Posted on 06/02/2010 7:56:15 PM PDT by Willie Green
British Petroleum is taking a beating on Wall Street over the Gulf oil spill. But the economy is feeling the effects too. BP’s share value is sliding as though it was greased by, oh, loose oil or something. And it is taking the industry down with it.
Oil company stocks were tumbling as BP continued to see its value head south. The company’s shares have lost 15% of their value since the spill began and the cumulative costs of the spill are now approaching a billion dollars.
Ironically, the price of oil has fallen as well, though for how long, no one can say. And the price of gasoline has dropped with it, though as drilling slows to a crawl in the wake of this disaster, how long those low prices remain is anyone’s guess.
“It’s like telling a drowning man, wait, give us more time to study this,” said Louisiana Governor Bobby Jindal. “ We need to be rescued…we need help now.”
(Excerpt) Read more at ketknbc.com ...
Don’t let them fool you. Tar balls have been on the California coast as long as I can remember. I was an old surfer when the boards weighed about 70 pounds. We had tar on our feet even then.
You’re saying that their imagining the effect of the oil spill in the Gulf states?
Which suggests that there's something else afoot. Supply exceeds demand -- why? Who's not gobbling oil at the same pace?
I would really love to see what China's oil imports are doing about now. It'd be a good proxy measurement for their economic performance.
Something else is a foot, and the fact that the author of this article does not mention it demonstrates a complete disregard for economics or lack of business knowledge. The dollar has strengthened because of the Euro collapse. A stronger dollar means it takes fewer of them to buy a barrel of oil. Likewise, it takes more weaker dollars to buy the same barrel. When the price of oil is normalized over the dollar, it has not changed that much in the last 2 months.
No I’m not saying that. What I am saying is that even before the spill, you would have found tar balls on the beaches. Just don’t let them blow the tar balls out of proportion.
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