Shares of BP Continue Lower as Oil-Spill Cleanup Costs Already Around $2B
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BP PLC (NYSE: BP) said Monday that it has now spent more than $2 billion on the oil spill cleanup in the Gulf of Mexico thus far, and the total will likely continue to rise as the company sees no end to the devastation in sight.
Just after this morning's opening bell, the announced financial impact to this point has shares of BP down more than 4 percent.
"It is too early to quantify other potential costs and liabilities associated with the incident,” BP said.
The London-based oil company agreed last week to implement a $20 billion fund to compensate the victims in the region affected by the oil spill. As recently as yesterday, BP said that it has paid out $105 million to 32,000 of the more than 65,000 that have made a complaint against the company.
The news comes as BP teams are rapidly working to drill a relief well in order to stop the flow of crude into the Gulf, an effort that follows the old needle in a haystack adage -- only if that haystack were three miles underwater. Despite the daunting tasks, the workers are confident that the relief well project will be completed successfully.
The relief wells are slowly grinding a path to an intersection with the well that was damaged when the Deepwater Horizon oil rig exploded on April 20, killing 11 workers and setting off the worst oil related disaster in U.S. history.
BP’s worst case scenario is now estimating that the spill is dumping up to 100,000 barrels of oil into the Gulf of Mexico each day.
In addition, BP officials also indicated that the company successfully bargained down several White House proposals previously thought of as "unreasonable." First, BP said that it should not be held liable for more widespread economic distress related to President Barack Obama's deepwater drilling halt in the Gulf of Mexico. The company also argued that the company should not be required to pay funds for the restoration of the Gulf coastline prior to the spill.
Just after this morning's opening bell, the announced financial impact to this point has shares of BP down more than 4 percent.
"It is too early to quantify other potential costs and liabilities associated with the incident,” BP said.
The London-based oil company agreed last week to implement a $20 billion fund to compensate the victims in the region affected by the oil spill. As recently as yesterday, BP said that it has paid out $105 million to 32,000 of the more than 65,000 that have made a complaint against the company.
The news comes as BP teams are rapidly working to drill a relief well in order to stop the flow of crude into the Gulf, an effort that follows the old needle in a haystack adage -- only if that haystack were three miles underwater. Despite the daunting tasks, the workers are confident that the relief well project will be completed successfully.
The relief wells are slowly grinding a path to an intersection with the well that was damaged when the Deepwater Horizon oil rig exploded on April 20, killing 11 workers and setting off the worst oil related disaster in U.S. history.
BP’s worst case scenario is now estimating that the spill is dumping up to 100,000 barrels of oil into the Gulf of Mexico each day.
In addition, BP officials also indicated that the company successfully bargained down several White House proposals previously thought of as "unreasonable." First, BP said that it should not be held liable for more widespread economic distress related to President Barack Obama's deepwater drilling halt in the Gulf of Mexico. The company also argued that the company should not be required to pay funds for the restoration of the Gulf coastline prior to the spill.
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