It appears as though British Petroleum's (BP) latest attempt to seal the oil leak in the Gulf of Mexico has failed. I hate to see such bad luck befall such a good company. I was quick to sell my shares of BP, as soon as I heard about the disaster, since I thought it quite possible they would have a great deal of difficulty solving the problem. So I got my money out before the big drop in their stock price.
Let's face it though, it could have happened to any of the oil companies involved in offshore drilling. So for the time being, I'm avoiding any investments in oil companies. I certainly hope they get things under control as soon as possible, but I shudder to think of future litigation involving this disaster. It's possible that they will be able to cover the costs, they do rake in money hand over fist. But I think it's going to be a lot more difficult for them than it was for Exxon during the Exxon Valdez oil spill. More difficult and a lot more expensive.
I can't even imagine how they'll be able to overcome the bad publicity generated from this disaster. One thing I am sure of, if any corporation is capable of making a comeback from this type of event, I believe BP may just be the one. Still, I'm taking a wait and see approach. Like I said before, won't be investing in any oil companies anytime soon.
Showing posts with label gulf oil spill. Show all posts
Showing posts with label gulf oil spill. Show all posts
Tuesday, June 1, 2010
Monday, May 3, 2010
GULF OIL SPILL
I've been keeping an eye on the news related to the oil spill in the Gulf of Mexico. After reading more in yesterday's paper, I decided it might be a good idea to sell my shares in BP and BPT. Although I'm not sure the trust would face any litigation related to the spill, I figure what's bad for British Petroleum would be bad for them as well.
At any rate, I've placed orders to sell all shares and am using the cash to purchase more shares of AZN, AT&T and UVE. So all the money I get back from my investment in British Petroleum will be re-deployed and put back to work so I shouldn't lose much dividend income.
Just hope the politics of this oil spill don't lead to such severe restrictions that consumers end up paying for the whole mess.
At any rate, I've placed orders to sell all shares and am using the cash to purchase more shares of AZN, AT&T and UVE. So all the money I get back from my investment in British Petroleum will be re-deployed and put back to work so I shouldn't lose much dividend income.
Just hope the politics of this oil spill don't lead to such severe restrictions that consumers end up paying for the whole mess.
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