The oil rig disaster in the Gulf of Mexico has damaged BP's reputation will they manage to avoid a share collapse to 350p.?



472p to buy this morning.

cynic I picture you as Charles De Gaulle..

neither as tall nor as handsome - nor dead for that matter!

I remember the Max Bygraves song " You need Hans " a big hit in Germany.

Jewish people would not be able to speak with no hands

BP oil spill could cost $100bn


The cost of the BP oil spill in environmental and economic damage could hit $100 billion (67.5 bln), according to new predictions as concern mounts over the company's liabilities.

Link to this video After BPs chief executive Tony Hayward was subjected to a blistering attack by US Congressmen who accused the company of astonishing complacency, Louisiana Treasurer John Kennedy predicted the damage to Gulf of Mexico states could reach 12 figures.

Despite an agreement to set aside $20 billion (13.5 bln) in a special compensation fund, investors are worried that the London-based firm's liabilities could stretch well beyond that figure.

Standard and Poors yesterday cut the company's credit rating, and warned that further downgrades may follow as up to 60,000 barrels of oil a day leak from a pipe ruptered in an explosion on the Deepwater Horizon drillling rig.

The accident left 11 people dead.

BP's cost to date are $1.8bn, including the cost of the spill response, containment, relief well drilling, grants to the Gulf states, claims paid, and federal costs. Repeated attempts to cap the leak have failed.

David Wilton, a Partner at restructuring firm BTG Mesirow, predicted BP's liabilities could reach 63 billion, but played down fears that the company could collapse, observing that the payments will be spread over a long period of time.

US politicians have shown no signs of letting up an onslaught against the company, following the lead set by Barack Obama who has compared the disaster to the 9/11 terrorist attacks.

In Congress, Mr Hayward faced a barrage of criticism for failing to ignore warnings signs before the fatal rig explosion.

Henry Waxman, a California Democrat known as one of the toughest investigators in Congress, told Mr Hayward: There is not a single email or document that shows that you paid even the slightest attention to the dangers at this well.

There is a complete contradiction between BPs words and deeds. You were brought in to make safety the top priority of BP, but under your leadership, BP has taken the most extreme risks.

In a pointedly nationalist remark, Bart Stupak, from Michigan, said that while Mr Hayward could take a golden parachute back to England, we in America are left to recover for years from the disaster.

Like others, he taunted the 53-year-old geologist with his previous gaffes and comments, particularly his remark that he wanted his life back because dealing with the accident was all-consuming.

Eleven families who lost people may not get their lives back, but I am sure will get your life back, snapped Mr Stupak, chairman of the energy subcommittee on oversight and investigations in the House of Representatives that held the hearing.

Betty Sutton, a Democrat from Ohio, said: Like many Americans, I feel physically sick when I see all this oil gushing into the gulf.

Diane Wilson, a shrimper from Texas mounting a lone protest, began heckling when Mr Hayward began speaking, calling him a criminal. Her hands smeared with oil, it took Capitol Hill police several minutes to wrestle her to the ground and escort her from the committee room.

Republican congressman Joe Barton, who offered a lone voice of support for BP, apologising for the company's treatment, later retracted his words under pressure from his party.

Sitting alone at a long table in the wood-panelled committee room, Mr Hayward apologised for the accident and said he was personally devastated by the loss of life on the Deepwater Horizon rig on April 20.

I understand how serious the situation is, I am promising you that we will make this right, he said, speaking so softly that he was repeatedly asked to move closer to the microphone.

On Wednesday BP announced that it had buckled to demands by President Barack Obamas administration to set up a $20 billion escrow account to fund compensation claims from thousands of fishermen and businessmen whose livelihoods have been affected by up to 60,000 barrels of oil leaking into the sea every day.

It also agreed to suspend dividend payments to shareholders for the rest of the year, though they account for 1 in every 6 paid out in dividends to British pension holders.

Looks like more downtrend next week as the weekend would raise more bad publicity for BP.

Or good if they write about double standards between BP and the American oil companys around the world ..... what a disgrace Union Carbine was , how much was each victims payout

Reg.; UC payout ...was thinking the very same thing myself this morning Roly - typical yankee protectionism ..... Reg-BP- a clear pattern emerging in past few trading sessions .>....FTSE opens -BP tries to find its feet ....but as soon as shitty Wall st opens it rapidly falls on its arse ......l have this feeling American oil companies eyeing up some of BPS billion $ prospects around the world and lobbying congressmen to go for the jugular and.utterly break them ... .and all this double dealing from a country who poisoned lraqs most productive lucrative oilfields-like the uranium soaked dome - and whose expertise do you think they turned too for help in cleaning up THEIR shitty mess ? .....Yup ,,,,,BP ....................

More in the Sundays tomorrow I guess.

plenty in BNP Gazette today ...... i'ld expect sp to be pretty volatile for a while yet, but shan't be trading as won't be in office much for next few weeks

Me neither Clinic.

Off down the pub

i'm obviously very old or missing part of many males' make-up, for i certainly don't find lap dancing clubs or similar remotely sexy, even though many of the girls are very beautiful .... but then i guess the western system of "strictly no hands" takes on a totally different meaning in thailand! ..... enjoy your lunch or whatever lol!

I agree Cynic, and that goes for pole dancing . Seeing a women bending over wearing a loose top in a shop is more of a turn on, and its free .

Cynic , how much of your core investments are in gold stocks ? over 60% of my portfoilo are gold shares CEY being nearly 50% with oil stocks like AFR ,COV ,AMER,RKH and PDL and a few small miners KYS, AFE and BEM

not much now .... i took profits in CEY so now just hold POG and RIO, which of course is not gold anyway

i want to reduce my holdings a bit, as they are heavily geared being CFDs, and I'll be away a lot until mid July, so need to be worrying like a hole in the head

Cynic you have not lived, Thailand takes you back to your youth, but with the wealth of age.

in my youth, being the late 60s and 70s, i think we had more than our fair share of "fun" ..... that said, i'ld like to visit thailand for at the very least, the cuisine has huge appeal ..... i have no moral objection to paid sex or similar, but it does not have huge appeal either

Works out cheaper paying them for it than the wife

sex without emotional attachment is sterile

cynic old men going to Thailand, Cambodia, Laos etc risk being identified as paedophiles, seem to recollect an aged pop star ending up in prison accused of molesting asian children.

ah that too .... anyway, i guess each to their own, but certainly the attitude to women in F/E in general (read Lucie Blackmore (?) case in telegraph saturday mag) is pretty appalling .... total lack of respect for them is endemic