Federal Leadership?

[jackson33]

BP (BRITISH Petroleum) is a publicly traded equity on many exchanges including the NYSE (BP). In the past few weeks the Companies value (market cap) has dropped from around 200BUS$ to under 100B$. As both a foreign Company and one in the Oil/Gas Business, they are highly regulated by Congress and need permits to do much of anything, in addition to stages of any operation. Think about 2008, they did get out of the Retail Business in the US and any holdings along this area are to supply retailers. They do however employ around 30,000 people in the US.

 

http://moneycentral.msn.com/companyreport?Symbol=BP

 

To further advance a coming opinions, Royal Dutch Shell, also operates in the US both in similar operations and at the retail level with about 22,000 US employees. To get an idea how these Corporations are regulated this Shell "wiki" article may be interesting.

 

http://en.wikipedia.org/wiki/Shell_Oil_Company

 

The President of the US, members of his staff and member of Congress are making some very serious threats to not only BP, but to any major Oil/Gas Contractor or the hundreds of subcontractors that are involved under US Law for doing business in the event an accident actually does happen and they most certainly WILL happen. I'll just mention just a couple; The President has stated, BP should NOT pay dividends to their stockholders, until after the situation is fully resolved, which will only drive down the value of the Company further. It will be felt by every holder of their over 3B shares, which no doubt means every American on any form of 401k or retirement program.

 

While BP had nothing to do with Obama's moratorium on new exploration and/or drilling, it's being suggest BP should be liable for the wages of the effected over the next six month. Doing the math (25 rigs, 1200 workers @ $1800/wk each times 26 weeks) this would be at least 54M$/week, over 6 months over1.4B$, to cover HIS own moratorium. Please tell me the exact competency shown here?

 

The Louisiana Mid-Continent Oil and Gas Association estimates that each of the 25 operating Gulf rigs affected by the moratorium, and another five that had planned to begin operations before the end of the year, normally would employ between 800 and 1,400 workers. The average wages per worker is $1,804 a week. [/Quote]

 

http://www.nola.com/news/gulf-oil-spill/index.ssf/2010/06/president_barack_obama_expects.html

 

I won't go into it for now, but there is growing talk about the US Nationalizing the Oil Industry in the US and until the past year or so, I would have simply laughed off as some kind radical viewpoint. However, can you imagine any business that operates efficiency where management changes at least every two years and please lets not go back to the Post Office. In the first place, what few major operators that are American in the first place, would leave the country and find new sub-contractors to work with, or just go out of business.

 

What all this means to me is a simple lack of leadership by Government, whether it's coming from the Administration, Congress or both and currently in charge. The admission, by Obama or any member of the Administration, had not been in contact (they are now) with BP's CEO or management is a horrifying comment, when you consider the concentration of criticism of the Company, by the Federal Government. Get the job done, work with who ever is necessary to accomplish this and work out the cost after the situation is under control. The legal system, in my opinion is NOT going to be appreciated by Mr. Obama....and he is an educated lawyer???

[swansont]

BP (BRITISH Petroleum) is a publicly traded equity on many exchanges including the NYSE (BP). In the past few weeks the Companies value (market cap) has dropped from around 200BUS$ to under 100B$.

…

 

The President has stated, BP should NOT pay dividends to their stockholders, until after the situation is fully resolved, which will only drive down the value of the Company further. It will be felt by every holder of their over 3B shares, which no doubt means every American on any form of 401k or retirement program.

 

It's called "risk" and is part of any investment in stock.

 

 

 

While BP had nothing to do with Obama's moratorium on new exploration and/or drilling

 

I think BP has a little to do with the moratorium.

 

 

I won't go into it for now, but there is growing talk about the US Nationalizing the Oil Industry in the US

 

Please do go into it, because without corroboration this is just innuendo and unsubstantiated rumor.

[jackson33]

swansont; As I suggested, members of Congress have threatened different policy on the "Oil Industry", which includes "Nationalization". There is nothing new here and I doubt anyone else would contest my statement.

 

In May 2008, Waters told Shell Oil Company president John Hofmeister at the House Judiciary Committee's Task Force on Competition Policy and Antitrust law that if he did not guarantee reduced gasoline prices in exchange for reduction by Congress of oil drilling restrictions, she would favor nationalization of the American petroleum industry. She misspoke in a widely reported gaffe: "And guess what this liberal will be all about? This liberal will be all about socializing, uh, um...would be about, basically, taking over and the government running all of your companies."[18][19][20][21][22][23][24][25][26] [/Quote]

 

http://en.wikipedia.org/wiki/Maxine_Waters

 

Here is a more recent article, apparently favoring the idea "growing talk".

 

"Nationalization" is a term usually uttered in Washington only by a demagogic politician or two when gasoline prices rise too high and cartel power is suspected. But as the outrageous story behind the Gulf catastrophe emerges, it is pertinent to ask how this dangerous economic sector can be constrained. [/Quote]

 

http://www.salon.com/news/opinion/joe_conason/2010/05/27/nationalize

 

 

Secretary Salazar, based on a special report he ordered, asked for and received the "Moratorium", which he altered (just breaking news, can't verify this point yet)....however the reason that decision was made and effected BP cannot legally be held responsible for. As it stands right now, no one I'm aware of knows the cause or could possibly prove that actual cause for the blowout, explosion, fire or (VERY important) the rig collapse into the ocean. If you want something to debate, is it possible in trying to put out a natural gas fire with water on the rig itself, MIGHT HAVE BEEN THE ERROR....Point, when all the facts are known it may the weight of the water actually cause this collapse, the subsequent leaks and this entire issue. I'm not a physics expert, but in my simple world, some how sucking the oxygen over the source (fuel) of that fire, would seem better than water.

 

http://online.wsj.com/article/SB10001424052748704575304575296512071934290.html

 

It's called "risk" and is part of any investment in stock. [/Quote]

Again, if BP is solely responsible for this incident (not possible IMO), then they will no doubt go out of business selling off assets and the business community will pay the bill. But IMO, what you see working is a political policy to PLACE blame on a private business, if not they like Exxon, will survive or even reorganize.

 

The point I'm making here as was the original poster on this issue, was first get this problem solved and then worry about who pays what and if the Administration had not talked to BP while making some very ill advised (my opinion) comments, is destroying the very goose, he wants held responsible.

[Double K]

Sorry if this comes across as angry, but it is something that makes me very angry.

 

BP for one, has profited long and hard whilst communities, countries, and general populations are kept in poverty. This world is all about money, money is your god, worship it, do everything you can to protect it, fight for it, kill for it! It sickens me to my core.

 

To think that now this tragedy has been allowed to go on for so many weeks gushing black death into the oceans which will affect all of us in some way, don't underestimate it. This is a terrible event no doubt, and whilst the blame game rages, oil continues to spew into our eco-systems lifeblood, the ocean.

 

There are clear points that lead to this being the direct fault of BP. And to suggest that the company, shareholders and those whom have profited in the past from this company should not shoulder the financial burden is by any definition, unfair. In fact I think the shares should be frozen in that no one should be able to abandon this. If you profited from the boom, you must shoulder the fall-out from the irresponsible expansion which made you wealthy in the first place.

 

This disaster affects each and every one of us, some more directly, as livelihoods are destroyed. Lets just look past the financial problem here though. Everyone is talking about money in this situation, but that is seriously a minor issue here. Tax every person on the planet 3 cents, and clean this up. Seriously, it's just making me want to put my foot through my TV every day I hear this has not yet been plugged. Who cares at this point who is responsible? I sure don't, turn off the tap and then show them the bill - all talk about money should be taken off the table and all effort focused on stopping the fricken leak!

[jackson33]

Sorry if this comes across as angry, but it is something that makes me very angry.

 

BP for one, has profited long and hard whilst communities, countries, and general populations are kept in poverty. This world is all about money, money is your god, worship it, do everything you can to protect it, fight for it, kill for it! It sickens me to my core. [/Quote]

 

Double K; Likewise, I'm not interested in coming across angry, certainly never intend to be, however there is a good side to your thesis and possibly you don't realize it. BP during the 4 quarters before this incident, paid out over 23BUS$ to holders of their 3B+ shares This AFTER whatever taxes were paid in the UK, the US or any Country they operate in, then where ever the have facilities all kinds of local taxes, school taxes and whatever local taxes are in the other Countries. In the US they support 30,000 employees, including benefit packages. They hire subcontractors by the gross that do no less with in their capacity and between THEM and the other producers of crude, supply the engine for the Worlds economy any body that uses anything that crude oil or natural gas in the production of hundreds products has benefited from their efficiency or productivity.

 

BP is not John Smith, it's an entity made of people and worships nothing, in fact many years BP or any Capitalist Operation has or may lose money and all of the above suffers. It would be my opinion that BP and Capitalism in general has benefited the World population very well, from at least 1900.

 

To think that now this tragedy has been allowed to go on for so many weeks gushing black death into the oceans which will affect all of us in some way, don't underestimate it. This is a terrible event no doubt, and whilst the blame game rages, oil continues to spew into our eco-systems lifeblood, the ocean. [/Quote]

 

Lots of tragedies go on for weeks, months or even years, WWII comes to mind, some taking generations to get over. BP if responsible (certainly not totally) if it would have solved the problem, before it became a problem if possible. Nothing like this has ever happened, at least at these depths and any cure all has ever been developed. I'll repeat for you; The one major problem was never predicted, the sinking of the rig itself, it wasn't supposed to happen...