• 5 minutes Trump vs. MbS
  • 9 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Can the World Survive without Saudi Oil?
  • 1 hour WTI @ $75.75, headed for $64 - 67
  • 6 hours The Dirt on Clean Electric Cars
  • 3 hours Petrol versus EV
  • 57 mins EU to Splash Billions on Battery Factories
  • 10 hours These are the world’s most competitive economies: US No. 1
  • 10 hours The end of "King Coal" in the Wales
  • 17 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 1 day Uber IPO Proposals Value Company at $120 Billion
  • 19 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 19 hours Coal remains a major source of power in Europe.
  • 8 hours E-mopeds
  • 5 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 8 hours 10 Incredible Facts about U.S. LNG
Alt Text

Move Aside Lithium – Vanadium Is The New Super-Metal

Lithium took investors across the…

Alt Text

Oil’s $133 Billion Black Market

With oil prices back on…

Alt Text

Elon Musk Plans First Commercial Flights To Mars

Despite the headwinds he faced…

Jen Alic

Jen Alic

 

More Info

Trending Discussions

Despite Deepwater, Deep Pentagon Pockets for BP

Despite Deepwater, Deep Pentagon Pockets for BP

If you think BP Plc. is faring poorly after the Gulf of Mexico oil spill and its subsequent suspension from government contracts, consider this: its Pentagon contracts had already doubled since the Deepwater Horizon disaster.

According to Bloomberg, BP (NYSE: BP) won $1.04 billion in Pentagon contracts in fiscal year 2010 and $2.51 billion in fiscal year 2011. In November 2012, it was suspended from further government contracts.

Essentially, then the Pentagon felt the coming punishment and in the meantime, ensured a fast-tracking of BP contracts to make up for the looming suspension.

Related article: Why U.S. Energy Independence Means Pump Pain

Now that BP has been suspended—after two long years—who will pick up the Pentagon pace? So far, it looks like Chevron Corp (NYSE: CVX) and Royal Dutch Shell Plc. (NYSE: RDS.A) The former has won over some of BP’s contracts, and the latter is shaping up to become the Pentagon’s biggest fuel contractor—at least as of 2012. Shell’s defense department earnings are now at about $2.64 billion. 

(Of course, in Chevron’s case it helps that former Senator Chuck Hagel (R-Neb) has been nominated for the post of Defense Secretary. He and his wife hold up to $250,000 in Chevron common stock and Hagel himself serves on Chevron’s board. He will have to divest from Chevron and quit his post if he is to become US Defense Secretary.) This position would mean that Hagel would be in charge of defense procurement. 

Valero Energy Corp. of San Antonio is also picking up some of the BP slack, along with World Fuel Services Corp. of Miami. 

How long will they have the advantage over BP with the Pentagon? No one seems to know. The suspension is temporary and its timeline has been left open.

By. Jen Alic of Oilprice.com


x


Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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