[Newsbot]

Title: BP reaches $7.8B settlement over Gulf spill claims
Category: World
Posted By: Hyack
Date: 2012-03-04 13:13:31

[Freakinoldguy]

Nice to see but why do I keep getting the feeling that we, the consumers are going to be the ones paying the $7.8 billion in vastly increased fuel costs?

[jeff744]

Freakinoldguy Freakinoldguy:

Nice to see but why do I keep getting the feeling that we, the consumers are going to be the ones paying the $7.8 billion in vastly increased fuel costs?

In this case they would be insane to try and sell at a higher price, too many sellers at the current slowly increasing rate, they would need to convince everyone to hike rates. If it was somebody like Microsoft that run a virtual monopoly then I would say you are entirely right.

[Freakinoldguy]

jeff744 jeff744:

Freakinoldguy Freakinoldguy:

Nice to see but why do I keep getting the feeling that we, the consumers are going to be the ones paying the $7.8 billion in vastly increased fuel costs?

In this case they would be insane to try and sell at a higher price, too many sellers at the current slowly increasing rate, they would need to convince everyone to hike rates. If it was somebody like Microsoft that run a virtual monopoly then I would say you are entirely right.

After watching the Senate Hearings from the States a few years ago with the heads of all the big oil companies, I'd say they may not be in the strictest sense a monopoly but they certainly seem to be in complete collusion when it comes to things like answering the Senates questions, or explaining the high cost of fuel.

[dino_bobba_renno]

Freakinoldguy Freakinoldguy:

Nice to see but why do I keep getting the feeling that we, the consumers are going to be the ones paying the $7.8 billion in vastly increased fuel costs?

That one should win you the conspiracy theory nut job award of the week. BP can't sell their products at increased cost.

BP is paying for the settlement through the sale of 95% of its assets in North America. The people who ended up truly paying for this mess are the ones who lost their jobs.

[Freakinoldguy]

dino_bobba_renno dino_bobba_renno:

Freakinoldguy Freakinoldguy:

Nice to see but why do I keep getting the feeling that we, the consumers are going to be the ones paying the $7.8 billion in vastly increased fuel costs?

That one should win you the conspiracy theory nut job award of the week. BP can't sell their products at increased cost.

BP is paying for the settlement through the sale of 95% of its assets in North America. The people who ended up truly paying for this mess are the ones who lost their jobs.

I stand corrected but I don't think they're selling off their US assets soley to pay their debt or out of the goodness of their heart.

$1:

BP sells $15bn in assets in preparation for legal battle over Macondo spill

BP is to raise a further $15bn (£9.4bn) by selling off assets ahead of a massive legal case over the Gulf of Mexico accident amid rising concern that the fines and liabilities could be higher than expected.

But chief executive Bob Dudley also hailed an operational "turning point for BP" and outlined a range of strategic plans to more than triple annual drilling rates and double operating cash flow by 2014.

Dudley made his comments as the oil company reported third quarter profits of $5.1bn – down on the second quarter but triple the figure a year ago and above expectations. The turnaround message gripped the City and shares in BP rose 3.5% to 453.5p, boosted by a series of positive developments last week including a $4bn settlement with its partner in the ill-fated Macondo well, Anadarko.

http://www.guardian.co.uk/business/2011 ... gal-battle

But apparently their selling off of the US assets deal just fell through today so we'll have to see how they actually pay for compensation.

[dino_bobba_renno]

Freakinoldguy Freakinoldguy:

dino_bobba_renno dino_bobba_renno:

Freakinoldguy Freakinoldguy:

Nice to see but why do I keep getting the feeling that we, the consumers are going to be the ones paying the $7.8 billion in vastly increased fuel costs?

That one should win you the conspiracy theory nut job award of the week. BP can't sell their products at increased cost.

BP is paying for the settlement through the sale of 95% of its assets in North America. The people who ended up truly paying for this mess are the ones who lost their jobs.

I stand corrected but I don't think they're selling off their US assets soley to pay their debt or out of the goodness of their heart.

$1:

BP sells $15bn in assets in preparation for legal battle over Macondo spill

BP is to raise a further $15bn (£9.4bn) by selling off assets ahead of a massive legal case over the Gulf of Mexico accident amid rising concern that the fines and liabilities could be higher than expected.

But chief executive Bob Dudley also hailed an operational "turning point for BP" and outlined a range of strategic plans to more than triple annual drilling rates and double operating cash flow by 2014.

Dudley made his comments as the oil company reported third quarter profits of $5.1bn – down on the second quarter but triple the figure a year ago and above expectations. The turnaround message gripped the City and shares in BP rose 3.5% to 453.5p, boosted by a series of positive developments last week including a $4bn settlement with its partner in the ill-fated Macondo well, Anadarko.

http://www.guardian.co.uk/business/2011 ... gal-battle

But apparently their selling off of the US assets deal just fell through today so we'll have to see how they actually pay for compensation.

BP will be completely selling off all their North American assets with the exception of a joint project they're involved with in the oil sands. They sold off their BU division here in Canada about a year or two ago and just finished selling their NGL division to Plains Midstream. The American assets will be gone as soon as they can get rid of them.

They've taken huge loses on all of their sales to date including the sale of the Noel field, which wasn't even finished being constructed, to Apache. At the time it sold they had just finished pumping over 9 billion into it and I believe it sold for around 5 billion. So the sales weren't done with the intention of making money or turning a profit, they were done solely to raise capital for the lawsuits they were facing in the US.

As far them turning profits in other areas, good for them, they deserve to. They're one of the better oil companies out there. Had the Deep Water Horizon happened to an American company things would have been a lot different. You wouldn’t have seen anywhere near the effort on the clean-up, people would have been given minor settlements compared to what they'll get now and whole incident would have been swept under the rug to greatest extent possible.