- Associated Press
- BP PLC CEO Tony Hayward
THE WALL STREET JOURNAL
WSJ BLOGS JUNE 10, 2010
By Michael Corkery
While it is difficult to know for certain what the Obama Administration believes will be the end game for BP, Deal Journal is pretty sure it isnt this: A take over by PetroChina, a deal that would give the Chinese oil giant a huge hold on the worlds energy supplies.
And yet analysts at Standard Chartered Bank are making waves this morning with a report that floats out the idea of a PetroChina-BP merger.
PetroChina, which has a $60 billion war chest for acquisitions, is seeking to tap into overseas reserves to feed Chinas insatiable demand for oil. According to Bloomberg, Chinese demand for crude is expected to rise at 15 times the rate of the demand in the US. And acquisition of BP would give PetroChina access to 18 billion barrels of oil and gas reserves around the world a huge boost to its overseas supplies.
We expect a full dose of skepticism on this as a real-world proposition, although we argue for the persuasive economics, according to the Standard Chartered report.
That real world skepticism, of course, is grounded in the fact that U.S. regulators arent likely to look kindly at a Chinese oil company becoming the largest offshore oil producer in the Gulf of Mexico. Politically, a PetroChina-BP deal would about as easy to digest as the tar balls washing up on Louisiana beaches. Remember what happened when Cnooc tried to buy Californias Unocal Corp. for $18.5 billion in 2005. Back then, U.S. politicians worried about Chinese influence on world energy supplies, and nationalistic sentiments have only gotten stronger amid todays difficult economy. Also, we cant imagine how happy U.K. pensioners, who own BP shares, would be about having new Chinese owners. That likely pushback would mean any deal would need to involve all cash.
Earlier this week, Royal Dutch Shell and Exxon Mobil were being mentioned as possible suitors for the badly battered BP, which is facing questions about its ability to survive the fall out from the spill. Its market value has been more than halved shedding $82 billionsince the spill began nearly two months ago.
Then, again, all of this apocalyptic speculation about takeovers and bankruptcies could be overblown. J.P. Morgan Chase analysts said this morning that BPs market value has fallen twice as much as it should have in reaction to the spill. The investment bank estimates that clean-up costs, fines and litigation should cost no more than $29 billion ($10 billion less than the Credit Suisse estimate that is being floated around)
While these costs may require BP to sell $10 billion in assets, it doesnt justify the stocks huge sell off, according to JP Morgan. A few brave bulls seem to agree. BP stock is up 11% this morning.
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
