BP Shares Suffer as Lawsuits Climb and the Oil Keeps Flowing

It has been 67 days now since the Gulf of Mexico oil spill began its deadly spread affecting both man and nature with ensuing catastrophic events. Bp shares suffered again this week, hitting a yearly low in New York and shaving even more billions of the company’s books.

With approximately 74,000+ claims related to the spill filed against the company and the total cost so far blowing out to $2.4 billion, this has had an extremely detrimental affect on the company’s bottom line. Investors are also reacting to the news that the U.S. government is now reviewing other plans BP might have and their possible future environmental impact, especially the drilling in Alaska.

Nowadays sympathy is something BP sees little of from an already incensed American public and White House officials, including President Obama, who is taking a much tougher stance to appease public opinion.

Since the clean-up began over 16,000 barrels of oil have been collected and over 36 million cubic feet of gas has been flared. Critics are calling this a drop in the ocean, an ocean so badly polluted that it may take generations to get back to normal if it ever does.

Bad weather now looks to be threatening with a tropical depression brewing over the affected area. This can only lead to stalling the cleaning operations in progress and even worse affect the containment areas, leading to the possibility that the spill will spread even more.

In the background the Obama administration is determinedly pursuing its legal avenues after a decision made on Thursday by a federal judge (Martin Feldman) in New Orleans which saw the six month ban on deepwater oil drilling overturned and put on hold for the time being.

This new turn of events has angered many people who have been affected by this catastrophe and especially environmentalists who see the hand of big business possibly involved in this dramatic decision.

The federal government is aggressively appealing this decision through the U.S. Court of Appeals for the Fifth Circuit.

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Posted by on Jun 25 2010. Filed under Business, Featured News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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