Headlining the New York Times today is BP's claim that, unless they are allowed to keep drilling in the Gulf of Mexico, times might get so tight they won't be able to pay the fines and restitutions they've pledged to cover their accident. . . in the Gulf of Mexico.
"If we are unable to keep those fields going, that is going to have a substantial impact on our cash flow," said David Nagle, BP’s executive vice president for BP America, in an interview. That, he added, "makes it harder for us to fund things, fund these programs."
Excuse me?
Let's set aside the fact that you've already committed to federal and state governments, presumably in hopes that your pledge will keep said governments from exacting much higher costs for your negligence. Let's set aside that your record thus far in meeting those committments has been, um, .less than stellar, to the point where you won't even pay the freaking rent on your own command center, where you control all aspects of the cleanup.
Let's even forego discussion on the irony of a criminal claiming that, unless he's allowed to go back and work his old racket, on his old turf, protected by the cops, there's no way he can pay restitution for his past crimes.
Let us simply listen to your own financial projections for the near future, eh?
The company will also tell analysts later today that it plans to sell assets for up to $30 billion over the next 18 months, primarily in the upstream business, and selected on the basis that they are worth more to other companies than to BP. This portfolio high grading will leave the company with a smaller but higher quality Exploration & Production business.
Meanwhile BP continues to access new business opportunities, with new agreements in Azerbaijan, Egypt, China and Indonesia announced since the end of the first quarter.
The company said it was taking a prudent approach to managing the balance sheet and its financial liquidity, in order to ensure that BP has the flexibility to meet all of its future financial obligations. As a result it plans to reduce its net debt level down to a range of $10-$15 billion within the next 18 months, compared to net debt of $23 billion at the end of June. Group capital spending for 2010 and 2011 will be about $18 billion a year, in line with previous forecasts.
. . .
"The costs and charges involved in meeting our commitments in responding to the Gulf of Mexico oil spill are very significant and this $17 billion reported loss reflects that. However outside the Gulf it is very encouraging that BP’s global business has delivered another strong underlying performance, which means that the company is in robust shape to meet its responsibilities in dealing with the human tragedy and oil spill in the Gulf of Mexico," Hayward said.
I know that a quarterly report written in the midst of a crisis may be a bit fluffy to soothe stockholder worries, but you address the current costs and future obligations for the Macondo disaster directly in that one, boys, demonstrating how paying those obligations in full will have minimal effect on fulfilling your and your shareholders' greediest fantasies of future lucre.
So don't come around with bullshit poormouth extortion scheme, saying we've got to let you back in the 'hood or you'll never be able to pay up on your last bust.
Why don't you just hush up for now and consider how much nicer it is at the yacht races that it would be in jail?