Now that BP (NYSE:BP) has finally entered into a stage where crisis management isn't the word used to describe their purpose, CEO Bob Dudley is seen to be working on bringing balance back to the company, as he retains the defensive posture related to the Gulf, while looking for some offense in relationship to growth.
Some of the final steps that need to be taken are to sell enough assets to pay for the estimated $40 billion the company will pay out through the years.
They've committed to raising about $30 billion through asset sales, and so far have sold off close to $14 billion.
Two assets they haven't made a decision on yet include Prudhoe Bay in Alaska, and its Pan American Energy LLC asset in Argentina. Pan American would bring them as much as $9 billion if they choose to go that route.
Part of BP's problem on the defensive side is awaiting the decision on whether or not they'll be designated as being grossly negligent concerning the oil spill in relationship to the Clean Water Act.
How that is determined could result in a liability differential of up to $10 billion.
It seems they're operating under the assumption they won't be paying the high end of the fine, but still need to raise an additional $16 billion or so to prepare for the financial challenges still remaining.
The problem for BP as a company is it keeps them in a defensive posture until they take care of it, so may take care of it sooner rather than later.
They have time as far as the payouts are concerned, but it's more the psychological factor for workers and the leaders of the company, who need to proceed in a way that shows they're going forward, while being sure they don't end up with any new fiasco.
Neglect of either one will hurt BP, and Dudley, from his comments and decisions, shows he understands that and is working hard to bring that about.
Showing posts with label Clean Water Act. Show all posts
Showing posts with label Clean Water Act. Show all posts
Wednesday, November 3, 2010
Friday, October 1, 2010
BP (NYSE:BP) Settles with Government for $15 Million Over Texas City Refinery Pollutants
BP (NYSE:BP) reached a settlement with the U.S. government to pay a fine of $15 million for the release of pollutants at its troubled Texas City Refinery.
That was a record fine at a single facility under the Clean Water Act.
Overall BP has now paid out a hefty $137 million in combined fines related to safety violations at the refinery.
Assistant administrator for EPA’s office of enforcement and compliance assurance, Cynthia Giles, said, “Today's settlement demonstrates the agency’s continuing commitment to actively and vigorously working to hold BP accountable and to make them comply with our nation’s environmental protection laws wherever the company operates.”
Since the 2005 explosion which killed 15 people and injured over 170, BP has spent $1.4 billion in corrective measures connected to the plant, and another half billion to improve safety.
That was a record fine at a single facility under the Clean Water Act.
Overall BP has now paid out a hefty $137 million in combined fines related to safety violations at the refinery.
Assistant administrator for EPA’s office of enforcement and compliance assurance, Cynthia Giles, said, “Today's settlement demonstrates the agency’s continuing commitment to actively and vigorously working to hold BP accountable and to make them comply with our nation’s environmental protection laws wherever the company operates.”
Since the 2005 explosion which killed 15 people and injured over 170, BP has spent $1.4 billion in corrective measures connected to the plant, and another half billion to improve safety.
Wednesday, September 29, 2010
BP's (NYSE:BP) Money Should Go to Gulf States Says Feds
While it may seem obvious, and it is, the federal government decided to write a 130-page report on why the Gulf states should be the ones receiving the bulk of the money paid by BP (NYSE:BP) for the oil spill.
It wasn't said, but definitely implied, that there are many people and/or institutions attempting to get a share of the money even though they weren't affected.
Obvious ones are the arrogant so-called scientific institutions and universities who seem to think someone owes them this money just because they exist. Of course it's put in terms that they are the great authorities on the subject.
This of course is sure to be the case with those in health fields and economics as well, who in a time of shortages are attempting to treat BP as if they're a government which they can tap for funds.
Concerning fines associated with the Clean Water Act, which are estimated to end up anywhere from $5 billion to $20 billion, according to Rep. Steve Scalise, R-La, the law must be changed in order to keep most of that money in the Gulf region.
Lawmakers from Louisiana have already introduced bills in the House and Senate to get that part of the process moving.
It wasn't said, but definitely implied, that there are many people and/or institutions attempting to get a share of the money even though they weren't affected.
Obvious ones are the arrogant so-called scientific institutions and universities who seem to think someone owes them this money just because they exist. Of course it's put in terms that they are the great authorities on the subject.
This of course is sure to be the case with those in health fields and economics as well, who in a time of shortages are attempting to treat BP as if they're a government which they can tap for funds.
Concerning fines associated with the Clean Water Act, which are estimated to end up anywhere from $5 billion to $20 billion, according to Rep. Steve Scalise, R-La, the law must be changed in order to keep most of that money in the Gulf region.
Lawmakers from Louisiana have already introduced bills in the House and Senate to get that part of the process moving.
Tuesday, September 14, 2010
BP (NYSE:BP) to be Sued by Justice Department
In a court filing on Monday, the Justice Department said they will probably sue BP (NYSE:BP) for damages related to the Gulf of Mexico oil spill from the Deepwater Horizon.
The filing was with the U.S. District Court in New Orleans, Louisiana.
If they proceed, claims against BP would be based on the Clean Water Act and the Oil Pollution Act,
The Oil Pollution Act was put in place after the oil spill from the Exxon-Valdez (NYSE:XOM).
It wasn't clear if they're going to wait to see if BP will be tagged with a "gross negligence" label, which would significantly increase the potential penalties.
The filing was with the U.S. District Court in New Orleans, Louisiana.
If they proceed, claims against BP would be based on the Clean Water Act and the Oil Pollution Act,
The Oil Pollution Act was put in place after the oil spill from the Exxon-Valdez (NYSE:XOM).
It wasn't clear if they're going to wait to see if BP will be tagged with a "gross negligence" label, which would significantly increase the potential penalties.
Friday, September 3, 2010
BP (NYSE:BP) Becoming Government Piggy Bank?
The number of requests and the content of those requests are becoming so wide and large, it's becoming hard for BP (NYSE:BP) to be able to meet those demands, and they said if if they are banned from receiving permits to drill in the Gulf.
A bill which includes an amendment targeting BP, which would ban any company from receiving permits to drill on the Outer Continental Shelf if they have received fines of over $10 million or more in relationship to the Clean Air or Clean Water Acts within a period of seven years, or had an accident which resulted in over 10 deaths.
The only company in the world that qualifies to be banned is BP.
BP has done far more than required by law, and they've done it, for the most part, voluntarily. To saddle them with these restrictions won't just hurt BP, but will hurt those who qualify for legitimate relief, as well as fines and lawsuits against the company which they will have to pay out for.
Some people think the $20 billion put aside in the escrow fund by BP was something they legally had to do, but it was voluntary, although obviously were pressured by the Obama administration to do it.
They probably would have done something similar anyhow, but the point is they didn't have to.
What is more relevant is the $100 million the contributed to a foundation to pay for the workers who lost their jobs because of the Obama moratorium. That's why Obama doesn't worry too much about the situation, as BP is paying for it, or at least supporting a huge portion of it.
I wonder if those workers are getting unemployment and still raking in a bunch of money from BP? An investigation should be done to see if that's the case.
They've voluntarily paid out millions for advertising campaigns to the five Gulf states, and Florida even did better from tourism than last year from the free advertising.
Bobby Jindal, the governor of Louisiana, is now asking for $173 million to help promote, test and certify the seafood from the Gulf. Where will it all end?
There is also the $500 million they're paying out to a 10-year research program to study how the oil spill impacted the region.
BP executives are grownups, so I don't feel sorry for them, but they're allowing themselves to be bullied to the extreme, and Obama and others have said it's in the best interests of the Gulf and its people to have a healthy BP. And that's the truth.
A line has to be drawn somewhere, and though some have pointed out that BP has a lot of assets they could sell to raise the funds, that has absolutely nothing to do with it.
Every time BP sells off assets, it's losing revenue which could be used to pay for ongoing Gulf issues.
So it's not as simple as selling assets to raise money, it's what it does to BP over the long haul that matters. And if they're weakened so much they can't pay, it's because of politicians and their own leaders who are too cowered to draw a line in the sand. It's past time for them to do it if they're going to not only survive, but pay for the liabilities incurred from the Gulf oil spill.
A bill which includes an amendment targeting BP, which would ban any company from receiving permits to drill on the Outer Continental Shelf if they have received fines of over $10 million or more in relationship to the Clean Air or Clean Water Acts within a period of seven years, or had an accident which resulted in over 10 deaths.
The only company in the world that qualifies to be banned is BP.
BP has done far more than required by law, and they've done it, for the most part, voluntarily. To saddle them with these restrictions won't just hurt BP, but will hurt those who qualify for legitimate relief, as well as fines and lawsuits against the company which they will have to pay out for.
Some people think the $20 billion put aside in the escrow fund by BP was something they legally had to do, but it was voluntary, although obviously were pressured by the Obama administration to do it.
They probably would have done something similar anyhow, but the point is they didn't have to.
What is more relevant is the $100 million the contributed to a foundation to pay for the workers who lost their jobs because of the Obama moratorium. That's why Obama doesn't worry too much about the situation, as BP is paying for it, or at least supporting a huge portion of it.
I wonder if those workers are getting unemployment and still raking in a bunch of money from BP? An investigation should be done to see if that's the case.
They've voluntarily paid out millions for advertising campaigns to the five Gulf states, and Florida even did better from tourism than last year from the free advertising.
Bobby Jindal, the governor of Louisiana, is now asking for $173 million to help promote, test and certify the seafood from the Gulf. Where will it all end?
There is also the $500 million they're paying out to a 10-year research program to study how the oil spill impacted the region.
BP executives are grownups, so I don't feel sorry for them, but they're allowing themselves to be bullied to the extreme, and Obama and others have said it's in the best interests of the Gulf and its people to have a healthy BP. And that's the truth.
A line has to be drawn somewhere, and though some have pointed out that BP has a lot of assets they could sell to raise the funds, that has absolutely nothing to do with it.
Every time BP sells off assets, it's losing revenue which could be used to pay for ongoing Gulf issues.
So it's not as simple as selling assets to raise money, it's what it does to BP over the long haul that matters. And if they're weakened so much they can't pay, it's because of politicians and their own leaders who are too cowered to draw a line in the sand. It's past time for them to do it if they're going to not only survive, but pay for the liabilities incurred from the Gulf oil spill.
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