BP looks Strong one year after Gulf of Mexico Oil spill

One year ago BP (NYSE:BP) was rocked by an offshore oil rig disaster, financial havoc and a US media out for its “Blood”.

The Oil giant at the center of one of the World’s biggest environmental crises is making strong profits once again, its stock has rebounded, and it is paying dividends to its shareholders.

Further, BP is pursuing new ventures from the Arctic to India, and positioning to explore in the deep waters of the Gulf of Mexico again, where it holds more leases than any competitor.

“BP has a critical role to play in meeting the world’s ever-growing need for energy,” BP chairman Carl-Henric Svanberg said at the Company’s annual meeting in London last week.

While some of this angers Gulf Coast residents, it is a testament to some handling of the crisis by the Company, which after some major missteps early on, then adopted a careful communications strategy and assigned an outsider to handle victims’ compensation claims.

The Company’s decision to open its checkbook and pump hundreds of millions of dollars into Gulf communities, help out-of-work rig hands and support Gulf research also contributed to the good will turnaround.
BP has estimated that the spill will cost the company at least US$40.9B but is set to force some of its partners on the destroyed rig to assume some of those costs.

There is also some long term damage in the Gulf, including empty hotels, out-of-work oystermen and fears of a badly disrupted underwater ecosystem.

BP officials point out that they set aside US$20B for a fund that is still processing claims for victims of the disaster, though only US$3.8B of it has actually been paid so far. They also still employ cleanup and recovery workers as needed.

Company officials also say they are living up to their commitments to restore the region’s economy and environment.

BP is not shirking away from the Gulf, though it is moving more methodically there amid the political currents.

The 1st deep-water permit issued after the Obama administration lifted a post-spill drilling ban went to Noble Energy Inc. (NYSE:NBL) for work on a well off the coast of Louisiana.

BP is not the operator but it has a 46% stake in the well. BP also bought out Shell’s 25% interest in 2 Gulf fields in December, making BP the sole owner of both.

BP’s spokesman Scott Dean said the leading leaseholder in the Gulf, will remain active in all facets of the Gulf of Mexico Crude Oil exploration. The Company has applied for a permit to drill 1 new well in the Gulf and is certain to apply for more.

The Bureau of Ocean Energy Management Regulation and Enforcement said BP’s applications will be weighed just like any other company’s.

Yes, the Oil giant still has a lot of work to do to improve its reputation. BP CEO Dudley spends a great deal of time reassuring detractors.

“We need to earn back your trust, along with that of state and federal leaders and the trust of Gulf Coast residents and customers,” he said at an industry conference in Houston last month. “We are determined we will once again restore that trust, and I realize this requires action, not words.”

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

www.livetradingnews.com

For More Information Contact

Chutinush Taksinapinunt (ANISTA)

Business Development Director

Heffernan Capital Management

Info@Heffcap.com

Join the HCM Sophisticated Investor List

Suite 53 Athenee Tower 63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 THAILAND

Tel: +66 2 126 8045

Fax: +66 2 126 8080

Mobile: +66 8 5997 0635

Email : info@heffcap.com

New York

347 5th Avenue, Suite 1402-508 NY, NY 10016

Tel: +1 646-403-9881

Fax: +1 646-403-8014

Singapore

3 Raffles Place #07-01 Bharat Building Singapore 048617

Tel: +65 6329 6408

Fax: +65 6329 9699

Info@Heffcap.com

Get the Updates Daily

Enter your email address:
Delivered by FeedBurner

Free Trial: HCM Pro Trader Platform

Your use of any of the Websites or any of the Services (defined below) constitutes your agreement to be bound by and comply with the Website Terms and Conditions and your consent to the collection, use and disclosure of personal information as described in the Privacy Policy. If you do not so agree and consent, you are not authorized to visit or use our Websites or the Services.

Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment. You must also accept that opinions on stock markets change minute to minute, opinions expressed my change at any time without warning. Opinions maybe influenced by ad sales and other financial consideration. This site does not offer any assistance in making financial decisions.

Read the Terms of Service

Posted by Shayne Heffernan on Apr 19th, 2011and filed underEquities, Europe, Latest News, Markets.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site