The real losers over BP and the Gulf Oil Spill
So BP has posted a large loss, over the oil spill in the Gulf of Mexico. We can now see who the real losers are.
Those who live in the area of the spill are being fully compensated, but as BP is making a loss, they will not be paying any UK Corporation Tax. And as BP will not be paying a dividend, any pension fund or investor who holds their shares will not get any return.
In other words the British Government, pensioners and investors will be paying for the failure of an American blow-out protector made by Cameron Iron and dodgy drilling practices for which an American company, Transocean, were partly responsible. It could also be argued that American government policy, which promotes offshore drilling, rather than the much safer onshore is also to blame. Read this from Professor Mark Perry.
Hote that if you think onshore drilling is bad, search Google for Wytch Farm. This is the largest onshore oil field in Europe and it’s around Poole in Dorset in the middle of beautiful countryside. Many don’t even know it’s there!And who successfully manages the field? BP!
We are mugs in this country and total lap-dogs to the greedy Yanks, who won’t economise on fossil fuel. But should we pay for their profligacy, mistakes and arrogance?
The Anonymous Widower 
How long will it be before the Americans realise that they own 49% of BP? Maybe it should be renamed BAP.
The fact that so many pension funds have so much of their assets in a single company is a lesson for all investors. Don’t put too many eggs in one basket no matter how strong the basket looks at the time. No risk, no matter how small it seems, should have a large impact.
Like most investors I have money in BP, but the amount is small in comparison to the whole. I have lost money on BP, but made money on other investments to more than compensate. You win some – you lose some. That’s investing.
Comment by John Wright | July 27, 2010 |
I have read enough about the incident on the US congress websites and believe that the final responsibility really rested with BP and they took the fatal decisions. Agree with the analysis that it is not only BP as a company that pays, but they are in real danger of being subject to hostile take-over, if they don’t go bust at some point. The share value will suffer for some time to come.
Comment by Vanna Vechian | July 29, 2010 |