After watching BP CEO Tony Hayward answer questions in front of a House committee, two things became apparent to me…
The first is that the only thing the U.S. government can do well is waste our time.
That’s okay — I understand it’s nothing more than politicians being politicians.
The idea of banning BP from operating in the U.S. is a joke only an election-minded politician would think of. If the situation wasn’t so dire, I would’ve expected him to crack a mocking smile.
The second thing, however, is that whatever is truly happening 4,993 feet beneath the Gulf of Mexico’s waves… it’s going to get worse.
With the failure of the “Top Kill” behind us, the two relief wells currently being drilled are two months away.
But let’s be honest… The two relief wells are still nothing more than a roll of the dice.
We haven’t seen the last of the bad news, either.
This week, another bomb was dropped on BP’s reputation as an unsettling story came to light.
A full two months before the fateful explosion happened on the Deepwater Horizon rig, BP was desperately trying to seal cracks in the Macondo well — an operation which took more than a week to complete.
To date, BP has shelled out roughly $2 billion on the spill. In order to pay for the spill and cleanup, the company is planning to cut capital spending by 10% — or approximately $18 billion.
I have a feeling they’ll need every last penny… and then some.
Enjoy your weekend,
Editor, Energy and Capital
P.S. In case you missed any of the week’s top stories from Energy and Capital and our sister publications, you can catch up on them now…
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