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Bp To Sell The Family Silver To Pay For Spill.pensioners Delighted.

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But surely the insurance companies will indemnify them of their costs? I.e. Lloyds of London, which will then cause a malestrom which means like AIG will need to be bailed out by somebody..

Oops ;)

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BP may

BP could

BP might

BP should

BP didnt

Bloomberg cant

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But surely the insurance companies will indemnify them of their costs? I.e. Lloyds of London, which will then cause a malestrom which means like AIG will need to be bailed out by somebody..

Oops ;)

As regards above I heard the other day that BP self-insure for such spills, so no Lloyds bailout.

I also found this as well. Looks like it's bye-bye dividend for a year or two at least

http://www.phongpo.com/2010/05/26/civil-penalty-in-the-gulf-could-be-4300-barrel-spill/

NEW YORK – Just how many barrels of oil are flowing into the Gulf of Mexico from the Deepwater Horizon spill is one billion U.S. dollars question with implications that go beyond the environment. It can also help determine how much BP and others end up paying for the disaster. Gulf Oil Spill. A clause buried deep in the U.S. Clean Water Act could expose BP and others for civil penalties are not limited to a finite cap – 75 million U.S. dollars as opposed to a cap on compensation for economic damages.

[...]

The basic amount, the law is $ 1,100 per barrel spilled. But the penalty may increase to $ 4,300 per barrel as a federal court rules of the spill is the result of gross negligence. The fines were originally set at $ 1,000 to $ 3,000, but that was raised in 2004 to keep pace with inflation, said Tracy Hester, head of the Environmental Law and Policy program at the University of Houston.

So their final costs will be economic damage + $1.1k to $4.3k per barrel.

The estimates run from 5k barrels per day to 100k barrels. It's already been gushing for 45 days and could run for hundereds more.

You run the math.

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As regards above I heard the other day that BP self-insure for such spills, so no Lloyds bailout.

I also found this as well. Looks like it's bye-bye dividend for a year or two at least

http://www.phongpo.c...0-barrel-spill/

NEW YORK – Just how many barrels of oil are flowing into the Gulf of Mexico from the Deepwater Horizon spill is one billion U.S. dollars question with implications that go beyond the environment. It can also help determine how much BP and others end up paying for the disaster. Gulf Oil Spill. A clause buried deep in the U.S. Clean Water Act could expose BP and others for civil penalties are not limited to a finite cap – 75 million U.S. dollars as opposed to a cap on compensation for economic damages.

[...]

The basic amount, the law is $ 1,100 per barrel spilled. But the penalty may increase to $ 4,300 per barrel as a federal court rules of the spill is the result of gross negligence. The fines were originally set at $ 1,000 to $ 3,000, but that was raised in 2004 to keep pace with inflation, said Tracy Hester, head of the Environmental Law and Policy program at the University of Houston.

So their final costs will be economic damage + $1.1k to $4.3k per barrel.

The estimates run from 5k barrels per day to 100k barrels. It's already been gushing for 45 days and could run for hundereds more.

You run the math.

crude oil decomposes naturally in seawater.

no need for a cleanup.

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crude oil decomposes naturally in seawater.

no need for a cleanup.

As I understand it that isn't a cleanup cost.

It's a civil fine.

They can decide not to clean a single barrel from the sea and still fine BP $4,300 a barrel for spilling it.

Much as they can fine you £10k for driving drunk even if you didn't hit anyone.

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$37 billion is a lot of cash.

Not to big oil companies its not. BP made profits of $5.6bn in the first three months of this year alone. Annualized that's over $22bn of pure profit in one year. They could easily take a $37bn hit spread over a couple of years and still make a massive profit. And there's no way they will be liable for anywhere near the full $37bn figure- settlements will drastically reduce this, with the remaining amount spread between halliburton, transocean and the government. Exxon only ended up paying $2.5bn after the massive Exxon Valdez spill of 1989

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But surely the insurance companies will indemnify them of their costs? I.e. Lloyds of London, which will then cause a malestrom which means like AIG will need to be bailed out by somebody..

Oops ;)

Apparently BP "self-insures".

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Exxon memo to Halliburton:-

Dear Halliburton.

MUST TRY HARDER!

Yours,

Exxon.

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As I understand it that isn't a cleanup cost.

It's a civil fine.

They can decide not to clean a single barrel from the sea and still fine BP $4,300 a barrel for spilling it.

Much as they can fine you £10k for driving drunk even if you didn't hit anyone.

I think Haliburton will have to pay that....it was their kit that failed...oh, and the rig, as I understand it, was officially inspected hours before the blow.

and who is going to calculate the volume?

and they will tie it up in the courts for decades if they want.

All this BP stuff in the press....i wonder what its covering up? Very convenient for the PsTB..they can carry on raping the banks customers while they are brushing the oil off the streets.

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Apparently BP "self-insures".

Not necessarily a bad idea.

1. You might find you pay less in accident costs than you would have done in premiums

2. In the event of a major catastrophe you might find your insurer goes bust and can't pay up in full anyway

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Not necessarily a bad idea.

1. You might find you pay less in accident costs than you would have done in premiums

2. In the event of a major catastrophe you might find your insurer goes bust and can't pay up in full anyway

Best bet is do what the US "banks" did, set up a scam whereby you insure all the derivative crap at cheap rates with massively undercapitalised "insurers" who have no hope of paying up. The sell off all your toxic shit structured so that this "insurance" provides the triple A gloss to a pile of shit required to sucker buyers in. Wait for default and then go to the taxpayer to pay the bill.

The equivalent would be BP having oil spill contingency of a couple of rowing boats and a stack of plastic buckets.

Edited by OnlyMe

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  • 142 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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