Any idea BP (NYSE:BP) would willingly leave the Gulf of Mexico as a key production asset has been rejected by CEO Bob Dudley, who has recently stated more than once they're in it for the long haul.
In London, Dudley said this about the commitment of the company to the Gulf: “We certainly have a great set of production assets and we have opened up the lower tertiary play in the Gulf of Mexico, which is a two-decade play. That’s an important piece of exploration for BP we’re very good at. You’ll see us continue to participate in that.”
Dudley has been leading the company out of their defensive posture since the Gulf oil spill, and now that they've ended the oil from leaking into the Gulf, and cleanup is well under way, Dudley has the company focused on resuming production and profit, while reiterating the need to keep safety as their number one priority while drilling in deep water areas of the world.
Contrary to the media reports and assumptions, deepwater drilling hasn't slowed down at all, and is considered the focus for the long term in the industry as it relates to oil.
BP will continue to play a big part in that, although they have to take their safety practices to another level if they want to thrive, or even survive, as one more accident, depending on where they are in the world, would probably end their existence as a company.
Showing posts with label Bob Dudley. Show all posts
Showing posts with label Bob Dudley. Show all posts
Wednesday, November 3, 2010
Tuesday, November 2, 2010
BP (NYSE:BP) Costs Rise to $40 Billion for Gulf Oil Spill
While turning a profit for their latest quarter, BP (NYSE:BP) took another charge of close to $7.7 billion related to the spill, which brings their total costs to an enormous $40 billion so far.
They also turned a profit of $1.785 billion, a major improvement over the last quarter when they had a loss of $16.9 billion.
The extra charge for the quarter was higher than expected because of the company taking longer in September to plug the well than they had anticipated.
BP CEO Bob Dudley said, "We have made good progress during the quarter. This strong operating performance shows the determination of everyone at BP to move the company forward and rebuild confidence after the terrible events of the past six months.
"We have also begun to make important changes in the way we operate across the group ... to ensure that safety and risk management are embedded as the absolute priority for every operation, for every person, throughout BP."
The $40 billion is an estimate as to what the costs of the oil spill will ultimately be, almost 25 percent above previous estimates, and sure to rise.
They also turned a profit of $1.785 billion, a major improvement over the last quarter when they had a loss of $16.9 billion.
The extra charge for the quarter was higher than expected because of the company taking longer in September to plug the well than they had anticipated.
BP CEO Bob Dudley said, "We have made good progress during the quarter. This strong operating performance shows the determination of everyone at BP to move the company forward and rebuild confidence after the terrible events of the past six months.
"We have also begun to make important changes in the way we operate across the group ... to ensure that safety and risk management are embedded as the absolute priority for every operation, for every person, throughout BP."
The $40 billion is an estimate as to what the costs of the oil spill will ultimately be, almost 25 percent above previous estimates, and sure to rise.
Tuesday, October 26, 2010
BP (NYSE:BP) More Committed Than Ever to U.S.
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.
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.
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
BP's (NYSE:BP) CEO Bod Dudley Thanks Britain for Support During Gulf Crisis
Speaking at the annual CBI conference in Britain, BP (NYSE:BP) chief executive officer Bob Dudley thanked the British government for their strong support during the extreme attacks of some lawmakers in the United States during the Gulf disaster.
He said, "At the height of the crisis it made a big difference knowing we had such good friends at home."
Dudley added he felt the media was and continues to create a climate of fear around the Gulf oil spill, and there is still data to be gathered to find out the overall causes of the spill.
One of those is the blowout preventer awaiting to be fully investigated and examined as to why it failed.
British Prime Minister David Cameron has said a strong BP is vital to the interests of Britain and America.
He said, "At the height of the crisis it made a big difference knowing we had such good friends at home."
Dudley added he felt the media was and continues to create a climate of fear around the Gulf oil spill, and there is still data to be gathered to find out the overall causes of the spill.
One of those is the blowout preventer awaiting to be fully investigated and examined as to why it failed.
British Prime Minister David Cameron has said a strong BP is vital to the interests of Britain and America.
Wednesday, October 20, 2010
Is BP's (NYSE:BP) Tying Bonuses to Safety a Good Idea?
The announcement that bonuses for one quarter at BP (NYSE:BP) will be tied to safety by CEO Bob Dudley, was an obvious media event to tie the two together in the minds of people.
What's important is whether or not it will do anything to actually improve the safety at the company.
Safety bonuses will be applied for one quarter while the company goes over an overall review to see how it wants to proceed. It's doubtful they'll keep it in place after that.
Of course he was probably under pressure from politicians to make the decision and announcement, as it makes them look good in having supposedly pressured them to focus on safety after the Gulf oil spill fiasco.
Another obvious question is why Dudley kept some people in place who probably should have been let go. Will this change their habits at all? Only time will tell.
As far as the actual reward system, it seems what should be ingrained in the culture of a company which has many risks associated with their work, isn't going to be changed by altering bonus money to it.
Any part of bonuses offered is going to be attempted to be gamed by some to reveal progress in order to obtain the bonus. So there's always that as a factor in the mix.
But safety is, or should be, a core value of BP, and as revealed in the Gulf oil spill, has more potential to destroy the company than any other factor.
Focusing on safety is a no-brainer, but using bonuses as a means to a safer company is more of a stunt that something that will change the culture of the safety-challenged company.
Because of the impact accidents like that in the Gulf had, using a stick is probably better than the carrot being offered.
What's important is whether or not it will do anything to actually improve the safety at the company.
Safety bonuses will be applied for one quarter while the company goes over an overall review to see how it wants to proceed. It's doubtful they'll keep it in place after that.
Of course he was probably under pressure from politicians to make the decision and announcement, as it makes them look good in having supposedly pressured them to focus on safety after the Gulf oil spill fiasco.
Another obvious question is why Dudley kept some people in place who probably should have been let go. Will this change their habits at all? Only time will tell.
As far as the actual reward system, it seems what should be ingrained in the culture of a company which has many risks associated with their work, isn't going to be changed by altering bonus money to it.
Any part of bonuses offered is going to be attempted to be gamed by some to reveal progress in order to obtain the bonus. So there's always that as a factor in the mix.
But safety is, or should be, a core value of BP, and as revealed in the Gulf oil spill, has more potential to destroy the company than any other factor.
Focusing on safety is a no-brainer, but using bonuses as a means to a safer company is more of a stunt that something that will change the culture of the safety-challenged company.
Because of the impact accidents like that in the Gulf had, using a stick is probably better than the carrot being offered.
Tuesday, October 19, 2010
BP (NYSE:BP) Connects Performance Rewards to Safety
An internal email from BP (NYSE:BP) Chief Executive Officer Bob Dudley to
employees said bonuses and rewards in the 4th quarter will be based solely
upon safety results.
A spokesman for BP said the new plan will be in place for this quarter only while the company develops an overall policy to address the issue going forward.
Bob Dudley said in the email communication that the progress made by each business "in reducing operational risks and achieving excellent safety and
compliance standards," would be how workers would be rewarded.
The goal he said was to ""to ensure that a low-probability, high-impact
incident such as the Deepwater Horizon tragedy never happens again." The key to achieving that goal, he added, is "the rigorous identification and
management of every risk we face."
As far as existing reward contracts, those would be honored by BP for the first three quarters of 2010.
employees said bonuses and rewards in the 4th quarter will be based solely
upon safety results.
A spokesman for BP said the new plan will be in place for this quarter only while the company develops an overall policy to address the issue going forward.
Bob Dudley said in the email communication that the progress made by each business "in reducing operational risks and achieving excellent safety and
compliance standards," would be how workers would be rewarded.
The goal he said was to ""to ensure that a low-probability, high-impact
incident such as the Deepwater Horizon tragedy never happens again." The key to achieving that goal, he added, is "the rigorous identification and
management of every risk we face."
As far as existing reward contracts, those would be honored by BP for the first three quarters of 2010.
Tuesday, October 5, 2010
BP (NYSE:BP) Lowering Capex to Help Fund Gulf Cleanup
BP (NYSE:BP) has made a couple of move recently to cleanup the Gulf and its reputation.
The most recent announcement is they're going to reduce capital expenditures by 10 percent in order to release funds to pay for the Gulf cleanup.
Recently they also said they're going to lower the number of operatorships it holds in the Gulf, raising more capital by selling portions to other operators.
New BP CEO Bob Dudley also said there shouldn't be a problem reinstating the dividend for BP sometime in the near future, although he balanced that by saying it's the board of directors' decision and not his as to when that would happen.
Slowly a sense of normalcy is returning to the company, and that could be a good thing for their market cap, which would help them going forward as the value of the company rises.
The most recent announcement is they're going to reduce capital expenditures by 10 percent in order to release funds to pay for the Gulf cleanup.
Recently they also said they're going to lower the number of operatorships it holds in the Gulf, raising more capital by selling portions to other operators.
New BP CEO Bob Dudley also said there shouldn't be a problem reinstating the dividend for BP sometime in the near future, although he balanced that by saying it's the board of directors' decision and not his as to when that would happen.
Slowly a sense of normalcy is returning to the company, and that could be a good thing for their market cap, which would help them going forward as the value of the company rises.
Friday, October 1, 2010
BP (NYSE:BP) Dividend Should Resume Soon Says Dudley
New BP (NYSE:BP) chief executive officer Bob Dudley said he believes the dividend for the company should be reinstated soon, probably within several months.
While Dudley said it's a decision of the board of directors, he thinks it'll be very soon.
“It’s obviously for the board to decide but from what I see happening in
the performance of the business, I believe we will get there,” said Dudley.
He bases his assumption on the company doing well at this time.
The dividend of BP was suspended in June in response to political pressure and release capital for liabilities. Most of it was for political reasons.
While Dudley said it's a decision of the board of directors, he thinks it'll be very soon.
“It’s obviously for the board to decide but from what I see happening in
the performance of the business, I believe we will get there,” said Dudley.
He bases his assumption on the company doing well at this time.
The dividend of BP was suspended in June in response to political pressure and release capital for liabilities. Most of it was for political reasons.
Wednesday, September 29, 2010
BP (NYSE:BP) Shares Up on Management Changes, Safety Unit
BP (NYSE:BP) shares are in the positive Wednesday after incoming CEO Bob Dudley shook things up in management, firing Andy Inglis, who was responsible for deep water operations when the Deepwater Horizon oil well exploded.
Inglis will also be leaving the board of TNK-BP on October 31. Outgoing CEO Tony Hayward will sit on the board.
Heading up exploration and production, Inglis will be replaced by three executives after the E&P business is split into three different divisions.
There was also an announcement BP was creating a new safety division to oversee all aspects of the business. They are authorized to intervene in any activity being performed throughout the company.
BP shares are up today to $39.92, gaining $0.63, or 1.60 percent at 11:46 AM EDT.
Inglis will also be leaving the board of TNK-BP on October 31. Outgoing CEO Tony Hayward will sit on the board.
Heading up exploration and production, Inglis will be replaced by three executives after the E&P business is split into three different divisions.
There was also an announcement BP was creating a new safety division to oversee all aspects of the business. They are authorized to intervene in any activity being performed throughout the company.
BP shares are up today to $39.92, gaining $0.63, or 1.60 percent at 11:46 AM EDT.
Monday, August 30, 2010
BP (NYSE:BP) CEO Says Cap will be Permanent
For the first time since the oil spill in the Gulf of Mexico, BP (NYSE:BP) has publicly stated they won't attempt to extract any more oil from the Macondo oil well, and the capping of the well will be permanent.
Speaking at the Southern Governors’ Association’s 2010 Annual Meeting, incoming BP CEO Bob Dudley said the oil giant has no intention or plans in place to use the Macondo well again.
Dudley said, “The well will be capped, and nobody will ever want to go near that well again, and there are no plans to develop that Macondo structure field.”
Up till this time, when asked if they planned on tapping into the large amount of oil left in the well, officials from the company hadn't committed either way, implying the final decision hadn't been made yet.
With Dudley publicly committing to a permanent solution, that ends the speculation and conjecture over the uncertainty of the situation.
Speaking at the Southern Governors’ Association’s 2010 Annual Meeting, incoming BP CEO Bob Dudley said the oil giant has no intention or plans in place to use the Macondo well again.
Dudley said, “The well will be capped, and nobody will ever want to go near that well again, and there are no plans to develop that Macondo structure field.”
Up till this time, when asked if they planned on tapping into the large amount of oil left in the well, officials from the company hadn't committed either way, implying the final decision hadn't been made yet.
With Dudley publicly committing to a permanent solution, that ends the speculation and conjecture over the uncertainty of the situation.
Monday, August 9, 2010
BP (NYSE:BP) Deposits First $3 Billion Into $20 Fund
After what seemed to many a long period of time, BP (NYSE:BP) has made its first deposit into the escrow fund made to compensate individuals and businesses affected by the Gulf oil spill. The first deposit is $3 billion.
BP will pay out $5 billion a year over the next four years to bring the total to $20 billion.
Commenting on the escrow account, incoming CEO Dudley said this, "The purpose of the escrow account was to assure those adversely affected by the spill that we indeed intend to stand behind our commitment to them and to the American taxpayers.
"Establishing this trust and making the initial deposit ahead of schedule further demonstrates our commitment to making it right in the Gulf Coast."
Final negotiations on the fund were finished Monday, according to the U.S. Department of Justice.
After fund administrator Kenneth Feinberg make a final decisions, a panel of three judges will be in place to hear appeals of those decisions claimants disagree with.
BP will pay out $5 billion a year over the next four years to bring the total to $20 billion.
Commenting on the escrow account, incoming CEO Dudley said this, "The purpose of the escrow account was to assure those adversely affected by the spill that we indeed intend to stand behind our commitment to them and to the American taxpayers.
"Establishing this trust and making the initial deposit ahead of schedule further demonstrates our commitment to making it right in the Gulf Coast."
Final negotiations on the fund were finished Monday, according to the U.S. Department of Justice.
After fund administrator Kenneth Feinberg make a final decisions, a panel of three judges will be in place to hear appeals of those decisions claimants disagree with.
Friday, July 30, 2010
BP's (NYSE:BP) Bob Dudley Says Time to Slash Cleanup Efforts
While it has been helpful to those who have lost work in the area because of the BP (NYSE:BP) oil spill, there simply isn't much oil left to removed from the Gulf of Mexico, and incoming CEO Bob Dudley said it's time to cut back on the cleanup efforts, while stressing the ongoing commitment of BP to make things right.
The reality of skimming boats, as far as that part of the oil cleanup, is historically, at best, it cleans about 2 percent of the oil spilled in an ocean. Most of the time it's less than that, so even when oil was spewing into the region, that was the case. Now that it's under control with the new containment cap, evaporation and oil-consuming microbes are rapidly removing the oil from the Gulf, and make the former size of the cleanup effort no longer no longer appropriate.
Dudley did reiterate the commitment of BP to cleaning up the effects of the spill, and will continue doing that till the job is completed.
Concerning the overall effects of the oil spill, Dudley said the politically correct statement that "Anyone who thinks this wasn't a catastrophe must be far away from it," not really addressing the realities of the oil rapidly subsiding in the region.
The emotional hype generated by mainstream media outlets to attract eyeballs has left the residue of unbelief concerning any positive news out of the Gulf oil spill.
There is also the want and need to extract as much money out of BP as possible while the public anger remains fixated on them. Even slowing down the cleanup operations has caused much fear and consternation among some politicians and residents, who simply don't listen to the facts and are still overheating on their emotions.
The fact is the reported damage from the oil leak have been overblown, and most of the coastlines of the Gulf haven't been touched by oil, or at most, very little.
So the amount of work to clean the Gulf has to be cut back based on that reality, and not the idea that there is some type of unmanageable amount of hidden oil lurking in the Gulf that crews must be ready to rescue us all from.
The reality of skimming boats, as far as that part of the oil cleanup, is historically, at best, it cleans about 2 percent of the oil spilled in an ocean. Most of the time it's less than that, so even when oil was spewing into the region, that was the case. Now that it's under control with the new containment cap, evaporation and oil-consuming microbes are rapidly removing the oil from the Gulf, and make the former size of the cleanup effort no longer no longer appropriate.
Dudley did reiterate the commitment of BP to cleaning up the effects of the spill, and will continue doing that till the job is completed.
Concerning the overall effects of the oil spill, Dudley said the politically correct statement that "Anyone who thinks this wasn't a catastrophe must be far away from it," not really addressing the realities of the oil rapidly subsiding in the region.
The emotional hype generated by mainstream media outlets to attract eyeballs has left the residue of unbelief concerning any positive news out of the Gulf oil spill.
There is also the want and need to extract as much money out of BP as possible while the public anger remains fixated on them. Even slowing down the cleanup operations has caused much fear and consternation among some politicians and residents, who simply don't listen to the facts and are still overheating on their emotions.
The fact is the reported damage from the oil leak have been overblown, and most of the coastlines of the Gulf haven't been touched by oil, or at most, very little.
So the amount of work to clean the Gulf has to be cut back based on that reality, and not the idea that there is some type of unmanageable amount of hidden oil lurking in the Gulf that crews must be ready to rescue us all from.
Thursday, July 29, 2010
Incoming BP (NYSE:BP) CEO Bob Dudley Says Company Will "Make this Right"
In an interview Wednesday, incoming BP (NYSE:BP) CEO Bob Dudley said he has been getting the impression from people that once the oil well is successfully capped, the company will pick up and leave the region.
He said that's far from the truth, and he and BP will "make this right in America."
"The only way you can build a reputation is not just by words, but by action," Dudley said. "I picked up that people think that, well, once we cap this well, we're somehow going to pack up and disappear. That is certainly not the case. We've got a lot of cleanup to do. We've got claims facilities. We've got 35 of those around the Gulf coast."
Dudley, who will take over as CEO from Tony Hayward on October 1, said the top priority of BP is to focus on and take care of the crisis surrounding the consequences of the Macondo oil well.
He said that's far from the truth, and he and BP will "make this right in America."
"The only way you can build a reputation is not just by words, but by action," Dudley said. "I picked up that people think that, well, once we cap this well, we're somehow going to pack up and disappear. That is certainly not the case. We've got a lot of cleanup to do. We've got claims facilities. We've got 35 of those around the Gulf coast."
Dudley, who will take over as CEO from Tony Hayward on October 1, said the top priority of BP is to focus on and take care of the crisis surrounding the consequences of the Macondo oil well.
Wednesday, July 28, 2010
BP (NYSE:BP) Change of Leadership Won't Dampen Cleanup Efforts says Thad Allen
Government point man in the Gulf of Mexico oil spill, former Coast Guard Admiral Thad Allen, said the change of CEOs by BP (NYSE:BP) won't change the commitment to cleanup efforts in the region.
Commenting on the decision to remove Tony Hayward on October 1, Allen said, "I don't see any diminishing of performance or priorities," from the transition.
Effectively Bob Dudley will be CEO, as Hayward will obviously be a lame duck and non-entity; at least in the United States, where he has numerous PR disasters which made the situation worse than it had been from that perspective.
The schedule to being the "static kill' on Monday remains on target as well, which at the end of the week should finish off with the relief well ready to plug the well permanently on the bottom.
The static kill will focus on the top of the well, where cement and mud is injected into the well. The relief well does a similar thing from the bottom of the well.
Allen added the containment cap which has stopped the oil from flowing into the Gulf remains stable and continues to do the job it was intended to do.
Commenting on the decision to remove Tony Hayward on October 1, Allen said, "I don't see any diminishing of performance or priorities," from the transition.
Effectively Bob Dudley will be CEO, as Hayward will obviously be a lame duck and non-entity; at least in the United States, where he has numerous PR disasters which made the situation worse than it had been from that perspective.
The schedule to being the "static kill' on Monday remains on target as well, which at the end of the week should finish off with the relief well ready to plug the well permanently on the bottom.
The static kill will focus on the top of the well, where cement and mud is injected into the well. The relief well does a similar thing from the bottom of the well.
Allen added the containment cap which has stopped the oil from flowing into the Gulf remains stable and continues to do the job it was intended to do.
Tuesday, July 27, 2010
BP (NYSE:BP) Loses Over $17 Billion, Drops Hayward
The consequences of the oil spill starting April 20 crushed BP (NYSE:BP) for the quarter, ending with the announced ouster of Tony Hayward as CEO of the company.
Surprisingly, analysts had been looking for BP to generate earnings of $1.43 a share, while they in fact lost an enormous $5.42 a share, missing by $6.85 a share. Losses for the quarter mounted to $17.2 billion. It is one of the worst quarters in the history of the company.
Last year during the same quarter the company enjoyed earnings of $4.4 billion, or $1.01 a share. Last quarter they generated $6.1 billion, or $1.79 a share.
The oil giant noted in order to cover existing and future costs they booked a $32.2 billion pre-tax charge. That includes the escrow fund of $20 billion, which they'll pay $5 billion annually to cover claims.
Speculation over the removal of CEO Tony Hayward has ended as well, with American Robert Dudley announced as the new CEO, who will take over for Hayward on October 1.
Surprisingly, analysts had been looking for BP to generate earnings of $1.43 a share, while they in fact lost an enormous $5.42 a share, missing by $6.85 a share. Losses for the quarter mounted to $17.2 billion. It is one of the worst quarters in the history of the company.
Last year during the same quarter the company enjoyed earnings of $4.4 billion, or $1.01 a share. Last quarter they generated $6.1 billion, or $1.79 a share.
The oil giant noted in order to cover existing and future costs they booked a $32.2 billion pre-tax charge. That includes the escrow fund of $20 billion, which they'll pay $5 billion annually to cover claims.
Speculation over the removal of CEO Tony Hayward has ended as well, with American Robert Dudley announced as the new CEO, who will take over for Hayward on October 1.
BP (NYSE:BP) Going to Send Hayward to Siberia?
Speculation continues to swirl over the fate of BP (NYSE:BP) CEO Tony Hayward, as there are unlimited expectations an announcement will come soon from the board of directors of the company, probably at the earnings report on Tuesday.
Spokesman for BP have continued to say the board supports Hayward, so it'll be interesting to see if this media-created story becomes a reality because of the negative scrutiny it maintains on the company.
Unnamed sources have been cited by a number of news organizations saying Hayward could be assigned to TNK-BP in Russia. I wonder if it's anywhere near Siberia?
There have been several names thrown about, but the media darling at this time is Robert Dudley, who is currently running the Gulf cleanup operations. At least he's the favorite of the American press.
The board of directors of BP held a meeting Monday, evidently to make a decision on Hayward. That's odd in the sense of everything they've said about Hayward, and possibly the timing, which most feel would be better if left until after the oil spill is permanently plugged.
In the short term, this is really an irrelevant distraction generated by the mainstream media, who are attempting to extend the story to draw eyeballs.
Who really cares at this time who's running BP, as it does absolutely nothing to change the circumstances and actions needed to be taken to solver the problem. Changing CEOs at this time won't matter in that regard, other than giving the news cycle a temporary boost.
Spokesman for BP have continued to say the board supports Hayward, so it'll be interesting to see if this media-created story becomes a reality because of the negative scrutiny it maintains on the company.
Unnamed sources have been cited by a number of news organizations saying Hayward could be assigned to TNK-BP in Russia. I wonder if it's anywhere near Siberia?
There have been several names thrown about, but the media darling at this time is Robert Dudley, who is currently running the Gulf cleanup operations. At least he's the favorite of the American press.
The board of directors of BP held a meeting Monday, evidently to make a decision on Hayward. That's odd in the sense of everything they've said about Hayward, and possibly the timing, which most feel would be better if left until after the oil spill is permanently plugged.
In the short term, this is really an irrelevant distraction generated by the mainstream media, who are attempting to extend the story to draw eyeballs.
Who really cares at this time who's running BP, as it does absolutely nothing to change the circumstances and actions needed to be taken to solver the problem. Changing CEOs at this time won't matter in that regard, other than giving the news cycle a temporary boost.
Wednesday, July 21, 2010
BP (NYSE:BP) CEO About to be Given the Boot
BP (NYSE:BP) CEO Tony Hayward may be about to be given the boot, according to a report from the Times in London. The top candidate in line to replace Hayward is Robert Dudley, who was put in charge of the cleanup operations after Hayward made one public relations blunder after another.
The report said the replacement for Hayward should be announced sometime in the latter part of August or the early part of September. Sources for the story were unnamed.
Once Hayward made the comment that he wanted his "life back," his fate was pretty much sealed, as there isn't a day that goes by where the media keeps that in the face of the public to remind them.
In the public relations nightmare that continues, having a U.S. citizen like Dudley at the helm of the oil giant could go a long way towards making things worse, and actually begin to make things right in the cleanup and payout of claims.
Other possible replacement mentioned by analysts are Andy Inglis, who heads up exploration and production, and Iain Conn, chief of refining and marketing at BP.
The report said the replacement for Hayward should be announced sometime in the latter part of August or the early part of September. Sources for the story were unnamed.
Once Hayward made the comment that he wanted his "life back," his fate was pretty much sealed, as there isn't a day that goes by where the media keeps that in the face of the public to remind them.
In the public relations nightmare that continues, having a U.S. citizen like Dudley at the helm of the oil giant could go a long way towards making things worse, and actually begin to make things right in the cleanup and payout of claims.
Other possible replacement mentioned by analysts are Andy Inglis, who heads up exploration and production, and Iain Conn, chief of refining and marketing at BP.
Thursday, July 8, 2010
BP (NYSE:BP) Could Cap Well by July 27
In a perfect world, and assuming everything went right, including the Gulf weather cooperating, BP (NYSE:BP) could have the oil well capped from sometime between July 20 to July 27, according to Bob Dudley, who is in charge of overseeing the Gulf oil spill for BP.
Original estimates were for the leak to be plugged in August sometime, assuming the effort is successful. It's a proven technology, and has been successfully implemented in the past, but as with everything in the oil spill, the depth of the oil well makes everything an uncertainty. Even so, most think this should be able to get the job done.
The major impediment at this time is the hurricane season. If there aren't any that have an impact on the area of the oil spill, it could definitely be finished much earlier than expected.
Everyone involved has carefully managed expectations, saying there is a real possibility of early success, but again, that would require nothing interfering with the process, which in the hurricane season can't be counted on.
Original estimates were for the leak to be plugged in August sometime, assuming the effort is successful. It's a proven technology, and has been successfully implemented in the past, but as with everything in the oil spill, the depth of the oil well makes everything an uncertainty. Even so, most think this should be able to get the job done.
The major impediment at this time is the hurricane season. If there aren't any that have an impact on the area of the oil spill, it could definitely be finished much earlier than expected.
Everyone involved has carefully managed expectations, saying there is a real possibility of early success, but again, that would require nothing interfering with the process, which in the hurricane season can't be counted on.
Thursday, June 24, 2010
BP (NYSE:BP) Cap Operational Again
The cap removed by BP (NYSE:BP) engineers after an underwater robot accident is functional again, and was put back in place as of around 9 PM EDT on Wednesday.
Engineers removed the cap because of concerns over the possibility chrystals could form which would clog the cap, and also they weren't sure if fluid was leaking, which could have generated a safety hazard with flames on the surface.
The system which had the problems was the first one employed in the Gulf by BP, and captures rather than burns the oil off. The second system only burns the oil, as it doesn't have processing or storage facilities.
Concerning removing the cap, managing director for BP, Bob Dudley, who is now heading up the Gulf cleanup effort, said this, "It's a disruption, and the crew again did exactly the right thing because they were concerned about safety. It's a setback, and now we will go back into operation and show how this technology can work."
The robot had bumped into the system a little before 10:00 AM.
Engineers removed the cap because of concerns over the possibility chrystals could form which would clog the cap, and also they weren't sure if fluid was leaking, which could have generated a safety hazard with flames on the surface.
The system which had the problems was the first one employed in the Gulf by BP, and captures rather than burns the oil off. The second system only burns the oil, as it doesn't have processing or storage facilities.
Concerning removing the cap, managing director for BP, Bob Dudley, who is now heading up the Gulf cleanup effort, said this, "It's a disruption, and the crew again did exactly the right thing because they were concerned about safety. It's a setback, and now we will go back into operation and show how this technology can work."
The robot had bumped into the system a little before 10:00 AM.
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