BP PLC just announced it was canceling its dividend for this year in order to fund $20 billion in compensation to those harmed by the spill. Matt Simmons, author of Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy says BP has
about a month before they declare Chapter 11. They’re going to run out of cash from lawsuits, cleanup and other expenses. One really smart thing that Obama did was about three weeks ago he forced BP CEO Tony Hayward to put in writing that BP would pay for every dollar of the cleanup. But there isn’t enough money in the world to clean up the Gulf of Mexico. Once BP realizes the extent of this my guess is that they’ll panic and go into Chapter 11.
