This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

BP Shares Rise Following Spill Report

LONDON -- Shares in BP (BP) were higher Thursday after a U.S. presidential commission criticized the oil company's contractors and regulators as well as BP for the Gulf of Mexico oil spill.

BP shares were up 2.1% to 510 pence ($7.90) in midmorning trade on the London Stock Exchange.

In a 48-page excerpt of the final report released Wednesday, the commission described systemic problems in the oil and gas industry and government regulators which contributed to the blowout of the Macondo well on April 20.

"Better management by BP, Halliburton (HAL) and Transocean (RIG) would almost certainly have prevented the blow-out," the commission said.

"The blowout was not the product of a series of abberational decisions made by a rogue industry or government officials that could not have been anticipated or expected to occur again. Rather, the root causes are systemic, and absent significant reform in both industry practices and government policies, might well recur," the commission added.

Richard Griffith, analyst at Evolution Securities, said the report "supports our view that a gross negligence case against BP looks hard to prove and could ultimately reduce BP's liabilities."

"We have argued for some time that it would be hard to prove gross negligence against BP in which case even if BP assumes 100% liability for Macondo the impact would be $25 billion to $30 billion," he said.

However, he added that the share price implies that the market fears that the liability will be as high as $50 billion.

The full report is due to the president Jan. 11. Separate investigations are under way by the Justice Department and a joint U.S. Coast Guard-Bureau of Ocean Energy Management, Regulation and Enforcement panel.

BP's own investigation released on Sept. 9 shared the blame among BP, rig owner Transocean and contractor Halliburton.

"Today's release largely adopts the preliminary findings of the commission's chief counsel, and like several other inquiries, including BP's internal investigation, concludes that the accident was the result of multiple causes, involving multiple companies," BP said in a statement on Wednesday.

Transocean, which owned the rig contracted by BP, said in response to the commission's findings that "the procedures being conducted in the final hours were crafted and directed by BP engineers and approved in advance by federal regulators."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $126.00 -0.47%
FB $86.73 -0.21%
GOOG $521.99 0.03%
TSLA $275.78 2.50%
YHOO $39.30 -0.09%

Markets

DOW 17,711.41 -46.50 -0.26%
S&P 500 2,071.74 -5.68 -0.27%
NASDAQ 4,991.6580 -21.4650 -0.43%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs