(Image Source: The New York Times)

BY CHARESSE JAMES
ANCHOR NEVILLE MILLER

BP has already agreed to plead guilty to criminal charges after the worst oil spill in U.S. history. Now, the company has also been temporarily banned from bidding on any new federal government contracts. Canada’s Business News Network explains.

“The Environmental Protection Agency says that the ban is being imposed because of B.P.'s contract -- Deepwater Horizon spill showed a lack of integrity. The suspension will stand until B.P. can demonstrate business standards set by the government.”

According to CNN, this “will not affect any existing BP contracts with the government” and BP’s suspension will be lifted if and when “the company can show the agency that it meets federal business standards.”

The EPA’s decision came right as the U.S. opened the bidding process for future Gulf oil projects, two years after the disastrous Deepwater Horizon oil spill. And while a writer for Forbes agrees BP should be punished, he’s concerned about the potential economic fallout.

“The company is said to be the biggest fuel supplier to the U.S. military, providing for more than 10% of needs. … By removing competition from the marketplace it will be U.S. taxpayers that end up paying more to fuel the military’s tanks and planes. What’s more, without BP bidding for federal acreage, taxpayers will end up receiving less in leasing fees and fewer royalties than we would otherwise.”

And a reporter for Bloomberg asks the question, when the hits will stop coming? An independent oil trader tells her that this new action may be...

“...the nastiest witch hunt from the feds.’ BP has already plead guilty to manslaughter and to pay a $4B settlement with the U.S. Justice Department  and that includes a record $2.26B criminal fine. BP will also pay a $525 million civil penalty fine in 3 installments over 5 years to the SEC...”

But a columnist for the Houston Chronicle argues, if this is what the EPA has to do to drive home the point that an incident like Deepwater Horizon can’t happen again, so be it.

“The loss of future business, though, puts some teeth in the settlement. The Gulf is one of BP’s most lucrative areas of operation, and a key part of restructuring plan. While it can continue its current operations there, it won’t be able to compete for new opportunities. Lost future business matters more companies than fines and or getting dinged for “incidents of non-compliance.”

According to Bloomberg, BP still faces a civil court trial in February 2013, and it’s estimated the penalties could reach as high $21 billion.

No End on Horizon for BP: Contract Ban Issued

by Charesse James
0
Transcript
Nov 28, 2012

No End on Horizon for BP: Contract Ban Issued

(Image Source: The New York Times)

BY CHARESSE JAMES
ANCHOR NEVILLE MILLER

BP has already agreed to plead guilty to criminal charges after the worst oil spill in U.S. history. Now, the company has also been temporarily banned from bidding on any new federal government contracts. Canada’s Business News Network explains.

“The Environmental Protection Agency says that the ban is being imposed because of B.P.'s contract -- Deepwater Horizon spill showed a lack of integrity. The suspension will stand until B.P. can demonstrate business standards set by the government.”

According to CNN, this “will not affect any existing BP contracts with the government” and BP’s suspension will be lifted if and when “the company can show the agency that it meets federal business standards.”

The EPA’s decision came right as the U.S. opened the bidding process for future Gulf oil projects, two years after the disastrous Deepwater Horizon oil spill. And while a writer for Forbes agrees BP should be punished, he’s concerned about the potential economic fallout.

“The company is said to be the biggest fuel supplier to the U.S. military, providing for more than 10% of needs. … By removing competition from the marketplace it will be U.S. taxpayers that end up paying more to fuel the military’s tanks and planes. What’s more, without BP bidding for federal acreage, taxpayers will end up receiving less in leasing fees and fewer royalties than we would otherwise.”

And a reporter for Bloomberg asks the question, when the hits will stop coming? An independent oil trader tells her that this new action may be...

“...the nastiest witch hunt from the feds.’ BP has already plead guilty to manslaughter and to pay a $4B settlement with the U.S. Justice Department  and that includes a record $2.26B criminal fine. BP will also pay a $525 million civil penalty fine in 3 installments over 5 years to the SEC...”

But a columnist for the Houston Chronicle argues, if this is what the EPA has to do to drive home the point that an incident like Deepwater Horizon can’t happen again, so be it.

“The loss of future business, though, puts some teeth in the settlement. The Gulf is one of BP’s most lucrative areas of operation, and a key part of restructuring plan. While it can continue its current operations there, it won’t be able to compete for new opportunities. Lost future business matters more companies than fines and or getting dinged for “incidents of non-compliance.”

According to Bloomberg, BP still faces a civil court trial in February 2013, and it’s estimated the penalties could reach as high $21 billion.

View More
Comments
Newsy
www1