Wednesday, April 20, 2011

BP (BP) Closer to Resuming Gulf Drilling?

BP (NYSE:BP) will probably start requesting permission to resume drilling in the Gulf of Mexico, according to Mark Gilman, an analyst with The Benchmark Company, who also believes after scrutiny, they will be approved to go ahead.

That's why the other companies have been allowed to resume drilling in the Gulf, as it was a test of public opinion and getting people used to things being safer in the industry.

Gilman said about BP, which is his favorite name in the space, "We're pretty comfortable that things are going in the right direction, and we're even more comfortable that the market hasn't priced it right yet."

He added that "although it might be considered heretical, it's my belief that, in fairly short order, BP will apply for drilling permits in the deepwater Gulf. And furthermore, I'd be surprised if, after appropriate scrutiny, they aren't approved."

BP was trading at $45.89, gaining $1.21, or 2.71 percent, as of 11:40 AM EDT. Gilman has a price target of $70 on the oil giant.

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