BP succeeded!

[Guest greatness]

BP finally did it~~~

 

BP finally did it.. and it's stock is soaring...

 

http://news.yahoo.com/s/ap/20100715/ap_on_bi_ge/us_gulf_oil_spill_20100616040892

[+ purplekow]

Dont go rushing out to buy BP as the lock system still has many tests to pass before they can start to think about closing down this well permanently. More like you got the bleeding stopped on a gun shot wound victim and now they need surgery.

[Guest greatness]

yes..

 

Yes we have to wait. I bought BP when it hit the bottom last June, thought about selling it today but good thing I held on it one more day. But most of all, the devastating effects on the environment and americans will stop soon, I hope!!!

 

Dont go rushing out to buy BP as the lock system still has many tests to pass before they can start to think about closing down this well permanently. More like you got the bleeding stopped on a gun shot wound victim and now they need surgery.

[RM]

I bought it two months ago. I've only lost $11 per share so far.

[+ deej]

But most of all, the devastating effects on the environment and americans will stop soon, I hope!!!

 

Um, no. The environmental devastation will take decades to clean up and will never fully be cleaned up.

 

The ONLY thing this buys them is they can evacuate the site temporarily if a hurricane should blow through. The result of such a shutdown on the integrity of the well under the sea floor is unknown and could well be worse in the long run.

 

The only permanent fix is shutting the well permanently which is still waiting for the relief wells.

[+ azdr0710]

BP finally did it..

 

gee, somehow I don't feel a sense of relief....somehow....

 

sorry to be the downer, but we're all to blame for this one...

[Romann]

Not so fast...

 

I wouldn't say 80 plus days to figure out how to shut the tap off is what I would consider a success because the devastation to the already battered region is unmeasurable.

[Guest greatness]

well

 

It's better than nothing..

 

I wouldn't say 80 plus days to figure out how to shut the tap off is what I would consider a success because the devastation to the already battered region is unmeasurable.

[Romann]

Hold the train...

 

It's better than nothing..

 

Say that to the communities that were and will be affected for decades to come.

[Guest greatness]

Romann

 

I was just so happy that there seemed to be an end in sight. I am not ignoring the communities affected by it. Sorry if I offended you.

 

Say that to the communities that were and will be affected for decades to come.

[+ deej]

I wouldn't say 80 plus days to figure out how to shut the tap off

 

I also wouldn't say that's what they did. They haven't shut the tap off at all.

[Rick Munroe]

I was just so happy that there seemed to be an end in sight. .

 

It sounds more like you were happy that you could end up profiting from this disaster. You mentioned stock prices in 2 separate posts.

[orbital sander]

This is not even close to and end in sight...you may not want to hang onto that stock too long. I would be surprised if BP survives this in the end. This is the very beginning of a lot of devastation for the gulf and the people who live there.

[Romann]

You sweet man!

 

Sorry if I offended you.

 

Good morning Greatness. You in no way offended me you silly man. It takes much more than that to upset wee little me.

[Romann]

They said that about Exxon and they're still with us

 

I would be surprised if BP survives this in the end. This is the very beginning of a lot of devastation for the gulf and the people who live there.

 

Well, BP might be a buy in the coming weeks and months as it relates to stock purchase. They're a massive company with huge holdings not to mention earnings making it VERY difficult for them to go belly up. Their liquid cash reserves is quite impressive and now their is conversation that if necessary, BP is prepared and already making preparations to begin spinning off a handful of divisions which are also quite strong in their industry and will command a nice sales price. Having said that, even though BP has denounced a buyout, they are primed for it but again, they have denounced any conversations of that though I don't think it's completely off the table just yet.

 

If you look at the Exxon disaster in Alaska which was close to 20-25 years ago (someone correct me if I'm wrong) which is still making payouts for cleanup that is currently being conducted. Exxon has paid billions, tens of billions but it was spread out over 20-25 years which for an oil company, that's a drop in the bucket and just another loan payment on their books. One saving grace for BP is that the damages cannot be quantified in one bulk sum or a series of bulk sums but rather will continually receive requests for payment for decades allowing them to continue operations and continue to make tens of billions a year and pay out a fraction of that for damages now and in the future.

 

If I remember correctly, they're 34% down (give or take a point or two in either direction) from their stock price before the blowout. A 7% jump in one day is great if you're a day trader though more time needs to be invested for a long term buy.

 

In now way am I recommending the purchase of BP stock and I have struggled with the idea of purchasing them because not what they have done to the region in question but rather their response. Part of deep sea drilling is the accepted risk that something like this will happen so I can't really punish BP for the error because I would need to extend the same respect to Exxon, now ExxonMobile but I can fault them for their lack of response and appropriate course of action to resolve this in less than the amount of time that has gone by. BUT, if you're interested in such a purchase, I would like to say (IMHO) that BP will be a good buy but be prepared to hold onto that stock for a couple years if not more for their stock price to recover as I expect it will.

[Romann]

Oh come on.

 

It sounds more like you were happy that you could end up profiting from this disaster. You mentioned stock prices in 2 separate posts.

 

I don't think Greatness suggested that he was happy about profiting from this disaster but rather a concerned investor since he has funds tied into the company in question.

[Romann]

Looks tapped to me.

 

I also wouldn't say that's what they did. They haven't shut the tap off at all.

 

Yes, they're still in a 48 hour testing phase but the oil has stopped flowing and the cap seals are holding.

[seeker630]

A limited success.

 

Say that to the communities that were and will be affected for decades to come.

 

If BP has truly stopped the ongoing leakage into the ocean, I think those communities will welcome that. The recovery work to be done is unimagineable in scale, but this is still a positive step.

 

Let's pray it holds!

[whipped guy]

Well we are all keeping our fingers crossed… and if successful this is just the beginning of a very long process…

 

Still at times something good can come out of something bad…

 

Well, BP might be a buy in the coming weeks and months as it relates to stock purchase.

I think we just got the hot stock tip of the day...

 

The aptitude of this man is only limited by the "bounds" of civilization itself!!!!

[Romann]

Lessons learned.

 

Still at times something good can come out of something bad…

 

Very true friend, very true. I was watching the news this morning and an interesting point was brought up that made me think. Most underwater oil disasters have been between 1 and 200 feet, some belching more oil than this disaster. This was the first deep sea oil leak at 5k feet below the water line and the laws of physics really do work differently that far down because of increased pressure and gravity. MUCH, much, much data has been collected which can be used to prevent such a disaster again while also giving us new tools to react much sooner and more effectively.

 

BP is in a good position to be a leader in deep sea oil disaster recovery and will be able to better handle in the future should this happen again on one of their rigs. I can only imagine how the other Big 3 are salivating over what BP has learned from all this and while they wouldn't want to be in their shoes, they would like access to the findings.

 

I think we just got the hot stock tip of the day...

 

Mark my words... People ridiculed, tormented and teased me when I gobbled up AIG for just a little over a buck a share before they did the 3 for 1 exchange. That hushed the day traders and allowed the price to stabilize a bit more to where it is today - one of my beautiful prize pigs with lipstick.

 

The aptitude of this man is only limited by the "bounds" of civilization itself!!!!

 

You're too kind and thank you! And I'm sure there was no pun intended by my "bounds", now was there, Sir?

[AdamSmith]

BP is in a good position to be a leader in deep sea oil disaster recovery and will be able to better handle in the future should this happen again on one of their rigs. I can only imagine how the other Big 3 are salivating over what BP has learned from all this and while they wouldn't want to be in their shoes, they would like access to the findings.

 

I like your sensible and reasoned thoughts on why BP stock is a good bet now, especially to buy and hold.

 

But I'm not so sure about the unique learning value of this disaster for BP. Couple of reasons. First, BP is pretty widely recognized within the oil business as being the least safety-conscious operator in the West. The Texas City refinery explosion ought to have been a wakeup call for the company, but by all accounts -- including the evidence of this latest disaster, when it was the on-site BP manager who overruled the drilling engineers on how to shut in the well -- it was not. There is just not a corporate culture of learning there. At the engineering levels, yes, but not in the executive suites. One diagnosis of the trouble is that they could use more engineers in senior positions.

 

Second, knowledge of the kind gained in this disaster-recovery operation flows around the industry pretty quickly. The engineering, fabrication, installation, operational, etc. tasks are generally outsourced to specialist third parties, who then carry over that knowledge to other projects.

 

All that said, I'm heading over to E*Trade now.

[whipped guy]

I like your sensible and reasoned thoughts on why BP stock is a good bet now, especially to buy and hold.

 

But I'm not so sure about the unique learning value of this disaster for BP. Couple of reasons. First, BP is pretty widely recognized within the oil business as being the least safety-conscious operator in the West.

 

I recall hearing that in the past several years BP had over 700 safety violations while Exxon-Mobile had only several...

 

Still, we learn from our mistakes… and the knowledge that was reaped from this debacle was no doubt prodigious. Now most definitely mistakes were made in the past several weeks, but hopefully they will be missteps that will not be repeated. Plus something tells me that Mother Nature will be quite resilient in helping matters resolve themselves… She will need quite a bit of help, but she will be cooperative nonetheless. As of a few weeks ago it was estimated that all the gallons of oil that leaked were analogous to a glass of oil in a bathtub full of water… such is the size and depth of the Gulf. However, that all the oil rose to the surface and then spread out accordingly was the root of the dilemma. If it had all been emulsified and or absorbed there would not have been much to write home about.

 

As for parlaying all of this into a financial windfall, it will be interesting to see what transpires over the next days and weeks.

 

You're too kind and thank you! And I'm sure there was no pun intended by my "bounds", now was there, Sir?

Now as for being kind… I am indeed a caring, considerate, sympathetic, and benevolent individual… But then again there are different ways of expressing kindness.

[orbital sander]

Well, BP might be a buy in the coming weeks and months as it relates to stock purchase. They're a massive company with huge holdings not to mention earnings making it VERY difficult for them to go belly up. Their liquid cash reserves is quite impressive and now their is conversation that if necessary, BP is prepared and already making preparations to begin spinning off a handful of divisions which are also quite strong in their industry and will command a nice sales price. Having said that, even though BP has denounced a buyout, they are primed for it but again, they have denounced any conversations of that though I don't think it's completely off the table just yet.

 

If you look at the Exxon disaster in Alaska which was close to 20-25 years ago (someone correct me if I'm wrong) which is still making payouts for cleanup that is currently being conducted. Exxon has paid billions, tens of billions but it was spread out over 20-25 years which for an oil company, that's a drop in the bucket and just another loan payment on their books. One saving grace for BP is that the damages cannot be quantified in one bulk sum or a series of bulk sums but rather will continually receive requests for payment for decades allowing them to continue operations and continue to make tens of billions a year and pay out a fraction of that for damages now and in the future.

 

If I remember correctly, they're 34% down (give or take a point or two in either direction) from their stock price before the blowout. A 7% jump in one day is great if you're a day trader though more time needs to be invested for a long term buy.

 

In now way am I recommending the purchase of BP stock and I have struggled with the idea of purchasing them because not what they have done to the region in question but rather their response. Part of deep sea drilling is the accepted risk that something like this will happen so I can't really punish BP for the error because I would need to extend the same respect to Exxon, now ExxonMobile but I can fault them for their lack of response and appropriate course of action to resolve this in less than the amount of time that has gone by. BUT, if you're interested in such a purchase, I would like to say (IMHO) that BP will be a good buy but be prepared to hold onto that stock for a couple years if not more for their stock price to recover as I expect it will.

 

The Exxon disaster in Alaska was a drop in the bucket compared to this...It is hard to equate the two as far as I am concerned.

[KMEM]

One of the problems is that "real" problems too often have little to do with the price of a publically traded stock. Unfortunately, perceived problems have at least as much to do with the price as anything else, therefore, if it is perceived that BP has "solved" their problems (and the early vote is yes) then the stock will continue to rise.

 

AS is correct is his unstated but implied position.

 

Best regards,

KMEM

[Romann]

Clarification.

 

The Exxon disaster in Alaska was a drop in the bucket compared to this...It is hard to equate the two as far as I am concerned.

 

I'm not attempting to compare the two oil spills in terms of economic/environmental damage to communities by any means and it would be wrong to suggest a comparison because clearly this oil disaster belched more oil by far and apologize if my previous post came off that way.

 

I was referencing the Exxon disaster and how the claims have been paid out over the last 20 years. BP will most likely benefit from this with expected costs to reach and possibly exceed 70 billion. Over 20 years, that 70 billion can be easily paid out and with oil on the rise and expected to continue to rise in the coming years and most likely forever, this disaster is just a drop in the bucket and they will weather this financial storm with ease. BP is an extremely cash fluid company with healthy reserves alone as Exxon was at the time of disaster.