Energy and Utility Management Consultants

BP Again Report Massive Profits as EU Fears Increase

October 2011

 

British owned oil company BP have reported profits for the third-quarter of this year of some £3.2bn - up from £1.15bn for the same period last year - a massive increase of almost 180%. The much reported Deepwater Horizon oil spill of last April had its impact. But, as expected, BP has more than bounced back to solidify its position as one of the biggest companies in the world.  When you consider that BP's oil production suffered due to the closure of Deepwater Horizon with a fall of some 12% in production between July & September, the recovery will no doubt irk end-users who are paying wholesale prices some 35% higher than at the same point last year. However, the blame for wholesale price increases cannot be levied towards any one oil company; they are providing a valuable, perhaps even crucial, service by extracting oil from deep underground to be used for thousands of applications from the dominant use of transport, right down to everyday plastics such as bottles and carrier bags.  Without oil companies there can be little doubt that shortages in supply would impact markets in an extremely negative way, with prices sky rocketing as buyers clamber to purchase in a vastly diminished market. That's just us hypothesising of course! In reality, that would be an event very unlikely to happen in the foreseeable future. Impossible to slip the attention of the public are the current fears in the EU over the spending of a number of Eurozone members and the ways in which they are willing, and indeed able, to meet escalating debt. This is likely to impact all EU markets and trading at some point (including the energy markets), so this is certainly worth monitoring. The deadline of this Wednesday to deliver a solution to the crisis will be keenly reviewed by all. Also worth a mention is tropical storm Rina which is expected to head north-west from the Caribbean towards Mexico's Yucatan peninsula, Belize and the Cayman Islands. Although never a guarantee of a market impact, it's always best to keep an eye on the development of such storms. Don't forget to keep up-to-date on wholesale energy market prices by clicking here and to subscribe to our regular news updates to ensure you're as well informed as possible when it comes time to look at your Business Energy Procurement; something our team of Expert Energy Consultants and Utility Consultants can advise you on - get in touch for more details.

 

 

 

 

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