Wednesday 8 September 2010

BP to publish blamestorm report

A BP report is out today detailing the circumstances around the Gulf Oil blowout which caused so much damage in the USA. Sadly for BP, they are going to be honest whichi s the right thing to do, just not in the USA. I fully expect that BP to accept much of the blame fo the Deepwater Horizon failure. The lawyers for Transocean and Haliburton will no doubt be urging their executives to admit no wrongdoing and blame all on BP. As you may have noticed from previous coverage, President Obama relishes saying BP at every opportunity. David Cameron even asked him to tone this down and he completely ignored the request. The US of A is united against this foreign organisation.

BP is facing a massive clean up bill and over 300 lawsuits. This is going to tie the company down for years to come - many of the lawsuits will be based upon the evidence released today. The share price is steady this morning at 407p, but there is still much downside for the company to navigate. Shareholders are going to have to wait a long time before they get a good picture of the kind of damages BP is going to have to pay out and the costs of all these lawsuits. I won't be buying any BP shares for a while.


Sebastian Weetabix said...

You're quite right about the honesty thing, CU. Yanks expect cover-up so when you are honest & give full disclosure (as I once found to my cost) they assume it is even worse than you admit and come after you all the harder. After all, in a litigious society you'd be stupid to fess up, so no-one does. Consequently they don't believe you when you do! Blame the subcons was the only sensible option here.

roym said...

they may be playing with a straight bat now, but with their own US legal team retained, theres no way the Subcontractors are getting off the hook. lawyers will be making hay for some time before a penny/cent is paid out.

Dick the Prick said...

I guess what can be learned from this is that deep sea drilling is pretty cool environmentally; maybe not being on the rig, though.

I can't really get round to blaming Obama though, sure it's opportunistic but with poll ratings like that i'd be thinking of Iran in terms of when, not why. Plus CallMeDave did tell him to piss off about extending QE (although, isn't the jury still a bit out on that one depending).

Newsnight's just starting and FFS, they'be just been wrong about everything today; natch eading with some bollox angle on BP with the eternal addenda 'the worst environmental blah blah in Yanky history' (every single time on Toady this am).

The Kuennesberg got Twittered through Guido at PMQ's and it was surreal as to her analysis and, you know, every one else! I despair. Hmm