• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 15 mins China's Blueprint For Global Power
  • 26 mins World Stocks Drop And Futures Tread Water After China Reports Worst GDP Growth In 30 Years
  • 20 mins ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 8 hours Erdogan Holds All The Cards ... 3.6 Million Of Them
  • 2 hours PETROLEUM for humanity 
  • 7 hours Deepwater GOM Project Claims Industry First
  • 11 mins National Geographic Warns Billions Face Shortages Of Food And Clean Water Over Next 30 Years
  • 22 mins Joe Biden, his son Hunter Biden, Ukraine Oil & Gas exploration company Burisma, and 2020 U.S. election shenanigans
  • 3 hours Brexit agreement
  • 8 hours KURDS LEFT HIGH AND DRY TO DIE?
  • 33 mins Idiotic Environmental Predictions
  • 2 hours Bloomberg: shale slowing. Third wave of shale coming.

Breaking News:

Drilling Giant Posts $11 Billion Loss

Alt Text

The Only Hope For Oil Markets

While WTI was trending higher…

Alt Text

Oil Prices Jump On A Lone Piece Of Bullish News

Oil prices rose on Wednesday…

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

Premium Content

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



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play