Money Matters, Simplified.
BP's battle against the oil spill continues
by Jamie Anderson - June 28, 2010 - comments
BP's swelling costs for capping and cleaning up the oil has reportedly topped $2.65 billion. In an SEC filing, the company has claimed that the expenses climbed $100 million per day over the weekend.
People have vented their anger at BP Plc, the owner of the ruptured well that is spewing thousands of gallons every day into the Gulf of Mexico, by protesting on the streets as well as by pressuring the company to pay for all costs related to the oil spill response.
The pressure on the British drilling major only increased when Russia's deputy PM said he expected the company’s chief executive officer, Tony Hayward, to resign in the wake of the spill.
Hayward to remain CEO
BP has maintained that as of now Hayward will remain the CEO and no change was even under discussion.
BP spokeswoman Carolyn Copland claimed that the report about CEO’s resignation "is definitely not correct. Tony Hayward remains chief executive."
The National Hurricane Center has predicted that the "additional strengthening (of tropical storm Alex) is forecast in the next 48 hours and Alex could become a hurricane" on Monday or Tuesday.
"They are mistaken," U.S.-based BP spokesman Mark Proegler also said of the Russian report, putting all doubts to rest.
Moscow-based oil analyst Konstantin Cherepanov of Swiss investment bank UBS opined, “Hayward's resignation at this time and in this place lacks logic. It would make sense that Hayward would finish his job tackling with the oil spill and step down afterwards so that the new CEO wouldn't have his burden on his shoulders."
Storm imminent
Meanwhile a tropical storm is brewing in the sea threatening to undo all the good work that BP has done so far.
The National Hurricane Center has predicted that the "additional strengthening (of tropical storm Alex) is forecast in the next 48 hours and Alex could become a hurricane" on Monday or Tuesday.
The oil spill which began April 20 has already caused enough economic and environmental damage along the U.S. Gulf Coast, ruining fisheries, tourism, and wildlife.
This spilled oil coupled with the storm threat appears to have BP standing with its back against the wall.
While the storm will spare most of BP's oil collection efforts, it will make a landfall between Brownsville, Texas, and Tuxpan de Rodriguez Cano in Mexico.
One group of specialists avers that a storm would prove to be a blessing in disguise by helping disperse oil and lessen the resultant environmental damage.
The locals are not convinced though.
"Life as I know it is over. What are we going to do if nobody cares to act fast enough?" asked Mike Hollings, a resident.