• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 13 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 3 hours Venezuela set to raise gasoline prices to international levels.
  • 8 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 2 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 7 mins Pakistan: "Heart" Of Terrorism and Global Threat
  • 1 day Corporations Are Buying More Renewables Than Ever
  • 12 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 17 mins Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 6 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 9 hours Starvation, horror in Venezuela
  • 1 day Renewable Energy Could "Effectively Be Free" by 2030
  • 15 hours France Will Close All Coal Fired Power Stations By 2021
  • 14 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
Are The Saudis Involved In The Tesla Buyout Plan?

Are The Saudis Involved In The Tesla Buyout Plan?

Saudi Arabia’s Public Investment Fund…

Oil Demand Growth Starts To Weaken In Asia

Oil Demand Growth Starts To Weaken In Asia

Oil demand from Asia’s key…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

BP Wins Small Victory Over Disgruntled Shareholders

The US Supreme Court on Monday denied a request for appeal made by angry BP shareholders who filed a class action lawsuit against UK oil major BP.

The original class action suit was filed by shareholders who had purchased BP shares before the disastrous Gulf of Mexico oil spill in 2010. According to shareholders, BP misrepresented its safety procedures before the spill.

In 2015, the 5th U.S. Circuit Court of Appeals refused to certify the lawsuit on the grounds that some shareholders may have decided to purchase the stock even with full disclosure regarding safety. This is the decision that shareholders were hoping to revive on appeal as part of a class action suit—but today’s ruling came down in favor of the oil major.

Related: The Merger That Could Create a New Oil Major

The door still remains open, however, for shareholders to file suit individually, apart from the class action.

BP’s share price had plummeted in 2010 after the spill, taking on $55 billion in losses as a direct result, which includes $18.7 billion to settle various federal, state, and local claims. In BP’s latest quarterly filing, spill expenses made up the majority of the $896-million charge they booked in the report, compared with a similar charge of just $341 million for the same period last year.

Although BP’s spill-related costs will continue to accumulate, the denial of this appeal may lessen the blow somewhat, but BP is still taking actions to weather hostile price environment.

Related: Why China Is Really Dictating the Oil Supply Glut

To staunch the bleeding, BP said it will cut its capex for the year for $17 billion and possibly to $15 billion in 2017 if the price depression persists. And what BP has reported in profits is mainly thanks to its positive performance of its downstream business, which offsets the losing E&P segment.

BP’s share price is unchanged on the London Stock Exchange, which is closed today, but is currently trading + $.01 on the NYSE.

By James Burgess of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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