The Rollercoaster that is B.P.

Sunday, 13th June 2010 21:55 - by Boredmum

The share price of B.P. (TIDM code: BP.) is an absolute rollercoaster at the moment. A political storm many are being dragged into. Of course, the disaster in the Gulf of Mexico is atrocious, the men who lost their lives, the people who are losing their livelihood and the effect on nature and wildlife. It seems that many are having their say with regards to accountability, cost measures, withholding dividends and the loss of jobs in stating that the B.P. CEO should step down. Personally, I feel that so many energies are being wasted here at this time. Surely all this should come later with the priority just to stop the oil leak and start looking at the best clean up plans? I’m sure they have industry experts working there and this should be the total priority at this time. The share price is suffering extreme movement depending on what focus the media are having on B.P. on that particular day. We have seen some positivity in thinking that a solution to plugging the leak is there...and negativity on finding it is not. Concern arose when it was stated that a dividend should be with-held. I am personally not sure why, as B.P. will certainly be able to afford the clean-up and insurance costs, regardless of dividend. The thing I have found most interesting this weekend is how President Obama seems to be losing the backing of many. I think he went too far with the ‘blame culture’. We all know where blame lies - B.P., to the best of my knowledge, haven’t shirked their responsibilities yet. Obama didn’t help by using statements like ‘kick ass’. Very professional! Obama referred to B.P. under its old name of British Petroleum. Some think this is a direct ‘dig’ towards Britain but, more importantly, he is alienating the American people he represents. Something like 40% of B.P. shareholders are American citizens and his comments have been a hindrance to the share price. It will certainly be interesting to see how it all plays out; talk of a buyout, many playing the swings, certainly not for the faint-hearted at this time. I hope from the weekend press and opinion polls that Obama does realise that the ‘blame game’ does have to stop for now. Let us all hope that a solution is reached soon and not just for the share price.