BP CEO Tony Hayward will apologize for the Deepwater Horizon accident and the following spill in his opening statement to Congress on Thursday morning. Andrew Harrer/Bloomberg Tony Hayward, chief executive officer of BP Plc, leaves after a meeting with U.S. President Barack Obama at the White House in Washington, D.C., U.S., on Wednesday, June 16, [...] More »
More people think the oil spill in the Gulf of Mexico demonstrates that corporations must be socially responsible and not just responsible to shareholders, according to a survey conducted by Rice University’s Jones Graduate School of Business. Vikas Mittal, professor of marketing at the Jones school, said the survey results showed there has been a [...] More »
APBP Chairman Carl-Henric Svanberg
Speaking on the steps of the White House after a meeting with President Obama, BP Chairman Carl-Henric Svanberg said the company will not make any dividend payments for the rest of the year, including the one due later this month.
The oil company also agreed to set up a $20 billion escrow fund to pay claims related to the oil spill from BP’s Macondo well in the Gulf of Mexico. The administration’s pay czar, Kenneth Fineberg, is expected to oversee the fund, which could be increased if claims grow beyond the $20 billion threshold.
BP has come under pressure from the administration, members of Congress and others in recent weeks for considering a dividend payment to shareholders before the liabilities for the Gulf disaster are covered.
Blog readers overwhelmingly said BP should pay the dividend. Sorry, folks, it appears the administration had other ideas.
The dividend suspension didn’t phase investors, though. BP’s shares rose slightly after the announcement. Instead, it appears the spill fund is easing investors’ concerns about the company’s future.
It’s Personal Financial Disclosure Day in Washington, and noticeably absent from the 2009 financial records of a few members of Congress are their previous holdings in BP and Transocean. AP Senator John Kerry, D-Mass. Three senators — John Kerry, D-Mass., Kit Bond, R-Mo., and Judd Gregg, R-N.H. — and Rep. Carolyn Maloney, D-N.Y., have sold [...] More »
BP’s decision to set up a $20 billion claim fund to compensate victims of the oil spill in the Gulf of Mexico is “an important step toward making the people of the Gulf Coast whole again,” President Barack Obama said in announcing the escrow account moments ago. “It should provide some assurance to some of [...] More »
The BP/White House agreement to have the oil giant set aside $20 billion for future payments to businesses and individuals harmed by the spill gives us a nice round number for one side of the cost equation. And now with the spill flow rate increased yesterday to as much as 60,000 barrels per day, we [...] More »
Under pressure from President Barack Obama, BP today agreed to set aside at least $20 billion in a spill recovery escrow account that would be used to compensate fishermen, deckhands and others who lose wages and work because of the oil spill in the Gulf of Mexico. BP’s concession, confirmed by a senior White House [...] More »
The House Natural Resource Committee is asking the Department of Interior to turn over missing pages of an internal memo detailing plans to potentially designate 13 million acres of U.S. land as national monuments. “We now have a strong bipartisan agreement that the Interior Department needs to reveal to the public exactly what plans are [...] More »
BP has been successfully capturing oil and gas from the leaking Macondo well through the second containment system since approximately 1 a.m. this morning. The second containment system, which is connected directly to the failed blowout preventer, has been siphoning oil and gas and sending it up to the Q4000 multipurpose vessel on the surface. [...] More »
Norwegian oil company Statoil has declared force majeure on two of its contracts in the Gulf of Mexico as a result of the moratorium on offshore drilling. Transocean and Danish shipping and oil group Maersk Drilling contracts are affected by the action, Dow Jones Newswires said. “The moratorium has created a very challenging situation for [...] More »