Who is British Petroleum? (Wikipedia)
British Petroleum (BP) is the UK’s largest corporation and is the fourth largest company in the world. It is one of six “supermajors” or vertically integrated private sector oil exploration, natural gas, and petroleum product marketing company.
What are they doing to The Gulf of Mexico? (Wikipedia)
On 20 April 2010 the Deepwater Horizon exploded and there has since been a widely publicized oil spill disaster involving a leaking deep water oil well. A vast area of the United States marine environment, sealife, and local fishing industry has been devastated.
Give me numbers! (Wikipedia)
– Explosion killed 11.
– BP estimated 1,000 barrels per day.
– Government estimated 5,000 barrels per day.
– Estimates now 56,000 to 84,000 barrels per day.
– This is the equivalent of one Exxon Valdez spill every 3.5 to 2.4 days.
– On April 30, BP stated that it would harness all of its resources to battle the oil spill, spending $7 million a day with its partners to try to contain the disaster.
– BP’s 1st quarter profits for 2010 were roughly $61M daily.
President Barack Obama
Tonight Obama addressed BP’s management of the spill.
Full text of President Barack Obama’s speech
The bright side?
Obama is holding BP accountable for the damage they’ve cause to the environment and the fishing industry.
What’s in it for you?
NYSE:BP has dropped 50% from $60 to $30 per share, and Obama’s bad news for BP didn’t air until after the markets closed today. Tomorrow morning I’m going to let NYSE:BP tank a bit more and then buy a few hundred shares.
S&P: “In our worst case scenario (5% likelihood), we calculate that if BP were to be expelled from the U.S., and having to pay $20 billion in Gulf liabilities, it would be worth GBp400 per share (about $35 per ADS) above recent trading levels.”
Buy and hold.
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