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.
Showing posts with label Oil Companies. Show all posts
Showing posts with label Oil Companies. Show all posts
Monday, August 23, 2010
Friday, July 23, 2010
Energy Bill Will Hold Companies Like BP (NYSE:BP) Oil Accountable
The scaled down energy bill is expected to be introduced next week which will hold oil companies like BP (NYSE:BP) oil accountable. Harry Reid, Senate majority leader wouldn't get into details of the energy bill, but he did say there are four main goals. To hold "BP accountable," to "create clean energy jobs," to invest in the making of natural gas vehicles, and to lessen the U.S. dependency on foreign oil.
This is due to growing opposition in Congress among Republicans and centrist Democrats. They want to see more aggressive measures to curb carbon emissions. Reid said, following a Democratic meeting that he was well aware of the lack of support for a more far reaching bill. He was confident that the efforts would continue to "lay the foundations for a safer and stronger future."
The bill is expected to have a dramatic impact on oil companies with U.S. offshore drilling operations. It can include new regulations on rig safety which would be designed to prevent another oil spill disaster like BP has had. It also may increase the liability amount if there is an accident.
This is due to growing opposition in Congress among Republicans and centrist Democrats. They want to see more aggressive measures to curb carbon emissions. Reid said, following a Democratic meeting that he was well aware of the lack of support for a more far reaching bill. He was confident that the efforts would continue to "lay the foundations for a safer and stronger future."
The bill is expected to have a dramatic impact on oil companies with U.S. offshore drilling operations. It can include new regulations on rig safety which would be designed to prevent another oil spill disaster like BP has had. It also may increase the liability amount if there is an accident.
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.
Tuesday, July 13, 2010
Republican Hid The Fact He Holds BP (NYSE:BP) Stock
Republican candidate for the U.S. Senate in Wisconsin, Ron Johnson, released his business portfolio Friday which includes shares of BP (NYSE:BP) stock, as well as two other oil companies totaling $181,000 to $466,000. It's being said that he is putting his own financial interest before the interest of the state.
Mike Tate of the Democratic Party said, " This is a fact he failed to mention and tried to hide from voters for the last month and a half, all the while shilling for big oil interests." His financial holdings are being questioned because of his criticism of President Obama and his stance towards BP. He pressured the company to set up the victim claims fund, while saying BP should be held accountable. While he objects to the their Administration Method's.
Johnson pointed out how Democrats statewide are benefiting from the Wisconsin Retirement Fund which holds BP stock. Tate's response, " We're not talking about a mutual fund when it comes to Ron Johnson, these are direct personal investments in oil companies."
Johnson states that his profile is diverse and he does not only hold stock in oil companies. When Tate was questioned if Johnson would sell the stock if that would take care of the problem he said, " I don't think it does, because this is something he makes money from. He makes money from BP regardless of what he does going forward, it's obvious he's just going to be to try to make up for the fact that he hid from voters that he owns substantial interest in this company and he has been publicly defending this company."
Mike Tate of the Democratic Party said, " This is a fact he failed to mention and tried to hide from voters for the last month and a half, all the while shilling for big oil interests." His financial holdings are being questioned because of his criticism of President Obama and his stance towards BP. He pressured the company to set up the victim claims fund, while saying BP should be held accountable. While he objects to the their Administration Method's.
Johnson pointed out how Democrats statewide are benefiting from the Wisconsin Retirement Fund which holds BP stock. Tate's response, " We're not talking about a mutual fund when it comes to Ron Johnson, these are direct personal investments in oil companies."
Johnson states that his profile is diverse and he does not only hold stock in oil companies. When Tate was questioned if Johnson would sell the stock if that would take care of the problem he said, " I don't think it does, because this is something he makes money from. He makes money from BP regardless of what he does going forward, it's obvious he's just going to be to try to make up for the fact that he hid from voters that he owns substantial interest in this company and he has been publicly defending this company."
Monday, July 12, 2010
Exxon (NYSE:XOM) Company Takeover of BP (NYSE:BP)
There has been much speculation over investors possibly purchasing BP (NYSE:BP), apparently the U.S. Government has opened the door for Exxon Mobil (NYSE:XOM) to "take a look" and purchase BP for a complete company takeover. A merge of the two oil companies would put Exxon's total stock market value at over $400 billion. When asked about the validity of these claims, both companies refused to comment.
Tony Hayward, BP's chief executive, held several meetings last week with several potential "friendly" oil investors. The cause was the possibility of a hostile bid that Hayward said he was fully aware of. BP has stated openly that they plan on selling some of their assets to help cover some of the costs incurred by the massive oil leak.
They have already began talks with several rivals. The U.S.'s largest independent oil group, Apache Corporation, is named as one of the companies being in exclusive talks with BP to purchase $12 billion of investments. Including the biggest oil field in North America, Prudhoe Bay.
A BP spokesman said, " We've said we're going to be divesting about $10 billion over the next 12 months as a result of the spill, but we have no comment on specific deals."
Tony Hayward, BP's chief executive, held several meetings last week with several potential "friendly" oil investors. The cause was the possibility of a hostile bid that Hayward said he was fully aware of. BP has stated openly that they plan on selling some of their assets to help cover some of the costs incurred by the massive oil leak.
They have already began talks with several rivals. The U.S.'s largest independent oil group, Apache Corporation, is named as one of the companies being in exclusive talks with BP to purchase $12 billion of investments. Including the biggest oil field in North America, Prudhoe Bay.
A BP spokesman said, " We've said we're going to be divesting about $10 billion over the next 12 months as a result of the spill, but we have no comment on specific deals."
Monday, June 28, 2010
Shell Oil (LSE:RDSA) Reaches Gulf Deal With Noble
Shell Oil (LSA:RDSA) has reached a deal with Noble Corp. that gives them $4 billion of new contracts. Noble is also purchasing Frontier Drilling, a privately held company for $2.16 billion in cash.
Shell will be paying reduced fees for the leasing of Noble's rigs in the Gulf of Mexico. They have also given Shell the full right to cancel any contracts between the two rigs currently in the Gulf. Due to President Obama's six month moratorium on deepwater drilling.
The agreements are contingent upon Noble closing the deal with Frontier. Upon doing so, Shell will have the go ahead for the two ultra deepwater projects according to the terms of the contract. Anadarko pulled out of their contract with Noble in the beginning of June from drilling contracts due to the moratorium.
John Breed, a Noble spokesman said the purpose of the Shell purchase is to hopefully ease concerns and prevent oil companies from fully abandoning agreements in the Gulf. " We're working with our customers to find a resolution that would allow them to keep rigs under contract," said Breed.
Shell will be paying reduced fees for the leasing of Noble's rigs in the Gulf of Mexico. They have also given Shell the full right to cancel any contracts between the two rigs currently in the Gulf. Due to President Obama's six month moratorium on deepwater drilling.
The agreements are contingent upon Noble closing the deal with Frontier. Upon doing so, Shell will have the go ahead for the two ultra deepwater projects according to the terms of the contract. Anadarko pulled out of their contract with Noble in the beginning of June from drilling contracts due to the moratorium.
John Breed, a Noble spokesman said the purpose of the Shell purchase is to hopefully ease concerns and prevent oil companies from fully abandoning agreements in the Gulf. " We're working with our customers to find a resolution that would allow them to keep rigs under contract," said Breed.
Friday, June 25, 2010
Oil Funds, Oil Options: Oil Companies Falling Short Exxon (NYSE:XOM), Shell (LSE:RDSA), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP), BP (NYSE:BP)
Edward Markey, a Democrat from Massachusetts criticized BP (NYSE:BP), Exxon Mobil (NYSE:XOM), Shell (LSE:RDSA), Chevron (NYSE:CVX), and Conoco Phillips (NYSE:COP) for not funding any new response and safety tools.
The tools being used in the BP oil cleanup in the Gulf of Mexico are pretty much the same tools that were used in the Exxon Valdez oil cleanup effort. Skimmers to collect the oil, booms to contain it, and the main weapon being used chemical dispersant's. Markey is proposing a bill that will broden oil options by using oil funds to the tune of $50 million being used to develop deep water drilling, and put it towards funding research for better oil spill clean up tools as well as new oil spill prevention methods.
Markey said, "the oil companies have been lying when they said they had the capacity to handle an emergency like the Deepwater Horizon spill. We can't afford to get stuck again without the tools to respond to a spill like the one we're seeing in the Gulf. It is clear that the oil companies have not created new solutions to keep their new drilling technologies safe."
The tools being used in the BP oil cleanup in the Gulf of Mexico are pretty much the same tools that were used in the Exxon Valdez oil cleanup effort. Skimmers to collect the oil, booms to contain it, and the main weapon being used chemical dispersant's. Markey is proposing a bill that will broden oil options by using oil funds to the tune of $50 million being used to develop deep water drilling, and put it towards funding research for better oil spill clean up tools as well as new oil spill prevention methods.
Markey said, "the oil companies have been lying when they said they had the capacity to handle an emergency like the Deepwater Horizon spill. We can't afford to get stuck again without the tools to respond to a spill like the one we're seeing in the Gulf. It is clear that the oil companies have not created new solutions to keep their new drilling technologies safe."
Saturday, June 19, 2010
Oil Companies Must Rewrite Spill Response Plans: Exxon (NYSE:XOM), Shell (LSE:RDSA), ConocoPhillips (NYSE:COP), Chevron (NYSE:CVX)
At a House Energy meeting, it was determined that Exxon (NYSE:XOM), Shell (LSE:RDSA), ConocoPhillips (NYSE:COP), and Chevron (NYSE:CVX) are as unprepared as BP with their oil spill response plans. U.S. Representative Edward Markey is going to ask the executives of each of these oil companies to revise their plans.
Markey said," there has to be a complete inspection of every facility in the Gulf, not just BP. The only thing worse than one oil rig in the bottom of the Gulf of Mexico, would be two oil rigs in the bottom of the Gulf of Mexico. We have to make sure there are no ticking time bombs." He also said the plans were "90 percent identical" for all five companies.
This is the exact reason Obama declared a six month moratorium and any deepwater drilling. To give the government time to investigate and complete their investigation as to the causes of the Gulf of Mexico oil spill. This ban has effected 33 drilling rigs in the Gulf. There are 17 members of the House from Gulf Coast states who are urging Obama to lift the ban as it will effect over 20,000 jobs in the area.
According to a lawmakers statement, "many offshore drilling companies will not be able to survive the ban."
Markey said," there has to be a complete inspection of every facility in the Gulf, not just BP. The only thing worse than one oil rig in the bottom of the Gulf of Mexico, would be two oil rigs in the bottom of the Gulf of Mexico. We have to make sure there are no ticking time bombs." He also said the plans were "90 percent identical" for all five companies.
This is the exact reason Obama declared a six month moratorium and any deepwater drilling. To give the government time to investigate and complete their investigation as to the causes of the Gulf of Mexico oil spill. This ban has effected 33 drilling rigs in the Gulf. There are 17 members of the House from Gulf Coast states who are urging Obama to lift the ban as it will effect over 20,000 jobs in the area.
According to a lawmakers statement, "many offshore drilling companies will not be able to survive the ban."
Monday, June 14, 2010
Anadarko's (NYSE:APC) Fuel Spill Containment Responsibilities
While so many people are focused on BP, Halliburton, and Transocean, many are forgetting about Anadarko's (NYSE:APC) fuel spill containment responsibilities.
Anadarko, who owns a 25 percent stake of the Macondo discovery, the site of the explosion and oil leak that followed, has lost 33 percent or 25 billion of market capitalization since April 20th. BP who is working in the field unlike Anadarko, has lost $69 billion or 37 percent. If Anadarko is required to foot their 25 percent of the bill, that would equal to $98 billion. While BP's share at 67 percent of the discovery puts their required cost at $106 billion.
Obviously, this is no where near what oil stock prices are reflecting, which is much less. BofA Merrill Lynch Global Research estimates the net value of present claims could run close to 11 billion total. What's completely uncertain is what the potential punitive damages will end up costing these oil companies. By looking at BP's share prices, it's expected to be extremely high.
The question is, will Anadarko also be held responsible and required to pay anything past the initial oil cleanup costs. Anadarko has stated their interest in Macondo did not come until well after drilling began. They're also maintaining they had no involvement in the operating procedures or in designing the well.
The American Association of Professional Landmen's Form 810 clearly states, all parties to the agreement usually bear liability for damages based on their stake except "when liability results from the gross negligence or willful misconduct" of one of the involved parties. So if BP ends up being found grossly negligent, it would open the door for Anadarko being able to contest paying any punitive damages.
Anadarko, who owns a 25 percent stake of the Macondo discovery, the site of the explosion and oil leak that followed, has lost 33 percent or 25 billion of market capitalization since April 20th. BP who is working in the field unlike Anadarko, has lost $69 billion or 37 percent. If Anadarko is required to foot their 25 percent of the bill, that would equal to $98 billion. While BP's share at 67 percent of the discovery puts their required cost at $106 billion.
Obviously, this is no where near what oil stock prices are reflecting, which is much less. BofA Merrill Lynch Global Research estimates the net value of present claims could run close to 11 billion total. What's completely uncertain is what the potential punitive damages will end up costing these oil companies. By looking at BP's share prices, it's expected to be extremely high.
The question is, will Anadarko also be held responsible and required to pay anything past the initial oil cleanup costs. Anadarko has stated their interest in Macondo did not come until well after drilling began. They're also maintaining they had no involvement in the operating procedures or in designing the well.
The American Association of Professional Landmen's Form 810 clearly states, all parties to the agreement usually bear liability for damages based on their stake except "when liability results from the gross negligence or willful misconduct" of one of the involved parties. So if BP ends up being found grossly negligent, it would open the door for Anadarko being able to contest paying any punitive damages.
Friday, June 11, 2010
Current Stock Prices Dropping: Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX)
As we've watched many of the oil companies stock drop, Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) are also seeing current stock prices dropping today. The oil and gas industry as a whole is in a downtrend.
Exxon has seen a decline of 0.6 percent bringing it to $61.32. The Dow Jones Industrial Average is also down 31 points or 0.3 percent lower to 10,141. This downward trend is seen on the S&P 500 as well, losing 0.3 percent to 1,079. Seeing an increase is the Nasdaq Composite Index of 0.2 percent.
Crude oil futures fell below $74.00 a barrel causing a decline in energy stocks, as well as the Exxon decline Chevron also dropped 1 percent.
"People are seeing that the economy isn't booming, but it's also not getting worse," said Malcom Polly, chief investment officer at Stewart Capital Advisors. "That's why the confidence numbers are getting a little better. But actual spending still isn't strong enough where we can say that we'll get a traditional consumer led recovery."
Exxon has seen a decline of 0.6 percent bringing it to $61.32. The Dow Jones Industrial Average is also down 31 points or 0.3 percent lower to 10,141. This downward trend is seen on the S&P 500 as well, losing 0.3 percent to 1,079. Seeing an increase is the Nasdaq Composite Index of 0.2 percent.
Crude oil futures fell below $74.00 a barrel causing a decline in energy stocks, as well as the Exxon decline Chevron also dropped 1 percent.
"People are seeing that the economy isn't booming, but it's also not getting worse," said Malcom Polly, chief investment officer at Stewart Capital Advisors. "That's why the confidence numbers are getting a little better. But actual spending still isn't strong enough where we can say that we'll get a traditional consumer led recovery."
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