http://www.nhc.noaa.gov/ Maybe luck will be on our side and we see no hurricanes until after the relief wells are operating at full strength. But don't count on it lest your heart sink when the nearly odds on hurricane forms in the Atlantic heading for the Gulf. I have heard that there is 100 miles of underwater oil many feet deep. The environmental disaster to marine life is incalculable at this moment, but it is likely to be catastrophic. Jacques Cousteau son was in tears last night over this mess. There was interview on NPR this morning where this woman claims that BP is a diversified multinational. Maybe so, but my understanding is that they put nearly all their eggs in the Gulf basket. Pressed on the future of the dividend and BP she claims all is well. I wonder if she is stupid or a paid shill. I don't see how BP survives.
I think it will depend on which assets will be tied to the operation responsible for that rig. If they set up BP with lots of subsidiary corps (as any big corp would - for just this reason) they will have a legal argument that it was not BP - Europe - or BP the owner of oil rights - But - BP the company who supplies IP to drilling teams that should answer for the debt. So when the potential creditors go to take them down. They will offer up a few assets, some insurance and essentially a chapter 11. The plaintiffs lawyer will argue like hell for the rest of the companies assets, but in the end it will probably be up to the courts. Its the reason why it drives me nuts that the adminstration sat back and let BP handle this. You watch - these politicians will pull a greenspan and say we did not know... liability would be capped. BP probably already considers their liability capped and maxed out and probably knew so from the moment of the explosion. We are being fed so many lies by the Polticians and even the Jack offs on CNBC - it is enough to drive me nuts. What they need is lawyer on there who spends some time on edgar looking at the contracts, the law and the exposure. ( I am sure many hedge funds have already done the calculus because I doubt I am the first lawyer to figure this out.) In the end it is likely to get political. Congress will want to take them down piece by piece (on t.v.) But in the end the E.U. will stand behind them as they tell Congress and each state to suck oil.
Aren't there 2 other parties responsible, or is BP solely on the hook for this? I think the use of dispersants was a move on BP's part to keep as much oil as possible out of sight. Even if 60% eventually rises there will still be plenty thats never seen. Better than all of it, for them.
Yah it will make for a bigger mess, but they will be able to shut down operations for a week or so and the price of oil will probably go up.
I agree. How exactly do the British people justify telling the US anything So we let them drill on our shores, they royally fuck up, and they are yelling at us. What? Did I miss division by zero somewhere? I still don't see how BP avoids the goose egg stock price. Ok, maybe it goes to $1.
BP is going to do everything in their power to not disclose exactly how much cushion they have in their war chest. Double digit billions profit in a year. That'll wipe up alot of pelicans and fishermen. They've proven they can't be trusted so why believe anything they float.
Im a catastrophe insurance adjuster, I say bring on the hurricane claims and the BP business interrupiton claims.