Earlier today, shares of oil behemoth BP plc (BP) slid lower thanks to the shutdown of the Trans-Alaska Pipeline System. The shutdown took place on Saturday, as a leak was discovered at the 800-mile network that transports oil across Alaska. BP owns a 47% stake in the pipeline system. Overseas, BP shares finished the day more than 1% lower and are currently mere percentage points lower in American trade.

BP has seen its fair share of problems lately, what with the whole Gulf of Mexico oil spill. In fact, the Oil Spill Commission blamed BP for having "a role in all of the mistakes made at the Macondo well." The pipeline's operator stated that the leak was discovered at 8:15 AM (local time) on Saturday and that the pipeline was shut at 8:50 AM. By 6 AM on Sunday, 90% of the oil had been recovered within the building.

BP's (BP) third quarter profit took a 66.5% hit, down to $1.79 billion, compared to $5.34 billion in the third quarter of 2009. Diluted earnings per share were 9.4 cents, down from 28.2 cents in 2009, according to the Wall Street Journal (subscription required).

BP took another $7.66 billion of charges due to the oil spill. These extra charges stem from costs related to the cost of the spill response, containment, relief well drilling, grants to states, claims paid and federal costs, bringing the total close to $40 billion.

Oil major BP (BP) could restore its dividend as soon as the first quarter of 2011, according to new CEO Bob Dudley. Speaking on BBC television today, Dudley explained, "The board will get together and talk before the end of the year about restoring a dividend in some form in the first quarter."

The new chief executive went on to clarify, "It's obviously for the board to decide," but added, "I believe we will get there." Dudley also said that he's comfortable with the amount of funds set aside to cover BP's liabilities stemming from the catastrophic Gulf of Mexico spill. "Generally, we're in, I think, good shape," he stated.

Lots of reports surrounding embattled BP (BP) CEO Tony Hayward surfaced Monday morning. Some are saying that the company's board has made up its mind on Hayward's fate while other outlets are stressing that no decision has been made.

Whatever the board's current status, it sure seems like Tony Hayward has one foot out of the door and his demise is related directly to the Gulf of Mexico oil spill. Moreover, it appears that the company has tapped Bob Dudley to take over. Dudley is in charge of the cleanup and would be BP's first foreign CEO (Dudley is a U.S. citizen).

The new joint-venture formed by Exxon-Mobil (XOM), Chevron (CVX), ConocoPhilips (COP) and Royal Dutch Shell (RDS.A) as a rapid response system to the Gulf of Mexico oil spill is best characterized as too little, too late.

The companies have initially committed a measly $1 billion to the force. A fund with a starting point of $20 billion-$30 billion would have been more appropriate and practical. The enormity and complexity of the BP's (BP) Deepwater Horizon oil spill demonstrates how quickly a contain-and-cap operation can shoot over $1 billion. Oil fell 56 cents to $78.74 per barrel in Friday morning trading.

So, BP (BP) plans to test the new cap on the Gulf of Mexico oil leak Tuesday afternoon. Does anyone want to take bets on the result?

Believe me, I don't like holding a negative outlook on the whole situation in the Gulf, but it sure seems like Murphy's Law has taken over and anything that can go wrong will. Reportedly, the company will put a new cap on the leak and will test it for as long as 48 hours to gauge its effectiveness. The problem is that the two ships siphoning the oil will stop their activity and the only way to see if the new cap is leaking is to let it go.

BP (BP) shares opened up over 4%. The Wall Street Journal reported the oil giant is in talks with U.S. oil and gas company Apache (APA) and other companies over potential asset sales. The talks are part of the steps BP is taking as it is considering how to pay for the massive oil spill in the Gulf of Mexico.

The Sunday Times earlier reported that BP is in talks to sell up to $12 billion of assets to Apache. The WSJ said on Sunday a deal with Apache could be up to $10 billion and could include stakes in BP's Alaskan oil fields. The Times also mentioned that the Obama administration told Exxon Mobil (XOM) it wouldn't interfere with a bid.

Shares of oil-spill accessory Transocean Ltd. (RIG) are currently trading near $47, but one investor is bracing for a drastic downside move from the security. On Wednesday, a long-term options trader picked up some plunge protection on RIG by purchasing a large number of deep out-of-the-money puts.

Specifically, several large blocks totaling roughly 5,000 contracts traded near the ask price yesterday on RIG's January 2011 25-strike put. Implied volatility on the option rose 2% by the close, indicating rising demand for this LEAPS strike. Open interest climbed overnight by 4,710 contracts, confirming that these were newly opened bearish bets.

BP (BP) shares rallied Wednesday morning after a JPMorgan analyst evaluated a takeover scenario. Shares rose as much as 9% in London, but have cooled off since, up over 5.5% in London. BP ADRs opened over 4% on the NYSE.

BP's stock price has lost about half its value, or about $100 billion in market cap, since the Deepwater Horizon rig exploded on April 20, killing 11 of its crew and creating a massive oil spill in the Gulf of Mexico.

Earlier today, I posted Whose Best Interests Are Served If BP Is Pushed into Bankruptcy? where I disclosed having taken a position in BP p.l. c. (BP), and for better or worse my first test will be the market close on July 16, 2010.

Over the past year, I have started reporting on various put options that I have been doing. In today's example, I sold to open BP at a July strike price of $22.50 (a naked put), receiving $0.50 per share.

My break even is $22.00, and the stock opened today at $27.65 with three weeks to go.

The daily cost of operations, clean-up and restitution to BP plc (BP) has reached $100 million per day (over the last three days), according to the company. Unless this is being broadcast to garner unlikely sympathy from a angry crowd, then the costs have reached a magnitude I would have thought unlikely, and my contrarian bet on BP may be at risk.

It's important for me to disclose from the beginning (not just in the footer) that I have wagered that BP is oversold through options and equity. How much so depends on a lot of factors. I made this calculated risk based on the assumption that forcing the company into bankruptcy is not in anyone's best interest. However, I am once again reminded of a great line from the The Maltese Falcon, in which Kasper Gutman cautions Sam Spade:

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.

After calls from a U.S. congressman for BP (BP) executives to commit hara-kiri and following President Obama's successful pressure on the company to set up a $20 billion escrow account, cancel $7.8 billion in dividend and sell $10 billion assets, a few analysts decided it couldn't get any worse and upgraded the oil giant shares to buy.

It's been nearly two months since BP's Deepwater Horizon rig exploded in the Gulf of Mexico, causing a massive oil spill -- that's still hasn't been resolved -- and the worst environmental disaster in U.S. history. Shares of the company were nearly halved as the cleanup cost estimates have swelled.

And as the agreements with Obama lifted some of the uncertainty, triggering a relief rally, some analysts also opted to upgrade BP shares.

New estimates put BP's oil spill as high as 60,000 barrels per day. If you recall, back on April 20, BP plc (BP) estimated the leak to be 5,000 barrels per day.

By cutting the riser pipe and placing a make shift cap on the main well pipe, it allowed more oil to flow, Now the problem of capturing the oil is much more difficult. BP has brought two tankers which are siphoning oil at the surface. However, the recapture rate is no where close to the oil escaping from the well. BP estimates that is can recapture 15,000 barrels per day. Yesterday, however, the recapture rate was only 10,400 bpd.

In the wake of the environmental disaster stemming from the BP (BP) oil spill in the Gulf of Mexico, Congress summoned oil officials to testify over the safety of their offshore drilling.

The oil spill that started back on April 20 when one of BP's offshore drilling platforms exploded continues to leak into the ocean, and could take up to another two months to stop. Following the accident, President Obama imposed a six-month moratorium on deep-water drilling and Congress is now trying to determine the likelihood of another disaster taking place.