Even though there are agreements in place which indemnify or protect oil companies like Halliburton (NYSE:HAL), Transocean (NYSE:RIG), Anadarko Petroleum (NYSE:APC) and Cameron International (NYSE:CAM) from liability in most cases, in reference to the BP (NYSE:BP) oil spill, it's hard to imagine they'll escape completely form bearing some responsibility in the matter.
The courts have said sometime in 2011 they should reach a conclusion concerning that, although in some cases, like the blowout preventer provided by Cameron International, it's going to take some time to accurately investigate it to see where the failure came.
The recent conclusion of the oil spill commission that Halliburton provided an unstable cement mix used to seal the failed oil well puts pressure on these companies as to whether or not the indemnity agreements will hold under that type of scrutiny.
BP could be helped immensely if all of these companies would have to share in paying for the disaster, as since they've already been paying for almost everything, for them it would be money returned, which could dramatically improve their financial health whe spread across the companies mentioned above. It would be a game changer for them.
For the other companies mentioned above, there is more at risk though, as if they're considered negligent and liable in some ways, there is no doubt more lawsuits will emerge which will cost them and change their financial circumstances and reputation management will have to ensue.
There is also the increased costs of legal battles and insuring their debt via credit-default swaps.
So while BP, other than awaiting the final determination of whether or not they were grossly negligent in the accident, which could result in a fine of up to $17.6 billion, they have faced pretty much the worst case scenario and are coming out on the other side of it, as far as understanding their liabilities.
The other companies are now entering into the stage of uncertainty in relationship to liability, and that could weigh on the stocks for some time until that is cleared away.
Halliburton's role in the cement job reminds shareholders and investors that the situation is far from being resolved for all parties involved.
Showing posts with label BP oil spill. Show all posts
Showing posts with label BP oil spill. Show all posts
Monday, November 1, 2010
Thursday, October 28, 2010
BP (NYSE:BP) Oil Site Security Zone Ordered by Justice Department
The Justice Department has ordered a security zone to be set up around the site of the BP (NYSE:BP) oil spill to protect against any evidence being lost.
In a statement, the Department of Justice said, "In response to a motion by the US Department of Justice, the US District Court in New Orleans has ordered the establishment of a security zone extending 750 feet in all directions from the mobile offshore drilling unit Deepwater Horizon wreckage site and its debris field.
"The order will be enforced by the United States using the full range of security assets available, including vessels, aircraft or other appropriate means and equipment."
The zone will also extend from the surface to the floor of the sea, in addition to the surface perimeter. The order will last through October 8, 2011 unless it is renewed.
In a statement, the Department of Justice said, "In response to a motion by the US Department of Justice, the US District Court in New Orleans has ordered the establishment of a security zone extending 750 feet in all directions from the mobile offshore drilling unit Deepwater Horizon wreckage site and its debris field.
"The order will be enforced by the United States using the full range of security assets available, including vessels, aircraft or other appropriate means and equipment."
The zone will also extend from the surface to the floor of the sea, in addition to the surface perimeter. The order will last through October 8, 2011 unless it is renewed.
Monday, October 25, 2010
Gulf Fisherman Deserve BP (NYSE:BP) Money, Insurance Money?
An unfortunate scenario is playing out from the BP (NYSE:BP) oil spill, as dubious claims by Fisherman and fish processors contradict one another.
First, honest fisherman and research confirm fishing is as good as it has ever been because of the low fishing pressure because of part of the Gulf being closed to commercial fishing. That has resulted in more and bigger fish.
Tests from investigators have found virtually no taint in seafood from the Gulf.
But fisherman seeking to get insurance benefits are hurting seafood distributors by making claims that the oil spill was a disaster for them, when as measured by tainted food, is a completely false statement.
As far as having fishing waters closed, that's a legitimate claim, but continuing to paint a narrative of tainted fish and seafood is an outright lie.
Those suffering from that false narrative are the food processors, who now have to fight the story put forth by some fisherman in order to convince consumers food from the area is edible and safe.
Why some fisherman are allowed to continue to make their assertions is puzzling.
First, honest fisherman and research confirm fishing is as good as it has ever been because of the low fishing pressure because of part of the Gulf being closed to commercial fishing. That has resulted in more and bigger fish.
Tests from investigators have found virtually no taint in seafood from the Gulf.
But fisherman seeking to get insurance benefits are hurting seafood distributors by making claims that the oil spill was a disaster for them, when as measured by tainted food, is a completely false statement.
As far as having fishing waters closed, that's a legitimate claim, but continuing to paint a narrative of tainted fish and seafood is an outright lie.
Those suffering from that false narrative are the food processors, who now have to fight the story put forth by some fisherman in order to convince consumers food from the area is edible and safe.
Why some fisherman are allowed to continue to make their assertions is puzzling.
Friday, October 22, 2010
BP (NYSE:BP) Oil Spill Caused Very Little Damage to Wildlife
Contrary to ridiculous claims and assertions, relatively little wildlife was killed from the BP (NYSE:BP) oil spill.
Test after test from numerous federal and state agencies found fish haven't really been touched at all; will fish being killed or contaminated in any way.
Out of a combined 5,000 tests, both sensory and chemical, only two failures have occurred, and with chemical, none have occurred.
The reports of the thousands of birds collected, reaching 6,104 total, were all birds collected, not those only affected by the oil spill. Of that number, 2,263 of the birds found had some oil on them.
Even that's not conclusive, as they could easily have died of natural causes in areas that included oil.
The hype about sea turtles was just that as well. of the 603 collected, only 17 had oil on the.
Mammals the same thing. Only 97 were collected in all, and only four of those had made contact with oil.
As far as the birds, which were the most affected, that many are killed quickly from the so-called clean energy and non-destructive windmill farms than from the Gulf oil spill. And that's just from one grouping of them.
Altogether windmill farms destroy huge numbers of birds and bats, one of their dirty little secrets.
The data above was reported by NOAA.
Test after test from numerous federal and state agencies found fish haven't really been touched at all; will fish being killed or contaminated in any way.
Out of a combined 5,000 tests, both sensory and chemical, only two failures have occurred, and with chemical, none have occurred.
The reports of the thousands of birds collected, reaching 6,104 total, were all birds collected, not those only affected by the oil spill. Of that number, 2,263 of the birds found had some oil on them.
Even that's not conclusive, as they could easily have died of natural causes in areas that included oil.
The hype about sea turtles was just that as well. of the 603 collected, only 17 had oil on the.
Mammals the same thing. Only 97 were collected in all, and only four of those had made contact with oil.
As far as the birds, which were the most affected, that many are killed quickly from the so-called clean energy and non-destructive windmill farms than from the Gulf oil spill. And that's just from one grouping of them.
Altogether windmill farms destroy huge numbers of birds and bats, one of their dirty little secrets.
The data above was reported by NOAA.
Thursday, October 21, 2010
Worst of BP (NYSE:BP) Oil Spill Over Says Government
At the annual Clean Gulf Conference, government officials and executives from the oil industry said the worst of the BP (NYSE:BP) Gulf of Mexico oil spill in now behind us.
Other comments asserting the oil spill was never as bad as media hype has been communicated by the government, as scientists said most of the oil had dispersed from the Gulf, fisheries have been reopened, and the moratorium on drilling in the region lifted.
The moratorium was considered more of a hindrance than a help from the beginning, so it's not something that should be cited as a confirmation everything is better.
It probably hurt the area economically as much as anything else, and still will as little drilling will resume any time because of the permitting process and new regulations. That's why it was safe for the Obama administration to appear to lift restrictions through abandoning the oil moratorium before the November elections.
Assertions to the contrary have been made by so-called independent scientific sources, but very little has been proven, while a lot has been proffered through media outlets.
Other comments asserting the oil spill was never as bad as media hype has been communicated by the government, as scientists said most of the oil had dispersed from the Gulf, fisheries have been reopened, and the moratorium on drilling in the region lifted.
The moratorium was considered more of a hindrance than a help from the beginning, so it's not something that should be cited as a confirmation everything is better.
It probably hurt the area economically as much as anything else, and still will as little drilling will resume any time because of the permitting process and new regulations. That's why it was safe for the Obama administration to appear to lift restrictions through abandoning the oil moratorium before the November elections.
Assertions to the contrary have been made by so-called independent scientific sources, but very little has been proven, while a lot has been proffered through media outlets.
Wednesday, October 20, 2010
Gulf Tourism Rebounds after BP (NYSE:BP) Oil Spill
Contrary to some presumptive media reports, many areas in the Gulf region didn't suffer a tourism disaster as a result of the Gulf of Mexico oil spill, in some cases because of marketing money provided by BP (NYSE:BP), as in Florida, tourism was up.
One of the major attractions in the region, New Orleans, said they had their best year since Katrina.
When asked about areas in Florida, reports the St. Petersburg Times said a number of respondents believed the beaches were still stained by oil, when in many cases no oil came anywhere near them.
The conclusion by some was they would probably go somewhere else for their next vacation. But April and June, across the overall state, Florida tourism was up by 3.4 percent.
There will always be mixed responses like this concerning disasters, but the reality is many areas are doing very well, no matter what responses are, and it remains to be seen if people even think much about BP and oil when making vacation plans next year.
One of the major attractions in the region, New Orleans, said they had their best year since Katrina.
When asked about areas in Florida, reports the St. Petersburg Times said a number of respondents believed the beaches were still stained by oil, when in many cases no oil came anywhere near them.
The conclusion by some was they would probably go somewhere else for their next vacation. But April and June, across the overall state, Florida tourism was up by 3.4 percent.
There will always be mixed responses like this concerning disasters, but the reality is many areas are doing very well, no matter what responses are, and it remains to be seen if people even think much about BP and oil when making vacation plans next year.
Judge Martin Feldman Throws Out New Government Deepwater Drilling Regulations
U.S. District Judge Martin Feldman is the judge who rejected the first attempt by the Obama administration to impose a moratorium on deepwater drilling in the Gulf of Mexico after the BP (NYSE:BP) oil spill, and he again chastised the administration by throwing out the new regulations accompanying the moratorium, which weren't addressed in the original moratorium case.
Feldman based his ruling on the administration not giving oil and gas companies notice and a chance to make comments on the 10 new rules.
“NTL-05 imposes additional duties on operators and lessees. Notice and comment were required by law. The government did not comply and the NTL-05 is of no lawful force or effect,” said Feldman.
While the second moratorium was recently lifted, the Interior Department rules known as NTL-05 remained in force, that is until the judge threw them out.
On November 3 a lawsuit which challenged the moratorium will be considered for whether or not it will be allowed to go forward. The government has asked for it to be dismissed.
Feldman based his ruling on the administration not giving oil and gas companies notice and a chance to make comments on the 10 new rules.
“NTL-05 imposes additional duties on operators and lessees. Notice and comment were required by law. The government did not comply and the NTL-05 is of no lawful force or effect,” said Feldman.
While the second moratorium was recently lifted, the Interior Department rules known as NTL-05 remained in force, that is until the judge threw them out.
On November 3 a lawsuit which challenged the moratorium will be considered for whether or not it will be allowed to go forward. The government has asked for it to be dismissed.
Tuesday, October 19, 2010
BP (NYSE:BP) CEO Bob Dudley Implements Modest Changes
In the aftermath of the disastrous BP (NYSE:BP) oil spill, many have been waiting to see what new CEO Bob Dudley would do at the top concerning removing executives and putting new ones in place.
So far there has been somewhat of a modest response from Dudley, who has, for the most part, kept people in place, other than Exploration and Production head Andy Inglis.
Of course Dudley replaced former CEO Tony Hayward, but that wasn't his decision.
Many were hoping for a big shakeup at the top, but only time will tell if Dudley's strategy is the best one.
It appears he believes changing the company culture to being more safety focused is more important than simply getting rid of people.
Also it seems he is changing things incrementally rather than respond to the media uproar and emotion stirred from the oil spill coverage. That could be a smart move on his part, as keeping people in place that know the industry and who will respond to change is as good as getting rid of them and replacing them with people who they don't know and could be unresponsive as well.
In other words, Dudley seems to be trying to keep the company from entering into complete chaos, and permeating them with a culture of safety for the existing people at the company.
One thing he did do was to tie in safety to employee compensation for this quarter as the company revamps its overall pay structure for the long term.
The bottom line is it'll be considered a success only if BP's safety record improves. Period! If it doesn't, not only will other heads fall, but quite possibly Dudley's as well.
So far there has been somewhat of a modest response from Dudley, who has, for the most part, kept people in place, other than Exploration and Production head Andy Inglis.
Of course Dudley replaced former CEO Tony Hayward, but that wasn't his decision.
Many were hoping for a big shakeup at the top, but only time will tell if Dudley's strategy is the best one.
It appears he believes changing the company culture to being more safety focused is more important than simply getting rid of people.
Also it seems he is changing things incrementally rather than respond to the media uproar and emotion stirred from the oil spill coverage. That could be a smart move on his part, as keeping people in place that know the industry and who will respond to change is as good as getting rid of them and replacing them with people who they don't know and could be unresponsive as well.
In other words, Dudley seems to be trying to keep the company from entering into complete chaos, and permeating them with a culture of safety for the existing people at the company.
One thing he did do was to tie in safety to employee compensation for this quarter as the company revamps its overall pay structure for the long term.
The bottom line is it'll be considered a success only if BP's safety record improves. Period! If it doesn't, not only will other heads fall, but quite possibly Dudley's as well.
Monday, October 18, 2010
BP (NYSE:BP) Cost to Louisiana Fishing Industry Could Reach $172 Million
A report released Friday, from a study commissioned by Greater New Orleans Inc., a regional economic development agency, concluded in the short term the gross revenue loss to the Louisiana fishing industry from the BP (NYSE:BP) oil spill could range from $115 million to $172 million.
Conducting the study was consulting firm IEM and Headwater Capital Consulting.
The parameters of the study were only on the short-term impact on the industry from the Gulf accident.
Two more studies have been commissioned which will focus on how the oil moratorium by the Obama administration affected the region, and a final study on how Louisiana as a brand was affected.
Loss of revenue shown above was for the years 2011-2013 in relationship to commercial fisheries. It targeted seven important marine species, including oysters, crab and shrimp.
Jobs lost from the oil spill are the equivalent of 2,650 to 3,975 full time jobs, said the study, and an earnings loss from $68 million to $103 million. Some of that was mitigated by the infusion of cash by BP into the industry.
Conducting the study was consulting firm IEM and Headwater Capital Consulting.
The parameters of the study were only on the short-term impact on the industry from the Gulf accident.
Two more studies have been commissioned which will focus on how the oil moratorium by the Obama administration affected the region, and a final study on how Louisiana as a brand was affected.
Loss of revenue shown above was for the years 2011-2013 in relationship to commercial fisheries. It targeted seven important marine species, including oysters, crab and shrimp.
Jobs lost from the oil spill are the equivalent of 2,650 to 3,975 full time jobs, said the study, and an earnings loss from $68 million to $103 million. Some of that was mitigated by the infusion of cash by BP into the industry.
BP (NYSE:BP) Getting Sued by School Boards
It's no surprise to see school boards entering into the attempt to extract funds from BP (NYSE:BP) over the alleged effect on them from the oil spill in the Gulf of Mexico.
Some in the media are clueless or choose to ignore the depth of the ways many people or institutions may go to get some of the billions in funds made available for legitimate victims of the spill.
In this case, school districts in the Florida counties of Escambia and Santa Rosa are beginning the process of determining whether or not to sue BP over lost tax revenue.
Most of that is based on the alleged loss of tax revenue from the lower value of homes, and also from the loss of sales tax revenue.
I wonder how the distinction would be made between losses incurred from the mortgage debacle and recession and value allegedly lost from the oil spill? Other than Texas, beach areas in Florida were reportedly the least affected by the oil spill.
We at Dripping Oil have said for some time that the BP oil fund was going to be targeted in this way, as many have the same mindset they have concerning the government, that it is there for them to use and abuse in order to fund their pet projects or agendas.
In this case it's unsurprising to see government entities attempt to use BP as a source to replace lost tax revenue.
Interestingly, both these school districts seem to be saying they're not affected at all at this time, but might be, so they should look into initiating lawsuits.
Escambia Superintendent Malcolm Thomas said, "We anticipate decline in sales tax revenue for the school district, and property value — school taxes — that will impact potential revenue we will have for future school years."
One Santa Rosa, School Board member, Ed Gray, was a little more realistic, saying, "If we've been damaged, we ought to go after it. If not, we shouldn't waste a lot of people's time."
If either district chooses to pursue this, it would be done on a contingency basis.
Some in the media are clueless or choose to ignore the depth of the ways many people or institutions may go to get some of the billions in funds made available for legitimate victims of the spill.
In this case, school districts in the Florida counties of Escambia and Santa Rosa are beginning the process of determining whether or not to sue BP over lost tax revenue.
Most of that is based on the alleged loss of tax revenue from the lower value of homes, and also from the loss of sales tax revenue.
I wonder how the distinction would be made between losses incurred from the mortgage debacle and recession and value allegedly lost from the oil spill? Other than Texas, beach areas in Florida were reportedly the least affected by the oil spill.
We at Dripping Oil have said for some time that the BP oil fund was going to be targeted in this way, as many have the same mindset they have concerning the government, that it is there for them to use and abuse in order to fund their pet projects or agendas.
In this case it's unsurprising to see government entities attempt to use BP as a source to replace lost tax revenue.
Interestingly, both these school districts seem to be saying they're not affected at all at this time, but might be, so they should look into initiating lawsuits.
Escambia Superintendent Malcolm Thomas said, "We anticipate decline in sales tax revenue for the school district, and property value — school taxes — that will impact potential revenue we will have for future school years."
One Santa Rosa, School Board member, Ed Gray, was a little more realistic, saying, "If we've been damaged, we ought to go after it. If not, we shouldn't waste a lot of people's time."
If either district chooses to pursue this, it would be done on a contingency basis.
Friday, October 15, 2010
BP (NYSE:BP) Asked To Pay Millions More For Florida Tourism
BP (NYSE:BP) has already paid out millions to Florida for its tourism industry after the Gulf of Mexico oil spill, to deal with the misperceptions the beaches in the state were filled with oil.
That worked during the oil spill successfully, as tourism did very well over the duration of the oil spill in Florida. Now the state is asserting wrong perceptions still remain, and BP should pay to have that removed through advertising campaigns.
The problem is it's quite possible this is a recessionary slowdown and not related to BP at all.
Allegedly some surveys have potential tourists saying they still believe the Florida beaches are filled with oil, but the question that should be asked is whether or not they were going to vacation there in the first place as colder weather hits the nation.
As far as next summer, to ask those making vacation decisions on whether or not they'll come there next year doesn't make much sense. After nine months or so, most would have to think the beaches are are clean of debris and oil.
Either way, Florida has asked for another payment of $75 million to use for their advertising budget. I think this time around BP should say no, as they're increasingly being tapped to pay for budget shortfalls that are result of the ongoing recession and not necessarily the oil spill.
That worked during the oil spill successfully, as tourism did very well over the duration of the oil spill in Florida. Now the state is asserting wrong perceptions still remain, and BP should pay to have that removed through advertising campaigns.
The problem is it's quite possible this is a recessionary slowdown and not related to BP at all.
Allegedly some surveys have potential tourists saying they still believe the Florida beaches are filled with oil, but the question that should be asked is whether or not they were going to vacation there in the first place as colder weather hits the nation.
As far as next summer, to ask those making vacation decisions on whether or not they'll come there next year doesn't make much sense. After nine months or so, most would have to think the beaches are are clean of debris and oil.
Either way, Florida has asked for another payment of $75 million to use for their advertising budget. I think this time around BP should say no, as they're increasingly being tapped to pay for budget shortfalls that are result of the ongoing recession and not necessarily the oil spill.
Thursday, October 14, 2010
BP (NYSE:BP): Will They Get New Gulf Oil Leases?
In somewhat of a "duh" comment, the White House oil spill commission said in response to the BP (NYSE:BP) oil spill, that the decision on which companies are rewarded with Gulf oil permits should be based on the amount of drilling experience they have and their safety record in implementing their tasks.
Did they come up with this idea all by themselves?
The commission concluded that the government should focus on "linking a specific site with the safety risks it imposes and who we are going to give the responsibility of exploring and extracting from that site."
Incredibly, this is the conclusion the committee formed to give guidance for offshore drilling in the future.
Of course the point is we didn't need a commission to be appointed to tell us what we already know. How hard is it to figure out inspections need to be made, companies need to improve safety procedures, and those that don't won't be allowed to drill in Gulf waters.
Now the question is whether or not BP will be awarded with new permits if they apply for them. They'll probably wait a little more until news coverage is down more and the public really loses interest. The elections would be a good time for that, as more important matters will be being dealt with at that time, and not many would be interested in the aftermath of the BP incident.
If BP can secure more leases, in the long term they probably will make the attempt. Assuming they are able to comply with the new regulations, there's nothing to keep them from going forward with it.
About 10 percent of BP's revenue comes from the U.S. market
Did they come up with this idea all by themselves?
The commission concluded that the government should focus on "linking a specific site with the safety risks it imposes and who we are going to give the responsibility of exploring and extracting from that site."
Incredibly, this is the conclusion the committee formed to give guidance for offshore drilling in the future.
Of course the point is we didn't need a commission to be appointed to tell us what we already know. How hard is it to figure out inspections need to be made, companies need to improve safety procedures, and those that don't won't be allowed to drill in Gulf waters.
Now the question is whether or not BP will be awarded with new permits if they apply for them. They'll probably wait a little more until news coverage is down more and the public really loses interest. The elections would be a good time for that, as more important matters will be being dealt with at that time, and not many would be interested in the aftermath of the BP incident.
If BP can secure more leases, in the long term they probably will make the attempt. Assuming they are able to comply with the new regulations, there's nothing to keep them from going forward with it.
About 10 percent of BP's revenue comes from the U.S. market
Wednesday, October 13, 2010
BP (NYSE:BP) Oil Spill Won't Affect Global Offshore Drilling Says IEA
The BP (NYSE:BP) oil spill will have no affect on the growth of offshore drilling around the world, said the International Energy Agency.
Evidently the over-response to the spill will hurt the United States, as there will be a loss of about to 60,000 barrels of oil a day in 2010, and 100,000 barrels a day in 2011, according to an International Energy Agency released today.
The report concluded even with that shortfall in U.S. oil production, they “currently do not foresee any significant impact on production elsewhere.”
With huge demand for oil growing, offshore sites have been inundated with exploration deals to find more oil and gas resources to supply the demand.
In the not-too-distant future offshore oil will account for about 50 percent of all oil produced.
Evidently the over-response to the spill will hurt the United States, as there will be a loss of about to 60,000 barrels of oil a day in 2010, and 100,000 barrels a day in 2011, according to an International Energy Agency released today.
The report concluded even with that shortfall in U.S. oil production, they “currently do not foresee any significant impact on production elsewhere.”
With huge demand for oil growing, offshore sites have been inundated with exploration deals to find more oil and gas resources to supply the demand.
In the not-too-distant future offshore oil will account for about 50 percent of all oil produced.
Tuesday, October 12, 2010
BP (NYSE:BP) to Start Deep Cleanup of Alabama Beaches
BP (NYSE:BP) spokesman Ray Melick said the oil giant is going to start deeper cleaning of the beaches in Alabama next week.
Melick said the company is waiting until after the weekend festivities, which include boat races and concerts in Baldwin County. They don't want to hurt the tourist money now coming into the region, so they're set to start next week.
Heavy equipment will be brought in to dig as deep as two feet below the surface to locate and clean the oil out.
Hopes are the cleanup of the beaches will be completed by January 1, 2011.
Melick said the company is waiting until after the weekend festivities, which include boat races and concerts in Baldwin County. They don't want to hurt the tourist money now coming into the region, so they're set to start next week.
Heavy equipment will be brought in to dig as deep as two feet below the surface to locate and clean the oil out.
Hopes are the cleanup of the beaches will be completed by January 1, 2011.
Monday, October 11, 2010
Official Opinion on BP (NYSE:BP) By White House Committee to be Formulated
A committee formed to create an official opinion by the White House on the BP (NYSE:BP) oil spill will start meeting on Wednesday of this week.
Dubbed the White House Oil Spill Commission, the seven-member commission will meet on Capitol Hill to go over the even and ultimately make some type of recommendation which will be put in a report to be released sometime in January 2011.
Near the end of the meetings some public comment may be solicited.
A website has been established to allow people to view the proceedings.
BP is down in trading today, falling to $41.25, dropping $0.67, or 1.60 percent as of 11:14 AM EDT.
Dubbed the White House Oil Spill Commission, the seven-member commission will meet on Capitol Hill to go over the even and ultimately make some type of recommendation which will be put in a report to be released sometime in January 2011.
Near the end of the meetings some public comment may be solicited.
A website has been established to allow people to view the proceedings.
BP is down in trading today, falling to $41.25, dropping $0.67, or 1.60 percent as of 11:14 AM EDT.
BP (NYSE:BP) Oil Spill Hits Seafood Processors Hard
A recent report alleges the seafood processors in the Gulf region were hit especially hard by the BP (NYSE:BP) oil spill, as a variety of concerns over food from the Gulf has apparently hit the industry hard.
Another variable is the ongoing recession, which makes it difficult to evaluate how much is as the result of the oil spill and how much if from national and international economic hardship.
Obviously some is connected to the oil spill, as demand for seafood shrinks from past levels.
The reason it affects the seafood processing industry more is restaurants and grocery stores can tap into other sources, while the Gulf seafood processors, for the most part, are reliant on Gulf seafood to do business.
Being out of favor at this time, it's going to be a long road to recovery for them, and likely some of them won't survive.
Another variable is the ongoing recession, which makes it difficult to evaluate how much is as the result of the oil spill and how much if from national and international economic hardship.
Obviously some is connected to the oil spill, as demand for seafood shrinks from past levels.
The reason it affects the seafood processing industry more is restaurants and grocery stores can tap into other sources, while the Gulf seafood processors, for the most part, are reliant on Gulf seafood to do business.
Being out of favor at this time, it's going to be a long road to recovery for them, and likely some of them won't survive.
BP (NYSE:BP) Paying Feinberg and Firm Cool $850,000 Monthly to Run Compensation Fund
In an effort to be more transparent, Kenneth Feinberg revealed the payment he and his firm - Feinberg Rozen LLP - are receiving from BP (NYSE:BP) to run the $20 billion compensation fund to pay victims of the Gulf of Mexico oil spill.
Feinberg said the firm is being paid $850,000 monthly to manage the claims portion of the fund, which started when he accepted the job in the middle of June.
At this time Feinberg hasn't disclosed what he personally is getting for running the fund, but that doesn't seem to be relevant; how could it be?
Someone has to run the fund. And unless someone is going to donate several years of their life for nothing to run it, they're going to get paid for it. Already there's heavy pressure on Feinberg and his team to make things run smoother and quicker, and he's taken a lot of abuse from meetings around the Gulf region with victims waiting for their money.
There's also the fraud factor, which has in fact been one of the major impediments to running the claims process quicker, and this is coming from those who have legitimate claims, but are inflating them to extraordinary levels, which all causes the need to examine documents more closely, if there are any documents at all.
In other words, a lot of the alleged public outcry is manufactured by many who are trying to game the system and are angry their attempts aren't successful.
The implication that Feinberg and his team work for BP means something negative simply makes no sense. It doesn't matter who would've been chosen to run the claims process, they were going to get paid. How is that an issue? How is it even a story?
As far as the compensation to the firm, the $850,000 monthly payment will continue through 2010, and then will be reviewed at that time to make decisions on a contract going forward.
The fund is scheduled to operational for four years.
Feinberg said the firm is being paid $850,000 monthly to manage the claims portion of the fund, which started when he accepted the job in the middle of June.
At this time Feinberg hasn't disclosed what he personally is getting for running the fund, but that doesn't seem to be relevant; how could it be?
Someone has to run the fund. And unless someone is going to donate several years of their life for nothing to run it, they're going to get paid for it. Already there's heavy pressure on Feinberg and his team to make things run smoother and quicker, and he's taken a lot of abuse from meetings around the Gulf region with victims waiting for their money.
There's also the fraud factor, which has in fact been one of the major impediments to running the claims process quicker, and this is coming from those who have legitimate claims, but are inflating them to extraordinary levels, which all causes the need to examine documents more closely, if there are any documents at all.
In other words, a lot of the alleged public outcry is manufactured by many who are trying to game the system and are angry their attempts aren't successful.
The implication that Feinberg and his team work for BP means something negative simply makes no sense. It doesn't matter who would've been chosen to run the claims process, they were going to get paid. How is that an issue? How is it even a story?
As far as the compensation to the firm, the $850,000 monthly payment will continue through 2010, and then will be reviewed at that time to make decisions on a contract going forward.
The fund is scheduled to operational for four years.
Friday, October 8, 2010
Blowout Preventer from BP (NYSE:BP) Oil Spill Still Sitting Around
One of the key pieces of evidence related to the BP (NYSE:BP) oil spill, the blowout preventer, is still sitting around after being lifted from the bottom of the Gulf of Mexico after the explosion on the Deepwater Horizon oil rig.
Cameron International (NYSE:CAM) produced the blowout preventer which failed to stem the flow of oil and gas as it was supposed to do in these types of situations.
It has been a month since the device was moved to a government facility to be examined, but in its usual incompetence, has done nothing to examine the causes of the failure of the device which is one of the main pieces of evidence in how fines and/or distribution of liabilities will be assessed.
So you have all these lawsuits and claims being made without the blowout preventer having even been examined.
The reason for the delay according to federal officials, is they are waiting for the approval of the procedures they'll use to do the testing. Court records reveal a multi-agency team will make that determination. How long can it take these "brains" to determine something as simple as that?
Testing on the blowout preventer was supposed to have began by October 1, and it's uncertain as to how much more time will be wasted before a determination as to the procedures used will be made.
The device is sitting in a NASA facility in New Orleans.
Cameron International (NYSE:CAM) produced the blowout preventer which failed to stem the flow of oil and gas as it was supposed to do in these types of situations.
It has been a month since the device was moved to a government facility to be examined, but in its usual incompetence, has done nothing to examine the causes of the failure of the device which is one of the main pieces of evidence in how fines and/or distribution of liabilities will be assessed.
So you have all these lawsuits and claims being made without the blowout preventer having even been examined.
The reason for the delay according to federal officials, is they are waiting for the approval of the procedures they'll use to do the testing. Court records reveal a multi-agency team will make that determination. How long can it take these "brains" to determine something as simple as that?
Testing on the blowout preventer was supposed to have began by October 1, and it's uncertain as to how much more time will be wasted before a determination as to the procedures used will be made.
The device is sitting in a NASA facility in New Orleans.
Wednesday, October 6, 2010
Inaccurate Estimates of BP (NYSE:BP) Gulf Oil Flow Affected Plugging
The release of a report from a federal commission investigating the BP (NYSE:BP) oil spill found the Obama administration made a number of mistakes throughout the ordeal.
One was the estimates proffered by the government which were far less than later estimates. Original oil flow estimates out of the damaged well were from 1,000 to 5,000 barrels a day, while later estimates were up to 62,000 barrels a day.
On that the report concluded, “By initially underestimating the amount of oil flow and then, at the end of the summer, appearing to underestimate the amount of oil remaining in the Gulf, the federal government created the impression that it was either not fully competent to handle the spill or not fully candid with the American people about the scope of the problem. It is possible that inaccurate flow-rate figures may have hindered the subsea efforts to stop and to contain the flow of oil at the wellhead.”
While the report is accurate on its assessment of the oil flowing into the Gulf, it's not clear at all that government estimates of the remaining oil in the Gulf is inaccurate, as followup studies have confirmed much of what they originally said.
There's always going to be the so-called scientists who are going to dispute the amount of oil left in the Gulf because of private agendas and hopes of securing research money.
As far as the effect of the amount of oil being released into the Gulf being understated, the report said it could have disrupted the efforts of BP to stop the flow.
One was the estimates proffered by the government which were far less than later estimates. Original oil flow estimates out of the damaged well were from 1,000 to 5,000 barrels a day, while later estimates were up to 62,000 barrels a day.
On that the report concluded, “By initially underestimating the amount of oil flow and then, at the end of the summer, appearing to underestimate the amount of oil remaining in the Gulf, the federal government created the impression that it was either not fully competent to handle the spill or not fully candid with the American people about the scope of the problem. It is possible that inaccurate flow-rate figures may have hindered the subsea efforts to stop and to contain the flow of oil at the wellhead.”
While the report is accurate on its assessment of the oil flowing into the Gulf, it's not clear at all that government estimates of the remaining oil in the Gulf is inaccurate, as followup studies have confirmed much of what they originally said.
There's always going to be the so-called scientists who are going to dispute the amount of oil left in the Gulf because of private agendas and hopes of securing research money.
As far as the effect of the amount of oil being released into the Gulf being understated, the report said it could have disrupted the efforts of BP to stop the flow.
Obama Blocked BP (NYSE:BP) Worst-case Scenario Estimates Release
A report from the presidential commission looking into the BP (NYSE:BP) oil spill found the Obama administration blocked the release of worst-case scenario estimates on how much oil was flowing into the Gulf of Mexico.
Reportedly the National Oceanic and Atmospheric Administration (NOAA) wanted to publicize what some of the models describing the worst-case scenarios which could happen over the long term, and the White House's Office of Management and Budget denied the request.
The commission said, "Staff was told that the Office of Management and Budget denied NOAA's request."
Reportedly the National Oceanic and Atmospheric Administration (NOAA) wanted to publicize what some of the models describing the worst-case scenarios which could happen over the long term, and the White House's Office of Management and Budget denied the request.
The commission said, "Staff was told that the Office of Management and Budget denied NOAA's request."
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