BPs Financial loss During the Gulf of Mexico oil spill in 2010

by blackagent7 (student)

BP’s Financial loss During the Gulf of Mexico oil spill in 2010

BP is a global oil and gas company. It is the third largest energy company and the fourth largest company in the world measured by revenues. BP has operations in over 80 countries and produces around 3.8 million barrels of oil.

BP invested a lot of money into capping the well and cleaning up the spill. The total cost for BP for the whole disaster is estimated at $ 40bn. Before the accident the maximum cost for the polluting company was $ 75m. Now companies know they are directly responsible for the total cost. There are now also higher financial penalties and compensation for the communities affected.

President Barack Obama: ‘‘We will make BP pay.’’

Deepwater Horizon Oil well erupts into flames in the Gulf of Mexico.

20 April 2010 – BP oil spill

19 September 2010 - Well officially sealed

Usually when an oil company has an crisis like BP with the Gulf of Mexico its value is decreased but this figure depends on the expected cost of the clean up and compensation damages. With the media giving negative view to BP this meant people sold their shares as they thought it would be too risky. Normally after a crisis like this event the share price will ...