Monday, May 17, 2010

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.

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