Source Pravda.Ru

Shareholders May Quit BP

BP’s third quarter output grew only by 4% instead of the 5% predicted as a consequence of the tropical storm Isidore. Moreover the company warned that full year growth also is expected to be 4%" rather than 4.5% to 5%. Shell also has already cut its five-year output growth target from 5% per annum to 3%. Although specialists tend to think that output decrease was caused mostly by struggling of two companies for the best and most lucrative performance. For the BP it is still possible to reach a 5.5% compound growth level by 2005, as BP’s officials say. At the same time Tony Alves, an oil analyst with Investec Securities, says it is still necessary to question whether the 5.5% long-term goal really can be met. Shareholders won’t wait for long and they can’t believe once more to BP’s promises. The difficulties are really caused by BP and Shell struggling to find new output when much of their production is located in mature areas, such as the fields in the Gulf of Mexico and North Sea.


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