BP Disaster

BP profits almost double

October 25, 2011

The Wall Street Journal is reporting the BP announced that its net profit for the three months ending Sept. 30 was $4.91 billion, compared with $1.79 billion a year earlier. The sharp increase was owing to the $7.66 billion pre-tax charge that BP booked for the Gulf spill in the third quarter of 2010. Revenue rose to $97.59 billion, from $74.65 billion.

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  • George Hawthorne October 27, 2011 at 9:04 am

    Grover,

    The public sector has not been a great “conduit” for administration and implementation of community and economic development projects and program dollars. This has been the case throughout the entire recessionary period since 2008.

    The “Economic Stimulus” of the Bush era and the ARRA of the current administration had the same public sector delivery “theory” as you have professed and have not delivered systemic benefits throughout a broad range of industry sectors and for small and medium businesses.

    However, the fact remains that the most appropriate way to develop a healthy economy is by creating opportunities for job growth in small and medium business enterprises that have been most effected. Public sector projects are limited in scope and provide opportunities for a limited amount of industry sectors like construction and engineering.

    And more troubling in Escambia County, public sector projects have historically benefited a limited number of companies that have consistently been the recipients of contracts.

    Also, the County takes no efforts to “disect” projects into smaller components that will allow smaller companies to compete and meet bonding requirements.

    These are facts that are clearly in the record locally, regionally and nationally. The Public Sector is not a “panacea” for economic and community development.

    Also, in the past you and now have made a “veiled reference” to the PBA Chamber’s administrative costs to direct its program for tourism at $200,000 or 8%-10% of total program dollars and their “own process.” I submit that their costs and processes are more efficient and effective than the County’s “public sector” process and administrative costs.

    The County’s administrative costs, as like most public sector program providers,far exceed these percentages for administration of program dollars and they generally have less experienced and buearacratic personnel performing the program administration and they are less effective.

  • Alyx October 27, 2011 at 8:39 am

    It’s the way of the world, the bad guys profit. how sad. to hell with all the animals that died and all the people who lost their livelyhoods. long as big money is made for the greedy.

  • Katie Krasinski October 27, 2011 at 1:05 am

    Well… It’s nice that they have been able to buy everyone’s silence and ensured apathy of our community. Every land owner in this area should be getting well compensated for the pollution of their homes.

  • Grover Robinson October 26, 2011 at 11:38 am

    Eric,

    The problem with the GCCF, individual and business claims, is it is strictly a private sector function between private parties. Government, local, state or federal, has no position to directmthe payment process. Some have been overpaid; however, as for many businesses, they will not receive full compensation for losses. As you state most of the overpayment went in small amounts to some individuals in the hospitality industry, but it does not offset the larger losses to our local economy.

    The onlybway to fund systemic losses in the community is through NRDA and clean water act fines for public sector projects for environmental and economic restoration. That is one way To assist the region with non taxpayer money. All projects in the public sector will require bidding. However, if money goes to a private entity such as PBA Chamber, they control their own process.

    Grover

  • L.Laird October 25, 2011 at 3:02 pm

    Commissioner WD Robertson will be filing a claim with BP for lost Horse manure.

  • Eric October 25, 2011 at 2:34 pm

    To Grover: It appears you have stepped up and held BP accountable and the community recognizes and appreciates your efforts. As to legitimate businesses not being paid for their losses…that is an area you and your colleagues can assist. We all know of examples where restaurant employees may have been paid 10 K + in BP monies when they just began their employment at a beach business (for potentially lost wages), for example.

    My point is that BP’s pockets have been open for many payouts without a lot of supporting documentation and they don’t appear to be walking away now so the money should be available and distributed to the folks deserving.
    Not to downplay the negative impact the spill has had on Gulf Coast communities but many have enjoyed windfalls as a result and BP shows no sign of walking away from their obligations in the near future.
    Example: TDC and the like are salivating over how to get a bigger piece of the pie and direct it towards their goals. They wouldn’t be doing that if they didn’t recognize the large financial stakes. thanks for the participation.
    Long live no-bid and long term county contracts for businesses

  • Grover Robinson October 25, 2011 at 1:53 pm

    This is why they will not file bankruptcy, too much money. It is unfortunate that individuals and businesses that sufferred legitimate losses will not be paid. However, their profitability is the reason I have stayed on the Clean Water Act fines. They will have to pay and the region that suffered should get the benefit.

    Grover

  • Eric October 25, 2011 at 9:45 am

    It is a relief to know BP still has the financial ability to pay the fines and marketing expenses to the Gulf Coast. Local governments, quasi-gov’t organizations, festival organizers, and beach businesses can breathe a sigh of relief that the funds will be there for them again.
    To BP’s credit, they didn’t try and get out of their obligation by bankruptcy or asset swaps.