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View Full Version : BP to pay record penalty for Gulf oil spill


Donger
11-15-2012, 10:10 AM
http://money.cnn.com/2012/11/15/news/bp-oil-spill-settlement/index.html?hpt=hp_t1

I couldn't find the old thread, so...

NEW YORK (CNNMoney) -- BP will plead guilty to a dozen felony charges stemming from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, and agreed to pay $4.5 billion in government penalties, the oil company said Thursday.

Of the penalties, $4 billion will resolve criminal charges and an additional $525 million will be paid to resolve claims brought by the Securities and Exchange Commission.

The settlement is subject to federal judicial review.

"All of us at BP deeply regret the tragic loss of life caused by the Deepwater Horizon accident as well as the impact of the spill on the Gulf coast region," said Bob Dudley, BP (BP)'s CEO, in a statement. "From the outset, we stepped up by responding to the spill, paying legitimate claims and funding restoration efforts in the Gulf."

"We apologize for our role in the accident, and as today's resolution with the U.S. government further reflects, we have accepted responsibility for our actions," Dudley added.

The fine comes on top of $20 billion that the company has agreed to pay into a trust fund to meet damage claims from the spill. It said it expects to pay a final $860 million into that fund this quarter.

BP reported a $17.2 billion loss in the quarter when the explosion took place. But it has been profitable since then, booking total profits of $43 billion over the course of the subsequent nine quarters.

In April 2010, the explosion on BP's Deepwater Horizon rig killed 11 workers and fouled the Louisiana coastline and other parts of the Gulf with millions of barrels of oil. Each death resulted in a felony charge to which the company will plead guilty.

In addition, the company will plead guilty to a count of obstruction of Congress. The charge is related to statements made to a member of Congress by two BP executives about flow rate estimates during the spill. The two individuals were not identified in the company's statement.

BP also will plead guilty to one misdemeanor count under the Clean Water Act and one misdemeanor count under the Migratory Bird Treaty.

Family members of the victims who spoke to CNN Thursday said they were pleased that BP was being forced to pay for the blast, but said it doesn't make up for their loss.

"It doesn't bring my boy back, but it does show everybody that they're guilty and everybody knows it," said Billy Anderson, whose son Jason was one of the rig workers killed.

Arlene Weise lost her 24-year-old son Adam on the rig that day.

"I knew all along that BP was the devil in that accident," she said. "Now they're getting their due."

But Weise said Thursday's announcement offered only a limited sense of justice.

"It doesn't matter how much money anyone pays," she said. "It doesn't nearly amount to what we've lost."

The well was capped three months after the explosion, but in that time, the spill caused extensive environmental damage to the Gulf. Embattled CEO Tony Hayward was forced to resign, and BP shares plummeted.

BP has reached a $7.8 billion settlement with lawyers representing private-sector victims. But in September of this year, the Justice Department accused BP of gross negligence and a "culture of corporate recklessness" in a federal court filing, which expanded the company's liability.

Buehler445
11-15-2012, 10:13 AM
Awesome. I love paying $4/gallon.

Deberg_1990
11-15-2012, 10:14 AM
the spill caused extensive environmental damage to the Gulf.

Did it?

Donger
11-15-2012, 10:17 AM
Did it?

No.

Rausch
11-15-2012, 10:20 AM
No.

:spock:

Donger
11-15-2012, 10:23 AM
:spock:

This topic was discussed in the thread that was created during the spill ( I think). The damage was relatively light and nowhere even close to the prognostications of doom that some were saying was going to happen.

notorious
11-15-2012, 10:25 AM
24.5 billion in fines and they will still probably have a record year.

Chief Roundup
11-15-2012, 10:28 AM
No.

Hmm I think the deformed seafood coming out of the gulf would disagree.

gblowfish
11-15-2012, 10:38 AM
I haven't bought BP Gas since the spill. And there's a station about 1/4 mile from my house.

BigMeatballDave
11-15-2012, 10:40 AM
Hmm I think the deformed seafood coming out of the gulf would disagree.

I saw the eyeless shrimp.

Good for them. They can't see the pot of boiling water that awaits. :)

BigMeatballDave
11-15-2012, 10:42 AM
I haven't bought BP Gas since the spill. And there's a station about 1/4 mile from my house.

That has little to do with the crude coming out of the ground.

bevischief
11-15-2012, 10:45 AM
I haven't bought BP Gas since the spill. And there's a station about 1/4 mile from my house.

The gas all comes from the same refinery or pipeline.

Passepartout
11-15-2012, 10:47 AM
At least they can afford to pay it. If it was a normal person, it would take the rest of their lives to pay up their fines!

gblowfish
11-15-2012, 10:57 AM
The gas all comes from the same refinery or pipeline.

What? WHAT??? BP has "Invigorate!" It makes your car go farther! Don't you believe their ads???


The BP terminal is in Sugar Creek. I know lots of fuel haulers load up there. Gas is gas is gas is gas. I would just prefer not to award BP when they fouled the gulf the way they did, and now they're weaseling their way out of paying their fare share to set things right.

jd1020
11-15-2012, 11:01 AM
Time to go fill up the tank.

saphojunkie
11-15-2012, 11:01 AM
No.

You don't... believe that, do you?

QuikSsurfer
11-15-2012, 11:03 AM
No.

:rolleyes:

BigMeatballDave
11-15-2012, 11:07 AM
What? WHAT??? BP has "Invigorate!" It makes your car go farther! Don't you believe their ads???


The BP terminal is in Sugar Creek. I know lots of fuel haulers load up there. Gas is gas is gas is gas. I would just prefer not to award BP when they fouled the gulf the way they did, and now they're weaseling their way out of paying their fare share to set things right.You can continue to not buy their fuel, but you are still likely buying their crude.

scorpio
11-15-2012, 11:13 AM
omg we can't punish the job creators

Deberg_1990
11-15-2012, 11:16 AM
You don't... believe that, do you?

There was some damage, but its pretty much believed now the "Envormental Disaster cries" were waaay overblown. You can google it. Heres one link



http://www.time.com/time/magazine/article/0,9171,2007428,00.html

saphojunkie
11-15-2012, 11:29 AM
Dude, that article is from July of 2010. The damage done to the coastline and natural environment takes longer than three months. Or, think of it this way: It was capped ten days before this article. 53,000 barrels of oil gushed out TEN DAYS before this was written (and that's in one day). There's no way that the damage could have been assessed by July 29, 2010.

I don't think the damage has been as bad as feared, but it's nowhere near as minor as this guy was clearly trying to purport it to be.

lazepoo
11-15-2012, 11:38 AM
So who's serving time for BP's felonies?
Posted via Mobile Device

KILLER_CLOWN
11-15-2012, 12:07 PM
So who's serving time for BP's felonies?
Posted via Mobile Device

Their customers?

BigMeatballDave
11-15-2012, 12:11 PM
So who's serving time for BP's felonies?
Posted via Mobile Device

They made a mistake and they are paying for it financially.

Do you have a motor vehicle that burns a crude oil by-product?

gblowfish
11-15-2012, 12:16 PM
The blowout leaked about five million barrels into the gulf before it was capped. There's still oil seepage leaking from the capped site. Tar balls continue to wash up on shore, and it's been two and a half years since the accident.

saphojunkie
11-15-2012, 12:20 PM
So who's serving time for BP's felonies?
Posted via Mobile Device

I think two people are facing manslaughter charges.

Mr. Laz
11-15-2012, 12:27 PM
fuck all those UK bastiges


ship them all back to their island

BWillie
11-15-2012, 12:29 PM
Who cares man. They f*cked up. Do they really deserve to be fined 4 billion dollars? I think not. Hippies freaking out cuz some fish got killed.

BigMeatballDave
11-15-2012, 12:30 PM
fuck all those UK bastiges


ship them all back to their island:rolleyes:

gblowfish
11-15-2012, 02:28 PM
Even with $4.5 billion paid in fines (over a five year period), BP cleared $5.5 billion in profit last year. So, figure in the next five years they make $27.5 billion, and only pay $4.5 billion, they still CLEAR $23 billion during that time.

Not even a dent in their pocketbook, really. Slap on the wrist.

Donger
11-15-2012, 02:37 PM
You don't... believe that, do you?

Yes, but it really isn't a belief. It's a quantifiable fact.

Spott
11-15-2012, 03:05 PM
This is all bs. No single person involved in the oil industry has ever done anything close to unethical. They are all saints who make even the most trustworthy person among us seem like soulless heathens.

Ultra Peanut
11-15-2012, 03:12 PM
24.5 billion in fines and they will still probably have a record year.

B-b-but if we're any meaner to them they'll raise prices ! ! !

crossbow
11-15-2012, 04:47 PM
This is CLEARLY Scott Pioli's fault.

**** You Pioli.

Deberg_1990
11-15-2012, 04:50 PM
Even with $4.5 billion paid in fines (over a five year period), BP cleared $5.5 billion in profit last year. So, figure in the next five years they make $27.5 billion, and only pay $4.5 billion, they still CLEAR $23 billion during that time.

Not even a dent in their pocketbook, really. Slap on the wrist.

You don't want oil companies to get rich? Invent another widely popular engine that uses a widely popular fuel source.

Deberg_1990
07-02-2015, 01:35 PM
BP Plc will pay up to $18.7 billion in penalties to the U.S. government and five states to resolve nearly all claims from its deadly Gulf of Mexico oil spill five years ago in the largest corporate settlement in U.S. history.

The agreement comes on top of the $43.8 billion that BP has already set aside for criminal and civil penalties and cleanup costs.

BP shares jumped more than 5 percent in New York trading as investors said the British company, often mentioned as a potential acquisition target, could now turn the page on one of the darkest chapters in its century-long history.

Under the agreement with the U.S. Department of Justice and the states, BP will pay at least $12.8 billion for Clean Water Act fines and natural resource damages, plus $4.9 billion to states. The payouts will be staggered over as many as 18 years. The preliminary settlement, subject to all sorts of variables, avoids a substantial amount of further litigation.

The rig explosion on April 20, 2010, the worst offshore oil disaster in U.S. history, killed 11 workers and spewed millions of barrels of oil onto the shorelines of several states for nearly three months.

The agreement, which still needs to be approved by courts, covers Clean Water Act fines and natural resources damages, along with claims by Alabama, Florida, Louisiana, Mississippi and Texas as well as 400 local government entities.

"This is a realistic outcome which provides clarity and certainty for all parties," BP Chief Executive Officer Bob Dudley said in a statement. "For BP, this agreement will resolve the largest liabilities remaining from the tragic accident."



http://www.reuters.com/article/2015/07/02/us-bp-gulfmexico-settlement-idUSKCN0PC1BW20150702

Mrs. Loopner
07-02-2015, 02:59 PM
So who's serving time for BP's felonies?
Posted via Mobile Device

Maybe, Martha Stewart?

Mrs. Loopner
07-02-2015, 03:04 PM
Awesome. I love paying $4/gallon.

This. BP won't pay a dime of it.

suzzer99
07-02-2015, 03:07 PM
This. BP won't pay a dime of it.

Yes, they will raise their prices above everyone else and we'll all still pay, even though we can get gas cheaper at a Shell station next door. That's just Econ 101.

-King-
07-02-2015, 03:08 PM
Yes, they will raise their prices above everyone else and we'll all still pay, even though we can get gas cheaper at a Shell station next door. That's just Econ 101.

LMAO

Mrs. Loopner
07-02-2015, 03:13 PM
What an ingenious way to hide a tax increase

Donger
07-02-2015, 03:13 PM
Yes, they will raise their prices above everyone else and we'll all still pay, even though we can get gas cheaper at a Shell station next door.

:spock:

suzzer99
07-02-2015, 03:56 PM
Well that escalated over to DC quickly.

Mrs. Loopner
07-02-2015, 04:13 PM
Yes, they will raise their prices above everyone else and we'll all still pay, even though we can get gas cheaper at a Shell station next door. That's just Econ 101.

All gas prices will rise and settle to at or just below the highest price, mostly likely BPs. Similar to tactical collusion.

suzzer99
07-02-2015, 04:33 PM
All gas prices will rise and settle to at or just below the highest price, mostly likely BPs. Similar to tactical collusion.

Then why doesn't BP just raise prices now? Are you saying they're so dumb as to leave free money on the table?

FWIW - I get what you're saying and it does seem like this could raise prices across the board. But most likely it's because of increased insurance premiums for everyone, not BP raises prices then everyone else follows. At some point BP will just have to eat a lot of this settlement and go from being insanely profitable to wildly profitable for a while. Oh the horror.

Also did you see that BP's stock jumped 5% on the news? Clearly the street was expecting worse. So we should theoretically see prices fall now.

Mrs. Loopner
07-02-2015, 05:22 PM
Then why doesn't BP just raise prices now? Are you saying they're so dumb as to leave free money on the table?

FWIW - I get what you're saying and it does seem like this could raise prices across the board. But most likely it's because of increased insurance premiums for everyone, not BP raises prices then everyone else follows. At some point BP will just have to eat a lot of this settlement and go from being insanely profitable to wildly profitable for a while. Oh the horror.

Also did you see that BP's stock jumped 5% on the news? Clearly the street was expecting worse. So we should theoretically see prices fall now.

What would they have raised their prices to without knowing how much of a hit they would get?
Eating any of the settlement is out of the question. Happy stockholders makes the world go 'round and is the only thing that's important.

Mrs. Loopner
07-02-2015, 05:25 PM
Then why doesn't BP just raise prices now? Are you saying they're so dumb as to leave free money on the table?

FWIW - I get what you're saying and it does seem like this could raise prices across the board. But most likely it's because of increased insurance premiums for everyone, not BP raises prices then everyone else follows. At some point BP will just have to eat a lot of this settlement and go from being insanely profitable to wildly profitable for a while. Oh the horror.

Also did you see that BP's stock jumped 5% on the news? Clearly the street was expecting worse. So we should theoretically see prices fall now.

Yes I agree the outcome was not as bad as expected

suzzer99
07-02-2015, 05:32 PM
What would they have raised their prices to without knowing how much of a hit they would get?
Eating any of the settlement is out of the question. Happy stockholders makes the world go 'round and is the only thing that's important.

You know what stockholders really don't like? When you raise your prices so much that customers go elsewhere and profits fall. If BP could charge more for oil they should already be doing it, otherwise they're not very good at their business.

Mrs. Loopner
07-02-2015, 07:46 PM
This topic was discussed in the thread that was created during the spill ( I think). The damage was relatively light and nowhere even close to the prognostications of doom that some were saying was going to happen.


relatively light, what does that mean and what gauge are you using?
prognostications are meaningless at this point.

NPR - 5 Years After BP Oil Spill, Effects Linger And Recovery Is Slow
Audio and article
http://www.npr.org/2015/04/20/400374744/5-years-after-bp-oil-spill-effects-linger-and-recovery-is-slow

excerpt
"The oil coated the roots of those mangrove trees and then they died," Marshall says. "And without the mangroves to hold the islands together, within three years most of those islands were gone."

Louisiana was already losing land at an alarming rate, but scientists confirm that the oil spill accelerated the pace. Barataria Bay has lost key bird nesting islands, and federal government studies indicate that dolphins here in the bay are sick and dying at a higher rate than normal and show signs of oil poisoning.



excerpt
In Bon Secour, Ala., fourth-generation oysterman Chris Nelson shows off his family's seafood processing plant, Bon Secour Fisheries. About a dozen shuckers are at work at stainless steel tables, slipping a knife into oyster shells to extract the meat.

"We call this our opening house," Nelson says. "A lot of people call this a shucking house."

Half the tables here are idle.

"Our business is still struggling here at Bon Secour Fisheries because of the lack of oyster production," Nelson says. "I place the blame for that on the oil spill."

Nelson is on the Gulf States Marine Fisheries Commission. He says one of the most productive public oyster reefs in the country east of the Mississippi river off the Louisiana coast is not producing like it should.

HonestChieffan
07-03-2015, 05:39 AM
Yes, they will raise their prices above everyone else and we'll all still pay, even though we can get gas cheaper at a Shell station next door. That's just Econ 101.



What added value do you get at BP that forces you to ignore Shells bargain price?

LiveSteam
07-03-2015, 09:19 AM
Even with $4.5 billion paid in fines (over a five year period), BP cleared $5.5 billion in profit last year. So, figure in the next five years they make $27.5 billion, and only pay $4.5 billion, they still CLEAR $23 billion during that time.

Not even a dent in their pocketbook, really. Slap on the wrist.
So walk

GloryDayz
07-03-2015, 08:23 PM
Yes, they will raise their prices above everyone else and we'll all still pay, even though we can get gas cheaper at a Shell station next door. That's just Econ 101.

Not after this happens...

http://www.corporatecomplianceinsights.com/wp-content/uploads/2013/02/Whisper-in-ear.jpg

These companies know when to stick together and when to whisper at meetings of people that don't ever happen because there are no minutes.

suzzer99
07-03-2015, 09:51 PM
So we should never punish them when they destroy the environment? That's the can-do spirit that made America great! Let's just give up and let them run roughshod over us.

GloryDayz
07-03-2015, 10:00 PM
So we should never punish them when they destroy the environment? That's the can-do spirit that made America great!

I don't think anybody's suggesting that, I think we're just passing along the reality, in this case, that by hook or by crook, the industry will work as a team to keep the pain to the industry to a minimum. I suspect they'll all whisper-agree to compete another day, but not when it's something brought-on by something that could happen to any of them.

Barry will get his cash, by the time it's spent most of the coin will prolly go to further his global warming agenda and to get a Dem, any Dem, elected. So don't worry, all our money will end up in Barry's checking account.

And a few of my employees live and work on the Fla gulf coast, they say it's better than ever. Ones a huge liberal, so it was an interesting conversation when he made the argument that his just-north-of-Panama City beaches were totally awesome and I too should move there since I was a navy diver. I really didn't try to set him up, but I had to ask how that could be true since BP killed the entire area for generations to come.

It's all good, it's just politics and fun...