"By the fall, there was talk that the crisis wasn't as bad as feared and that the Gulf might recover sooner than expected. Then soaring oil prices came to the company's rescue, boosting its bottom line..."
It's truths like this that make the President going on TV saying he's looking for "asses to kick" ridiculous. Seems our government's involvement in "safer and environmentally friendlier" drilling methods via lack of drilling permits and drilling bans actually rewarded BP. Since the drilling ban and limited issuance of permits, crude oil prices have soared and this is directly making billions of dollars of profits for all oil companies including BP. So, at the rate they are at, BP will have recouped ALL losses from the lost Horizon rig within a few years. Sure makes Obama's "ass kicking" monetary fine to "teach BP a lesson" seem silly, yes? Did the Obama administration know that BP was going to be making huge money this year? Well, they are foolish at best if they didn't. Free markets are controlled by supply and demand. If the government hinders the supply, prices will increase because of increased demand. Was this an under the table deal? Who knows? One thing is for sure, though. Pretty tough to keep blindly following the Obama way when it is constantly wrought with failure, lack of foresight, outrageous spending, and lack of understanding of simple economics.
If anyone wants to complain about high gas prices, they should be thankful they voted for Obama (if they did). If you are an Obama supporter, you are now just beginning to get what you wanted so badly. Also, in the next few years with increased taxes, reduced value of the dollar, and drastically higher food costs, you will get another full serving of Obama goodness. I suppose I should also mention the lack of private sector economic growth we will have in this country due to the passage of Obamacare.
Hats off to our government. Bang up job on "kicking asses," Barry. You really showed BP who's boss.