Monday, May 31, 2010

Chevron (NYSE:CVX) and Conoco Phillips (NYSE:COP) Sign Deal Binding Them For 12 yrs.

There are two deals that have been agreed to by Chevron (NYSE:CVX) and Conoco Phillips (NYSE:COP) , according to Indonesia's energy watchdog BPMIGAS. Chevron is Indonesia's largest oil producer and the final deal entails Chevron purchasing their natural gas from Conoco Phillips.

One of the deals was an amendment to a previous deal, which was meet with resistance by politicians because it was said to be unfair due to the current hike in the prices of oil. The gas supply will come from Conoco Phillips fields in South Sumatra.

The terms are for a four year time period, where Conoco Phillips will be supplying 77.9 trillion British thermal units total. As well as an additional 12 year agreement for 1,177 trillion British thermal units.

This deal will replace a prior deal which entailed swapping crude oil for natural gas among the two companies. Chevron is currently producing 370,000 barrels of crude oil daily from Sumatra.
As production has decreased due to not being able to tap new fields quickly enough, Indonesia has become a net importer of crude oil in recent years.

BP (NYSE:BP) Third Oil Containment Attempt, Riskier Than Top Kill

Here we go again, BP (NYSE:BP) is on their third attempt to get some sort of control over the worst oil spill in U.S. history. Jon Pack, a BP spokesman said the cutting will commence soon.

This oil containment procedure includes using underwater robots which will cut the damaged pipe from the leaking well. This does risk causing the crude oil flow to become even worse. This latest procedure was approved by Interior Secretary Ken Salazar and U.S. Energy Secretary Stephen Chu.

Once the damaged pipe is cut, then they will try and attach a pipe onto the leak which if successful, would cause the oil to flow to the surface and then be stored. Pack stated that currently the preparation is being done. If everything goes as planned, it should be completed by June, 6th.

This attempt is considered riskier than the "top kill" attempt, because the whole pipe will be cut off at the riser. If unsuccessful, even more oil will be flowing nonstop into the ocean.

BP's (NYSE:BP) New Plans, Will Make Spill Worse

As BP (NYSE:BP) is putting together a new plan, after the failed "top kill" attempt, it could only make things worse. Although it would only be temporarily.

Carol Browner, the White House energy czar said, "the American people need to know that it is possible we will have oil leaking from this well until August, when the relief wells will be finished." The other complication is that storm season is moving into the Gulf. As storms move in, this causes the oil recovery operations to come to a halt.

Michael Dixon, a lieutenant in charge of oil recovery operations at the Coast Guard Venice staging area said, "the way that the currents are treating this, and the ongoing leaking of oil, this is basically small spills all over the place. It's a series of a lot of small oil spills. We're fighting on a lot of fronts."

So our worst fears are being realized, our oceans will continue to be polluted, our shorelines destroyed, stocks will continue to fall, and the full effects on humans has yet to be fully realized.

Sunday, May 30, 2010

Chevron (NYSE:CVX) Oil Leak, Will Pay All Oil Cleanup Costs

Chevron's (NYSE:CVX) engineers are frantically trying to find out the cause of their oil leak, which has been going on since April. So far, it's reporting to have lost at least 50 liters of oil and gas into the Burrard Inlet.

The company has said it is putting together a plan to extract and treat the pollutants stemming from their refinery. Although, this plan will not be put into effect until sometime in the Summer.

Ray Lord, Chevron's spokesman said they will put into place extraction wells as well as absorption blooms in the Inlet for now to help contain and recover the leak. Even though Lord would not give an estimate of what the fuel cleanup would cost, he assures that Chevron will be paying for everything in full.

"How long the wells and booms need to be there is difficult for us to say right now. It'll depend on how much of the ground water is appearing, what the transmission rate is and how effective our
interception systems are," said Lord.

Top Kill Failed, Wildlife Fatalities Continue Thanks To BP (NYSE:BP)

As the devastating news came Saturday evening that BP's (NYSE:BP) "top kill" attempt failed, this only means continued disaster to the delicate ecosystems that the oil spill is already destroying. Not to mention the wildlife and sea life that this will continue to devastate for years to come.

Among these are the Gulf of Mexico's 8,300 species, from the smallest plankton to the birds that live, breed, and eat from these waters. There are also numerous animals on the verge of extinction that the crude oil could wipe out all together, such as the Atlantic blue fin tuna and the Kemp's ridley sea turtle, to name just a couple.

Paul Montagna, professor of ecology, said, "instead of creating a typical spill, where the oil goes to the surface and you can scoop it up, this stuff has been distributed throughout the water column, and that means everything, absolutely everything is being effected."

As if the oil isn't enough, the toxic chemicals being dispersed a mile below the surface, are changing the composition of the oil entirely. The effects of this are preventing the oil from breaking down, as well as changing the consistency to being much oilier and much gooier.

"It's probably going to be one of the worst disaster we've ever seen," said Montagna.

BP (NYSE:BP): Failure Of Top Kill, New Attempt In Progress

Much anticipation built on Saturday as the conclusion was drawing near of BP's (NYSE:BP) "top kill" attempt. The devastating news came Saturday evening when BP announced their attempts to stop the oil spill were a failure.

BP's chief operating officer Doug Suttles said, "after three full days, we have been unable to stop the oil flow from the well, so we now believe it is time to move on to another option." He also stated their new effort will be "a very complex operation."

The new effort by BP, known as the "lower marine riser package," is as unsure of a oil containment procedure as the "top kill" was. It also has never been tried at such depths of over a mile below sea level. It will take a minimum of 4 days to install and even if successful, will still only be a band-aid effort.

Suttles also stated, it would aid in capturing "a great majority" of the spilling oil. The bottom line is only the relief well that is being drilled will put the spewing oil to a complete halt. The downside is that the relief well is not expected to be done until sometime in August. Which means that the devastation that the oil has caused will continue on for at least the next 2-3 months. Not to mention how much more of the crude oil will be in the ocean at that time. As well as hitting our shorelines, and killing more marine life.

Saturday, May 29, 2010

Updates On Top Kill and BP (NYSE:BP) Oil Spill Live Feed

As many are anxiously watching the BP (NYSE:BP) oil spill live video for any change with BP's "top kill" attempts, there aren't visible signs of much change.

Being close to 96 hours into the "top kill" attempt, most were thinking it would be stopped by now. Looking at the video of the oil spill, there appears to be a dark substance coming out of it again which looks like oil. When BP started their procedure, there was a visible change in what was spewing out of the two broken areas on the pipe. Rather than the dark crude oil there was what looked like mud, the thick engineer mud that was being pumped in.

Originally, by BP's statements, the "top kill" process was only going to take a couple days but it is now on their third day. Although BP seems to still be optimistic. They said, there's a "number of options" in case the "top kill" fails. BP also said things seem to be "promising" as they continue on with their efforts.

If BP is successful, they could then turn their full focus on cleaning up the oil that has already spilled into the ocean and is devastating shorelines, among other things.

Friday, May 28, 2010

Citigroup (NYSE:C) On Gulf Lawsuits, Lobbying

While we hear a lot about BP (NYSE:BP) and Transocean (NYSE:RIG) in the Gulf oil crisis, there are a lot of oil companies who could have exposure to the fallout from the oil spill, which could result in some significant pressure in the months ahead, according to a Citigroup (NYSE:C) analyst.

The analyst said, In the Independent Oil & Gas industry, Anadarko (NYSE:APC), Apache (NYSE:APA), Newfield (NYSE:NFX), Nexen (NYSE: NXY) and Noble Energy (NYSE:NBL) have offshore Gulf of Mexico exposure. Of the US integrated oil industry, Chevron (NYSE:CVX) and Marathon (NYSE:MRO) have the highest level of activity taking place in the deep waters of the GOM. ExxonMobil (NYSE:XOM) and Hess (NYSE:HES) have limited exposure. Occidental Petroleum (NYSE:OXY) has zero exposure and is likely to benefit from the current environment."

Ultimately what some consider an over-response from the Obama administration, this could be devastating to the overall U.S. economy at a time when it continues to struggle to recover from the great recession.

BP (NYSE:BP): 22 Mile Long Oil Plume Heading To Florida

Off the BP (NYSE:BP) work site, a 22 mile long and 6 mile wide oil plume has been discovered by the University of South Florida college of Marine Sciences researchers. They say it is preparing to enter a underwater canyon. The effects of this would be devastating.

This massive plume is dangerously close to entering a large underwater canyon, once the crude oil enters this canyon the plants and animals that feed larger organisms will be bathed in a toxic chemical and oil soup. This canyon is responsible for fueling the food chain off the Gulf in Florida.

David Hollander, associate professor of chemical oceanography said, "the plume was detected just beneath the surface down to about 3,300 feet." He said their team found the thickest amounts of hydrocarbons at around 1,300 feet below in the same spot on two separate days this week.

Further testing by the researchers is planned to determine if the hydrocarbons they discovered are from the emulsification of oil or results of dispersants used as they made their way from the well into the sea.

BP (NYSE:BP) Risks Making Oil Spill Worse

BP (NYSE:BP) engineers are proceeding with extreme caution, as they continue on their containment efforts for the fuel spill. This was after stopping their "top kill" endeavors for a day, this is apparently just part of the process according to BP officials.

This gives the engineers time to review the effects or lack there of. At that time, Doug Suttles, BP's chief operating officer said, "we have not yet stopped the flow. You stop pumping. If the pressure begins to rise you pump again. If it doesn't rise, you have some sign of success."

As well as analyzing the spill containment results on Thursday, BP was also restocking their oil spill equipment with close to 15,000 barrels of the heavy engineering mud in preparation for their next oil cleanup attempt, which began Thursday evening.

Tony Hayward, BP's head, indicated the "top kill" attempt could make the oil leak worse, this is one of the risks of this endeavor.

Thursday, May 27, 2010

MMS Steps Down, BP (NYSE:BP) Oil Spill Worst In History

It is official, BP (NYSE:BP) is the worst oil spill in U.S. History, this is by the governments task force findings of new estimates of the oil flow. The estimation by the task force is three times more than what was being estimated.

This estimation was given by the scientific team of President Obama who were given the job to determine the accurate amount of oil flowing from the Gulf oil spill. Their original estimate was between 12,000 and 19,000 barrels being lost of oil daily. This is much higher than what the U.S. Coast Guard and BP kept insisting on, 5,000 gallons a day being lost.

The new estimate is no comparison to what was originally estimated. The new oil spill estimate is up to 798,000 gallons daily.

The most conservative estimate, since the April 20th fuel oil spill disaster would be a total of close to 17 million gallons deposited into the ocean. The high end of the estimate, would equal to a total of 29.5 million gallons.

This surpasses the Exxon Valdez Disaster which spilled a total of 11 million gallons of oil.

Obama's Minerals Management Service Director Steps Down in Midst of Heavy Criticism

Minerals Management Service Director Elizabeth Birnbaum has stepped down after heavy criticism from all sides after the explosion on the Deepwater Horizon oil rig has resulted in oil spreading across the Gulf of Mexico.

It was announced at a congressional hearing by Interior Secretary Ken Salazar where Birnhaum was scheduled to testify but didn't appear for.

Salazar alleged that Birnbaum's resignation was "on her own terms and her own volition."

While Obama at least is taking some responsibility for the agency, saying there should have been a "greater sense of urgency" in reference to better regulating the industry, some seemingly borderline psychotic Democrats like Nick Rahall, still can't stop blaming President Bush for even this incident, 18 months after he left office. Incredible!

Rahall, who for some reason is the chairman of the House Natural Resources Committee said this, "The departure of Elizabeth Birnbaum from MMS does not address the root problem. She has only been the public face of MMS for 11 months and the most serious allegations occurred prior to her tenure."

Rahall should step down after that unbelievable comment, as he's obviously on the defensive by going on the offensive, after this happening under his watch.

Obama Bans Drilling Of Offshore Oil Wells, Huge Blow To Shell (LSE:RDSA)

An aide of President Obama, under anonymity said, Obama is going to announce that he will not let Shell Oil Company (LSE:RDSA) continue exploratory drilling off the coast of Alaska. At least until the commission, in charge of "how to prevent this from ever happening again," is able to do a full review. This is just one of the topics Obama will cover at his press conference this afternoon.

The President is also going to announce that intends to extend an existing memorandum for six months on any new drilling. He will also cancel lease sales planned for August off the Coast of Virginia as well as off the Coast of Alaska. The sale in Virginia was highly supported by state officials, until environmental groups as well as the large military population did not share the same opinion.

These announcements from the president are expected to be meet with some resistance. Like from the energy industry officials who feel like the effects of the Deepwater Horizon incident should not prompt a nationwide ban on offshore oil and gas drilling.

Shell officials have stated that they should not have the same restrictions because their plans were to drill in shallower water unlike BP.

BP's (NYSE:BP) "Top Kill" Oil Spill Containment Efforts Show No Change

There's been much anticipation and hope as BP (NYSE:BP) started it's "top kill" attempt yesterday afternoon. There was a fluctuation in the trading market as well as investors nerves mirrored this fluctuation.

As of today on the live oil spill video, you cannot see a whole lot of change. Even though the containment equipment has been put into place and the oil cleanup efforts are in full force. The only visible difference seems to be rather than thick black crude oil spewing out of the two breaks in the pipe, there's now what appears to be brown mud barreling out.

BP chief executive, in a statement Wednesday evening said, "the operation is proceeding as we planned it."

Doug Suttles, BP's chief operating officer said at a new conference Wednesday night, "it's too early to know if its going to be successful." He also stated that it would be at least a day or two before any conclusive results would be known. He said that there's 7,000 barrels of thick drilling mud being forced into the well at varying rates of speed.

Wednesday, May 26, 2010

BP (NYSE:BP) Stock Plummets Then Rises

BP (NYSE:BP) share prices reflect peoples uncertainty of what will happen as BP starts their "top kill" endeavor. Earlier in the day, BP's stocks fell 1.6 percent. This was as many were waiting in anticipation to hear of news on what BP was going to do.

Than BP shares started rising, seeing an increase of up to 2.6 percent to 498 pence. This being overall in Britain's FTSE 100 index seeing a 2.8 percent increase. This increase was as market talk was optimistic to hear that BP was close to giving a positive update on the situation.

Panmure Gordon analyst Peter Hitchens said, "this week is going to be fairly crucial for the company. If the top kill doesn't work the stocks going to continue to languish.

"Once you get this well under control the stock will recover a lot of lost ground, but until that happens people are just going to be nervous."

Since the oil spill disaster started April 20th, the company has lost $50 billion of its market value. That's about a quarter of its total value.

BP (LON:BP) Adds Independent Claims Mediator

BP (LON:BP) (NYSE:BP) said they've appointed an independent claims mediator to handle the myriad of damage claims coming from the large oil spill after the explosion on the Deepwater Horizon oil rig.

BP Chief Executive Tony Hayward said in a statement, "We are absolutely committed to a simple, fair claims process that gets funds to people who have been hurt by this disaster as quickly as possible."

So far over 26,000 claims have been filed, with payments of over $36 million being awarded to date.

Exxon Mobil (NYSE:XOM) Continues BP (NYSE:BP) Aid

With the best interests of the oil industry at stake, Exxon Mobil (NYSE:XOM) continues to help BP (NYSE:BP) in attempting to contain the Gulf of Mexico oil spill.

Exxon Chairman and CEO Rex Tillerson tooted his horn for his company a little more, saying that the drilling plans of Exxon are built to "anticipate risk at every step of the operation," when talking a the annual shareholder meeting of the company.

This probably was an attempt to calm investor fears on the consequences to their share value if Exxon was to experience a similar incident, which they of course have in the past.

Exxon has several new offshore drilling projects ready to launch, including some in the Beaufort Sea, which is off the coast of Alaska and Canada.

Details on how Exxon was helping BP with the Gulf oil spill weren't given.

BP: (NYSE:BP) No To Live Video Feed of "Top Kill"

Apparently, BP (NYSE:BP) has changed their mind. Originally, BP was among much hesitation , going to allow the live oil spill video to run uninterrupted throughout their "top kill" attempt. They're now saying no, and have already cut the oil spill video as of early this morning. This is leading many to wonder why BP wants to shut out the millions of people that their oil leak has, is, and will continue to effect for generations.

BP ensures it will report on the progress and on the outcome once complete. Part of the reasoning for this secrecy is to help shield the public from making rash decisions on what they may assume by what they see. Especially when it comes to stocks, this would not be adequate information.

If BP is successful, Gordan Gray from Collin Stewart analyst gives his opinion on the effect this would have on BP's shares. He says we would see an initial incline in the shares around mid 500's p/sh level after their 14 percent under preformance of the global sector. Any further recovery can be expected to take much longer though. A short term rise would be a good opportunity to switch from BP to Royal Dutch Shell which is seen as having a good valuation upside, a strong free cash flow turnaround, and a much stronger outlook for dividends.

BP's (NYSE:BP) "Top Kill" Attempt Delayed

BP's (NYSE:BP) plan had been to start their attempt to cap the massive oil spill known as "top kill" early this morning. Now BP is saying it could be a day or two at least, this is due to their testing that was still going on in the early hours of the morning.

The "top kill" method has a good record onshore, but it has never been attempted at the depth of 5,000 feet offshore. The test that BP is currently doing is pumping drilling fluids into the BOP. This is to measure flow paths as well as to measure the pressure. Once their testing concludes, a decision will then be made on what direction the "top kill" efforts will take.

Originally, company officials estimated the time to complete the "top kill" attempt was one day, now they've changed that to two days. BP has also agreed, following much contemplation and discussion, to continue the live oil spill feed. This feed will continue uninterrupted as BP attempts their "top kill" effort.

BP (NYSE:BP) Paying for Florida Commercials Saying They Aren't Affected by Oil Spill

In one of the more bizarre shakedowns I've seen and heard of, Florida pressured and got from BP (NYSE:BP), $25 million, in order to advertise that the state hasn't been harmed by the oil spill. Unbelievable that BP caved on this one.

Think of it. Florida hasn't had any negative effects from the oil spill, so now BP is responsible to pay for the Florida Restaurant and Lodging Association to put out ads declaring that!

What BP should have thought of first was the effects of the recession and gas prices on tourism before allowing themselves to be pressured into this strange payout.

Tourism has been down for several years, and more than likely will continue this year. For the industry to use the figures they did, saying the drop in Florida tourism business was about 30 percent so far, and then tying that into the oil spill - while being creative - was ugly and taking advantage of the situation to get some more money to advertise their state to the nation at a time when state budgets everywhere are low on money.

Florida has now began their ad campaign at the expense of BP, and are getting the word out that the company has done nothing to harm their state. Why not have Minnesota shake down BP in order to say the same thing? Or any other state for that matter.

Maybe I'm dumb or something. But isn't there something wrong with the picture of a company paying a state for something that had absolutely no impact upon them but one the made up and created?

They can use any numbers they want. Let them prove their assertions though, and they'll come up way short. Let's go over the last couple of years to see how the Florida tourism industry was doing in order to see if they numbers hold up. I doubt very much that they would.

BP responded to this to eliminate a minor headache and publicity, but paying $25 million for doing nothing to someone is one of the more strange things I've seen in my lifetime.

These companies need to get a little more backbone than they have, and realize people are using the shock factor to extract things out of them they don't need to pay.

Tuesday, May 25, 2010

Republicans Boldly Battling Democrats on "Arbitrary" Oil Liability Cap

Republicans have been strongly and boldly battling the anti-business Democrats who are using the oil spill in the Gulf of Mexico to increase the oil spill liability cap from $75 million to $10 billion, something Obama has already called "arbitrary." If this incredibly stupid legislation was imposed, major oil companies like BP (NYSE:BP), Shell (NYSE:RDS-A), Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM) and ConocoPhillips (NYSE:COP) would be put out of the offshore oil drilling business, and replaced by nationalized, or socialized, oil companies around the world.

Evidently the Democrats think the pursuit of this agenda will cause people to abhor Republicans who oppose it, but people are a lot smarter and informed today, and know that they would end up bearing the brunt of the outrageous costs of insuring that much liability, which would also put smaller offshore drilling companies out of business.

The latest incredibly ignorant Democrat bill even took the $10 billion cap off, which would have exposed the oil companies to unlimited liability.

I can only think this is being done in an attempt to make an excuse to nationalize American or other oil companies, which would have to be done if they were to be able to compete with the already-existing national oil companies.

The Democrats, if they even want to be taken seriously anymore, need to drop their pretentious and stupid tactics and spend their time working on legitimate regulations, not the type that are only put forth as politically motivated ploys that have no relationship to the existing problem, but are an attempt to position themselves for a different agenda.

BP (NYSE:BP) Suing Transocean (NYSE:RIG)

BP (NYSE:BP) has filed a claim with a U.S. Court trying to get damages against Transocean, (NYSE:RIG) the company in charge of drilling the oil well.

Court documents say Transocean is arguing that the contract they had with BP makes it only liable for environmental damage caused by any spill from its rig. The insurer, Lloyd's of London is asking the Court to block the claim. Even though it was Transocean's oil rig that exploded, sank, thus causing the pipe to break and has been spewing crude oil for coming to the close of five weeks now.

BP said it has filed a claim against the insurers but declined further comment.

Even if BP gets the full $700 million in insurance, it is a minute amount considering the compensation that will have to be paid out to people who have experienced losses during the oil spill catastrophe. Not to mention what the total bill will be for the cleanup efforts and environmental damages. USB analysts put the amount at around $12 billion.

BP (NYSE:BP) Ready For "Top Kill" Attempt

BP's (NYSE:BP) has moved equipment in and is ready for its "top kill" attempt on Wednesday. This has never been attempted before at these depths of 5,000 feet below the surface. BP is estimating the success rate being only about a 60 - 70 percent.

If the attempt is a failure, BP has a couple other options they could implement. The first being they would try and cut the damaged riser pipe on the top of the blowout preventer, they would then attach a cap to the riser from the above drillship. The company said if successful this would capture most of the oil.

Another option is to lower a second blowout preventer or a valve. We're heading into the sixth week now since the explosion of the Deepwater Horizon on April 20th and the sinking April 22nd.

BP: (NYSE:BP) We'll Reduce Use By 50-80 % Of Corexit

BP (NYSE:BP) continues its use of the dispersant Corexit, ignoring the EPA and federal government. BP says it will reduce the amount of Corexit it is currently using in the Gulf. Serious questions are being raised on the effects this chemical will have long term on wildlife and humans.

Due to BP's continued excuses and lack of action, the EPA is setting up its own research and testing in their lab in Gulf Breeze, FL. The purpose of this testing will be to find a less toxic dispersant that can aid in the safe breakup of the oil. Among these is included, a biodegradable tests and well as toxicity testing.

Lisa Jackson, the EPA Administrator said she meet with BP officials Sunday night to get the company to cut back on it use of the chemical dispersant. She feels confident that there will be a 50 - 80 percent reduction over the next few days as they proceed with their testing.

This reduction will mainly be on the surface. Jackson said, putting the dispersant directly into the stream of oil underwater has proven to be far less toxic and more effective than it's effects on the top of the water.

Monday, May 24, 2010

Transocean: (NYSE:RIG) Cement Work Cause Of Blowout

While many are pointing the finger at BP (NYSE:BP) others are investigating what is showing a common thread with improperly oil well cementing jobs. Sealing offshore oil wells has failed numerous times in the past according to the American Press Association.

Another example of poor regulations is federal regulators giving drillers a free hand in crucial safety steps. These federal regulators leave the decision of what type of cement is used up to the oil and gas companies. There are simple guidelines from the American Petroleum Institute that drillers are encouraged to follow.

Yet, state and federal standards and controls are comparably much more strict on cement projects such as bridges, roads, and buildings. Transocean feels that the cement work is one of the main causes for of the blowout.

An AP review of the federal accident and incident reports on offshore wells shows that there have been at least 34 times the cementing process has been implicated since 1978. Many of the reports simply state the cause as "poor cement job."

Sarah Palin, BP (NYSE:BP) and Obama

Growing concern over Barack Obama and his connection to big oil is emerging, as BP (NYSE:BP) has given Obama the largest single donation in two decades to Obama, $77,051, according to the Center for Responsive Politics.

Sarah Palin has openly started asking why there isn't as much scrutiny over the slow response of the Obama administration to the Gulf of Mexico oil spill as there was over the alleged slow response of the Bush administration to Katrina.

Palin likens Obama's lack of response in the beginning to the Katrina situation, citing Obama's ties to big oil as the reason behind it.

"I don't know why the question isn't asked by the mainstream media and by others if there's any connection with the contributions made to president Obama and his administration and the support by the oil companies to the administration," said Palin.

Others have questioned Obama's slow response as well as possibly being related to his strong connections to the oil industry, which he is now trying to distance himself from.

Oil Prices Today: BP (NYSE:BP) Leads In Falling Percentages

BP (NYSE:BP) is getting hit hard with criticism, anger, and rising doubt, but they're feeling it hardest in stock prices among oil companies. As of Monday BP has fallen to a 52 week low.

BP's shares have fallen another 4 percent at the open bringing it to $42.08. Bringing the New York Stock Exchange Arca oil index down 1.7 percent to 948 points. Royal Dutch Shell shares are also feeling the heat at a 2.4 percent drop at $51.52.

Transocean has also hit a 52 week low dropping 2.2 percent at $57.95. With Transocean being the biggest percent decliner, its put the Philadelphia Oil Service Sector Index down 1 percent to 176 points.

There is not much optimism of if and when these percentages will increase.

To add to the loss, crude oil price were low overnight. Though the July crude features contract bounced back from the overnight low of $69.55 a barrell to $70.23 a barrell. That's a 19 cent increase on the New York Mercantile Exchange.

BP (NYSE:BP) Delaying Attempts To Cap Oil Spill

As the frustration and anger continues to mount, BP's (NYSE:BP) planned attempt to cap the oil spill today known as "top kill," is now delayed until possibly Wednesday at the earliest.

"It could slip to Wednesday because it has to be a day operation," said U.S. Coast Guard Rear Adm. Mary Landry on a conference call Sunday. Landry also added that she has visited the BP offices and confirms that "BP is working around the clock" on their attempts to resolve the fuel oil spill. "We are doing everything we can, everything I know," said Doug Suttles, chief operating officer at BP, on NBC's Today Show.

All the while, the oil siphoning attempts continue to drop daily. John Curry, BP's spokesperson told the Associated Press on Monday that the tube collected about 47,040 gallons of oil on Sunday. That's a significant drop from Saturday's collection of oil which was 57,120 gallons. Friday's siphoning brought in 92,400 gallons from the oil spill.

In a news release, BP said the mile long tube is "a new technology and both its continued operation and its effectiveness in capturing the oil and gas remain uncertain."

Sunday, May 23, 2010

Government Panel Reviewing BP (NYSE:BP) Oil Spill Video

An independent panel of experts has been created by the government to review and study the live oil spill video from BP (NYSE:BP) . This is to determine the amount of oil flowing into the water. Nobody from BP is on this panel.

Scientist are saying BP has been dishonest and that they are trying to distort the accurate results of the oil flow rate. They are doing this to prevent their full liability for environmental damage.

Bob Dudley, BP's managing director told CNN, "I've used the analogy that this is a little bit like popping a soda can rushing out with lots of gas and oil. There's lot of gas in this crude, the rate is unclear." Dudley also insists that the company has been as transparent as possible.

The justice department sent officials to the Gulf to look into the progress of the oil spill. Robert Gibbs, the White House spokesman would not elaborate if there will be criminal charges filed against BP as well as the other companies that were working on the Deepwater Horizon.

Scientist's Saying BP's (NYSE:BP) Losing 850,000 Gallons Daily

As the debate continues, independent scientists are estimating that BP (NYSE:BP) is losing at a minimum, 850,000 gallons a day. There are many scientist that are in agreement that BP and Obama's administration continue to downplay the actual amount of oil that is spewing at a massive rate.

"This is an all hands on deck crisis, and we need to use every asset the U.S. has, including the defense department and all of its most sophisticated technology," said Rep. Ed Markey.

There has been many members of Congress, local officials, as well as environmental organizations in the effected states, that are pushing for the federal government to take over the oil response efforts.

Sen. Lamar Alexander, on CBS's Face the Nation, seemed to advocate the government simply taking over BP as a whole.

BP's (NYSE:BP) Oil Leak Control Efforts Have Declined

Despite the continued efforts of BP (NYSE:BP) to contain the massive oil leak, it is not working as well as before. BP's PLC officials stated Sunday that the mile long tube that was inserted into the spewing oil, is not as effective.

John Curry, BP's spokesman told the Associated Press Sunday that there has been a substantial drop in the amount the tube is siphoning to the surface. As of Friday there was a reported 92,400 gallons a day being collected. On Sunday there was a big drop, down to 57,120 gallons a day.

Three of Obama's top administration officials are heading back to the Gulf Coast to monitor the ongoing oil spill cleanup efforts.

Meanwhile, engineers continue on in their efforts to try and get some control over the oil disaster. This is as the crude oil continues to wash into our shores, wildlife is at a continued high danger, and anger with BP and the government continues to grow.

Saturday, May 22, 2010

Obama Unleashes Commission To Investigate BP's (NYSE:BP) Disaster

President Obama did not hold back on voicing his continued dissatisfaction with how the BP (NYSE:BP) disaster has been handled as a whole, in his weekly television and Internet address. He said that offshore oil drilling would not continue unless there were assurances that such an incident would not happen again.

It is not only BP Obama had strong words for, Halliburton and Transocean were also recipients. He also is holding Washington accountable for mending its ways. Obama is unleashing a commission to investigate the disaster.

As political stakes continue to grow, President Obama said, "first and foremost, what led to this disaster was a breakdown on the part of BP and perhaps others, including Transocean and Halliburton."

"And we will continue to hold the relevant companies accountable not only for being forthcoming
and transparent about the facts surrounding the leak, but for shutting it down, repairing the damage it does, and repaying Americans who have suffered a financial loss, said Obama."

BP (NYSE:BP): Natural Gas Distorting Oil Leak Estimates

People without knowledge of the oil leak in the Gulf of Mexico, are inflating the amount of oil leaking into the region because they aren't taking in a number of factors relevant to the situation, said BP (NYSE:BP).

Alarmists have been calling them liars and the media and Obama administration cluelessly says they're not being transparent enough, again, based on seeming inability to get their facts straight, and also caving to their base, which wants this disaster to be worse than it really is in order to pursue their private agendas.

One of the major elements that are going to make these so-called researchers and scientists look stupid and ignorant is the fact that about half of what is leaking into the ocean is natural gas. They are basing their inflated numbers on all the liquid being oil, which totally makes the flow far higher than it really is.

Other things not being taken into consideration, are these, according to BP in a statement: "For instance, while the original riser was 19.5 inches in diameter prior to the Deepwater Horizon accident, damage sustained during the accident distorted the diameter at the end of the pipe by about 30 percent. In addition, a drill pipe currently trapped inside the riser has reduced the flow area by an additional 10 percent."

The mainstream media is also reporting that so-called exerts are saying the amount of oil being released is far more than the 5,000 barrels thought to be leaking in the ocean on a daily basis by BP. Experts? How is anyone an expert in oil leaking from the ocean floor at about a mile below the surface? There is no such thing as an expert in this, which is the reason why BP is having so much trouble plugging the leak, and you can be sure others in the industry are giving them input on the matter as well, as it has a negative impact on the industry as a whole.

I don't believe BP is trying to hide anything at all, what they're doing is syphoning through all the data, and the number of variables involved, plus changes circumstances, make it an extremely difficult job to do.

For that reason, they prefer to release information on certain things in 24-hour cycles rather than in smaller time frames, as it makes it appear like they're trying to hide something, when in fact the circumstances are changing at such a rapid pace, that when they report it, it seems they're hiding something or being coy, when they are in reality adjusting their statement and thinking as the events occur and additional information is discovered and understood.

BP (NYSE:BP) CEO Frustrated Over Lack of Progress

BP (NYSE:BP) chief executive officer Tony Hayward said in an email to his people that he was frustrated over the lack of progress in plugging the oil leak in the Gulf of Mexico.

Probably in an attempt to manage expectations, Hayward added that the attempt to plug the well permanently next week isn't guaranteed either, somewhat reflecting the somber mood hanging over the ordeal as a whole.

An attempt to plug the oil well at that depth has never been attempted before, and since there is no road-map to follow, the variables that could rise from the attempt are simply not known.

He said in the email, it "would be another first for this technology at these water depths and so, we cannot take its success for granted."

In the email Hayword also pointed out that next week the Marine Board investigation will migrate toward interviewing "survivors from the rig" in hopes of getting a clear picture of what happened on the Deepwater Horizon.

Rand Paul Right on BP (NYSE:BP)

While all the liberals, progressives and socialists are out in force trying to use the tragic accident on the oil rig Deepwater Horizon as an excuse to bash BP (NYSE:BP), business and the oil industry, Rand Paul is one of the few voices of sanity calling out from the political wilderness that the response of their demi-god Obama in saying he's going to keep his foot on the throat of BP is inappropriate and "un-American," and he's right of course.

The attempt to bring and demand perfection in any human endeavor, no matter what type it is is ridiculous and unattainable, as any sane, healthy and honest person will admit. All that happens when government steps in in the way Obama has is to make things more expensive and harder to do, and usually the endless number of regulations will have unintended consequences which do more harm overall than good.

Big government-loving liberals, progressives and socialists are now using this as an attempt to derail Rand Paul's run to be the senator from Kentucky because they know he will be one of their worst political nightmares, like his dad Ron Paul is, because he'll vote against the majority of the policies which only grow government larger, destroy the moral fabric of the nation, and turn more and more toward socialism and crony capitalism than ever before in our history.

All they're trying to do is paint Paul as a kook, because these kooks don't want to be found out for what they are, and as the tactics they use dictate to them, they never want to waste a tragedy or incident to further and promote their agenda.

They also know Rand Paul is highly popular in Kentucky, and leads their Democratic opponent as much as he led and beat his Republican opponent in the primary.

This is just noise and sound bites they're throwing out in a way they hope the public will start to believe based on nothing else than repetition.

Rand Paul is right about BP. The response is way over the top by the Obama administration and his media lapdogs, and BP is doing everything they can to stop the oil leak and start to clean it up.

What these people are doing is taking the opportunity to make so much noise that the idea of continuing to drill offshore oil will be disallowed. That's not going to happen, but that's part of their agenda.

The other part of their agenda is the additional regulations which will inevitably come could cause the price of oil, and by extension, gasoline, to raise, that would give their environmental projects more of a chance to move forward, especially their alternative energy garbage, which isn't cost competitive, even at the high price of gas and oil today.

You know Rand Paul is hitting on the truth when you hear these socialists screaming and yelling over comments he makes which the majority of normal Americans like us, agree with him on.

EPA May Allow BP's (NYSE:BP) Corexit Use

On Thursday, the EPA had given BP (NYSE:BP) 24 hours to pick a less toxic dispersant, and 72 hours to start using it. Now today, they told ABC News that they may allow BP to continue the use of Corexit, the dispersant that they deemed far to toxic.

Apparently, the EPA has done some testing and said that Corexit has killed up to 25 percent of organisms living 500 feet down where the dispersant was used.

As we are coming upon the 72 hour deadline, the EPA says there will be consequences for failing to meet it. The EPA will then demand to see the records of BP's research, including proof that it
sufficiently investigated other dispersant options, as well as the explanation of why each one was not chosen. That was the extent EPA would comment on the full consequences of failing to meet the deadline.

Adora Andy, EPA spokeswoman told ABC News, "it's not that Corexit is banned, it's not that they have to stop using it because they're using it right now. But it's just that they need to switch over."

Friday, May 21, 2010

First Beach Closed, Thanks To BP (NYSE:BP)

The first beach has been closed in Louisiana thanks to the BP (NYSE:BP) oil spill. Officials in Grand Isle, LA. said this is due to thick gobs of oil being washed up onshore. Until now, only light sheen and tar balls had been washing up.

Now there is also orange colored splotches and heavier brown sheets, the consistency of latex paint says Chris Roberts, a local official who surveyed the area this morning. "You can scrape it off the beach but it's coming right back," said Roberts. As well as an awful stench, it's also coating the grasses and reeds of the Louisiana wetlands.

Doug Suttles, BP executive in charge of fighting the oil spill told CBS Early Show, the gusher could continue on until early August, this would be the worst case scenario. That's when a new well being drilled to permanently cap the flow could be finished.

BP's (NYSE:BP) Second Leak Spewing 25,000 Barrels Daily

Finally after weeks of denial, BP (NYSE:BP) owns up to the true amounts being lost from the fuel oil spill. They had been sticking to the U.S. Coast Guard estimate of 5,000 barrels a day for three weeks now. Now BP is saying in reality, they are capturing 5,000 barrels a day from the first leak alone.

By their own live video feed, which the government required them to make public, it shows extremely large amounts of oil continuing to leak onto the sea floor.

On this video it highlights one leak, but there is actually a second break in the pipe, known as a riser, also leaking oil. A scientist told Markey's committee that the second leak looks to be spewing 25,000 barrels a day.

Mark Proegler, a BP spokesman said they have no idea how much oil is leaking out of the secondary break. "We've said from the beginning it's difficult if not impossible to measure it at the riser, but more importantly our response is not dependant on what that rate is, said Proegler."

BP (LON:BP) Says Flow Estimates Inaccurate

BP (LON:BP) (NYSE:BP) said oil flow estimates from theorists claiming it could be ten time higher than the daily rate of 5,000 barrels released into the ocean is inaccurate.

What these theorists are doing is assuming the flow is far higher based on the diameter of the pipe, which was 19.5 inches. BP said the reason they're so far off is because the width of the pipe narrowed as a result of the accident by 30 percent.

There is also a broken drill pipe inside the riser, which has reduced the flow by another 10 percent.

The other reason the assumption is so faulty, is approximately half the flow releasing from the pipe is natural gas, and not oil, according to BP.

To get a real and more accurate estimate of the flow, the government has set up a Flow Rate Technical Team, which is expected to come up with more precise answers sometime later on Saturday.

Has BP (NYSE:BP) Covered Up Extent of Oil Spill?

The idea that BP (NYSE:BP) is attempting to cover up the extent and degree of the oil spill has been thrown out there by the media, but in truth, it's ridiculous when you think about it.

There they are in the public and media eye attempting to do everything they can to stop the flow of oil, and to think they're concerned about the exact amount of oil leaking rather than trying to stop it, would be irresponsible on their part.

It makes no difference whatsoever how much oil is spreading throughout the ocean, from the point of view of trying to plug it oil well, as it's going to keep coming until it's plugged, no matter what the figures are.

BP has rightly said there's no way to know exactly how much is coming, and have stated that's not their priority, and rightly so.

The only priority and focus BP should have is on working as efficiently and effectively as they can to stop the oil leak, and from there work on the rest.

There's a growing suspicion on what the agenda is for those pushing this cover-up idea out there. What is there to cover-up? BP has already said they're going to pay for legitimate claims, and are obviously paying for the attempt to stop the leak, and will pay for cleanup efforts.

Conspiracy theorists evidently don't think this is good enough, and are trying to make something out of nothing, in order to attack the overall oil drilling industry at a weak moment. There can be no doubt this is part of the agenda.

The big, bad oil company hiding the exact amount of oil leaking in the ocean while the entire world watches. That really makes sense.

Rand Paul on BP (NYSE:BP) Criticism from Obama

Rand Paul took a swipe at Obama for his outrageous verbal attack when he said he would put "his boot heel on the throat of BP." Paul called it "really un-American." Paul is right of course.

"What I don't like from the president's administration is this sort of, 'I'll put my boot heel on the throat of BP,'" Paul said in an interview with "Good Morning America." "I think that sounds really un-American in his criticism of business."

Paul's proper defense of BP comes is based on the fact that accidents happen, and when you think of those you propose endless regulations, thinking a rule or law can stop accidents from happening, are only fooling themselves.

There's always going to be accidents; that's part of being human and doing business.

BP, almost from the beginning, has said they're more than willing to pay for the damages, and they're working hard to take care of the incident, which has cost them millions in lost revenue, as well as millions more in cleanup costs.

So for Obama to say he will put his foot on the neck of the company is a lie, as it implies BP has been fighting taking responsibility for their part in the matter.

Paul said, "I think it's part of this sort of blame-game society in the sense that it's always got to be somebody's fault instead of the fact that maybe sometimes accidents happen."

Every time an accident happens, as Paul notes, especially in mining and drilling industries, it is attacked with a ferocity that is unwarranted, and points to an agenda by radical environmentalist and earth worshippers who are offended by the fact people need to use the commodities the produce to better their lives.

To demonize businesses who are providing much-needed products and services in dangerous situation and environments should be applauded, and how they respond practically to the circumstances should be how their judged, not because there's an accident.

It's good to see someone emerge like Rand Paul who has the courage to point out the obvious, and help rein in the ridiculous faux outrage of the mainstream media and Obama in their opposition to business.

BP (NYSE:BP) Spill Cleanup, Wildlife Fatalities

As BP (NYSE:BP) continues on with spill cleanup attempts, the pollution caused by oil and chemicals is proving fatal to wildlife. This is just the beginning as oil is hitting our shore lines.

Kim Hubbard, a Audubon photo editor just arrived in Louisiana. She's already seeing the effects of the oil spill on animals, one of her photos include an oiled Kemp's Ridley sea turtle. This is a daily occurrence and collection of oiled wildlife.

On a conference call today with several NOAA officials and U.S. Fish and Wildlife officials, it was reported that eight turtles have been collected, two later died. Of the 66 birds that have come in, 43 have died and 23 are alive and being rehabbed. There is much concern for marine animals as well like manatees, whales, and dolphins.

Robert Weisberg, a physical oceanographer and modeler from the University of South Florida, reported that once the oil hit the loop current it was only a matter of a week before it was carried to Florida's straits and then just another week after that before reaching Miami's straits. The NOAA reported Wednesday that the oil slick had already reached the loop current.

BP (NYSE:BP) Says There's No Better Dispersant Alternative

A BP (NYSE:BP) executive adamantly insists that there's no better dispersant for the pollution cleanup. Not to mention the dispersant that the EPA is now demanding be replaced, was approved by the Unified Command, the national guard, as well as the EPA.

It is an approved product and is effective in the pollution cleanup. Doug Suttles, BP's chief operating officer stated on Good Morning America, "it's making a difference in this fight to try and keep this stuff from coming to shore."

Suttles also stated, BP intents to continue looking for a better alternative but, "right now we cannot identify another product that is available that's better than Corexit." This statement leaves many wondering if BP will comply with the deadline the EPA has given it.

BP said in a statement to ABC News, the chemical is "one of the most well studied dispersants." It's choice of the use of Corexit was based partially on being able to "get a sufficient supply to meet our needs on a short notice."

BP (NYSE:BP) Pollution Cleanup Continues, Cover up Denied

BP (NYSE:BP) had estimated that the fuel oil spill from the oil pipeline was around 5,000 barrels a day. The U.S. government and some scientist have doubted and questioned this figure as the pollution cleanup continues.

BP oil has said that some of the third party estimates on the daily loss from the oil spill are inaccurate and are adamantly denying a cover up. A spokesman from the BP oil company said Friday, "it was only ever meant to be a rough estimate." This statement was prompted by the accusations by U.S. lawmakers accused them of hiding the true and full estimate of the spill.

BP has also stated that there are several ways to measure the oil that is leaking. The damage to the pipe has distorted the diameter by 30 percent, although this flow has been reduced by an additional 10 percent due to the pipe trapped inside the riser.

"Thus, some third party estimates of flow, which assume a 19.5 inch diameter, are inaccurate," BP said. Plus, there is data showing that 50 percent of the plume formed by the oil leak is natural gas not oil.

Thursday, May 20, 2010

Nalco (NYSE:NLC) Gets Knocked by EPA

Nalco (NYSE:NLC) had a good thing going while it lasted, as its highly effective chemical dispersant Corexit, which was used to battle the oil spill by BP (NYSE:BP), has now been ordered by the U.S. Environmental Protection Agency to stop being used, as they caved in to pressure from radical environmentalist and "scientists" because of unproven, theoretical ideas it could cause more harm to the ecosystem at some future time.

I guess they'd rather allow harm to the ocean and marine animals and life today, which is provable harm, than to take a chance that some theoretical thing will happen in some distant future.

As far as it affects Nalco, it's unclear whether or not they'll provide some less effective oil dispersant or not. BP did order huge amounts of the original dispersant, which was a great boon to Nalco, greatly increasing that particular segment of the company; although it did only account for about 1 percent of their revenue until the oil accident.

With that in mind, the 5.26 percent drop in the share price of the company, or $1.26 drop today was unwarranted, and shouldn't cause much damage to their bottom line, and it could improve if they have what is being called a less-toxic chemical dispersant to offer.

This was a cowardly and ridiculous response by the EPA, and they should have ignored it, as there were tests done before the dispersant was used, and they, the Coast Guard and BP all concluded Corexit was safe.

Next BP (NYSE:BP) Oil Well Capping Attempt Coming Soon

Representatives for BP (NYSE:BP) said in a conference call with reporters that they could attempt to "top kill" the leaking oil well as soon as May 23.

Top kill is a term the oil industry uses in regard to sealing an oil well with cement and other drilling fluids.

The amount of oil the company is capturing form the pipeline about a mile long has improved, rising from 2,000 just a couple of days ago to close to 5,000 now, according to a spokesman for the company.

If the top kill attempt doesn't work, another option would be to drill two relief wells, which would intercept the oil well at about 13,000 feet below the ocean floor. That would result in the well being permanently plugged. The downside to that is it could take up to three months to accomplish.

The amount of oil leaking from the oil well on a daily basis is estimated to be around 5,000 barrels a day, based on estimates from the Coast Guard, NOAA and BP.

BP (NYSE:BP) Has Used 655,000 Gallons Of Now Banned Chemicals

BP (NYSE:BP) has dispersed a minimum of 655,000 chemicals in the Gulf that are now banned. According to the Environmental Protection Agency, this is the largest application of dispersant's every used in the history of oil spills.

The two dispersant's being used are from a line called Corexit, both these dispersant's were banned from use on oil spills in the U.K. over 10 years ago due to the failure of their toxicity tests. What's actually used is kept secret by manufactures, the EPA said they are required by law to protect this information.

Corexit had been on the approved list of dispersant's put out by the EPA despite them being more toxic and less effective. A version of Corexit was used on the Exxon Valdez spill in 1989, it was linked later to human health problems. Nervous system, kidney, liver, blood, and respiratory problems are just some of the related health problems due to Corexit.

BP has been asked to switch to less toxic dispersant's within 72 hours.

BP (NYSE:BP) Oil Reaching Shores

BP (NYSE:BP) oil is starting to reach the shores. BP said on May 18th, it has already spent $625 million. This is since the BP oil rig Deepwater Horizon sank April 20th.

Governor Bobby Jindal said yesterday at a press conference, heavy oil has reached our wetlands in the area of Plaquemines Parish, Louisiana. This is about 34.5 miles off the states shore line. Jindal also said, "these are not tar balls this is not sheen, this is heavy oil."

A permit was filed May 11th by the Louisiana's Coastal Protection and Restoration Authority to add piles of sand to protect the states barrier islands. The U.S. Coast Guard has also been asked to assist Louisiana by putting dredgers into place. This is so work can begin immediately once approved.

Oil has also reached the loop current, water that flows from the Gulf to around Florida. As a precaution of the spread of oil in the current, the National Oceanic and Atmospheric Administration has closed 19 percent of fishing in federal Gulf waters. It's only a matter of 8 - 10 days before the oil reaches the Florida Keys once caught in the loop current.

BP (NYSE:BP) Oil Company Increases Oil Being Captured

The BP (NYSE:BP) oil company is getting closer to the success of getting control of the oil leak. The amount of oil being contained has increased. The success of the mile long pipe that was inserted is diverting oil to a drill ship. This is capturing close to 3,000 barrels a day, up from 2,000 barrels a day on May 18th.

BP oil is continuing it efforts full force to get it's leaking well capped. Doug Suttles, chief operating officer of exploration and production for the company, said the following on a conference call yesterday with reporters.

BP is going to try as early as May 23, to inject heavy drilling fluids and cement into the well to seal it. This is known as "top kill." If successful, this would also mean that 20,000 people would get their oil industry jobs back. Rather than containing oil or protecting the shorelines.

Should the "top kill" fail, BP is also drilling two relief wells. The purpose of each is at 13,000 feet
below the ocean floor, they would intercept the leaking well. It would then be permanently cemented shut. This will take a total of about 3 months to complete.

Will BP (NYSE:BP) Still Develop Macondo

A BP (NYSE:BP) spokesman, Toby Odone said "At this point we genuinely want to get this shut in, stop the flow of oil, and clean up." This was in response to questions if BP was still considering the commercial development of Macondo.



BP says it's to early to think about any commercial development, all their focus and energy at this time is on containing and stopping the oil leak. Before the devastation of April 20th, BP was considering it because of the oil fields near by.



The CEO of BP, Tony Hayward has estimated that the Macondo well held 50 million to 100 million barrels of oil. While this is considered a substantial amount of oil, it is by no means considered a "giant." This is the term used in association with oil fields containing a minimum of 250 million barrels of oil.



BP may decide to not spend anymore money on this project other than the ongoing efforts to seal the well and the drilling for relief wells.

Wednesday, May 19, 2010

Marathon Oil (NYSE:MRO) Selling Assets in Minnesota

Marathon Oil (NYSE:MRO) announced it'll be selling most of its retail and refining assets in Minnesota, signing a nonbinding letter of intent.

In a deal valued at over $800 million, three investment firms are buying the assets from the giant oil firm. The three private investment firms are Acon Investments LLC, NTR Partners LLC and TPG Capital LP.

Assets to be sold include it interests in piplines, 166 SuperAmerica convenience stores, and a refinery and terminal located in St. Paul Park.

In the midst of selling off some of its overseas holdings, Marathon says they should complete the sale in either the third or fourth quarter.

The major reason behind the sale, and others, is to help pay for their capital expenditures, which have reached pretty high levels.

BP (NYSE:BP) and Measuring Oil Spill

Some writers are making a big deal about the reasoning behind why BP (NYSE:BP) allegedly won't measure the oil spill from the explosion on the Deepwater Horizon oil rig which killed 11 workers and caused the leak from the ocean bottom.

One the obvious reasons, and legitimate ones in my opinion, is it really does take away from the efforts of trying to plug up the oil leak, which is the top priority.

It is made to sound like there's some secret reasoning behind it, but it's highly doubtful.

What possible reason would there to be to estimate the exact amount of oil being leaked into the ocean? It will do nothing to make it stop, and it's highly distracting, at minimum.

One goof thinks it's a conspiracy to hide the hidden effects of the dispersants used to control the oil, calling it an environmental risk. Who cares?

The writer talks about the potential of a "grave risk to sea life." Like the oil isn't a risk.

The idea that they are exchanging one risk for another concerning marine life is so incredibly stupid, that it's hard to understand how an article like that would even be allowed to be put in any publication.

It is tortured logic to come to this conclusion, as you'll see in this excerpt from the article:

"If the oil-eating bacteria are in fact devouring oxygen at a harmful rate, the dispersants are most likely contributing to this process. One of the reasons for breaking the oil into smaller droplets is to facilitate oil-eating bacteria's access to it. If these bacteria are also consuming the oxygen that marine ecosystems need to survive, the dispersant effort could prove counterproductive.

"But it could also change the way people remember this spill -- and how much accountability they ultimately expect for it. Once the leak is plugged and the oil is dispersed throughout the Gulf, who's to say for certain whether BP's blown well gushed 5,000 or 80,000 barrels of oil a day?"

The Atlantic needs to get this writer off her meds, or whatever it is causing her to make these assumptions.

Look at the way it's said:

"If the oil-eating bacteria are in fact devouring oxygen..."

"...the dispersants are most likely contributing to this process."

"If these bacteria are also consuming the oxygen..."

"...the dispersant effort could prove counterproductive."

"But it could also change the way people remember this spill..."

"...who's to say for certain whether BP's blown well gushed 5,000 or 80,000 barrels of oil a day?"

This writer refuses to make a statement or draw a conclusion, all the coward does is say "if," "most likely," "could," etc.

In other words, these are little disingenuous tactics used to create doubt about the company and process, while covering her rear-end by not being willing to come right out and say it.

Read it carefully and you'll see that what is really being said is she prefers to have some dubious scientists come in and "measure" the amount of oil in the ocean, while probably already having made the conclusion about it like this inept writer, who would rather have the Gulf awash in oil than stop the leak from continuing to rush into the area.

Why? She's obviously an environmental kook who is outraged over the theory that there could be a loss of oxygen which could result in the marine ecosystems not surviving.

She would rather see oil everywhere than the dispersants sprayed to help combat the oil. It's the dispersants that offend this troubled person, and that's a ridiculous and reckless idea for someone to even be thinking about when it's one of the few things that are really helping.

Was Gulf Oil Spill an Inside Job?

Could the catastrophic Gulf of Mexico oil rig explosion be part of a larger scheme to “reform” the energy industry, just as the Obama administration has “reformed” healthcare, banking and automobile manufacturers? Worse, is “cap and trade”—possibly the worst legislation ever penned—the ultimate endgame behind this spill, which they are now capitalizing upon?

The first red flag receiving virtually no attention is that Halliburton (NYSE:HAL) (of Dick Cheney fame) had finished a cementing process only 20 hours prior to Deepwater Horizon erupting in flames. Lawsuits have already been filed, with Reuters reporting on April 29, “Halliburton improperly and negligently performed its job in cementing the well, increasing the pressure at the well and contributing to the fire, explosion and resulting oil spill.”

As a result, a high-pressure pocket of deep oil 30,000 feet beneath the ocean floor erupted with the force of a gigantic, non-stop fire hose. A surviving worker on the rig, John Kersey, said it sounded “like a war zone” as alarms were triggered, electricity shorted out, and flames shot 300 feet into the air. The inferno-like blaze could be seen 35 miles away.

CONNECTIONS

Suspicions arise when an ownership paper trail is followed. Halliburton subcontracted for a company named Transocean, which leased and operated Deepwater Horizon for British Petroleum (NYSE:BP). Transocean is a subsidiary of Sonat Inc., which merged with the El Paso Corporation (NYSE:EP) in March 1999. Douglas Foshee, EPC’s chairman, president and CEO, was hired away from Halliburton. The interim CEO prior to his arrival was Ronald Kuehn of Sonat.

Another previous CEO of EPC was William Wise, who served with Cheney on the influential National Petroleum Council. EPC was the largest single contributor from Texas for Bush-Cheney’s 2000 presidential campaign. Similarly, Wise helped Cheney raise $8 million for the National Republican Senatorial Committee.

These incestuous relationships aren’t limited to the GOP. Barack Obama and his Chicago crime network expect to reap handsome profits in the future. Step No. 1 in this process began with Chicago’s Joyce Foundation, which had John Ayers (brother of terrorist William Ayers) on its board. Another board member was then-Illinois Sen. Barack Obama.

The Joyce Foundation created the Chicago Climate Exchange (CCX), which in turn received financing from Franklin Raines, former head of Fannie Mae, a prime mover in our recent housing market collapse and economic recession.
Of vital importance is CCX’s role as the sole “carbon trading system” under Obama’s cap-and-trade bill. CCX would act as a quasi-stock market to buy and sell energy emission allowances. Richard Sandor, CCX founder, estimated a $10 trillion potential for this easily manipulated market.

BILDERBERG INFLUENCE

With that much money at stake, a host of high rollers enter the picture. Namely, one company with a huge ownership interest in CCX is Generation Investment Management (GIM), whose chairman is former Vice President Al Gore. Four other GIM founders include Henry Paulson, David Blood, Mark Ferguson and Peter Harris—all of Goldman Sachs (NYSE:GS). Not surprisingly, Goldman Sachs purchased 10 percent of CCX in 2006.

One other individual on CCX’s board of directors is the controversial Maurice Strong, a New Age occultist with direct ties to the Rockefellers and the Rothschilds.

Since Goldman Sachs has now become part of the equation, we next need to examine its non-executive chairman, Peter Sutherland, who formerly filled the same role at BP, the company at the center of this debacle. As the third-largest global energy company in existence, BP has four direct links to Bilderberg: former CEO John Brown, chairman Carl Henric Svanberg, chief executive Tony Hayward and Sutherland. In addition, Sutherland formerly served as the World Trade Organization’s director general, EU commissioner and chairman of the European Trilateral Commission.

This background information is important because the top recipient of BP donations during the 2008 presidential campaign was Obama. Similarly, the second highest political action committee contributing to a political candidate in 2008 was Goldman Sachs. The beneficiary of their largess: Obama.

Undoubtedly, one of Obama’s primary big government missions is to enact cap-and-trade legislation. To implement this plan, influential decision makers such as Robert Rubin, Larry Summers, Paul Volcker and Timothy Geithner are all members of the financial mafia. In this vein, David Mayer Rothschild stressed that last year’s Copenhagen environmental summit was “an attempt to establish a world government.”

Likewise, AFP editor Jim Tucker reported on March 24, 2007 that General Lord Guthrie, director of N.M. Rothschild & Sons, said political leaders should “address the global climate crisis with a single voice, and impose rules that apply worldwide.”

The Rothschilds have spent huge amounts of money promoting the global warming hoax. Goldman Sachs is obviously an arm of their empire, whereas BP is among a host of companies in Nathan Rothschild’s portfolio.

A TEAM EFFORT

Considering the nature of these prominent players, one factor binds them all together. Cap and trade, via the CCX, will tax carbon-dioxide emissions and generate trillions in revenue. Only a month ago, however, this legislation sat dead in the water with virtually no support from Congress or the American public. But now, with an environmental catastrophe at hand, could it be resurrected and enacted in a way that mirrored President Clinton’s counter-terrorism bill following the OKC bombing?

Ironically, big oil and global bankers are two of the most ardent supporters of climate change legislation. In this sense, seeming adversaries such as “environmentalist” Gore and BP are on the same team; as are Cheney’s Halliburton, Goldman Sachs and Obama’s CCX. It should also be noted that prior to their demise, the corrupt Enron Corporation lavished huge amounts of praise on cap and trade legislation.

Lastly, if gasoline prices surge this summer due to the Gulf of Mexico spill, one obvious benefactor will be the new green-friendly “smart cars” owned by GM (Government Motors).

As AFP goes to press, all containment efforts have failed as millions of gallons of oil continue to gush into the Gulf of Mexico on a weekly basis.

By Victor Thorn

Credit: American Free Press - 645 Pennsylvania Avenue SE, Suite 100 Washington, D.C. 20003

Tuesday, May 18, 2010

Murphy Oil (NYSE:MUR) EPS Look Solid

Murphy Oil (NYSE:MUR) has had a mixed outlook from analysts, as they have been largely torn between which direction the company is going, and more than likely confusion has been added over the last couple of weeks because of the weakening EU economy and China inflation fears.

Much of what has been expected for a lot of companies has been downwardly revised, or at minimum put on hold, as there are too many macro-variable happening out there which could impact any company providing products for consumers, who seem to be getting skittish again, as the fast run-up in gold price show.

So with that in mind, it's difficult at this time to project where a company will go, as they're still attempting to recover from the great recession which is still lingering, and the possibility of being ravaged by the forces coming from the debt crisis in Europe and probable cutback in imports from China from measures they take to battle inflation.

What Murphy Oil has going for them is a low debt-to-capital ratio, which has positioned them to take advantage of weaknesses in the industry, which could help them to grow organically or through acquisitions.

The Exploration & Production segment of the company exploded in earnings growth over the first quarter last year, generating gains of 391 percent.

Now this quarter that is being challenged by the recent drop in prices, as it seems the higher oil inventories suggest people are still being tight with their wallets, and that could and probably will translate to pressure on their margins, and consequently earnings.

Even so, they may be able to turn product over quicker because of the debt-to-capital ratio, by generating more business, making the margin levels less important than overall sales.

Production is probably the key to their near-term performance, and that is one of the strengths of the company, and even with the economic challenges, they're probably in as good a place as any of their competitors no matter which way the winds blow to put up some pretty good earnings numbers.

Oil Spill A Possible Inside Job By Halliburton (NYSE:HAL)

There are indications that some are looking at the Gulf oil spill as being an inside job by Halliburton (NYSE:HAL) . Everybody seems oblivious to the fact that Halliburton, just 20 hours prior to the Deepwater Explosion, had finished a cementing project.

On April 29th, Reuters reported "Halliburton improperly and negligently preformed its job in cementing the well, increasing the pressure at the well and contributing to the fire, explosion and resulting oil spill." John Kersey, a survivor said, "it sounded like a war zone."

As a result, 30,000 feet under the ocean floor a high pressure pocket with the force of a massive non-stop hose headed to the surface. Flames shot 300 feet in the air and could be seen 35 miles away.

An ownership paper trail has been followed, this is how suspicions arise. Halliburton subcontracted for Transocean, which operated and leased the Deepwater Horizon for British petroleum.

Exxon Mobil (NYSE:XOM) Oil Prices Change, How It Will Affect Your Summer Plans

Exxon Mobil, (NYSE:XOM) the nations largest oil company stock has dropped almost 2 percent. While Conoco Phillips has dropped nearly 3 percent, the oil prices continue to change. As a whole, the oil trading industry has lost a total of 20 percent in just two weeks.

With the Summer Driving season almost here, many are wondering how, with the fluctuation of oil trading, it will effect their plans. The good news comes to U.S. motorists who should see a substantial drop at the gas pump, just in time for Summer.

Earlier this month gas spiked close to $3.00 a gallon. Tom Kloza from the Oil Price Information Service has said, prices will hit $2.75 a gallon or less by next week within many areas in the U.S.
Kloza also stated that the crude oil companies are the only losers in all of this, but they will still make plenty of money at the current oil prices.

If the oil prices today stay at the current price of around $70 a barrel, Kloza said that will translate to $2.60 - $2.65 a gallon. With some areas in the U.S. getting as low as $2.50 a gallon.

Oil and Gas Investments Plunge, Buffet Cuts Over 3 Million in Conoco Phillips (NYSE:CON) Shares

Warren Buffet cuts over 3 million in Conoco Phillips (NYSE:CON) oil and gas investments. Billionaire Warren Buffet's investment choices and moves on companies are watched closely by investors.

At the end of March, Mr. Buffet held $34.18 million shares in Conoco Phillips. Three month prior, he had $37.71 million shares invested in the company. This information comes from Berkshire Hathaway Inc.'s U.S. equity portfolio filed with the U.S. Securities and Exchange commission.

Mr. Buffet's U.S. equity portfolio at the close of the March 2010 quarter, was down from $57.93 billion to $50.93 billion. His oil trading investments weren't the only companies he reduced.

At the end of the December 2009 quarter, he held $138.27 million dollars in Kraft Foods Inc., this has been reduced to $106.73 shares. Also, Procter and Gamble Co. was reduced from $87.5 million to $79.09 million. As well as Costco Wholesale Corp. which went from $5.25 million shares to $4.23 million in shares.

Monday, May 17, 2010

George Soros' Exxon Mobil (NYSE:XOM) Stake Raised

In a required 13f filing, George Soros revealed his Soros Fund Management invested heavily in Exxon Mobil (NYSE:XOM), increasing the stake in the company by 80 percent.

Soros also increased his position in Petroleo Brasileiro SA (NYSE:PBR) by 18 percent.

Positions in Citigroup (NYSE:C) and Pfizer (NYSE:PFE) were lowered, while they liquidated positions in Altria Group, Inc. (NYSE:MO) and The Bank of New York Mellon (NYSE:BK).

Somewhat surprisingly, he lowered his position in SPDR Gold Trust (NYSE:GLD) as well, probably wishing he had held onto it.

Oil Prices Plunge 20 Percent in Two-Week Period

While oil companies may not like it, consumers definitely will, at least when the price of gas starts to move down in unison with the price of oil, as oil has dropped 20 percent just a short two-week period.

Like most other raw materials and products, concerns over the European debt crisis and the inflation China is battling has companies and investors concerned over the demand problem and how it'll effect companies and their exports.

Not just that though, as it's not just the existing European crisis everyone is worried about, but whether or not it's about to become a contagion which brings the global economy down with it.

This will especially have a dramatic impact on commodities and countries and companies producing raw materials, as that will probably take a significant hit in the short- to mid-term if things get worse at all, and probably even if they stay where they're at now, as the fallout from Europe has yet to be revealed outside of Greece, and that information is probably going to be released in stages in an attempt to manage the potential panic that could come with it, which could cause a run on an unknown number of banks, as it did with banks in Greece.

Just a couple of weeks ago oil seemed to be assured of a long and profitable run-up in prices, now it's debatable as to how low prices will go throughout the usually busy summer season, and even further beyond, as more than likely consumers will cut back on travel because of the fears of what could possibly happen to the economy with more negative factors out there that are not small by any means, including the China inflation factor, which has been largely over-shadowed by the EU debt crisis; but it is every bit as real, and could cause numbers projected and expectations to be far too optimistic in light of the new circumstances.

In early May, oil prices had hit 18-month highs of $87.15 a barrel, and on Monday they had plunged to $70.08.

If oil prices stay at around $70 a barrel, it is expected to would drop from between $2.60 to $2.65 a gallon on average, with some places in the U.S. enjoying $2.50 a gallon.

Is BP (NYSE:BP) A Good Buy After Market Declines?

So how do we know if BP (NYSE:BP) is a good buy after such declines in the market? There's an already 25% - 30% drop in shares of Transocean and BP since the disaster.

Shares of Halliburton and Cameron rose after the May 11th and 12th hearings, according to market watchers. 60 Minutes aired a show Sunday that some are believing contributed to this decline. An engineer of the Deepwater Horizon directly blamed BP.

An oil rig engineer, Mike Williams claimed that BP was rushing to finish cementing the well. This was so it could move to another drill site as quickly as it could. BP has maintained that the cause was the blowout preventer manufactured by Cameron.

It was thought the removal of the heavy mud, followed by cementing was the initial cause of the spill. Williams also stated that BP and Transocean were fully aware of the troubles the blowout preventer was having weeks before the explosion.

BP (NYSE:BP) Capturing Some of Oil Leak

BP (NYSE:BP) engineers say they're experiencing some success om the capturing of oil from the oil spill, as a pipe a mile long has been successfully inserted into a damaged pipe the oil is leaking out of and is diverting about 1,000 barrels and sending it to a ship on the surface.

Senior executive vice president of BP, Kent Wells, said in an interview, “So we do have oil and gas coming to the ship now, we do have a flare burning off the gas, and we have the oil that’s coming to the ship going to our surge tank ... and it is working as planned.

This is only a temporary measure, as the ultimate plan is to pump heavy drilling mud into the well which will permanently seal the oil leak.

How it works is the mud will be used to block the pressure that pushes the oil up, which will stop the oil from escaping from the ocean floor.

Once that is completed, there will be cement added, which would be the permanent seal.

Wells said it would take about a week to 10 days to begin trying those measures.

Shell Oil (LSE:RDSA) Suggests The Government Remodel It's Controversial Super Profit Tax

Shell Oil (LSE:RDSA) is urging government officials to remodel it's controversial profit super tax. They are wanting to make it comparable to the taxing of the petroleum industry.

Currently, the profit super tax takes effect once a company reaches a return of capital at 5.75 percent. This return amount is set by the federal government. Ann Pickard, a senior executive at Shell, states that she believes that a company should have to reach a return capital of 11 percent before the super profits tax kicks in.

The proposal from the Queensland Government states that they are in agreement with Ms. Pickard's statement, these comments stemmed from the Australian Petroleum Production and Exploration Association conference.

At this conference Jac Nasser, the new BHP Billiton chairman amplified his efforts of the big miner's campaign against the plan. The proposal "unfairly changes the rules of the game," said Mr. Nasser in his first letter to the 600,000 BHP shareholders.

BHP feels the new tax should only be applied to new investments. A government consultation panel will meet on Thursday about the new tax, BHP will attend Friday.

Exxon Mobil's (NYSE:XOM) Stock Continues To Fall

In German Trading, Exxon Mobil's (NYSE:XOM) stock continues to fall. With crude oil dropping below $70 a barrel in New York, this is the fifth day it has plummeted.

The biggest U.S. oil company, Exxon has dropped to $63.06 in German trading, that's a 0.8 percent loss. The third largest energy company, ConocoPhillips is at $55,32, losing 0.9 percent. The largest U.S. aluminum producer Alcoa, has also dropped to $12.14 losing 1.8 percent.

Dow Jones Industrial average dropped 0.1 percent to 10,600. Nasdaq - 100 Index futures also fell less than 0.1 percent bringing it to 1,909.5.

The euro dropped today to the lowest level in over four years against the dollar. The currency was traded for as low as $1.2235. In Brussels, the European finance ministers will meet today.
They are under pressure to show how they are planning to reduce deficits quickly enough to satisfy investors.