Chevron Struggles with Brazil Spill ($BP $CVX)
Oil spills are bad news for a number of reasons. The company responsible for the spill could be in a really rough spot. Where is Chevron right now in regards to the Brazil oil spill? Let’s look to Kenneth Rapoza for some further explanation.
Chevron’s Brazilian oil spill, tiny in comparison to major spills like BP’s Macondo well in the Gulf of Mexico in 2010, has cost the company dearly. It was forced this week to close off its Frade field well in the Campos Basin, 230 miles (370 km) off the coast of Rio de Janeiro. It has to deactivate its drilling platform. In short, Chevron now has one foot out of Brazil and it just might cost them $2.5 billion — which is what the company spent on their Brazilian oil venture.
“As far as Brazil goes I think it remains to be seen what the future holds for our business there. We’ve been in Brazil for over 100 years in different areas of the business and have had historically very good relationships there,” said Chevron CEO and Chairman John Watson in a statement on March. 13.
Surely, this issue will be in the news for a long time to come. If you are invested in Chevron, be sure to follow the news. Stocks could easily suffer, so plan accordingly.
Quotes taken from report by Kenneth Rapoza, Read the entire article here.
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