• 4 minutes Some Good News on Climate Change Maybe
  • 7 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Washington Eyes Crackdown On OPEC
  • 15 minutes Solar and Wind Will Not "Save" the Climate
  • 3 hours And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian
  • 4 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 3 hours Most Wanted Man In Latin America For AP Agency: Maduro Reveals Secret Meetings With US Envoy
  • 1 day Maduro Asks OPEC For Help Against U.S. Sanctions
  • 10 hours Former United Nations Scientist says the UN is lying about Global Warming and Sea-Level changes
  • 7 hours Prospective Cause of Little Ice Age
  • 1 hour And the War on LNG is Now On
  • 25 mins L.A. Mayor Ditches Gas Plant Plans
  • 1 day Qatar Petroleum, Exxon To Proceed With $10 bln Texas LNG Project
  • 21 hours Russia to Turkey: You Can't Have Syrian Safe Zone Without Assad's Consent
  • 18 hours Solar Array Required to Match Global Oil Consumption
  • 5 hours *Happy Dance* ... U.S. Shale Oil Slowdown
Alt Text

Tax Cuts Or Not, Mexico’s Pemex Is Doomed

Mexico’s new president Andres Manuel…

Alt Text

Saudi Aramco Makes Existential Bet On Oil

Saudi Aramco has doubled down…

Jen Alic

Jen Alic

 

More Info

Trending Discussions

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




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