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Deepwater Horizon oil spill
Wikimedia Commons
Just over a year after the BP Deepwater Horizon oil rig exploded, everyone can rest assured that everything will be okay. For BP, anyway:
Bolstered by soaring crude oil prices, BP reported a 17 percent increase in first-quarter profits and sought to convince investors that it was coping with the costs of the massive oil spill in the Gulf of Mexico last year.

The company’s earnings did show signs of spill damage. Asset sales last year, which were carried out to fund the costs of spill cleanup and damages, helped shrink the oil giant’s production of oil and natural gas by 11 percent compared with the first quarter of 2010. BP also set aside an additional $400 million to cover spill costs, on top of the $40.9 billion it had already reserved for those costs.

But the company, whose stock had plunged in the wake of the April 20, 2010, blowout on its Macondo well, also showed signs that it is managing the impact of the spill and will survive with many lucrative assets intact.

A temporary glitch, but profits are again soaring, and among those lucrative assets that BP expects soon to be helping expand its profit margins:

BP has predicted it will be back drilling in the Gulf of Mexico within a matter of months despite continuing legal threats and rows over pollution from last year's Deepwater Horizon disaster. "We expect to be back and actively drilling during the second half of the year," Byron Grote, the company's chief financial officer, told financial analysts from the City of London on Wednesday.

The comments are likely to infuriate environmentalists who believe BP should be kept away from the Gulf and could upset a US offshore regulator still considering whether to grant permits to BP.

Verbal gaffes by former chief executive Tony Hayward in the wake of the Macondo well accident 12 months ago sent the company's reputation in America into freefall as it attracted widespread criticism from the White House downwards.

But widespread criticism easily can be borne when there's so much money to be made, including back in the Gulf.

The human and environmental devastation, the science, and any significant regulatory reforms be damned.

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Comment Preferences

  •  With the Repub Governors (12+ / 0-)

    Of Wisconsin, Florida, Ohio and New Jersey blocking mass transit, it's a great time to be in the oil business.

    "We have always known that heedless self-interest was bad morals, now we know that it is bad economics." Franklin Delano Roosevelt, Jan. 20, 1937

    by Navy Vet Terp on Sat Apr 30, 2011 at 07:07:32 PM PDT

  •  Yay BP (6+ / 0-)

    A model of responsible corporate behavior.


    Vic Harville, Stephens Media Group (Little Rock, AR), mBuy this cartoon

  •  Tame (5+ / 0-)

    Too tame a response to this atrocity.

  •  It's What Louisianan's Want, Right? (3+ / 0-)
    Recommended by:
    KJG52, Laurence Lewis, KingCranky

    I mean, not the ones who care about the environment or the fisheries or the coastal tourism industry. I mean the ones who earn their paychecks in the petroleum business, from executives to roughnecks to ocean transporters to spill boom operators. A lot of middle class folks who live in LA make a living off the oil, right? That's what I heard on NPR. /Sarcasm

  •  And the federal government: Tough talk (2+ / 0-)
    Recommended by:
    KJG52, Laurence Lewis

    no action.

    Still trying to figure out whose ass to kick, I suppose...

    Gave up trying to figure it out, and my head got lost along the way.

    by Beelzebud on Sat Apr 30, 2011 at 07:13:32 PM PDT

  •  I get incredibly angry (5+ / 0-)

    Every time I think about the devastation that the oil spill has wrought upon the Gulf Coast and the fact that BP, Halliburton, and Transocean are all doing just dandy one year afterwards. If there was any justice, all three would be bankrupt, serving as object lessons for others. But as usual, the corporations get away with murder and mayhem while politicians stand idly by. Sickening.

  •  But of course (2+ / 0-)
    Recommended by:
    Laurence Lewis, KingCranky

    But of course, taxes are too high on companies. Clearly we are being too harsh on them, and we are driving them away!

    Slash those taxes, and then maybe BP will start to really rebound. [/sarcasm]

  •  Disgusting, absolutely outrageous... (2+ / 0-)
    Recommended by:
    hyperstation, Laurence Lewis

    but practically guaranteed, given that the oil company money trough is where the congresscritters gather for sustenance.

    "Intelligence is quickness in seeing things as they are..." George Santayana

    by KJG52 on Sat Apr 30, 2011 at 07:51:54 PM PDT

  •  Repeat from an open thread earlier this week: (5+ / 0-)

    "Hey Tony"--new recording up at da web site.

    by Crashing Vor on Sat Apr 30, 2011 at 07:53:07 PM PDT

  •  Fantastic news for John McCain! (1+ / 0-)
    Recommended by:
    Laurence Lewis

    Bad news for the rest of us.

    Legalized corruption is destroying our democracy.

    by geodemographics on Sat Apr 30, 2011 at 08:07:46 PM PDT

  •  Aren't they 'Beyond Petroleum" yet? (2+ / 0-)
    Recommended by:
    Laurence Lewis, Amber6541

    Considering what they did to the water in the Gulf - I can hardly wait to see what they do to groundwater with "safe" fracking for natural gas.

    An imbalance between rich and poor is the oldest and most fatal ailment of all republics - Plutarch

    by Anthony Page aka SecondComing on Sat Apr 30, 2011 at 08:16:47 PM PDT

  •  remember, our president, WANTS them (2+ / 0-)
    Recommended by:
    KingCranky, Laurence Lewis

    to drill in the Gulf, because apparently he doesn't know how to use a calculator, and therefore doesn't understand that continued drilling in the gulf is like looking for loose change in the sofa cushions to pay off the national debt.

    apparently he must be ignoring every fucking thing Chu is telling him, because his energy secretary most definitely knows how to use a calculator and therefore knows this is the case.

    The president's bipartisanship wouldn't bother me nearly so much if he didn't spend his time compromising between a flat earth and earth as an oblate spheroid.

    big badda boom : GRB 080913

    by squarewheel on Sat Apr 30, 2011 at 10:05:12 PM PDT

  •  For so much of the rightful outrage (3+ / 0-)

    earlier in these replies, there's a bit more to add, courtesy of the GOP:

    Spending cuts to hobble agency's ability to analyze gas prices

    The fiscal year 2011 spending legislation – a product of tense negotiations between Republicans and Democrats – cuts the Energy Information Administration’s budget by 14 percent.

    As a result, the EIA – the statistical arm of the Energy Department – will have to make major cuts to its analysis of a range of issues include gas prices and U.S. oil reserves.
    *******
    For example, the agency will not conduct its annual report on U.S. proved oil and natural gas reserves, an issue of major interest in Congress as lawmakers debate bills to expand domestic oil and gas production.

    Great job GOP, every citizen, voter and consumer completely trusts the oil and energy industries, no need for any regulations of any type, certainly none needed for such trifles as consumer protection, after all, everyone who doesn't immediately verify a fill-up by physically inspecting gas tanks servicing the pump just used deserves to get ripped off as completely and efficiently as possible.

    People are also, obviously, receptive to hearing how corporations and industries deserve more Constitutional protection than they do, they're just voters and consumers after all, which means they're thrilled to experience the tender mercies of financially exultant businesses and industries, and will show much ballot box appreciation when reminded of this industry's financial trumpeting, especially around election time.

    The House Republicans strategy of defunding key oil-industry regulators looks even more intelligent now, what with news of this vote surfacing as Republicans screech about gas prices they can't, and wouldn't even if they could, do a thing to decrease.

    Really smartly played by our GOP overlords, as who's going to complain about high fuel prices just as the summer travel season is about to start.

    The voters are sure to take such price increases, as summer starts, with a good grace and humor regarding the multibillion tax breaks the oil industry currently receives, big bucks save and achieved without even actually drilling on all the land listed on the industry's current leases.

    Yes indeed, with such oil industry and regulation policies the Republicans sure to increase their House majority, take the Senate by a comfortable margin, and trounce President Obama to capture the White House as well, no doubt these policies will pursued, enthusiastically and vociferously right up to election day.

    After all, those anti-regulatory votes can't possibly backfire on the Republicans, the party never makes disastrous decisions, it does everything perfectly, every single time.

    Right?

    Because the Republicans aren't just smart, they're Jethro Bodine smart.

    When it comes to Texas Politics, "Stupid" Plays Very Well

    by KingCranky on Sun May 01, 2011 at 01:02:23 AM PDT

  •  Well put, KingCranky. (1+ / 0-)
    Recommended by:
    kj in missouri

    You need to expand it into a diary. I'm glad I'm getting old when all I see around me is stupidity and greed gone amok! And those are called VIRTUES--go figure!

    Since when have greed, stupidity, and downright lying become virtues? Since Reagan, that's when!

    by orlbucfan on Sun May 01, 2011 at 09:08:21 AM PDT

  •  woot for bp (0+ / 0-)

    :-|

    "From single strands of light we build our webs." ~kj

    by kj in missouri on Sun May 01, 2011 at 02:53:12 PM PDT

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