The cost to protect Anadarko Petroleum Corp. debt from default rose to the highest in almost a year as federal legislation was introduced that would raise the potential liability for oil spills to $10 billion from $75 million.An independent oil & gas producer woould go bankrupt if they suffer one accident under the new law. The result, if this legislation passes? Exxon, BP and the other oil giants will buy up these assets, since they can survive such a loss. Big oil will get bigger. Bonus points for the Dems, however, if they have Congressional hearings to try to block Anadarko or another company with extensive oil interests from selling themselves to the Chinese.
The liability increase would be “a little bit more problematic” for smaller companies, said Guy Lebas, chief fixed-income strategist at Janney Montgomery Scott LLC.
“It’s a high exposure level,” Lebas said in an interview from Philadelphia.
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