Ken Feinberg, the new administrator handling legal claims from the victims of the Gulf said on Sunday that the no sue rule was his idea not BP's (NYSE:BP). Anyone receiving a settlement payout from the compensation fund, gives up their right to sue the company individually.
Feinberg was very clear that he would be far more generous in payments of funds than any court would be. "It is not in your interest to tie up you and the courts in years of uncertain protracted litigation when there is an alternative that has been created," said Feinberg. He continued, "I take the position, if I don't find you eligible no court will find you eligible."
Some of the guidelines have changed, like now the closer you are geographically to the oil spill location, the more likely you are to receive compensation. "I'm going to have to draw some tough lines," said Feinberg. He added that the most "problematic" claims will be from those in the tourism business.
Showing posts with label Gulf. Show all posts
Showing posts with label Gulf. Show all posts
Monday, August 23, 2010
Federal Investigation Hearing Today, Confronting BP (NYSE:BP) and Transocean (NYSE:RIG)
Today there is a Federal investigation hearing where Federal investigators will be questioning BP (NYSE:BP) executives and managers, as well as rig owner Transocean's (NYSE:RIG) Ltd. There is a panel set to hold the hearings, and each company will be explaining disabled safety systems as well as failures of the well design, causing the worst oil spill in U.S. history.
The combined Interior Department - U.S. Coast Guard investigation has already had three hearings. The prior hearings have taken place in Louisiana where a massive amount of testimony has already been heard. This time, the hearing moves to Houston, where there are several offices of companies involved with the disaster, including BP.
There is much significance to these hearings and the federal investigation. If criminal misconduct is found to have been a factor by any or all of the oil companies that played a part, the panel can turn over its findings to the U.S. Department of Justice. Who is currently doing their own criminal investigation.
It is possible that a fifth hearing will take place. If so, it won't be until several key pieces are recovered from the bottom of the Gulf, including the blowout preventer. The hearings are very similar to that of a trial. Exhibits are presented, witnesses testify under oath, and there is cross examinations. The finding will be reported in January.
The combined Interior Department - U.S. Coast Guard investigation has already had three hearings. The prior hearings have taken place in Louisiana where a massive amount of testimony has already been heard. This time, the hearing moves to Houston, where there are several offices of companies involved with the disaster, including BP.
There is much significance to these hearings and the federal investigation. If criminal misconduct is found to have been a factor by any or all of the oil companies that played a part, the panel can turn over its findings to the U.S. Department of Justice. Who is currently doing their own criminal investigation.
It is possible that a fifth hearing will take place. If so, it won't be until several key pieces are recovered from the bottom of the Gulf, including the blowout preventer. The hearings are very similar to that of a trial. Exhibits are presented, witnesses testify under oath, and there is cross examinations. The finding will be reported in January.
Tuesday, August 3, 2010
BP's (NYSE:BP) Allen Approved Over 74 Exemptions For Chemical Use
While we are all aware of BP's (NYSE:BP) use of the toxic chemical Corexit, documents have brought to light the excessive use of the chemical despite the Environmental Protection Agency's order to not use it. The order was given by the EPA on May 26th.
The documents, released by a congressional subcommittee states that BP was ordered to use the chemical sparingly and rarely. Coast Guard officials ignored this order, and allowed the company to use hundreds of thousands of dispersants in the Gulf.
There are over 74 documented cases that show the Coast Guard giving exemptions for the use of the chemical, despite the order against it. The time frame was only 48 days that these massive amounts of dispersants were used. One of the documents show that BP was actually given the "OK" to use more chemicals then what was even requested.
Thad Allen, the retired Coast Guard admiral who is in charge of leading the oil spill cleanup efforts defended his decision. He said that the overall use of the chemical dispersants dropped significantly after the EPA's order. Although, on some days the amount of surface oil warranted a "tactical" decision to use them.
The documents, released by a congressional subcommittee states that BP was ordered to use the chemical sparingly and rarely. Coast Guard officials ignored this order, and allowed the company to use hundreds of thousands of dispersants in the Gulf.
There are over 74 documented cases that show the Coast Guard giving exemptions for the use of the chemical, despite the order against it. The time frame was only 48 days that these massive amounts of dispersants were used. One of the documents show that BP was actually given the "OK" to use more chemicals then what was even requested.
Thad Allen, the retired Coast Guard admiral who is in charge of leading the oil spill cleanup efforts defended his decision. He said that the overall use of the chemical dispersants dropped significantly after the EPA's order. Although, on some days the amount of surface oil warranted a "tactical" decision to use them.
Tuesday, July 27, 2010
BP (NYSE:BP) Stock, To Speculative To Buy Says Biggs
The Hedge fund manager Barton Biggs, has this month become more optimistic of stocks, but is still leery saying BP (NYSE:BP) is still "to speculative" to purchase. He disagrees with the analyst in a Bloomberg Story who are rating BP's stock at "buy."
With the optimism from BP finally having success in placing their sealing cap and stopping the leaking oil on July 15th, many seem to think that everything is over with the oil spill. In reality, BP has still not reached the desired pressure in the testing of the well. The original target was set at 8,000 - 9,000 pounds per square inch, they have yet to reach over 7,000 pounds of pressure. Not to mention Macondo well has to still be permanently plugged. Yes BP has had a small success, but we must not delude ourselves to the full scope of reality that has yet to play out with BP.
Biggs said, "It's too speculative for me. Are these people down in the Gulf who aren't going to be able to fish, and their business was fishing, are they going to be able to sue BP for payments for the next 20 years ? I don't know, it's to hard to call."
BP has lost almost 40 percent of their stock market value since the explosion and sinking of the Deepwater Horizon, but the company has rebounded 37 percent.
With the optimism from BP finally having success in placing their sealing cap and stopping the leaking oil on July 15th, many seem to think that everything is over with the oil spill. In reality, BP has still not reached the desired pressure in the testing of the well. The original target was set at 8,000 - 9,000 pounds per square inch, they have yet to reach over 7,000 pounds of pressure. Not to mention Macondo well has to still be permanently plugged. Yes BP has had a small success, but we must not delude ourselves to the full scope of reality that has yet to play out with BP.
Biggs said, "It's too speculative for me. Are these people down in the Gulf who aren't going to be able to fish, and their business was fishing, are they going to be able to sue BP for payments for the next 20 years ? I don't know, it's to hard to call."
BP has lost almost 40 percent of their stock market value since the explosion and sinking of the Deepwater Horizon, but the company has rebounded 37 percent.
Monday, July 26, 2010
Be Aware Of Scams In Wake Of BP (NYSE:BP) Oil Spill
While there are many people with good intentions, there are just as many who are looking to take advantage of people and scam them in the wake of BP's (NYSE:BP) oil spill. The Better Business Burea is warning people, the recovery efforts create a lucrative opportunity for scammers trying to make an easy dollar.
The first one is called the job scam. What usually accrues is job hunters are told to pay an upfront fee for training or to get a job. The BBB said that people were told they were being recruited for cleanup work that was supposed to be by BP, but there was no contract with the company. Don't take anybodys word for it, do your research to make sure these are legitimate companies, especially if using BP's name. Be very cautious of any company requiring an upfront fee.
The second is the claim scam, this one involved people receiving unsolicited email saying that the person qualifies for compensation from BP. There are also phony adjusters who ask for fees to expedite services according to the Federal Trade Commission. You can file a claim through BP's official website or by calling BP's claim line at (800) 440 - 0858.
The third one is the charity scam, which is where people pose as various charities to solicit donations. The BBB Wise Giving Alliance has a list of nationally solicited charities that meet the standards of the BBB and they are asking for volunteers and donations for the continued Gulf efforts.
The first one is called the job scam. What usually accrues is job hunters are told to pay an upfront fee for training or to get a job. The BBB said that people were told they were being recruited for cleanup work that was supposed to be by BP, but there was no contract with the company. Don't take anybodys word for it, do your research to make sure these are legitimate companies, especially if using BP's name. Be very cautious of any company requiring an upfront fee.
The second is the claim scam, this one involved people receiving unsolicited email saying that the person qualifies for compensation from BP. There are also phony adjusters who ask for fees to expedite services according to the Federal Trade Commission. You can file a claim through BP's official website or by calling BP's claim line at (800) 440 - 0858.
The third one is the charity scam, which is where people pose as various charities to solicit donations. The BBB Wise Giving Alliance has a list of nationally solicited charities that meet the standards of the BBB and they are asking for volunteers and donations for the continued Gulf efforts.
Friday, July 23, 2010
Tracking Bonnie Headed Towards BP (NYSE:BP) Oil Spill Site
According to the U.S. National Hurricane Center, tropical storm Bonnie is South of the Bahama's and is heading toward the southern tip of Florida - straight to BP's (NYSE:BP) oil infested waters.
It is on track to hit the Florida Keys tomorrow at 6:15pm at 40 miles per hour. The storm is expected to gain strength as it hits.
The storm is being watched carefully by forecasters to see what it will do as it enters the Gulf and if its on track to hit directly over the BP oil spill site. Jeff Masters, co-founder of weather underground, said that tropical storm winds hitting 50 MPH would force oil into the Louisiana marshes as well as into Lake Pontchartrain.
Travis Hartman, energy manager and meteorologist said, "Oil production in the central to western Gulf should monitor this system for possible increases in intensity, but most rigs can withstand tropical storm force winds fairly well."
It is on track to hit the Florida Keys tomorrow at 6:15pm at 40 miles per hour. The storm is expected to gain strength as it hits.
The storm is being watched carefully by forecasters to see what it will do as it enters the Gulf and if its on track to hit directly over the BP oil spill site. Jeff Masters, co-founder of weather underground, said that tropical storm winds hitting 50 MPH would force oil into the Louisiana marshes as well as into Lake Pontchartrain.
Travis Hartman, energy manager and meteorologist said, "Oil production in the central to western Gulf should monitor this system for possible increases in intensity, but most rigs can withstand tropical storm force winds fairly well."
Tuesday, July 20, 2010
Salazar Says No To Lifting Oil Drilling Moratorium: BP (NYSE:BP)
Ken Salazar announced the new moratorium, caused by BP (NYSE:BP) massive oil spill. He said, "So long as the spill is out there and has not been contained and the oil spill response capabilities are all being consumed by the current spill, it's too risky" to lift the moratorium. The revised version identifies at risk wells based on technologies and oil drilling configurations rather than the depth of water. The prior moratoriums focus was banning oil drilling below 500 feet.
Bobby Jindal, Louisiana's Governor said, "This second suspension of deepwater drilling is a clear sign that the administration is unwilling to follow the advice of their own scientist. The ultimate effect of this second moratorium is the same as the first. To shut down drilling operations in the Gulf and risk killing an estimated 20,000 jobs in Louisiana."
The new ban suspends drilling of 21 oil rigs in the Gulf, that's only 12 less than what the original moratorium would have affected. Several oil companies have said they'll go to other countries due to the ban on drilling. One of which is the largest U.S. deepwater oil driller, Diamond Offshore Drilling Inc.
Bobby Jindal, Louisiana's Governor said, "This second suspension of deepwater drilling is a clear sign that the administration is unwilling to follow the advice of their own scientist. The ultimate effect of this second moratorium is the same as the first. To shut down drilling operations in the Gulf and risk killing an estimated 20,000 jobs in Louisiana."
The new ban suspends drilling of 21 oil rigs in the Gulf, that's only 12 less than what the original moratorium would have affected. Several oil companies have said they'll go to other countries due to the ban on drilling. One of which is the largest U.S. deepwater oil driller, Diamond Offshore Drilling Inc.
Monday, July 19, 2010
BP (NYSE:BP) Kills Whale Skimmer With Dispersants
There has been much controversy surrounding BP's (NYSE:BP) use of the toxic dispersant Corexit, it's proving to kill off more than just marine life. The U.S. coastguard has deemed the Taiwanese skimmer called "A Whale" ineffective.
Due to the massive amounts of dispersants distributed into the Gulf, it broke up the oil resulting in "A Whale" not being able to properly skim the water for oil. There was a lot of optimistic hope that it would greatly assist in the removal of the toxic crude. During its testing it only removed minuscule amounts of oil.
Bob Grantham, TMT offshore spokesman said, "This ship demonstrated that it can bring substantial volumes of capacity to bear in addressing oil spills quickly and with great maneuverability. That said, the particular conditions present in the Macondo spill did not afford the vessel to recover a significant amount of oil. Due to the highly dispersed nature of oil in the Gulf."
Due to the massive amounts of dispersants distributed into the Gulf, it broke up the oil resulting in "A Whale" not being able to properly skim the water for oil. There was a lot of optimistic hope that it would greatly assist in the removal of the toxic crude. During its testing it only removed minuscule amounts of oil.
Bob Grantham, TMT offshore spokesman said, "This ship demonstrated that it can bring substantial volumes of capacity to bear in addressing oil spills quickly and with great maneuverability. That said, the particular conditions present in the Macondo spill did not afford the vessel to recover a significant amount of oil. Due to the highly dispersed nature of oil in the Gulf."
Tuesday, July 13, 2010
New Drilling Ban Issued By U.S. Government, Stemmed From BP (NYSE:BP)
After much criticism, the U.S. Government has issued a new revised moratorium which stemmed from BP's (NYSE:BP) disastrous oil spill. It was said Obama's administration would have to do this after a U.S. appeals court ruled against it, saying there wasn't legal basis to shut down all oil drilling. Especially when so many livelihoods depend upon it.
This new improved moratorium is geared more towards the people and business that have been effected. The priority being to protect the thousands of jobs in the Gulf region, while at the same time looking to make the oil industry safer. Ken Salazar, Interior Secretary, is to issue and put into effect the revised, more flexible moratorium at 4 pm EDT.
A government source said that under the new ban deepwater production will be allowed to continue, only some deepwater drilling will be banned. If new safety and environmental rules are meet than shallow drilling will be allowed to continue. If Salazar finds that deepwater drilling can be resumed safely, the freeze could end before November 30th, continued the source.
According to spokesman Robert Gibbs, the White House feels strongly that the revised moratorium will stand up in court.
This new improved moratorium is geared more towards the people and business that have been effected. The priority being to protect the thousands of jobs in the Gulf region, while at the same time looking to make the oil industry safer. Ken Salazar, Interior Secretary, is to issue and put into effect the revised, more flexible moratorium at 4 pm EDT.
A government source said that under the new ban deepwater production will be allowed to continue, only some deepwater drilling will be banned. If new safety and environmental rules are meet than shallow drilling will be allowed to continue. If Salazar finds that deepwater drilling can be resumed safely, the freeze could end before November 30th, continued the source.
According to spokesman Robert Gibbs, the White House feels strongly that the revised moratorium will stand up in court.
Monday, July 5, 2010
BP (NYSE:BP): We're Not Issuing Any New Shares
Despite the pressure BP (NYSE:BP) is feeling financially, they are saying there will be no more newly issued shares. Although they have been making overtures to several oil investors in different countries where there is good relations. In an attempt to entice them to purchase shares.
Shokri Ghanem, chairman of Libya's national oil company told Dow Jones, "BP is interesting now with the price lower by half and I still have trust in BP, I will recommend it to the Libyan Investment Authority." On Monday, a top Libya oil official said his country should take advantage of the oil company's falling share prices.
BP insists they are not trying to bring in specific investors with new equity. BP shares have lost over half their market value since the Gulf oil spill began in April. Today they saw an increase of 3.5 percent to 333.3p in London.
The Gulf of Mexico holds some of the world's largest sovereign wealth funds. They've previously put capital into into Western banks including Barclays and Citigroup. BP has an extensive history
with the UAE, home to numerous government controlled funds that invest specifically in energy assets.
Shokri Ghanem, chairman of Libya's national oil company told Dow Jones, "BP is interesting now with the price lower by half and I still have trust in BP, I will recommend it to the Libyan Investment Authority." On Monday, a top Libya oil official said his country should take advantage of the oil company's falling share prices.
BP insists they are not trying to bring in specific investors with new equity. BP shares have lost over half their market value since the Gulf oil spill began in April. Today they saw an increase of 3.5 percent to 333.3p in London.
The Gulf of Mexico holds some of the world's largest sovereign wealth funds. They've previously put capital into into Western banks including Barclays and Citigroup. BP has an extensive history
with the UAE, home to numerous government controlled funds that invest specifically in energy assets.
Saturday, June 26, 2010
BP (NYSE:BP) UPDATE: Storm Tracking
Tropical Storm Alex, the name of the first storm of the 2010 hurricane season could cause damage to BP's (NYSE:BP) oil rig and well. It also has the potential to move the oil slick closer to the Florida Panhandle beaches.
Senator Bill Nelson of Florida stated, "the greatest nightmare with this storm approaching is that it takes this oil on the surface of the Gulf and blows it over the barrier islands into the bays and the estuaries. And that is where you really get the enormous destruction, because it's just very difficult to clean up those pristine bays."
Alex's current course is heading West-Northwest and has sustained winds of 40 miles per hour and is about 250 miles from Chetumal, Mexico. As of now it does not appear that Alex path will take it directly over the massive oil slick, but as with any storm there is no predictability and their paths can change from hour to hour.
Meteorologist Karen Magginis says the "preferred scenario" for Alex to head to Northern Florida. The reasoning for this is because the oil has been slowly rotating counterclockwise. If Alex goes towards the East of it, it would send the oil out to sea. If the storms path goes directly towards the Gulf and Louisiana, it will cause the oil slick to be pushed towards Florida.
Magginis said, "we've never seen an oil spill that encompassed the Gulf like this before, end up do close to shore. We've never been in this situation before."
Senator Bill Nelson of Florida stated, "the greatest nightmare with this storm approaching is that it takes this oil on the surface of the Gulf and blows it over the barrier islands into the bays and the estuaries. And that is where you really get the enormous destruction, because it's just very difficult to clean up those pristine bays."
Alex's current course is heading West-Northwest and has sustained winds of 40 miles per hour and is about 250 miles from Chetumal, Mexico. As of now it does not appear that Alex path will take it directly over the massive oil slick, but as with any storm there is no predictability and their paths can change from hour to hour.
Meteorologist Karen Magginis says the "preferred scenario" for Alex to head to Northern Florida. The reasoning for this is because the oil has been slowly rotating counterclockwise. If Alex goes towards the East of it, it would send the oil out to sea. If the storms path goes directly towards the Gulf and Louisiana, it will cause the oil slick to be pushed towards Florida.
Magginis said, "we've never seen an oil spill that encompassed the Gulf like this before, end up do close to shore. We've never been in this situation before."
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