Thursday, June 10, 2010

BP tries to reassure investors

    This is an article from the New York Times "Business Day."  While it covers some of the same information we have seen, the change in share price, the investor loss of confidence, it contains some interesting comments, e.g., "Peter Hitchens, a research analyst at Panmure Gordon in London, said most analysts and investors in Britain are 'more relaxed' about the future of BP than their U.S. counterparts partly because of the geographic distance. 'We don’t have all the press coverage that’s over there and we’re further away from U.S. politics,” he said. “We have a more rational view.'"
            Hitchens isn't entirely on target.  It is after all the American coastline and not the British; so the latter's more rational view" is more cheaply held.  And why doesn't Britain "have all the press coverage that's over there"?
            Also, "Some business leaders on Thursday urged the British government to come the BP defense.
            "But Reuters quoted Prime Minister David Cameron as saying, “This is an environmental catastrophe. BP needs to do everything it can to deal with the situation, and the U.K. government stands ready to help. I completely understand the U.S. government’s frustration.”
            "Earlier, a spokesman for Mr. Cameron said the prime minister would be discussing the issue with President Obama in a weekend telephone call."
            Perhaps Mr. Cameron can instill in President Obama a more enlightened perspective.  The article describes several matters that could worsen or suffer if this isn't handled more carefully, politically, than it has been up until now, especially the search for more off-shore oil.  This is not a good time for companies like BP to think that drilling off shore is too risky.  It is in our interest that they wait until someone develops a viable alternate fuel source and have it up and running and successfully competing with fossil fuel before the big oil companies back off on exploration -- it seems to me.

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