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BP Puts a Price on Gulf Damage Control

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Posted on Jul 27, 2010
BP spill
bbc.co.uk

BP’s $32.2 billion figure represents an early estimate and not the final word on the price of the cleanup effort, according to Chairman Carl-Henric Svanberg.

Will $32.2 billion be enough to foot the bill for the tremendous mess the BP oil spill has made of the Gulf of Mexico? The higher-ups at the oil company seem to think so—at least for now.

In other BP news: As expected, CEO Tony Hayward will be vacating his current position in October, although the BBC reported Tuesday that he may wind up in a “non-executive director” job at the Russian outpost TNK-BP.  —KA

BBC:

The $32.2bn cost of the clean-up includes the $20bn already set aside in an escrow account for compensation claims.

It is very difficult to describe a $17bn loss for three months of trading as a sparkling performance. But for BP it could have been a lot worse.

In an interview with the BBC’s business editor Robert Peston, BP chairman Carl-Henric Svanberg said there was no certainty the final bill for the spill would not be higher.

But he insisted that the company was in good financial shape, with strong cashflow.

“It’s of course a huge loss that overshadows everything else, but the underlying performance of the company is actually strong,” he told the BBC.

“There is no worry about our financial position and our ability to get through this. It’s of course a tragedy and it has large consequences, but we have no doubt that we will be able to rebuild the company,” he said.

Stripping out the oil spill costs, BP made a second quarter profit, on a replacement cost basis, of $5bn, compared with $2.9bn for the second quarter of 2009.

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By The Donkey Edge, July 28, 2010 at 12:29 pm Link to this comment

More on BP/NOAA/EPA Cover-up from Gerson Lehrman Group:

“It might come as some big shock but there is increasing evidence to show that the EPA has lied ... yet again.  Without mincing words, Federal Government agencies have literally allowed tens of thousands of Americans to be poisoned during the Exxon Valdez disaster, during 9/11, and now, history is once again repeating itself in the Gulf of Mexico, except for one change:  we now have a top EPA official warning us that the Government is allowing us to be poisoned.”

http://www.glgroup.com/News/BP-NOAA-EPA-Cover-Up—Neurotoxin-Pesticide-Dispersant-Corexits-Lethal-Effects-49684.html

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By The Donkey Edge, July 28, 2010 at 12:19 pm Link to this comment

More on the lessons Amoco and Exxon didn’t learn:

http://www.triplepundit.com/2010/05/how-to-clean-up-the-oil/

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By The Donkey Edge, July 28, 2010 at 12:19 pm Link to this comment

More on the Corexit calamity this morning:

http://www.triplepundit.com/2010/07/bp-gulf-disaster-act-two-the-corexit-calamity/

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rico, suave's avatar

By rico, suave, July 28, 2010 at 5:20 am Link to this comment

Steve/Sean,

Mendoza’s article was very well written and remarkably fair and balanced. I note though that it was laced with a lot of “coulds” and “mights” and “mays”, but not a lot of actual numbers of actually dead or sick animals, fish and people. “It has been reported…” is not evidence. No one questions that raw petroleum is nasty stuff.

I also note that, despite the almost universally dire predictions of “some experts”, the Persian Gulf took only twenty years to recover completely from the devastation caused by Saddam’s oil dumps.

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By The Donkey Edge, July 27, 2010 at 9:30 pm Link to this comment

Christina Mendoza explores the ecological and health consequences of the oil spill and the chemical dispersants being used in this article:

http://www.helium.com/items/1905516-the-ecological-and-health-consequences-of-the-oil-spill-in-the-gulf-of-mexico

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By rico, suave, July 27, 2010 at 8:27 pm Link to this comment

Just read an article in the NYT (!) about how the surface oil is dissipating much faster than anyone had expected, and that people are hard pressed to find slicks and tarballs, etc. And that the Gulf of Mexico is a remarkable oil eating machine. Also, that NOBODY has a definitive clue as to the ultimate effect on marine life. Also, NOT ONE WORD about bleeding eyes or hemorhaging dolphins or other such alarmist bullshit. NOT ONE WORD about the adverse effects of Corexit.

NO, I am not a paid shill for BP. I think they should be sued for all they’re worth. Thousands of people have lost real money over this thing, and BP should be on the hook for every dime.

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By rico, suave, July 27, 2010 at 8:06 pm Link to this comment

Pat Henry:

You sound pretty greedy to me.

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By digginter, July 27, 2010 at 7:05 pm Link to this comment

Nothing enough for the loss of natural.

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PatrickHenry's avatar

By PatrickHenry, July 27, 2010 at 4:13 pm Link to this comment

Whatever price BP puts on this mess it will not be enough.

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rico, suave's avatar

By rico, suave, July 27, 2010 at 3:00 pm Link to this comment

Your a “journalist” of sorts. Go down there yourself and find those people bleeding from their eyes and ask them why they haven’t been on Keith Olbermann’s or Rachel Maddow’s shows.

I’m no apologist for BP. I think they should pay out the wazooo.

Find me any quote of mine on any post in truthdig that qualifies me as a “knee-jerk hater”.

Is ProjectGulfImpact “fair and balanced”?

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By The Donkey Edge, July 27, 2010 at 2:35 pm Link to this comment

Hey “Rico Suave”, do you work for BP? You didn’t even have time to watch the interviews I posted. Try going to ProjectGulfImpact.org and take a look at what’s happening on the ground rather than being a knee-jerk hater/defender of BP.

I just met with the people from ProjectGulfImpact an hour ago and they reported to me that there are people doing clean-up bleeding from their eyes. Nice. You’re right. No connection.

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By rico, suave, July 27, 2010 at 2:30 pm Link to this comment

Steve, or Sean,

The whiner in your “lowdown” states that Corexit breaks up oil, presumably a bad thing because that leaves less oil around for him to complain about. Then he state that dolphins and people are hemorhaging. But he doen’t state that there is a connection. He even sweeps the EPA up in the conspiracy. Come on now.

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By The Donkey Edge, July 27, 2010 at 2:06 pm Link to this comment

$32 Billion? Not even close. Here’s the lowdown on the dispersant, Corexit, which BP doubled down on during the cleanup:

http://thedonkeyedge.com/2010/07/27/just-when-you-thought-it-was-safe-to-go-back-in-the-water/

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