Gulf of Mexico oil spill posts
FeedPosted Sep 13th 2010 5:40PM by Paul Foster (RSS feed)
Filed under: Options, Transocean Ltd. (RIG)
CBOE Volatility Index-VIX was down 78 cents to $21.21. The 10-day
moving average is 23.79, 100-day 26.89. The S&P 500 was up 1.1% to 1116.10.
Transocean LTD (
RIG) closed up 2 cents to $58.84. The April 20th Gulf of Mexico explosion was aboard a Transocean owned deepwater rig. Crude oil futures are recently up 0.86% to $77.11 according to Bloomberg. RIG October
put option implied volatility is at 46, November is at 44. That is near its 26-week average of 44, according to Track Data, suggesting non-directional price movement.
Otions Update is by Stock Specialist Paul Foster of theflyonthewall.com.Posted Jun 25th 2010 5:00PM by Michael Fowlkes (RSS feed)
Filed under: Major Movement, Scandals, BP p.l.c. ADS (BP), Mexico, Oil
Since the April 20th explosion of BP's (BP) deepwater rig Horizon, the stock has been steadily falling, and shares fell to a 14 month low today.
The stock finished the day down 6% to $26.97, down $1.77, and traded as low as $26.83 during the day.
Oil has been gushing into the Gulf of Mexico for 62 days now, and no one is expecting BP to be able to stop it until at least August, and that is assuming that the two relief wells the company is drilling will be ready in time.
Continue reading BP Hits New Low as Company Continues to Deal with Oil Spill
Posted Jun 21st 2010 1:10PM by Mark Fightmaster (RSS feed)
Filed under: BP p.l.c. ADS (BP)
Monday morning, BP (BP) announced that the costs of the Gulf of Mexico oil spill have hit $2 billion.
What's more, it is the 60th day for the Deepwater Horizon oil spill, and it sure doesn't seem like a solution is forthcoming. BP is already paying for spill containment, relief well drilling, grants to Gulf states, and the construction of sand barriers to protect coastal areas, but it will also pay claims from local businesses and potential litigation from Anadarko Petroleum (APC). For those unfamiliar with APC's part in the spill, it owns 25% interest in the Macondo well and is accusing BP of "reckless" decisions that lead to the rig explosion on April 20.
Continue reading Costs for BP Oil Spill Hit $2 Billion
Posted Jun 10th 2010 10:00AM by Mark Fightmaster (RSS feed)
Filed under: Analyst Reports, Analyst Upgrades and Downgrades, Transocean Ltd. (RIG)
JPMorgan Thursday morning
rearranged its ratings on four oil service companies -- a reflection of the broker's shift toward large-cap oil firms and away from offshore drillers. While JPMorgan upgraded Baker Hughes (
BHI) to overweight and Weatherford (
WFT) to neutral, it cut Ensco (
ESV) to neutral and reiterated Transocean (
RIG) at neutral.
The brokerage's logic behind the BHI, WFT and ESV calls makes sense. But I am not too sure about the move on Transocean. Keeping in mind that Transocean is the owner of the Deepwater Horizon rig (leased to BP) that blew up and caused the massive oil spill in the Gulf of Mexico, JPMorgan believes that Wednesday's 8% drop in the stock was based on emotion, saying the stock is a "moving target."
Continue reading JPMorgan Shifts Coverage of Offshore Drillers
Posted May 26th 2010 10:30AM by Mark Fightmaster (RSS feed)
Filed under: BP p.l.c. ADS (BP)
It's already Wednesday but BP (BP) is still trying to decide whether to use its "top kill" method to stop the oil gushing out of a broken well at the bottom of the Gulf of Mexico. It's been more than a month since the explosion that caused the massive spill. The latest attempt includes "force-feeding" the leak with "heavy drilling mud and cement."
BP's CEO Tony Hayward told NBC's Today show that the "top kill" procedure could happen Wednesday if he okays the procedure. This is just the latest in a series of attempts by BP to stem the tide of flowing black gold from the busted pipeline.
Continue reading BP to Decide on Latest Attempt to Stop the Leak
Posted May 17th 2010 10:30AM by Connie Madon (RSS feed)
Filed under: BP p.l.c. ADS (BP), Oil
British Petroleum (
BP) said it has made a breakthrough in controlling
the oil gushing out of the broken well in the Gulf of Mexico. BP said it inserted a four-inch pipe wrapped with a rubber flange into the larger, leaking pipe to funnel the oil to a drill ship at the surface. The tube will capture only a portion of the gushing oil and is not a complete solution to the problem.
BP's next attempt at stopping the leak will be a "Junk shot." This consists of blasting pieces of rubber and golf balls into the well to stop the leak and then cap it. BP is also using sub sea dispersants to try and break up the oil plumes, but at this point it is not known how well the dispersant is working at deep levels.
Continue reading BP Inserts Tube into Leaking Well, but Devastation May Be Far Worse
Posted May 5th 2010 10:00AM by Mark Fightmaster (RSS feed)
Filed under: Analyst Upgrades and Downgrades, BP p.l.c. ADS (BP), Technical Analysis
U.K. brokerage house Panmure Gordon
upgraded BP (
BP) Wednesday, elevating the oil company rating to buy from sell. Panmure Gordon contends that the market reaction to the oil spill in the Gulf of Mexico is overdone, citing that it is unlikely BP will have to cut its dividend.
The oil firm could pay as much as $2 billion to bring the well under control, the rating house said. In addition, BP will have to pay 65% of the estimated $10 billion cost on damage to fishing and tourism along with $75 million punitive damages. Yes, BP could be fined $75 million for destroying the Gulf of Mexico (more or less). This fine could become greater if BP is found grossly negligent or if it engaged in willful misconduct.
Continue reading BP Upgraded Even as Questions Remain
The Richest Woman in the World: How Gina Rinehart Earns her Billions
America's 10 Highest-Paid CEOs of 2011 (and How They Earned It)
Shares of BP plc (
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
