_Continuous News

Apr 20, 2011 11:18 PM by Shawn Kline

BP rebounding; suing amid public dismay

When investors watched Deepwater Horizon burst into flames from their television last year, many made the decision to drop BP from their financial portfolio.
The once mighty oil company plummeted from over $60/share to a mere $26.

"It's rebounded." UL Finance Professor, Mary Luquette says, "it's now, around the close of (Wednesday) around $46/share- that's a good rebound."

And it's holding steady.
Luquette says a rebound like this was expected to take years.

"I'm just watching how a company goes from zero to hero in a year," Luquette said of the stock market surge.

BP however, claims their focus remains on recovery. This, on the one-year anniversary of the tragedy and the announcement of a lawsuit: suing Deepwater Horizon rig owner, Transocean for mega bucks: $40-Billion.
The oil company also filing suit against the maker of the rig's blowout preventer, Cameron International Corp.

"Our primary focus here on the ground is not the recovery of BP's stock," company spokesman, Curtis Thomas said. "It's the recovery of the gulf coast reputation, the recovery of the environment and the recovery of the economy."

Luquette says there's still anger towards BP- even within their shareholders.
She says last year after the oil spill happened, only two-percent of its shareholders disapproved of Tony Hayward and the company's board of directors.
This year, BP's shareholders now boast seven-percent disapproval.

"People are still not all that happy with the way BP is operating," Luquette said.

For example, the company set aside $20-billion for claims last year but since then, just over 15-percent was paid out.

In the mean-time, the company continues to invest in offshore drilling and remains the largest leaseholder on the Gulf coast.
The first permit issued after the deepwater drilling moratorium was lifted went to Noble Energy. However, BP has a 46-percent stake in that well.

"We've got eight rigs and interests in 20 others." Thomas says, "(Offshore drilling in the Gulf) is part of our business we'd like to see continue to grow."

A growing company still striking criticism from those around the Gulf, one-year later.



»Topics in this article

Top Videos

1 2 3 4

Most Popular