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.

Continue reading Alaskan Pipeline Shutdown Pushes BP Lower

Alaskan Pipeline Shutdown Pushes BP Lower originally appeared on BloggingStocks on Mon, 10 Jan 2011 16:30:00 EST. Please see our terms for use of feeds.

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.

Continue reading Oil Spill Cuts Deep into BP's Profit

Oil Spill Cuts Deep into BP's Profit originally appeared on BloggingStocks on Tue, 02 Nov 2010 11:20:00 EST. Please see our terms for use of feeds.

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.

Continue reading New BP Chief Says Dividend Will Return in 2011

New BP Chief Says Dividend Will Return in 2011 originally appeared on BloggingStocks on Thu, 30 Sep 2010 12:00:00 EST. Please see our terms for use of feeds.

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).

Continue reading Will BP Remove CEO Tony Hayward?

Will BP Remove CEO Tony Hayward? originally appeared on BloggingStocks on Mon, 26 Jul 2010 11:30:00 EST. Please see our terms for use of feeds.

Continue reading Big Oil's $1 Billion Rapid Response Venture: Too Little, Too Late

Big Oil's $1 Billion Rapid Response Venture: Too Little, Too Late originally appeared on BloggingStocks on Fri, 23 Jul 2010 11:30:00 EST. Please see our terms for use of feeds.

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.

Continue reading BP to Test New Cap on Deepwater Horizon Well

BP to Test New Cap on Deepwater Horizon Well originally appeared on BloggingStocks on Tue, 13 Jul 2010 12:00:00 EST. Please see our terms for use of feeds.

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.

Continue reading BP Shares Climb on Reports of Asset Sale; Oil Spill Costs Climb Too

BP Shares Climb on Reports of Asset Sale; Oil Spill Costs Climb Too originally appeared on BloggingStocks on Mon, 12 Jul 2010 10:00:00 EST. Please see our terms for use of feeds.

Continue reading Traders Buy Plunge Protection on Transocean Ltd.

Traders Buy Plunge Protection on Transocean Ltd. originally appeared on BloggingStocks on Thu, 01 Jul 2010 13:30:00 EST. Please see our terms for use of feeds.

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.

Continue reading BP Shares Rally on Takeover Scenarios

BP Shares Rally on Takeover Scenarios originally appeared on BloggingStocks on Wed, 30 Jun 2010 11:15:00 EST. Please see our terms for use of feeds.

Continue reading Options -- A Foolish Bet on BP?

Options -- A Foolish Bet on BP? originally appeared on BloggingStocks on Mon, 28 Jun 2010 14:50:00 EST. Please see our terms for use of feeds.

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:

Continue reading Whose Best Interests Are Served If BP Is Pushed into Bankruptcy?

Whose Best Interests Are Served If BP Is Pushed into Bankruptcy? originally appeared on BloggingStocks on Mon, 28 Jun 2010 11:10:00 EST. Please see our terms for use of feeds.

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

BP Hits New Low as Company Continues to Deal with Oil Spill originally appeared on BloggingStocks on Fri, 25 Jun 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Analysts Upgrade BP to Buy?

Analysts Upgrade BP to Buy? originally appeared on BloggingStocks on Thu, 17 Jun 2010 10:00:00 EST. Please see our terms for use of feeds.

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.

Continue reading BP Oil Spill Much Worse Than First Thought, Gushing Up to 60,000 Barrels per Day

BP Oil Spill Much Worse Than First Thought, Gushing Up to 60,000 Barrels per Day originally appeared on BloggingStocks on Wed, 16 Jun 2010 15:30:00 EST. Please see our terms for use of feeds.

Continue reading Exxon Mobil and Chevron Executives Say BP Spill Unlikely to Repeat

Exxon Mobil and Chevron Executives Say BP Spill Unlikely to Repeat originally appeared on BloggingStocks on Tue, 15 Jun 2010 13:50:00 EST. Please see our terms for use of feeds.

Continue reading Sunday Funnies: Market Reruns Not Returns

Sunday Funnies: Market Reruns Not Returns originally appeared on BloggingStocks on Sun, 13 Jun 2010 19:00:00 EST. Please see our terms for use of feeds.

Shares of BP PLC (BP) have been in free fall the past month as investors worry whether or not the company is going to be able to deal with the oil disaster in the Gulf, but the stock made a nice move today, gaining 12.3% on the day to close the session at $32.78.

While today's price jump was impressive, it was still not enough to make up for the 16% drop we saw yesterday, which marked the stock's worst trading day since 1972.

Continue reading BP Bounces Off 52-Week Low

BP Bounces Off 52-Week Low originally appeared on BloggingStocks on Thu, 10 Jun 2010 18:00:00 EST. Please see our terms for use of feeds.

Continue reading JPMorgan Shifts Coverage of Offshore Drillers

JPMorgan Shifts Coverage of Offshore Drillers originally appeared on BloggingStocks on Thu, 10 Jun 2010 10:00:00 EST. Please see our terms for use of feeds.

In Asian trade Thursday morning, oil was pushed past $74 per barrel following a report that crude inventories in the U.S. fell more than expected. The July crude contract hit $74.25 in late trading, an increase of $1.39 per barrel. The drop in oil supplies was attributed to growing consumer demand. A week ago, crude supplies dropped by 1.4 million barrels while analysts were calling for an increase of 1 million barrels.

According to Barclays Capital, "Oil prices are clearly at the mercy of jittery nerves and fragile sentiment ... Once the nerves calm down, and fundamentals reassert themselves, we would expect prices to move higher quickly." Solid reasoning, but I don't think that Barclays is really going out on a limb here.

Continue reading Oil Supplies Drop, Anyone Surprised?

Oil Supplies Drop, Anyone Surprised? originally appeared on BloggingStocks on Thu, 03 Jun 2010 10:40:00 EST. Please see our terms for use of feeds.

BP Plc (BP) is facing many problems as a result of the oil spill in the Gulf of Mexico -- and now we are getting an idea of the financial ramifications of the spill (or at least one research firm's estimate). According to research firm Tudor Pickering Holt, BP and other companies face a liability of $35 billion to $40 billion as a result of the ongoing oil spill in the Gulf.

Analysts from the firm compared the current spill to the costs associated with the Exxon Valdez spill and added in some timing estimates and "guess work" to come up with a potential price tag. The analysts told Fox Business, "You've got to try and put some realistic projections on oil spill liability before you can try to value any stock involved."

Continue reading BP Oil Spill Liability Estimated at $40 Billion

BP Oil Spill Liability Estimated at $40 Billion originally appeared on BloggingStocks on Wed, 02 Jun 2010 11:10:00 EST. Please see our terms for use of feeds.