New Zealand Celsias

If it was at all possible, BP managed to hit a fresh low yesterday with news the oil giant has now lost half its market share value and is using paid search terms to influence public opinion.

Reports that leakage from its ruptured well in the Gulf of Mexico may have been wildly underestimated caused BP’s share price to plummet a further 16 percent yesterday, as investors anticipated the disaster may push BP to bankruptcy.

The oil giant’s market share value has lost a staggering $140.5 billion since the gulf spill.

The drop came after new study by a US oceanographer estimated the well was leaking 26,500 to 30,000 barrels of oil a day – six times more than the figure used by BP and the US government between April 20 and May 27.

And while attempting to halt the flow of oil, it seems BP has also allocated resources to stemming the PR disaster.

UK search engine consultancy Greenlight claims the beleaguered oil giant is buying Google and Yahoo search terms in order to protect its brand.

In a press statement, Greenlight said that by purchasing top position in paid search, the company hopes to drive users to its corporate response page which attempts to paint a more positive picture of the BP brand:

“Excluding the paid search listing in the results page, 95% of the listings are very negative. A search in Google for “BP Oil Spill” presents the user with a number of listings that are being very cynical of BP, including YouTube clips of the impact the disaster has had on the local area and its wildlife.

Whilst some would argue that BP is trying to deflect attention away from damage the oil spill has caused, others will agree BP is just giving internet users the information they are looking for; after all, users are not forced to click on the paid search advert. From a search perspective, this is the best move BP could have made to protect its image under the current circumstances.”

Meanwhile the financial devestation of one of the companies involved in the Gulf spill may have flow on effects here in New Zealand.

As reported in this morning’s Herald, Anadarko, the oil explorer with a 25 percent stake in the BP well, must decide by the end of August whether it will commit tens of millions of dollars to go ahead with an exploration well in the Canterbury Basin.

Anadarko’s share price has dropped to its lowest level in five years yesterday due to concerns over its liability in the Gulf spill clean up.

The company is an equity partner with Origin Energy in the project, who as of yesterday weren’t saying anything.
However, it appears one man’s trash is another man’s treasure.

The Petroleum and Production Association commented to the paper that the US government’s six month moratorium on deep sea drilling may have the effect of pushing investment elsewhere.