• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 1 hour The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 22 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 1 day As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 21 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 2 hours Middle East on brink: Oil tankers attacked off Oman
  • 7 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 1 day Never Knew Gasoline Prices were this important!
  • 12 hours Plants are Dying
  • 23 hours (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
  • 5 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 19 hours We Are Better Than This
  • 7 hours Emmissions up, renewables nowhere
  • 2 days Britain makes it almost 12 days with NO COAL
Alt Text

Oil Inches Higher On Falling Rig Count

Oil prices inched higher at…

Alt Text

Saudi Arabia Vows To Prevent Oil Crash

Saudi Arabia appears to have…

Alt Text

Escalating Trade War Signals More Pain For Oil

The quick resolution of the…

Darrell Delamaide

Darrell Delamaide

Darrell Delamaide is a writer, editor and journalist with more than 30 years' experience. He is the author of three books and has written for…

More Info

Trending Discussions

BP’s Continued Existence Seen Coming Under Threat as Gulf Oil Spill Continues

The continued failure of BP’s efforts to stop the Gulf oil spill and mounting political pressure are putting the very future of the British-based oil giant in question.

BP shares plunged again on Tuesday, wiping $17 billion off the market capitalization of the company. Premiums on credit default swaps to insure the company’s debt soared 75% to $178,000 for $10 million as analysts began to question whether the company can survive the financial and reputational costs of the Deepwater Horizon catastrophe.

A former Clinton cabinet member, ex-Labor Secretary Robert Reich, now an economist at Berkeley, went so far as to urge the nationalization of BP by the U.S. government so that authorities could take direct control of the efforts to stop the spill and clean up the damage to the environment.

The existential threat to one of the largest companies in the world hits a company whose origins date back to the discovery of oil in the Middle East. BP began life in 1908 as the Anglo-Persian Oil Company to exploit oil fields discovered in what later became Iran.

When Iran nationalized its crude oil industry following World War II, the British government supported a CIA coup in that country that brought the shah to power and restored partial ownership of Iran’s oil revenue to the British company, now called British Petroleum.

After a series of mergers in the 1980s and 1990s, including the acquisition of Amoco, the company adopted its present name, BP plc. Its advertising slogan in recent years has been “Beyond Petroleum,” playing on that abbreviation.

But now, say analysts, the company will have difficulty in the face of civil and potentially criminal liability, shaking the damage to its reputation from the Deepwater Horizon accident and ensuing oil spill.

The failure of the company’s latest effort to stem the flow of oil into the Gulf – the so-called “top-kill” bombardment with mud – made it likelier that only the drilling of a relief well would stop the flow. But that solution could take until August, with the risk that the shares and balance sheet of the company could continue to be hammered in the interval.

A weakened BP could be the target for a takeover or even bankruptcy, analysts suggested.

By. Darrell Delamaide for oilprice.com - the no.1 source for oil prices




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment





Oilprice - The No. 1 Source for Oil & Energy News