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Uh this is a messageboard
I see you have a hearing impediment as well...
Uh this is a messageboard
Yep.
So how does your unintelligible text apply?
Had to be your impediment and not mine, translated to text, since you can't hear me...
Wut does that have to do with hearing
I'm sorry for your loss sir, I only make fun of you for things that are actually controllable. I do have a moral code.
Oil below $50, but gas in SA is still well above $2.
Summer blends and higher demand during the summer increase the cost of gasoline. This combined with supply shifts due to refinery issues here in Texas means higher prices.
ter McGee
"refinery issues"... of ty maintenance, delayed maintenance, under-investment always INCREASE BigOil's profits by limiting supply.
Hate to tell you this boutons, but oil companies don't delay maintenance and under invest to create a supply shortage. That would be stupid."refinery issues"
ter McGee
shortages make the price go up, , like your head up your ass.
Price increases DO NOT = Profit increases. Christ, any 12 year old with a lemonade stand understands this.
ter McGee
Refineries go boom when maintenence is ty or delayed...so, no. Oil companies dont like exploding refineries."refinery issues"
running refineries and pipelines until they break is a "moral hazard". The e in prices due to decreased supply, the longer the betters, covers the cost of fixing their .
Unlike you, I've actually worked in refineries. There is no moral hazard argument to be made as it is extremely poor business to grenade a plant.
The Cosden refinery explosion in 08 didnt move the price a penny...but it was expensive as .
For s sake are you really this stupid?"refinery issues"
Well, other than BP.
Which refinery is that BB?
I think BP's tab is at 58 billion and climbing...so it probably won't be a big profit booster.
pocket change. BP lives to us all again. much of it is taxpayer financed.I think BP's tab is at 58 billion and climbing...so it probably won't be a big profit booster.
take.
Their negligence in Texas City makes it seem like they weren't too worried about it. I get that happens once in a while, but it's over and over again with BP.
TB
The good news for BP
Long payout schedule means cost savings
When does $18.7 billion actually equal $9.16 billion? When it’s paid over 15 to 17 years. While the exact present day value of the total payout is subject to some interpretation, it will certainly equal less than $18.7 billion in 2015 dollars by the time all the checks are written. As any economics student will tell you, money loses value over time. One way economists measure this depreciation is by using what’s known as a discount rate, which allows them to calculate the value of future income and expenses in terms of present day dollars.
The economic policy team at the Center for American Progress examined the settlement’s payout structure and applied a variety of discount rates. When using a very conservative discount rate of 3.1 percent—the same rate used by the White House Office of Management and Budget for public sector projects—offset by accrued interest, the net present value of BP’s financial res ution will equate to approximately $15.43 billion. Meanwhile, in BP’s own annual report, it uses a discount rate of as much as 12 percent—indicative of the rate of return the company estimates it can earn on money invested in its business today. Applying this rate to the settlement’s payment plan puts the ulative toll on BP at just $9.16 billion. That discounted total is still a lot of money for economic and environmental restoration in the Gulf, but an amount BP could cover while still remaining in the black considering the $12 billion in profits the company pocketed in 2014 alone.
BP will pay interest at well below market rates
Even a company as profitable as BP would not be able to simply write a check to cover a 10-figure settlement; the company was always going to have to figure out a payment plan. As previously mentioned, this deal includes a payout structure that will last 15 to 17 years. As a result, BP will have to finance what amounts to a 15 to 17 year mortgage.
Because the damage had already been done in this case, the U.S. government would have been within its rights to demand payment upfront, forcing BP to borrow money from markets by taking a loan from a bank or issuing stocks or bonds.
Instead, the parties agreed to an extended payment plan at an annual interest rate of slightly less than 1 percent over the life of the settlement. By comparison, in BP’s most recent long-term bond sale, markets demanded an interest rate of just more than 3.5 percent for $1 billion in bonds that come due in 10 years. An $18.7 billion settlement, which would require a much larger loan with a longer payback time, would almost certainly have demanded a higher interest rate. Thus, as structured, the settlement results in massive savings for BP relative to the cost of being forced to pay the settlement upfront. Conservatively, these savings are equivalent to the difference between the less than 1 percent interest BP is paying out and the 3.5 percent or more that the market would have demanded. CAP’s economists have calculated that in sum, this amounts to a savings of more than $2 billion. That may be one reason the overall settlement number is so large: BP may have been willing to settle for a slightly larger amount since the terms of the deal included a lower interest rate.
https://www.americanprogress.org/iss...on-settlement/
very soft, forgiving payout.
Where is your for sale bridge?
6 states at present.
4 more under $2.10
$1.92 @ gallon.
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