proposed damage as fact.
Dudley said, “I watched graphic projections of oil swirling around the Gulf, around Florida, across and around Bermuda to England. These appeared authoritative and inevitable. From a terrible accident and environmental spill grew a corporate crisis that threatened the very existence of our company.”
Even today accurate reports of little devastation to the Gulf of Mexico is met with scathing criticism because it doesn't meet the narrative of those who oppose drilling for no reason other than it's drilling.
For example, many cite the damage done to wildlife in the region because of the oil spill, but one grouping of wind turbines does more damage as they shred birds and bats to bits than the entirety of the damage done to wildlife for the whole oil spill.
Somehow birds with some oil on them is worse than bird and bat body parts shredded by wind turbines.
It's good to see Dudley strike back at the hype and hysteria coming from the distorted picture created by the mainstream media.
Now that the extent of the damage isn't anywhere close to what was projected, Dudley blasted those who irresponsibly reported the proposed damage as fact.
Dudley said, “I watched graphic projections of oil swirling around the Gulf, around Florida, across and around Bermuda to England. These appeared authoritative and inevitable. From a terrible accident and environmental spill grew a corporate crisis that threatened the very existence of our company.”
Even today accurate reports of little devastation to the Gulf of Mexico is met with scathing criticism because it doesn't meet the narrative of those who oppose drilling for no reason other than it's drilling.
For example, many cite the damage done to wildlife in the region because of the oil spill, but one grouping of wind turbines does more damage as they shred birds and bats to bits than the entirety of the damage done to wildlife for the whole oil spill.
Somehow birds with some oil on them is worse than bird and bat body parts shredded by wind turbines.
It's good to see Dudley strike back at the hype and hysteria coming from the distorted picture created by the mainstream media.
Monday, October 25, 2010
Are BP (NYSE:BP) Oil Report Sightings Legitimate?
With obvious agendas, a number of "unnamed" boat captains are reporting huge stretches of oil in the Gulf of Mexico, which just happen to disappear every time authorities check them out.
This could happen if there were only a few isolated instances, but when you have reports come out that the oil is continuing to rapidly disappear from the Gulf, and just about every time a few days later unofficial reports of massive stretches of oil, it sounds too much like a Hollywood movie and alleged events that are probably orchestrated stories.
There have so many exhaustive tests taken by the National Oceanic and Atmospheric Administration, that either you have to call them liars and deceivers, or somebody else is lying. You can't have it both ways.
Some attempt to justify the alleged oil sightings by saying they think certain weather changes are causing oil to be released from the bottom of the ocean and coming to the top.
But when you have these consistently checked out and nothing is there, the other excuse is the weather caused the oil to disappear; a convenient story to say the least.
That means every time an assertion of finding oil is made all that needs to be said when it's no longer there is the weather is the factor. Ridiculous to be sure.
Fisherman have partly behind the alleged sightings, and their agenda is to garner as much insurance money as they can, even though test after test of seafood has shown absolutely no tainted fish or seafood from oil or dispersants that could harm humans.
Environmentalists and universities are looking for grant money for their beleaguered departments which have been hammered by loss of funding during the recession.
So to allege an ongoing but unconfirmed huge amount of oil floating around the Gulf of Mexico is increasingly looking like an endless number of hoaxes.
This could happen if there were only a few isolated instances, but when you have reports come out that the oil is continuing to rapidly disappear from the Gulf, and just about every time a few days later unofficial reports of massive stretches of oil, it sounds too much like a Hollywood movie and alleged events that are probably orchestrated stories.
There have so many exhaustive tests taken by the National Oceanic and Atmospheric Administration, that either you have to call them liars and deceivers, or somebody else is lying. You can't have it both ways.
Some attempt to justify the alleged oil sightings by saying they think certain weather changes are causing oil to be released from the bottom of the ocean and coming to the top.
But when you have these consistently checked out and nothing is there, the other excuse is the weather caused the oil to disappear; a convenient story to say the least.
That means every time an assertion of finding oil is made all that needs to be said when it's no longer there is the weather is the factor. Ridiculous to be sure.
Fisherman have partly behind the alleged sightings, and their agenda is to garner as much insurance money as they can, even though test after test of seafood has shown absolutely no tainted fish or seafood from oil or dispersants that could harm humans.
Environmentalists and universities are looking for grant money for their beleaguered departments which have been hammered by loss of funding during the recession.
So to allege an ongoing but unconfirmed huge amount of oil floating around the Gulf of Mexico is increasingly looking like an endless number of hoaxes.
Friday, October 22, 2010
BP (NYSE:BP) Oil Spill Didn't Harm Coral Reefs
The more testing and research being done after the BP (NYSE:BP) oil spill, the hyped reports from media outlets concerning the alleged damage are being found to be false.
Not only is wildlife from the area found to have had little effect from the oil spill, but the latest news is testing of the coral reefs has also been found to have little damage as well.
This affirms the early reports that the Gulf of Mexico is somewhat of a healing machine, and can take a lot of damage and still restore itself. This is probably from the thousands of years of oil naturally seeping into the Gulf from numerous areas, which releases as much annually as the entirety of the oil from the Gulf accident.
After investigating many coral reefs, so far little if any damage has been found to have occurred.
This flies in the face of alleged reports from over-stimulated scientists that assert there is oil all over the Gulf of Mexico and on the bottom.
There may be some on the bottom, but that can easily be from the millions of gallons released naturally into the Gulf, as mentioned above. No proof that the oil on the bottom is from the BP oil spill has been offered yet.
Why this is important is non-scientific scientists and radical environmentalist and their media allies created a narrative that isn't close to being true. And they're enraged that the opportunity to advance their agendas is being crushed from the evidence that the Gulf of Mexico is a great self healer.
Drill baby, drill!
Not only is wildlife from the area found to have had little effect from the oil spill, but the latest news is testing of the coral reefs has also been found to have little damage as well.
This affirms the early reports that the Gulf of Mexico is somewhat of a healing machine, and can take a lot of damage and still restore itself. This is probably from the thousands of years of oil naturally seeping into the Gulf from numerous areas, which releases as much annually as the entirety of the oil from the Gulf accident.
After investigating many coral reefs, so far little if any damage has been found to have occurred.
This flies in the face of alleged reports from over-stimulated scientists that assert there is oil all over the Gulf of Mexico and on the bottom.
There may be some on the bottom, but that can easily be from the millions of gallons released naturally into the Gulf, as mentioned above. No proof that the oil on the bottom is from the BP oil spill has been offered yet.
Why this is important is non-scientific scientists and radical environmentalist and their media allies created a narrative that isn't close to being true. And they're enraged that the opportunity to advance their agendas is being crushed from the evidence that the Gulf of Mexico is a great self healer.
Drill baby, drill!
Thursday, October 21, 2010
Transocean (NYSE:RIG) Slashing Pay for Injured Workers to $25 a Day
In a recent court filing, Transocean (NYSE:RIG) notified its workers injured from the BP (NYSE:BP) oil rig explosion that they would be having their pay cut to $25 a day as of December 15, although they said the offer is on the table until December 31.
Of the 126 people working on the Deepwater Horizon rig, most worked for Transocean, with 9 out of the 11 workers who perished working for the company.
According to Transocean, only 17 members of their crew working on the oil rig were injured.
Most of those asserting they were injured made between $10,000 to $15,000 monthly working for Transocean, according to an attorney representing over 20 of the alleged injured.
Attorneys for the alleged injured say the pay cut will pressure their clients to settle more quickly than they otherwise would have. But of course to keep non-working employees on the payroll at the wages mentioned above is a recipe for economic disaster, and an unrealistic expectation.
Transocean made an offer to other rig workers in September, offering them lump sum payments equal to six months' salary.
Survivors of the workers who perished in the accident continue to receive full salary and benefits, along with those severely injured.
Of the 126 people working on the Deepwater Horizon rig, most worked for Transocean, with 9 out of the 11 workers who perished working for the company.
According to Transocean, only 17 members of their crew working on the oil rig were injured.
Most of those asserting they were injured made between $10,000 to $15,000 monthly working for Transocean, according to an attorney representing over 20 of the alleged injured.
Attorneys for the alleged injured say the pay cut will pressure their clients to settle more quickly than they otherwise would have. But of course to keep non-working employees on the payroll at the wages mentioned above is a recipe for economic disaster, and an unrealistic expectation.
Transocean made an offer to other rig workers in September, offering them lump sum payments equal to six months' salary.
Survivors of the workers who perished in the accident continue to receive full salary and benefits, along with those severely injured.
Government Workers Want Piece of BP (NYSE:BP) Fund Pie
Shameless government workers from Panama City Beach has pressed their city council to attempt to extract funds from BP (NYSE:BP), claiming the reason they didn't get a raise was because of the fallout from the Gulf oil spill.
The problem is last year these government parasites didn't receive a raise either, and there was no BP oil spill at that time.
They are of course attempting to use the consequences of the recession as an excuse to tap into the fund.
Imagine if that were to fly. Everyone in the U.S. would be applying to get money from the BP claims fund if they didn't get a raise this year.
BP may be big, but their influence on the economy is vastly overstated by those attempting to use them as if they were a form of government stimulus. This is one of the reasons the claims portion of the fund administered by Kenneth Feinberg has slowed down so much: numerous attempts to game the fund.
Panama City Beach has filed a claim against the fund to regain tax revenue. How about decreasing the size of government to levels that can be afforded?
The problem is last year these government parasites didn't receive a raise either, and there was no BP oil spill at that time.
They are of course attempting to use the consequences of the recession as an excuse to tap into the fund.
Imagine if that were to fly. Everyone in the U.S. would be applying to get money from the BP claims fund if they didn't get a raise this year.
BP may be big, but their influence on the economy is vastly overstated by those attempting to use them as if they were a form of government stimulus. This is one of the reasons the claims portion of the fund administered by Kenneth Feinberg has slowed down so much: numerous attempts to game the fund.
Panama City Beach has filed a claim against the fund to regain tax revenue. How about decreasing the size of government to levels that can be afforded?
Friday, October 15, 2010
BP (NYSE:BP) Oil Spill Didn't Hurt Birds Much Says Audubon
Experts from the National Audubon Society said after investigating marshes of Louisiana during September, they found the bird populations were doing very well after the BP (NYSE:BP) oil spill.
After walking the area, only 3 birds among an approximate 10,000 counted had any oil on them. Brown pelicans were also found in abundance, with over half being born this year.
Unsurprisingly the Audubon report said it was too early to say the bird populations are safe in the area, but that's being too cautious, as from the beginning reports were the damage to birds was far less than it was thought it would be.
The usual fears about the food chain were reiterated again, even though every test so far for seafood has come back with no taint at all. Either someone is lying or the truth that the spill wasn't anywhere near as catastrophic as the media hype portrayed is what really happened.
One dirty little secret in the so-called green energy sector is windmills in just one ugly forest of them will kill more bats and birds in a year than the entirety of the BP oil spill. When will the outcry against those hideous monstrosities emerge?
As far dead birds, while over 6,100 dead ones have been collected, only 2,263 have had oil on them. That means the rest, for the most part, died of usual natural causes.
The narrative from the spill has always outraged those opponents of oil drilling, as the consequences are far less than thought, and the evidence continues to mount that the Gulf of Mexico is able to clean itself of oil better than expected.
Even the assertions by scientists with agendas that oil is still all over the Gulf and its shores is highly exaggerated and unproven. Certain parts have some of course, but many have little if any. Again, the Gulf is a far better healer of itself than many want to admit.
After walking the area, only 3 birds among an approximate 10,000 counted had any oil on them. Brown pelicans were also found in abundance, with over half being born this year.
Unsurprisingly the Audubon report said it was too early to say the bird populations are safe in the area, but that's being too cautious, as from the beginning reports were the damage to birds was far less than it was thought it would be.
The usual fears about the food chain were reiterated again, even though every test so far for seafood has come back with no taint at all. Either someone is lying or the truth that the spill wasn't anywhere near as catastrophic as the media hype portrayed is what really happened.
One dirty little secret in the so-called green energy sector is windmills in just one ugly forest of them will kill more bats and birds in a year than the entirety of the BP oil spill. When will the outcry against those hideous monstrosities emerge?
As far dead birds, while over 6,100 dead ones have been collected, only 2,263 have had oil on them. That means the rest, for the most part, died of usual natural causes.
The narrative from the spill has always outraged those opponents of oil drilling, as the consequences are far less than thought, and the evidence continues to mount that the Gulf of Mexico is able to clean itself of oil better than expected.
Even the assertions by scientists with agendas that oil is still all over the Gulf and its shores is highly exaggerated and unproven. Certain parts have some of course, but many have little if any. Again, the Gulf is a far better healer of itself than many want to admit.
Wednesday, October 13, 2010
Offshore Drilling Soaring Even with BP (NYSE:BP) Oil Spill
The report released today by the International Energy Agency confirms what many suspected, that offshore drilling in the world continues to grow in spite of the BP (NYSE:BP) oil spill, as demand for the black gold continues to rise.
With the response from the Obama administration in the U.S., they will probably be the only country producing less oil, with an estimated loss of 60,000 barrels a day in 2010, growing to about 100,000 barrels a day less in 2011, said the IEA.
Other areas of the world won't have lower production, as the agency said they don't "foresee any significant impact on production elsewhere.”
Actually offshore drilling is really only just getting started as onshore oil fields get harder to find. Many countries are just starting to get their offshore exploration deal going, which promises much more oil in the future.
The problem in the past was being able to see through the salt on the ocean floor to find the oil and gas. New technology now allows them to get past that former obstacle.
With the response from the Obama administration in the U.S., they will probably be the only country producing less oil, with an estimated loss of 60,000 barrels a day in 2010, growing to about 100,000 barrels a day less in 2011, said the IEA.
Other areas of the world won't have lower production, as the agency said they don't "foresee any significant impact on production elsewhere.”
Actually offshore drilling is really only just getting started as onshore oil fields get harder to find. Many countries are just starting to get their offshore exploration deal going, which promises much more oil in the future.
The problem in the past was being able to see through the salt on the ocean floor to find the oil and gas. New technology now allows them to get past that former obstacle.
Friday, October 8, 2010
BP (NYSE:BP) Image Improving Says Survey
A survey conducted in September found BP's (NYSE:BP) image is starting to become more positive as time goes on following the stopping of the oil well from leaking into the Gulf of Mexico.
Those participating in the survey were asked to state what their feelings were about the company.
The NBC News/Wall Street Journal poll found 12 percent of respondents felt either "very positive" (3 percent) or "somewhat positive" (9 percent) about the company.
A large percentage (24 percent) were "neutral" toward BP when asked. That's not that bad when added together. Not that many people would think 36 percent of those on a survey aren't feeling bad toward the oil giant.
On the negative side, 20 percent said they were feeling "somewhat negative" toward the company, and 30 percent were still feeling "very negative" toward them. The other 14 percent decided not to make a choice one way or the other.
In contrast to a prior survey in June when TV and Internet viewers were able to watch the undersea cameras recording the oil spewing into the ocean, a much larger 44 percent were "very negative," and 23 percent were "somewhat negative."
So on the negative side, it has dropped from 67 percent to 50 percent for BP. Definitely good news for them and an improvement.
Those participating in the survey were asked to state what their feelings were about the company.
The NBC News/Wall Street Journal poll found 12 percent of respondents felt either "very positive" (3 percent) or "somewhat positive" (9 percent) about the company.
A large percentage (24 percent) were "neutral" toward BP when asked. That's not that bad when added together. Not that many people would think 36 percent of those on a survey aren't feeling bad toward the oil giant.
On the negative side, 20 percent said they were feeling "somewhat negative" toward the company, and 30 percent were still feeling "very negative" toward them. The other 14 percent decided not to make a choice one way or the other.
In contrast to a prior survey in June when TV and Internet viewers were able to watch the undersea cameras recording the oil spewing into the ocean, a much larger 44 percent were "very negative," and 23 percent were "somewhat negative."
So on the negative side, it has dropped from 67 percent to 50 percent for BP. Definitely good news for them and an improvement.
Thursday, October 7, 2010
WH Takes on Response to BP (NYSE:BP) Oil Spill Report by Oil Spill Commission
The pot was stirred up Wednesday when an extremely critical report on how the Obama administration responded to the BP (NYSE:BP) oil spill was released by the Oil Spill Commission studying the matter.
Several of the more damning conclusions concerned the amount of oil left in the ocean, obstructing the release of worst case scenarios concerning the spill, and too much optimism from the White House, which may have resulted in being detrimental to the response effort by slowing down the speed and size of the operation.
Possibly the most odd of the charges were in reference to the "vast majority" of the oil from the spill having left the ocean.
Even though that may have been communicated poorly by Carole Browner, the further clarification from NOAA Administrator Jane Lubchenco took care of it.
She said, “The vast majority of the oil from the BP oil spill has either evaporated or been burned, skimmed, recovered from the wellhead or dispersed much of which is in the process of being degraded. A significant amount of this is the direct result of the robust federal response efforts.”
That remains the official line of the White House, and further testing and investigation hasn't disproved those assertions. As a matter of fact it's some of the so-called independent scientists who have been made to look foolish by saying some gigantic oil plume was roaming the Gulf, when in fact it can't be found by anyone searching for it, and was asserted two months after the fact, making it look like some type of agenda was behind the concept.
The worst case scenario charge that the White House or Office of Management and Budget, was attempting to hinder that from being revealed to the public, was rejected, as they said the modeling used by the NOAA in the worst-case scenario didn't include the impact of oil being collected, skimmed or burned, thus skewing the potential outcomes that would have been presented.
Also recalled was the media appearance of Thad Allen and Interior Secretary Ken Salazar saying the worst-case scenario could reach as high as 100,000 barrels a day released into the Gulf waters.
The overly optimistic charge is a strange one to me as well. How do you measure that? It almost sounds like a radical environmentalist was on the commission that was angry that the spill happened in the first place.
The report even says, that it was “not clear that this misplaced optimism affected any individual response effort.” Why even bring it up then?
Finally, the White House said the report was a draft that hadn't been signed off on by members of the Oil Spill Commission members or chairmen, suggesting why it seems somewhat sloppy in its conclusions.
Now the problem is if a revised version of the report is released that differs a lot from the "draft," most won't believe it, and will believe pressure from the White House altered the findings.
Several of the more damning conclusions concerned the amount of oil left in the ocean, obstructing the release of worst case scenarios concerning the spill, and too much optimism from the White House, which may have resulted in being detrimental to the response effort by slowing down the speed and size of the operation.
Possibly the most odd of the charges were in reference to the "vast majority" of the oil from the spill having left the ocean.
Even though that may have been communicated poorly by Carole Browner, the further clarification from NOAA Administrator Jane Lubchenco took care of it.
She said, “The vast majority of the oil from the BP oil spill has either evaporated or been burned, skimmed, recovered from the wellhead or dispersed much of which is in the process of being degraded. A significant amount of this is the direct result of the robust federal response efforts.”
That remains the official line of the White House, and further testing and investigation hasn't disproved those assertions. As a matter of fact it's some of the so-called independent scientists who have been made to look foolish by saying some gigantic oil plume was roaming the Gulf, when in fact it can't be found by anyone searching for it, and was asserted two months after the fact, making it look like some type of agenda was behind the concept.
The worst case scenario charge that the White House or Office of Management and Budget, was attempting to hinder that from being revealed to the public, was rejected, as they said the modeling used by the NOAA in the worst-case scenario didn't include the impact of oil being collected, skimmed or burned, thus skewing the potential outcomes that would have been presented.
Also recalled was the media appearance of Thad Allen and Interior Secretary Ken Salazar saying the worst-case scenario could reach as high as 100,000 barrels a day released into the Gulf waters.
The overly optimistic charge is a strange one to me as well. How do you measure that? It almost sounds like a radical environmentalist was on the commission that was angry that the spill happened in the first place.
The report even says, that it was “not clear that this misplaced optimism affected any individual response effort.” Why even bring it up then?
Finally, the White House said the report was a draft that hadn't been signed off on by members of the Oil Spill Commission members or chairmen, suggesting why it seems somewhat sloppy in its conclusions.
Now the problem is if a revised version of the report is released that differs a lot from the "draft," most won't believe it, and will believe pressure from the White House altered the findings.
Monday, September 27, 2010
BP (NYSE:BP) Approved by Venezuela to Sell Oil Assets
In an attempt to raise up to $30 billion to pay for liabilities related to the Gulf of Mexico oil spill, BP (NYSE:BP) is trying to sell assets in Venezuela, and they've been given approval by the government to go ahead with the process.
The assets held in Venezuela include an interest in heavy oil and minority stakes in two exploration and production ventures with state-owned oil company PDVSA.
Combined it is estimated BP should be able to raise up to $1 billion from the assets. Although a relatively minor deal in comparison with others, it is one of the bigger challenges for the company to divest of.
The only two companies considered a buyers for the stakes are PDVSA itself, and possibly the joint venture of BP with Russia called TNK-BP. The Russian connection would make it more palatable to Venezuela.
BP holds a 50 percent stake in TNK-BP, which also has interests in Vietnam and Algerian assets held by BP.
The assets held in Venezuela include an interest in heavy oil and minority stakes in two exploration and production ventures with state-owned oil company PDVSA.
Combined it is estimated BP should be able to raise up to $1 billion from the assets. Although a relatively minor deal in comparison with others, it is one of the bigger challenges for the company to divest of.
The only two companies considered a buyers for the stakes are PDVSA itself, and possibly the joint venture of BP with Russia called TNK-BP. The Russian connection would make it more palatable to Venezuela.
BP holds a 50 percent stake in TNK-BP, which also has interests in Vietnam and Algerian assets held by BP.
Wednesday, September 22, 2010
BP (NYSE:BP) Oil Spill Health Effects to be Studied
In a study to determine, what, if any, health effects came from the BP (NYSE:BP) oil spill concerning the public or cleanup workers, BP has donated $10 million to the cause.
The preliminary sketches by scientist and doctors has begun, which will hopefully attract thousands of people that had a connection to the spill.
The nonprofit Institute of Medicine was asked by the Department of Health and Human Services to put together a team for the large-scale study.
As there haven't been many oil spills, there hasn't been a lot of work done to deal with how it affects people physically or pychologically.
So far only 8 oil spills have been studied, but none with the level of effect from the BP spill, which could provide a larger pool of participants to get a better idea of the overall effects.
The preliminary sketches by scientist and doctors has begun, which will hopefully attract thousands of people that had a connection to the spill.
The nonprofit Institute of Medicine was asked by the Department of Health and Human Services to put together a team for the large-scale study.
As there haven't been many oil spills, there hasn't been a lot of work done to deal with how it affects people physically or pychologically.
So far only 8 oil spills have been studied, but none with the level of effect from the BP spill, which could provide a larger pool of participants to get a better idea of the overall effects.
Tuesday, September 21, 2010
BP (NYSE:BP) Claims Can be "Bundled" says Barbier
U.S. Disrict Judge Carl Barbier has given the go ahead to allow claims against BP (NYSE:BP) to be placed in what are being called "pleading bundles," which both the defense and plaintiff lawyers agreed to.
Another agreement was made concerning the complaint process itself, which will be simplified in order to make the filing go quicker.
How that will work is the lawyers of the oil companies will put together a "master" complaint which includes all the causes of action brought against Transocean (NYSE:RIG), Halliburton (NYSE:HAL) and BP, or other oil companies connected to the oil spill.
After the plaintiffs file the master complaint, defense attorneys will be able to respond with a "master" answer.
From there, anyone who wants to file a lawsuit can simply check off every cause of action against the oil companies they want to go after.
An example of what a pleading bundle would entail is a grouping of those claiming economic losses, such as hotels and restaurants.
Another agreement was made concerning the complaint process itself, which will be simplified in order to make the filing go quicker.
How that will work is the lawyers of the oil companies will put together a "master" complaint which includes all the causes of action brought against Transocean (NYSE:RIG), Halliburton (NYSE:HAL) and BP, or other oil companies connected to the oil spill.
After the plaintiffs file the master complaint, defense attorneys will be able to respond with a "master" answer.
From there, anyone who wants to file a lawsuit can simply check off every cause of action against the oil companies they want to go after.
An example of what a pleading bundle would entail is a grouping of those claiming economic losses, such as hotels and restaurants.
Monday, September 20, 2010
Market Ignores BP (NYSE:BP) After Permanently Killing Oil Well
The news that BP (NYSE:BP) killed their oil well was largely ignored by investors and traders, as their minds were on gold and other more important matters.
Thad Allen, the government point man for the BP oil crisis, announced on Sunday they have officially killed the oil well with the "bottom kill," the final step in the process.
Investors shrugged off the news today, although BP got a bump up early in the trading session, and is up to $38.40, gaining $0.37, or 0.97 percent, as of 12:01 PM EDT.
This was somewhat of an anti-climax concerning the well, as it hasn't leaked oil since July 15, and most considered it a foregone conclusion that the oil giant would be able to successfully complete the task.
BP now can fully focus on the legal aspects of the situation, which is picking speed, and also selling assets to raise capital to pay for legal losses and government fines.
Only a little over 3 million shares had traded hands at about noon today, down from the usual 30 million 3-month average.
Thad Allen, the government point man for the BP oil crisis, announced on Sunday they have officially killed the oil well with the "bottom kill," the final step in the process.
Investors shrugged off the news today, although BP got a bump up early in the trading session, and is up to $38.40, gaining $0.37, or 0.97 percent, as of 12:01 PM EDT.
This was somewhat of an anti-climax concerning the well, as it hasn't leaked oil since July 15, and most considered it a foregone conclusion that the oil giant would be able to successfully complete the task.
BP now can fully focus on the legal aspects of the situation, which is picking speed, and also selling assets to raise capital to pay for legal losses and government fines.
Only a little over 3 million shares had traded hands at about noon today, down from the usual 30 million 3-month average.
Wednesday, September 15, 2010
Citigroup (NYSE:C) Says Cnooc Could Pay BP (NYSE:BP) $10.2 Billion for Asset in Argentina
Citigroup (NYSE:C) said today Cnooc Ltd. could make a bid of $10.2 billion for its 60 percent for BP's (NYSE:BP) stake in Argentina’s Pan American Energy LLC. Cnooc is the largest Chinese offshore exploration company.
The bid would be a 10 percent premium over what it paid earlier in 2010 for Pan American, but that is because they would assume control of the company if they are successful in their BP bid.
If this goes through, it would be close to double the approximate $10 billion in assets already sold, and two-thirds of the way toward the $30 billion BP is attempting to raise to meet liability obligations in relationship to the Gulf of Mexico oil spill.
Cnooc is reportedly looking for a partner in the bid, which could come from Apache Corp. (NYSE:APA), Occidental Petroleum Corp. (NYSE:OXY) or Total SA (NYSE:TOT), all of which have operations in Argentina already.
The bid would be a 10 percent premium over what it paid earlier in 2010 for Pan American, but that is because they would assume control of the company if they are successful in their BP bid.
If this goes through, it would be close to double the approximate $10 billion in assets already sold, and two-thirds of the way toward the $30 billion BP is attempting to raise to meet liability obligations in relationship to the Gulf of Mexico oil spill.
Cnooc is reportedly looking for a partner in the bid, which could come from Apache Corp. (NYSE:APA), Occidental Petroleum Corp. (NYSE:OXY) or Total SA (NYSE:TOT), all of which have operations in Argentina already.
BP's (NYSE:BP) Outgoing CEO Tony Hayward Denies Cutting Safety Corners
Giving testimony before a British parliamentary committee, the outgoing CEO at BP (NYSE:BP) said concerning safety at UK North Sea operations that the company hasn't cut corners.
Being pressed by committee chair Tim Yeo, who reminded Hayward that he said three years ago that he was going to focus "laser-like on safety,"
and that "On your watch as chief executive, in that three years, now we've had the biggest ever oil spill in U.S. waters," Hayward responded, saying that the record of BP was "better than the industry average."
Hayward added that the oil industry will be better concerning safety as a result of the Gulf of Mexico oil spill, especially in regard to the testing of blowout preventers.
He said they will "significantly enhance the testing protocols of blowout preventers."
Concerning the calls by some for deepwater drilling to be banned, Hayward implied that was an over-response to the situation.
He added that there were failures on the part of all parties involved, including Halliburton (NYSE:HAL) and Transocean (NYSE:RIG), who owned the rig.
The British committee is gathering information in order to make a decision on whether or not to add any more regulations for drilling off the coasts of the UK.
Being pressed by committee chair Tim Yeo, who reminded Hayward that he said three years ago that he was going to focus "laser-like on safety,"
and that "On your watch as chief executive, in that three years, now we've had the biggest ever oil spill in U.S. waters," Hayward responded, saying that the record of BP was "better than the industry average."
Hayward added that the oil industry will be better concerning safety as a result of the Gulf of Mexico oil spill, especially in regard to the testing of blowout preventers.
He said they will "significantly enhance the testing protocols of blowout preventers."
Concerning the calls by some for deepwater drilling to be banned, Hayward implied that was an over-response to the situation.
He added that there were failures on the part of all parties involved, including Halliburton (NYSE:HAL) and Transocean (NYSE:RIG), who owned the rig.
The British committee is gathering information in order to make a decision on whether or not to add any more regulations for drilling off the coasts of the UK.
Monday, September 13, 2010
FBR on Transocean (NYSE:RIG), BP (NYSE:BP) Indemnity Battle
With the stock of Transocean (NYSE:RIG) discounting $6 to $7 billion in relationship to potential liabilities in the BP oil spill, FBR Capital said it's probably going to be far lower than that.
FBR stated, "The primary conclusions from our recent series of meetings with legal experts in the Gulf Coast are that Transocean's legal liability is likely to be far lower than the $6 billion to $7 billion presently discounted in the stock, but that the issues are incredibly complex. Transocean seems to be protected both by the law and by its contract with BP from bearing substantial liability for the spill. Under OPA, Transocean is not a responsible party for pollution emanating from the well."
Even so, the contract between BP and Transocean may not protect them, as there have been court cases in the past where indemnification has been disallowed. If BP chose to, they could attempt to legally penetrate Transocean’s indemnity.
The question is whether the financial incentive is worthwhile taking the action.
FBR concluded: "However, we do not believe that BP has enough financial incentive to pursue Transocean for contribution claiming gross negligence as this could open BP up to an additional $16 billion in fines under the Clean Water Act (CWA). With Transocean having a book value of $21 billion and a market capitalization of $18 billion, it could hand over the keys to BP and it would not offset the financial risk to BP that it might be found to be grossly negligent under the CWA."
In other words, it's highly unlikely BP and Transocean will ever go to court over this.
FBR stated, "The primary conclusions from our recent series of meetings with legal experts in the Gulf Coast are that Transocean's legal liability is likely to be far lower than the $6 billion to $7 billion presently discounted in the stock, but that the issues are incredibly complex. Transocean seems to be protected both by the law and by its contract with BP from bearing substantial liability for the spill. Under OPA, Transocean is not a responsible party for pollution emanating from the well."
Even so, the contract between BP and Transocean may not protect them, as there have been court cases in the past where indemnification has been disallowed. If BP chose to, they could attempt to legally penetrate Transocean’s indemnity.
The question is whether the financial incentive is worthwhile taking the action.
FBR concluded: "However, we do not believe that BP has enough financial incentive to pursue Transocean for contribution claiming gross negligence as this could open BP up to an additional $16 billion in fines under the Clean Water Act (CWA). With Transocean having a book value of $21 billion and a market capitalization of $18 billion, it could hand over the keys to BP and it would not offset the financial risk to BP that it might be found to be grossly negligent under the CWA."
In other words, it's highly unlikely BP and Transocean will ever go to court over this.
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