BP’s Final Bill Reaches $61.6 Billion in Gulf of Mexico Disaster
The disastrous deep horizon oil spill in 2010 is costing BP a massive $61.6 billion.
One of the biggest oil and gas companies on the world, BP issued its final estimate which the oil spill cost it; it's perhaps the largest so far in the history of the United States.
According to the company that, in the second quarter it would take a pre-tax charge of $5.2 billion and added that it would be adequate to cover anything which has not been resolved yet.
Fadel Gheit, oil analyst at Oppenheimer & Co said, "It's a really scary number. Before the accident, BP had a market capitalization of $180 billion. The accident actually shaved off one-third of the market capitalization of the company. It's a miracle that the company is still in business."
BP's fate changed as a blow out on April 20, 2010, that occurred about one mile under water sent oil and gas surging up to the Deepwater Horizon exploration rig. The rig burnt and sank, killing eleven crew members. The leak continued for 87 days giving out at least 3.19 million barrels of crude which polluted the Gulf of Mexico.
The next to come was an array of lawsuits and federal penalties costing the company billions to be paid to thousands of claimants.