Is there a possibility of BP going under as a result of their problems in the US?
I know they're a massive company, but given the size of legal costs and penalties in the States, and the fact that they already have form for safety violations over there, could they possibly be bankrupted?
BP said replacement cost net profit, which strips out unrealised gains related to rises in the value of inventories, was $5.60 billion (3.65 billion pounds) in the quarter, up from $2.39 billion in the same period of 2009, thanks to higher oil and gas prices.
My brother is an underwater valve engineer and has been in the oil industry for the best part of 30 years. In fact he was involved in the valve manufactoring process in the type used in this instance.
He said the subcontractors were responsible for the maintanance of these valves which need constant monitoring. There is a process by which they have to be regularily cleaned as a certain amount of dirt can enter in and this has to be flushed out.
On board the rig are usually up to about five (in this instance) BP engineers monitoring the subcontractors, but it is impossible to oversee everything as there is so much going on. What happened here is that the valves didn't work as they should due to them not being properly cleaned. He told me anyone in the oil industry would know all this.
The subcontractors on this rig are American. BP is British. BP are wealthier than their US counterparts. Obama has decided therefore that BP should pay.
Hopefully all this should eventually be exposed. Unless of course there is a cover-up.
The first clue to problems ahead is to look at the stock market. Currently the BP price is stable and a long way off its 12 month low figure. If the markets were concerned about it they would have reacted by now.