When the oil spill in the Gulf of Mexico began back on April 20, BP’s stock price was hovering right around the $60 mark. Today, the price of BP stock has plummeted $30 a share, a 50 percent drop. Amazingly, BP remains oblivious to the reasons behind this sudden collapse the company’s own share value. Just last week, it sent out a press release entitled “BP is Not Aware of Any Reason for Share Price Movement”.
Talk about arrogance. “BP continues to keep the market updated on the Gulf of Mexico oil spill through regular announcements,” the press release goes on to say. Maybe investors are looking for less PR and more action from BP. The company’s attempts to manage the crisis can only be described as bordering between incompetence and outright negligence.
As pictures of oiled birds continue to roll in from the Gulf Coast, BP should be have the dignity to acknowledge that it has betrayed the trust of its shareholders. Instead, the company is acting like the oil spill is no big deal. Maybe BP CEO Tony Hayward needs to stop listening to the propaganda being rolled out by the company’s army of PR specialists and sit down in front of the TV to watch some CNN. He might just uncover the truth that has been driving investors away from BP for weeks now. He might just realize that, yes, the oil spill is a big deal.