• 6 minutes Can the World Survive without Saudi Oil?
  • 10 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 1 hour U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 3 hours Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 10 hours Judge Approves SEC Settlement With Tesla, Musk
  • 2 hours WTI @ $75.75, headed for $64 - 67
  • 4 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 4 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 7 hours Iranian Sanctions - What Are The Facts?
  • 8 hours EU to Splash Billions on Battery Factories
  • 5 hours China Thirsty for Canadian Crude
  • 9 hours Porsche Says That it ‘Enters the Electric Era With The New Taycan’
  • 10 hours Gold price on a rise...
  • 11 hours Saudi Crown Prince to Trump: We've Replaced All Iran's Lost Oil
  • 5 hours Shell, partners approve huge $31 billion LNG Canada project. How long till Canadian Federal government Environmentalates it into the ground?
Alt Text

BP To Take Final Hit On 2010 Disaster

British Petroleum is set to…

Christopher Cundy

Christopher Cundy

Christopher is a writer for Environmental Finance.Environmental Finance is the leading global publication covering the ever-increasing impact of environmental issues on the lending, insurance, investment…

More Info

Trending Discussions

Gulf Spill Has ‘Far Reaching’ Impact on Oil Company Credit – S&P

The oil spill and subsequent suspension of drilling permits in the Gulf of Mexico will have a long-term impact on the creditworthiness of oil and gas companies, according to ratings agency Standard & Poors.

“For oil and gas operators in the Gulf of Mexico, the business ramifications are likely to be far reaching and enduring. And regulatory oversight and safety restrictions … will in our view have cost and operational implications for all offshore operators in the US,” the firm said in its CreditWeek publication last week.

Because of the accident, S&P cut ratings on BP, Anadarko, Mitsui & Co. It also put offshore drilling contractor Transocean on “credit watch with negative implications” – a warning to investors that the company will be scrutinised closely and then downgraded if it is affected by liability costs and delays to drilling activities.

As a result of the Department of Interior’s moratorium on issuing new deepwater drilling permits in the Gulf of Mexico, S&P also lowered the credit rating of ATP Oil & Gas, Helix Energy Solutions, Hercules Offshore and Hornbeck Offshore Service, and placed PHI on watch. These firms, together with another 12 named by the agency as “at risk”, develop oil reserves or provide services such as subsea construction, contract drilling or vessels. Many operators declared force majeure against deepwater assets in the Gulf.

Even when the moratorium ends, “the costs of operating in the deepwater Gulf of Mexico, in our opinion, are likely to be higher, with more regulatory hurdles and longer permitting processes.” This will have a negative effect on credit ratings, S&P says.

Meanwhile, a group of investors with a combined $2.5 billion in assets has sent a joint letter to oil companies seeking greater transparency on their risk reduction strategies for their global offshore oil operations.

Ceres, a coalition of investors and environmental groups, said there are now 14,000 deepwater wells worldwide and production of oil from these wells is set to double, from the current rate of 5 million barrels a day to 10 million a day by 2015.
A second letter is being sent to insurance companies underwriting the oil companies.

By. Christopher Cundy

Source: Environmental Finance




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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