So far, CVX corporate PR has been pathetic in dealing with the Brazil situation. Always lots of talk out of San Ramon about "maximizing shareholder value" but when the rubber meets the road, such as in this latest incident, we are seeing total ineptitude. CVX doing little more than nearly HIDING from the media, not refuting the groundless allegations out there, not pulling in political markers down in Brazil. A total zero effort so far . . .
This spill in Brazil is infinitesimal. Virtually nothing. And, in fact, it appears it may not even be a spill due to CVX, if due to ocean floor seepage.
But regardless, the stock has been getting pounded for several days now, despite the rest of the market rising. Idiot shorts and hedge funds have been driving it down, assisted by ridiculous "news" stories which CVX has done little to refute.
WATSON NEEDS TO GET HIS DERRIERE ONTO AN AIRPLANE, go visit all high level political contacts in Sao Paolo n Rio, call in markers, and get the mini potentate bureaucrats off our back.
Whether CVX told the truth or not, the beaches are clean and it's not anything like the BP spill in terms of size. This will be a problem that is resolves with millions and not billions. The selling was excessive and the price will rebound accordingly.
Shorts are covering..as they tried to put fear into the oil situation and the market plunged because of debt fears.
I feel the downside is /somewhat/ limited at this point. Oil inventories are lower so oil stocks should climb and the holidays are ahead.
Oh man..If supercommittee is presenting the whispered creating a deal exchange for cutting the Bush tax cuts...then the market is going to take off to the upside.
Don't mean to interupt the shouting here, but the oil sheen last appeared to be heading out to sea away from the beaches. Note I didn't say "spill". What appears to have happened is that several naturally occuring seeps began to leak more oil in an area in which Chevron was drilling. The well closest to what appears to be a naturally occuring seep has been plugged and abandoned. Oil seeps from naturally occuring fissures in the earth all the time - most of it in the ocean. Whether or not Chevron's drilling operations contributed to an increase in oil coming out of naturally occuring seeps is a questions that will be answered by investigation of the phenomenon. The end of the story is that Chevron plugged the well very quickly and efficiently and appears to have mobilized a great deal of equipment in response to this incident.
i'd say chevron needs to start telling the truth.
right now, it's inviting comparisons with bp, the most dangerous oil company on earth.
bring in the pr hacks, and you look like you're trying to lie. Trying to sell an edsel to the press and the public.
but, hell -- it's only money. What's the difference between $105 a share and $95 a share ?
Chevron has done an abysmal job in conveying, clearly, the simple messages:
1. The oil spill is small, less than even minor, literally a drop in the ocean;
2. It is already over, addressed, nothing to worry about going forward;
3. CVX is the world's best in its processes and safety record and is in a totally different universe from the likes of BP;
4. Chevron is contributing to the welfare and economy of Brazil, not hurting it.
The above statements are facts. The truth.
As a large and important investor, CVX needs to marshal all its influence with the Brazilian govt and its various entities to make all the focus and concern over this flyspeck environmental non-event just go away . . . because in the era of the internet, satellite TV, blogs, etc., even untruths have a way of multiplying, growing and not dying away. CVX doesn't need to be tarred with the BP brush, but this is starting to happen. So far, CVX responses have been ineffective and reactive, slow.
Watson needs to act, as well as the Public Affairs people of CVX. So far, their response has been vapid and unimpressive.
First of all I want to thankyou for your post. From every thing I've read nothing makes any sense. This is not a good message for future help from reliable oil companies. Maybe they should have their federal police do their drilling!