BP set to make £13 billion profit thanks to huge rise in oil and gas prices


BP is expected to announce a sharp jump in profits for 2010 to £13 billion compared with £8.7 billion the year before, thanks to a huge rise in oil and gas prices.

Shareholders can look forward to the welcome return of a dividend, though the total is likely to be £3 billion – half the amount when it was suspended last year.

While shareholders can thank soaring gas and oil prices for the results, motorists will be alarmed by the latest surge in prices.

On Friday Brent Crude reached $99.60 a barrel, thanks to worries over the domestic crisis in Egypt. And BP chief executive, Bob Dudley, expressed his concern that such high prices could harm the economic recovery.

Despite the huge ongoing costs of the Gulf of Mexico disaster – estimated at £6 billion last year, BP has been highly successful in selling off assets to pay for the spill, which is expected to eventually cost £25 billion.

As Dudley reveals BP’s profits on Tuesday, his lawyers will be in the High Court trying to ward off an injunction filed by its partners in the TNK-BP joint venture in Russia.

They want to halt a deal between BP and state-owned Rosneft to explore Russia’s oil-rich Arctic.

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Stuart H. Smith is an attorney based in New Orleans fighting major oil companies and other polluters.
Cooper Law Firm

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