The once revered risk- taking reputation that BP has built for itself may be in danger for the future
The recent and utterly disastrous oil spill that has taken place a few months ago in the Gulf of Mexico has affected the region’s people, environment, culture and future. Yet it now looks like BP, the company pegged as the main culprit behind the accident will also suffer from the catastrophe in the long run. The ambitious firm was just recently taken out of consideration for some new and lucrative ventures unravelling in Greenland.
The company has had its latest projects in the North Sea and Libya cancelled in the wake of the disaster, and the Greenland fiasco comes at a bad time for the ailing company that once reigned atop as the most risk- taking and forward- looking company in its field.
The firm may face much less opposition while developing less safety- minded regions across the globe, like Russia, Iraq and Angola, yet if it plans to restore its reputation as the leader of the exploration industry, BP absolutely has to branch back out into the parts of the world with an established fuel economy.
BP has performed massive cutbacks in cost in order to cover the environmental damage that the spill caused and set up a compensation fund to aid the victims of the disaster. Yet analysts have repeatedly stated that the $30 billion raised so far will not be enough to satisfy the already established financial dues that the company has to pay, coupled with the hundreds of pending lawsuits against it.
The Arctic is quickly emerging as one of the most sought after regions for oil production, and the fact that a company as well- known and massive as BP is being shut out from the drilling opportunities evolving across the globe is an alarming sign for the firm that previously occupied the number one spot on everyone’s calling list.
Many international investors have expressed their concern over putting their money into a company that is still yet to apply more stringent safety regulations to its operations in order to prevent any further accidents as huge as the Gulf spill from occurring again. The company’s assets have plunged since the disaster with the leading hedge funds in the world flocking to buy out as much of the ailing stocks as possible.
Representatives from both BP and Greenland’s oil industry have released statements saying that the company’s pullout from the drilling permit race was a mutual decision, unaffected by the spill. Yet the situation does not bode well for the ambitious firm, looking to bounce back from the largest oil spill to ever occur in oil exploration history.