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BP has already set a president, by declaring to pay ALL cost related to the spill. They have already gone beyond the 75 million in pay-outs and "fixes".... The real story is what will be the new threshold for managed risks. Insurance will be unfordable at any price by anyone drilling off shore.... If I were betting on anything now , it would not be off shore anything. How much that depends on BP's profits will reflect their stock price. The other factor is Public awareness, Customer relations are a short side for BP. I can see them pulling out of the retail market under the BP name. ( in the US ). Its coming sooner than later, this spill is the biggest thing to hit our shores, enviorement wise in the last 100 years.
I would not be surprised to find a lot of waste and "cronyism" at any regulatory agency because people get ahead not by being efficient, but by hanging around the longest. The approach to regulation is generally very, very formulaic and procedure driven with very little personal insight or individual initiative encouraged or, really, tolerated.
"Make the forms look right, you get a stamp. Give me a perk, you get a stamp without me looking at your forms. It doesn't matter because no one actually has any authority and no one is even reviewing the forms. They just get stamped and filed as long as the paperwork is in order. I get really tired of watching all these landmen coming to the offshore bid parties, getting wasted and dropping lots of coin while I sit here and review these HUGE bids to see which one is the biggest with the most favorable terms. Cut me in on that, will you?"
Gotta have some porn fun in that kind of environment.
You could always fix that by decentralizing some authority and paying these guys at least as well as we pay cops.
*EDIT* Actually, I take the statement in the first sentence back. The Texas General Land Office and Railroad Commission generally do a pretty decent job for organizations comprised of people who spend 8 hours each day under crappy, high-kelvin flourescents drinking buckets of sh***y coffee to get through each low-wage, monotonous day.
Last edited by jimboburnsy; 05-25-2010 at 01:34 PM..
BP has already set a president, by declaring to pay ALL cost related to the spill. They have already gone beyond the 75 million in pay-outs and "fixes".... The real story is what will be the new threshold for managed risks. Insurance will be unfordable at any price by anyone drilling off shore.... If I were betting on anything now , it would not be off shore anything. How much that depends on BP's profits will reflect their stock price. The other factor is Public awareness, Customer relations are a short side for BP. I can see them pulling out of the retail market under the BP name. ( in the US ). Its coming sooner than later, this spill is the biggest thing to hit our shores, enviorement wise in the last 100 years.
Not 100% sure how this will impact insurance prices. If it leads to more mandatory safety equipment it could actually decrease them. These high end insurance markets are quite niche and as such they also custom write the coverage.
Rather than jack rates to the point of unaffordability they might just cap coverage for spill damage and continue insuring the structures etc. Lots of ways to adjust to that situation and the rig insurers don't want to go out of business.
Not 100% sure how this will impact insurance prices. If it leads to more mandatory safety equipment it could actually decrease them. These high end insurance markets are quite niche and as such they also custom write the coverage.
Rather than jack rates to the point of unaffordability they might just cap coverage for spill damage and continue insuring the structures etc. Lots of ways to adjust to that situation and the rig insurers don't want to go out of business.
Its the cost of doing business in the long run that counts, not just Insurance rates. Thats why I predict deep water off shore will become history.
watching BP and RIG closely, havent jumped in yet as I think the market is creeping down a bit more.
Same here. I had initially set a $41 buy target for BP, but I've decided to watch it a bit more. I'm not worried about getting in on the absolute bottom, but I don't think this is it anyway. I'm thinking $35 now?? I did buy more of two of my core holdings today (BAC and BRK-B).
BP will go to 30.00 soon, unless the " top hat" works, todays the day.....I predict it won't.
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These high end insurance markets are quite niche and as such they also custom write the coverage.
