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.

BP setback knocks shares
Fiona Bond - 14.07.10 - 11:38

Embattled oil major BP's (BP-) latest attempts at halting its catastrophic Gulf of Mexico oil spill have suffered a setback, sending its share price lower for the first time this week.

Testing on the new well sealing cap has been temporarily suspended while the US government and BP accident managers carry out further checks on the operation.

The British oil major has not given a reason for the delay, which comes less than 48 hours after the new cap was installed, nor has it set a new date for the testing process.

Meanwhile, oil continues to gush into the Gulf.

Shares in the group dipped 1.5%, after climbing as high as 9% at the start of the week, as investors grew nervous about the latest hold up.

The FTSE 100 (UKX) giant, which has been battling the disaster for close to three months, had pinned its hopes on the latest seal as a temporary stop to the oil leak and had planned to start shutting off valves on the cap on Tuesday.

The series of tests, which were due to last anything between six and 48 hours, were to check the integrity of the well to ensure that high pressure levels would not create additional leaks.

In a statement on Tuesday morning, the group had taken an upbeat tone with the expectation that "no oil will be released to the ocean for the duration of the test."

However, it remained unclear as to whether the company discovered something untoward in the mapping results, about which vice president Kent Wells had previously said he felt "comfortable" they would turn out well.

A meeting was held between BP officials, scientists and government personnel following the results of the mapping survey.

National Incident Commander Thad Allan said in a statement: "As a result of these discussions, we decided that the process may benefit from additional analysis," before adding that this work could continue through Wednesday.

It would be the first time the oil major has stopped the flow of oil since the explosion occurred on 20 April.

Meanwhile, drilling on two relief wells continues and is on track to be completed by mid-August.

BP's share price was pegged at 404.20p

BP has delayed a pressure test on the newly installed well cap in the Gulf of Mexico while senators now want the US government to look into the company's activities in Libya.

US senators last night called for a probe into whether BP pressed for the Lockerbie bomber to protect a lucrative deal with Libya.

The Democrats question the circumstances surrounding the release of the convicted bomber, Abdel Baset al-Megrahi and a deal which will see BP begin drilling for oil in the Gulf of Sidra, off Libya.

"Evidence in the Deepwater Horizon disaster seems to suggest that BP would put profit ahead of people," said Democratic Senators Chuck Schumer and Kirsten Gillibrand of New York and Robert Menendez and Frank Lautenberg of New Jersey.

"The question we now have to answer is, was this corporation willing to trade justice in the murder of 270 innocent people for oil profits?" the lawmakers wrote in a letter to US Secretary of State Hillary Clinton

In a separate letter, Lautengerg wrote: "It is shocking to even contemplate that BP is profiting from the release of a terrorist with the blood of 189 Americans on his hands.

"The families of the victims of PanAm flight 103 deserve to know whether justice took a back seat to commercial interests in this case."

Meanwhile, BP and US officials postponed a 48-hour test to find out if the damaged well can withstand the pressure that would be created by closing the cap at the wellhead. They gave no indication when the test will finally begin.

"We decided that the process may benefit from additional analysis that will be performed [yesterday and today]," said retired Coast Guard Admiral Thad Allen, who is overseeing the US response to the spill.

Reports yesterday suggested that for a brief period shortly after the new cap was installed oil stopped leaking from the Macondo well, though it resumed soon after through a valve to relieve a pressure build-up.

OPENING AT $36.41 ON THE US FROM $36.88 CLOSE YESTERDAY

you still short hlyeo?

Yes, still shorting, Gausie.



A house committee has passed a bill stopping any company from getting permission to drill for seven years if it has caused more than 10 deaths during operations, while contravening health and safety laws.

BP would be affected because it has already pleaded guilty to criminal charges following an explosion at a refinery in Texas City five years ago.

The company has not yet been convicted on any criminal charges or admitted any criminal liability relating to the Deepwater Horizon explosion that killed 11 men and triggered the worst environmental disaster in US history on April 20 this year.

But the British oil giant is facing a criminal investigation over the accident, which has caused a political furore over its safety record in the US.

The Committee on Natural Resources voted to pass an amendment preventing any company from getting new leases unless they pass environmental requirements, but the laws will not be enacted unless they are approved by the House, Senate and President Barack Obama.

Representative George Miller first tabled the bill around two weeks ago, in an attempt to make sure the US Interior Department recognises companies' safety records when they consider decisions about awarding leases. BP produces a quarter of its oil and gas in the US, and until the accident, it hoped to increase its production through pioneering exploration in the Gulf of Mexico.

"British Petroleum has a flagrant history of taking risks to boost profits that has resulted in deaths of workers, destruction of the environment, and economic chaos in local communities," Mr Miller said at a political hearing.

Meanwhile, BP was under separate pressure from Hillary Clinton, the US Secretary of State, who pledged to look into its involvement in the release of the Lockerbie bomber ahead of the oil giant's planned new drilling in Libya.

It follows a letter from four US senators calling for an investigation into whether BP had a hand in the release of Abdelbaset al-Megrahi last year on "health grounds".

original a bit long so edited to shorten (others can learn to do the same!) .....

BP Plc was running a crucial test on Thursday ..... began the process on Wednesday night, which could stretch up to 48 hours ...... began the tests after getting the green light from top U.S. government officials who had delayed the plan by 24 hours on concerns the process could irreparably damage the well.

If tests, which will be assessed every six hours, show that closing the cap might cause further damage to the well, the capping device could instead be used as part of a complex system to capture the oil and siphon it to ships on the surface.

.... undersea robots working a mile (1.6 km) below the surface had started shutting a series of three valves designed to ultimately stop the oil flow completely.... Critically, BP has closed the main valve in the middle of the cap, "and we no longer have flow out the top," Wells said.

There are billions of $ in oil in this field, but will BP be allowed to re drill. I bet the Yanks will give it to one of their oil companies with a huge tax for the government.

there will be a lot of high level political discussion behind the scenes and BP may end up doing a trade-off to avoid certain liabilities, but assuredly they can't be forced to just hand it over - it isn't venezuela!

Why it is not BP's oil, it is oil on US land/sea

Fast reversal now up

as i said, but you have not noticed, USA is not Venezuela, so (effective) nationalisation as you suggest would not be an option - no doubt your white supremacist (+ pretty asian girls) utopia would do otherwise!

BP only has a license, it does not own the oil, US can and will do what it likes as it has done in Iraq, Afganistan, and to Iran in the future.

yeah yeah yeah .... all oil wells are under licence even in the north sea .... you're being very silly this morning

Got out of bed on the wrong side Cynic or is it a jewish no do the Mrs day.

Listen CynicObama has already tried to put a stop to new drilling in the Gulfand a six-month ban on new deepwater drillingthe most Democratic Country in the Worldcan and has been the most undemocratic in the pastthe Yanks will do whatever suits them best

He won't listen Tabby. I agree the Yanks will do what they want forget doing the right thing.

not at all, but the pair of you are unreal in all senses .... ban - clearly so .... do US want the oil - desperately .... will US gov't (effectively) nationalise - don't be so bloody silly ..... will there be some diplomatic deal arranged behind the scenes - quite possibly

You talk shite Cynic

your opinion, which i don't share .... i could have said similar to you, but at least i set out my logic which, at least in my opinion, is supported by some sort of reality

Cynicdo you believe that diplomatic deal arranged behind the scenes will be beneficial to BP?>>>>MORE LIKE A SHAFTING!!!!