Update 3:47 PM: The White House just confirmed that there is a leak from the well BP had previously capped.
(This guest post previously appeared at Rep. Paul’s blog)
US futures are still higher, but have noticeably pulled back from highs made about an hour ago.
This doesn’t sound good.
[credit provider=”www.apimages.com” url=”http://www.apimages.com”] With BP finally capping the oil leak (hopefully, permanently), the bulls have come out to play. And not just in the stock market.Broyhill Asset Management thinks there’s profits to be made by investing in real estate in the oil spill zone with companies like Florida-based St. Joe […]
BP shares in London have rallied after BP, at least temporarily, completely stopped the flow of oil from the Gulf of Mexico.
Both BP and Goldman Sachs soared in the late minutes of trading today, with BP claiming to have closed the leak in the Gulf of Mexico and Goldman Sachs rumours, now confirmed, suggesting a settlement with the SEC.
Two impressive figures: $38.5 billion and $41.6 billion.
[credit provider=”T. Boone”] Given T. Boone Pickens’ penchant for pushing legislation which benefits his investments, as has been the case with alternative energy, we can now comfortably guess he’s against an offshore drilling ban.That’s because he’s the latest BP bull:
A lot of otherwise normal, well-functioning persons are firm believers in the idea that global oil production has irrevocably peaked — or is soon to peak irrevocably. Whether such a peak will result in total global collapse, or simply lead to widespread economic hardship, is a point of contention within […]
The billion dollar question is: What’s the future of BP?
BP is at a crucial stage in its process of capping the leaking Deepwater Horizon oil well.
Just a heads up: Between the talk of asset sales, a possible acquisition (seems doubtful, but it’s out there), and the possibility of capping the well, shares of BP are continuing to rise.
BP shares are up nearly 7% in London amid reports the company is preparing for a takeover defence against potential competitors such as Exxon, Chevron, or even PetroChina says the Telegraph. It’s also making progress on its relief wells in the gulf.U.S. oil majors Exxon (XOM) and Chevron (CVX) reportedly […]
[credit provider=”The White House via Flickr” url=”http://www.flickr.com/photos/whitehouse/sets/72157624332927216/”] Last week The White House began a major offensive to convince the private sector that it’s not actually anti-business.It probably won’t accomplish all that much on that front, but what’s important is the acknowledgment that this is becoming a real issue.
Five days before he had to appear before congress, the disgraced BP CEO was watching the World Cup in a Texas bar on June 12.
With the World Cup nearing its grand finale this Sunday, it’s time to look at the tournament’s winners both on and off the pitch.
BP has already begun using deep sea robots to change the cap on its leaking well in the gulf.
[credit provider=”United States Coast Guard” url=”http://cgvi.uscg.mil/media/main.php?g2_itemId=841814″] Elena Schor of Greenwire reports:In an under-the-radar release of new test results for its Gulf of Mexico oil spill workers, BP PLC is reporting potentially hazardous exposures to a now-discontinued dispersant chemical — a substance blamed for contributing to chronic health problems after the […]
Interesting. Shares of BP are down despite optimistic reports like this:
[credit provider=”AP”] Middle Eastern investors have reportedly considered becoming strategic investors with troubled BP, and BP shares have themselves been on rebound lately, fuelled by this news and the progress of its relief wells.Still, what’s most peculiar about Middle Eastern interest is that BP’s most prized assets aren’t its conventional […]
Well… July 27th wouldn’t have sounded ambitious back in APRIL (!) when the leak first happened, but given that previous estimates were for the relief wells to work at some point in the middle of August, this is ambitious.
[credit provider=”United States Coast Guard” url=”http://cgvi.uscg.mil/media/main.php?g2_itemId=841814″] Oil from the Deepwater Horizon gusher has been spilling in the Gulf of Mexico for about 80 days now.While BP has hired its own clean-up crew, the U.S. Coast Guard has been on the oil spill front lines as well.
Will BP be bailed out with a strategic investment from Abu Dhabi or Kuwait?
In the US, shares of BP are playing catch-up to the big rally the company saw in European markets on Monday.
BP shares rose more than 4% today in London despite the fact that major European markets lost ground, and at one point had jumped 4.8%.
[credit provider=”ProPublica”] Photographer Lance Rosenfeld was out in Texas City, Texas snapping photos of a BP refinery for the website ProPublica when things went terribly wrong. According to MSNBC, Rosenfeld was working on a story for PBS and ProPublica when a BP employee began following him and shortly thereafter, local […]
BP is pitching itself to potential strategic investors in Abu Dhabi, Qatar, and Kuwait, hoping to bolster its finances without asking for a government bailout, and to also protect it from potential M&A activity in the industry.They’ve taken a page right out of the old Barclays playbook:
The BP oil spill may have a much larger impact than polluting the Gulf of Mexico or bringing down the company. The oil manufacturer is interconnected with the larger economy by a number of means, but the derivatives trades it is a part of could be particularly destructive, if it […]
That big Caribbean depression we told you about this morning, which now has a 60% chance of becoming a Cyclone in the next 48 hours? It looks like folks are freaking out about it.
(This guest post previously appeared at The Oil Drum. This work is licensed under a Creative Commons Attribution-Share Alike 3.0 United States licence.)
Sorry, but if you’re following the Gulf, you have to keep your eye on this depression in the Gulf that nos has a 60% chance of turning into a Cyclone in the next 48 hours.
More heartwarming news from the Gulf, courtesy of FOX Tampa Bay:
As American anti-drilling passions run hot thanks to BP’s gulf oil disaster, environmental groups have been taking advantage of the momentum to attack U.S. land-based shale gas drilling. You may recall that shale gas technology offers to deliver vast amounts of cheap, domestically-produced natural gas to the U.S..
Some depressing news regarding one of the Gulf deaths reported earlier.
The latest from the NOAA, regarding the depression in the Carribean taht’s aiming for the Gulf:
Was the Deepwater Horizon disaster solely a fluke caused by BP (BP), Transocean (RIG), and/or Anadarko (APC)? Or was it a risk that came with the entire offshore industry, including other players who escaped the blame?
Here’s a quick followup to our item yesterday about Larry King’s “endgame,” as David Carr puts it, at CNN.
Great story here from Kate Hubbard at Mother Jones regarding the judge in Louisiana who overturned Obama’s drilling moratorium.
The idea that moral hazard and the liability cap caused the BP oil spill is clearly rubbish, as we argued yesterday, but that doesn’t mean those of the free-market pursuasion have to sit totally silent during this debate.
Shares of BP are down over 2% this morning, threatening to break to a new low.
Around 8 P.M. on Monday night, Microsoft updated its Twitter account @bing with the following status:
We heard it after the financial crisis, that a large reason the banks imploded was moral hazard — the notion that because they could reasonably expect a government backstop in the event of a crisis, they were incentivized to take outside risks.
Over the years, I have invested so much time wildcatting in the oil patch that I will never be wanting for great steaks at Nick & Sam’s in Dallas, skyboxes at Cowboys games, and personally signed 8 X 10 glossy photographs of George W. Bush. So to get the skinny […]
The Deepwater Horizon oil spill has been blamed on a myriad of different people, including BP‘s CEO Tony Hayward, U.S. President Barack Obama, U.S. President George W. Bush, and oil consuming Americans. And while all those people had a part to play in the accident, the real fault here is […]
BP CEO Tony Hayward is set for a massive 10.8 million pound ($16 million) payout if he chooses to step down, according to The Telegraph.
The Deepwater Horizon oil spill remains the central catalyst to movements in the CDS markets. BP has seen its activity continue to rise since the start of the spill, but other companies involved in the spill, like Anadarko and Transocean, have seen the amount of activity in their CDS decrease.
Shares of BP will not likely be participating in the broad market rally today.
Not surprisingly, the news that Tony Hayward spent his weekend attending a yacht race did not go over well.
Little by little, the most apocalyptic oil scenarios are becoming more realistic.
According to UK’s The Telegraph, Bp intends to sue Anadarko (APC), the 25%-owner of the Deepwater Horizon, which has so far refused to shoulder any of the burden for cleanup costs.
After BP announced yesterday that its Tony Hayward would give up day to day oversight of the Glf cleanup operations, the embattled CEO wasted not time getting his life back.
From Joe Nocera at the New York Times…
Anadarko Petroleum (APC), who owns 25% of the leaking gulf oil well with BP, has joined the BP bash-fest, ripping into its business partner BP, and apparently refusing to accept any responsibility.
Dmitry Medvedev is annoyed that just after he agreed to back a UN plan to impose sanctions on Iran to prevent the country from building a nuclear bomb, the UN voted to impose yet more sanctions.
(Reprinted with permission from Reuters) – As early word of BP’s Deepwater Horizon blowout began spreading, investors panicked. After closing above $60 before the April 20 disaster, the energy giant’s shares plunged almost 20 per cent in New York, to below $50, in just two weeks.It is not hard to […]
Since apparently no U.S. bank will loan money to BP to clean up the oil spill, and they can’t finance $20 billion themselves, BP is going to 7 European banks to quietly ask them to help clean up their mess.
You knew BP was a hot issue right now, but not this much. Pew research did a survey and the results are astounding — 59% of Americans are following the BP oil leak story (shown in the top blue bar below), which blows away the tiny 8% of Americans who […]
According to Sky News, BP’s Chairman Carl-Henric Svanberg has said BP CEO Tony Hayward has been relieved of command of day to day operations in the Gulf.
Some awful things have happened over the past few years, but the vilification of business magnates is nonproductive.
There is one question that I would really like an answer to. Who died and made BP king of the Gulf of Mexico? In recent weeks, BP has almost seemed more interested in keeping the American people away from the oil spill than in actually cleaning it up.
The Congressman who made fireworks this morning by saying that Obama engaged in a shakedown of BP has apologized.
A reporter for local New Orleans news station WDSU tried to interview some BP employees on a beach in Louisiana and was met by a BP-hired security guard and was told he shouldn’t disturb the workers reports The Consumerist. According to the video (shown below), the media needs to stay […]
As BP prepares to raise $10 billion from the debt markets, the company is apparently pulling out all the stops to get banks to help it.
Jim Chanos spoke with Bloomberg Television today about his positions in big oil. He isn’t specifically targeting BP, but is instead shorting big oil because they haven’t seen an increase in revenues in years.
[credit provider=”Bloomberg”] On Bloomberg, famed short-seller Jim Chanos has revealed his latest shorts. While he’s not short BP (he’s looked at it, but can’t figure out a bet one way or another), he is short other big oil majors.Why? The cost of drilling and exploration is going up, and it’s […]
The market has suddenly become much more confident in the prospects for BP, as shown by an enormous rally in the company’s credit default swaps (CDS). BP’s CDS spread dropped nearly 20% to just under 462 basis points according to CMA Datavision.
BP’s new $20 billion escrow account to help clean up the Gulf of Mexico and those hurt by the spill does not count for much. It will hurt BP’s shareholders for a while but does not solve BP’s long-term liability problem.
Bill Gross is a buyer of BP (BP) and Anadarko APC) short-term debt.
BP’s competitors are watching the company’s crisis intently, ready to pounce should a cash-strapped BP be forced to sell some of its world-class energy assets at bargain basement prices.
[credit provider=”BP”] BP announced today that it’s setting aside $20 billion in an escrow account, witch Kenneth Feinberg will disburse to those victims who were damaged in some economic manner.But this is just a fund for economic damage, and won’t protect it against all sorts of other legal costs.
Shares of BP are up about 4% since the company’s executives emerged from their meeting with The White House, and announced its dividend cut.
Classic. Here’s BP Tony Hayward — fresh off of disgorging $20 billion and agreeing to drop his company’s dividend — smiling after he leaves The White House.
Not altogether surprising, but BP’s Chairman Carl-Henric Svanberg just announced that the battered oil giant will suspend its dividend for the year.
Jim Rogers spoke with CNBC this morning about a range of issues including BP and the situation in the eurozone.
BP is set to put $20 billion into Obama’s escrow account, according to NYT.
Right now, investors in the world oil and gas market are reeling from the impact of the Deepwater Horizon oil spill.
President Obama’s speech on the future of U.S. oil last night disappointed many viewers and oil executives alike, and the markets are now even more worried about the future of some of the industry’s biggest names.
[credit provider=”Greenpeace”] In case it weren’t screamingly obvious already, the market is seriously concerned about a BP bankruptcy or default.Bloomberg:
For those of you assuming that the ultimate solution will come from a relief well, Der Spiegel throws some cold water on “Bottom Kill,” and why it’s no sure thing.
Just in case you hadn’t looked at it in a while, we feel compelled to bring this back, and point out that oil continues to rage headlong from the centre of the Earth right into the Gulf of Mexico. Apparently 90% of the flow is expected to be captured soon. […]
[credit provider=”Greenpeace”] Bank of America traders aren’t allowed to trade with BP anymore.From Reuters:
Congressman Ron Paul spoke to CNBC today about how he feels President Obama is taking too much of the blame for the BP Deepwater Horizon oil spill.
[credit provider=”Deepwater Horizon Response”] Tony Buzbee, the Houston lawyer who’s gunning after BP, is coming out saying that he has evidence that “casts doubt” on BP’s claim that the negative pressure test, a routine safety procedure, was successfully carried out. BP admits that two of these negative pressure tests on […]
[credit provider=”The White House”] BP is already down and out, but President Obama has the power to force the petroleum company into bankruptcy once and for all. An article published in the New York Post this morning details the ‘nuclear option’ in which Obama could yank BP’s oil rig leases […]
Nothing says ‘no quick fix’ like building long-term accommodations for the responders:WSJ:
Shares of BP have hit a new low today, and have now lost about $90 billion since the crisis began. But at least for now BP is maintaing its dividend!
BP must be increasingly worried as it continues to watch its market cap drop like a fly since the April 20th Deepwater Horizon explosion.
One more thing to consider on the news that Afghanistan is supposedly sitting atop $1 trillion in untapped natural resources…
[credit provider=”Greenpeace”] Anti-BP rhetoric has been understandably more fierce in the U.S. than in the U.K..Yet when it comes to investing, large American funds appear to have stuck with the company while their British peers cut and ran:
Interesting note from ChicagoUnionNews.com regarding BP:
[credit provider=”The White House”] More than 50 days after the initial spill in the Gulf, Barack Obama is set to make his strongest move yet, with a speech to the nation on Tuesday night, according to The New York Times.Specifically, he’ll outline a plan that forces BP to set aside […]
[credit provider=”The White House”] President Barack Obama is trying to calm the storm that has erupted because of his comments linking BP to the country that used to own it, the United Kingdom.Today Obama said that his attacks on BP have, “nothing to do with national identity.”
Click here to see the week’s charts as a show →
Pretty cool graphic from the Guardian in the UK. It helps to explain why the Brits think we Yanks are being less than honest with ourselves regarding our anger at BP.
Felix Salmon posted this look at just how much BP’s brand has tanked since the start of the Deepwater Horizon oil spill in April.
CNBC spoke to David Buik of the Cantor Index and Nile Gardiner of the Margaret Thatcher centre for Freedom about the scale of conflict between the U.S. and UK over the BP spill.
Credit market concerns over the fate of companies involved in the Deepwater Horizon oil spill have sent CDS prices through the roof.