It will be a long time before BP is back to business as usual following the Gulf of Mexico disaster. The UK oil and gas major has just upped its estimate of costs by $7.7 billion to $39.9 billion, in what investors must hope is the second kitchen-sinking exercise following the disaster—albeit the first under new chief executive Bob Dudley. But the hit can't mask what looks like the makings of BP's recovery.
The Great Debate UK
from The Great Debate:
"Prediction is very difficult, especially if it's about the future," is attributed to a long list of people. Even with that in mind, however, the first eight months of 2010 have been especially unkind to professional forecasters and investors as markets have lurched between extremes of pessimism and optimism.
Vedanta Resources' Indian oil interest is hard to fathom. No doubt Cairn Energy will have plenty of ideas for any cash it may raise by selling a stake in the UK oil explorer's Indian subsidiary. But it's harder to see what Anil Agarwal's mining group has to gain from dipping its toe into the oil business.
It's potentially hazardous to swallow a meal a third your size. But it could make sense for Apache to grab $10 billion of BP's Alaskan assets. The U.S. firm's flair for squeezing oil from older wells makes it an ideal buyer -- and BP is a keener seller than it was.
from Global News Journal:
As if they didn’t have enough to think about, planners trying to pin down the unintended consequences of a strike on Iran may be required to reorder their lengthy worry list.
from The Great Debate:
-- John Kemp is a Reuters columnist. The views expressed are his own --
U.S. refiners have emerged as the biggest losers from the previous surge in oil and push for cleaner energy. The industry's brief golden age has swiftly given way to a prolonged dark period of adjustment and decline.
Oil price bulls and bears have both had their triumphs in recent history. The price of crude rose to $147 a barrel in July of 2008 only to plummet to $33 a barrel a few months later. It swung past $82 a barrel this week because of a cold snap, and is up 18 percent since mid-December. But barring heightened tension in the Middle East, oil looks likely to slide in the short term.