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Bob van der Valk  

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  • Is This the End for BP? [View article]
    My comment, about BP/Arco's retail arm adjusting its decades old "We are the low price leader" pricing posture in the retail market, was timely in view of a massive layoff, which occurred at their retail office in La Palma, CA this month. BP will be retrenching and try to recuperate financially by raising their Dealer Tank Wagon prices, which have been among the lowest prices in the market and at times below wholesale unbranded gasoline rack prices.
    Dec 28, 2010. 07:55 AM | Likes Like |Link to Comment
  • Is This the End for BP? [View article]
    mxvftc - I did not call BP DOA in my article. Please re-read it and note that they will have to fall back on their forte, which is Exploration and Production (E&P). Their Refining and Marketing (R&M) department is not the most profitable end of their business but was considered a necessary evil to move their production of crude oil. They have used up the "cheap" barrels discovered in the Prudhoe Bay on the North Slope of Alaska in 1977 and reserve barrels there are dwindling. The new barrels will come in at market prices especially with the US MMS (Minerals Management Service) on their projects like a cheap suit.
    Dec 18, 2010. 10:38 AM | 1 Like Like |Link to Comment
  • Is This the End for BP? [View article]
    Polistocks - Please read my reply in the comment section in which I already answered your question. I am not shorting BP stock and have no investments in stock of any kind. My profile explains my back ground in the petroleum industry and I have now taken pen and paper in hands (or in this case my desk top computer and the Internet) to inform anyone willing to read about the inner workings of the petroleum industry. I am at 50 years plus and still counting in this fabulous industry, which has provided me with a comfortable living.
    Dec 18, 2010. 10:29 AM | Likes Like |Link to Comment
  • Is This the End for BP? [View article]
    WikiLeaks just released another round of U.S. embassy cables among them highlighting similarities between the Gulf of Mexico disaster and a little-reported major gas leak at BP’s operations in Azerbaijan in 2008.
    Dec 16, 2010. 08:53 AM | Likes Like |Link to Comment
  • Is This the End for BP? [View article]
    I used a quote from the International Business Times - U.S. edition article written by Surojit Chatterjee and posted on their web site on September 3, 2010 for my estimate for the oil spill cost at over $100 billion as follows:

    "Market analysts have put BP's total oil spill costs at anything between $30 billion and $100 billion, given the litigation and fines it's facing and also said the company could be a vulnerable target of a hostile takeover from rivals such as US energy giant Exxon Mobil or French oil major Total S.A."

    The estimate on the potential fines under the CSB Under the Clean Water Act alone, BP faces fines of up to $1,100 for each barrel of oil spilled. If BP is found to have committed gross negligence or willful misconduct, the fine could be up to $4,300 per barrel.

    That means that based on the government's estimate of 206 million gallons released by the well, BP could face civil fines of between $5.4 billion and $21.1 billion.

    Notwithstanding the civil and class action lawsuits being filed for the eleven deaths and long term damages to the environment and businesses in this area it's not tough that B.P.'s total bill for the oil spill will easily reach the $100 billion mark.

    I worked for Union Oil Company of California during the 1969 oil spill off the coast of Santa Barbara. They never recovered financially and became an easy target for T. Boone Pickens' green mail attempt in the early 1970's for a hostile take over.
    Dec 15, 2010. 06:47 PM | Likes Like |Link to Comment
  • Is This the End for BP? [View article]
    I do not own and have never owned any BP or Arco stocks. My intention is not to run BP out of business, although their PR department seems to be doing that job for them.

    The new information in this article is the change in the pricing posture BP has taken in the last few weeks in the retail market. They are they still hurting from the boycott efforts at their BP and Arco branded gas stations while the oil was still spilling into the Gulf of Mexico. They are also no longer the low price leader on gasoline in some of their markets.

    In the end this will come down to whether BP can generate enough profits to continue not only to pay for the claims for losses suffered by businesses around the Gulf. On top of having to dump money down the bottomless pit by having to adhere to "the letter of the law" the many old and new federal drilling regulations being fully enforced against them.
    Dec 15, 2010. 01:05 PM | Likes Like |Link to Comment
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