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BP oil spill costs reach $1.25bn

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posted on Jun, 7 2010 @ 08:29 AM

BP oil spill costs reach $1.25bn

Seven weeks after oil from a burst well began gushing into the Gulf of Mexico, British Petroleum says efforts to cap the spill have cost the firm $1.25 billion.

BP said on Monday that the figure does not include the $360 million earmarked for the construction of artificial barrier islands between the leak and the Louisiana coastline.
(visit the link for the full news article)

Related Discussion Threads:
BP's extremely long list of violations (in only a few short years)
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posted on Jun, 7 2010 @ 08:29 AM

As BP's efforts to contain the massive oil spill continues, the firm stressed that it was still too early to estimate the full financial cost of the catastrophe.

Please visit the link provided for the complete story.

I wonder how high the price-tag is going to go, before the American tax-payer is forced to shoulder the burden? We might even be forced to pick up the tab for most of this $1.25 billion. They most likely won't mention our financial burden until sometime after this incident or they will at least wait until after the initial shock wears off.

I have no doubt in my mind that we will pick up the majority of the tab for this disaster, anything different would be extremely abnormal. If the price-tag is already over $1 billion USD, then I can only imagine just how expensive this is actually going to be, especially seeing how we haven't even begun to get a solid start on the clean-up efforts.

(visit the link for the full news article)

posted on Jun, 7 2010 @ 09:13 AM
Aren't they trying to raise the cap on liability? Seems a previous thread mentioned a conspiracy to nationalize BP before it's all said and done. Certainly seems to be lining up well for that.

Besides this, any idea why all of a sudden the MSM seems to have forsaken BP? CBS blasted last night showing oil covered birds every other frame, then the Early Show all this morning was another flame fest.

Btw...Good job MSM.. wait 50 days after the event, then start the in depth reporting..

Edit to add some content:

Sadly the people of that area will more than likely shoulder most of the burden. If it comes to it, I'm sure that they can evacuate the people and BP can claim that since the people have been relocated that they have no right to claims anymore.

[edit on 7-6-2010 by PayMeh]

posted on Jun, 7 2010 @ 09:18 AM
Well their yearly revenue from the drilling is about 7 billion dollars, so they still have 6 more billions to lose before claiming a lost.

America only gets 7 dollars per barrel of oil that BP extracts. . . so Americas biggest loses will be the 20 billion industries within the fish and tourism and the lost of wildlife and the damaging effects of the toxic rain we are to get in the south.

posted on Jun, 7 2010 @ 09:36 AM
Im still wondering what success is.
They cut the bend off the pipe and added 20% more to the spill.
They then added the funnel and collected 10% of the oil.

100 + 20% = 120
120 - 10% = 108

If you measure success by BP now having clean oil in a tanker for sale when they had none befor. Success!
If you measure success by how much oil is in the Gulf. Failure! Because they added 8% more oil to the gulf.

So who is measreing the success on the gulf spill? My guess BP.

[edit on 7-6-2010 by JBA2848]

posted on Jun, 7 2010 @ 09:45 AM
reply to post by JBA2848

Anything they do at this point is just for show. The meeting went something like this:

"Can we stop it?"....
"Well we can't just sit and not do something.. If the public finds out we did this without a contingency plan they will roast us.. Make them think we're doing something productive until someone figures this thing out. Oh and BTW.. If you can capture any of it, that would be swell."

posted on Jun, 7 2010 @ 09:55 AM
Hey. maybe BP will be broke soon, the Obama administration can bail them out and take ownership of BP, then all of us happy taxpayers can pay to clean up this mess.

posted on Jun, 7 2010 @ 10:00 AM
if they predend to fix it
the suckers bet FOR financialy
they know better (see who sold off prior to the spill)
and bet AGAINST and are making HUGE money off of derivitves

so if they plan to let it go then bet against every publicly traded and ownd asset that will be affected up or down they will suck all of the loot out of the affected US

this is yet another way of FIXING the market

obamas biggest contributer was goldman sachs
who bet the derivatives against in the days prior to the spill
so don't count on him

this isn't even conjecture
it is so sad
money kills

posted on Jun, 7 2010 @ 10:24 AM
Actually unofficial news said that "BP is already looking into alternatives to bankruptcy with their lawyers" if the spill is beyond repair as it seems to be right now

posted on Jun, 7 2010 @ 02:42 PM
reply to post by marg6043

I wonder what alternatives to bankruptcy their are? Breaking up into smaller companies or changing their name? I am sure with their power they will be searching for a loophole to exploit.

If they do apply for bankruptcy, can a judge say "no?"

Speaking of costs, if the Clean Water Act is applied to the situation, BP could be looking at trillions (6.2 trillion estimates), being fined from 1800 - 4300 dollars per barrel spilled.
I don't see how they can recover and I'm afraid they will get off easy by filing for bankruptcy.

I believe there are caps on criminal suits but with the civil suits there won't be any limits. As far as the financial burden being shouldered by taxpayers....hell no! Bp should pay for all cleanup costs! Civil suits would include violation of Clean Water Act, if they are charged.

Government Could Reportedly Fine BP $4,300 Per Oil Barrel Spilled Into Gulf

Published May 26, 2010


This image from a video released by BP shows oil spewing from a yellowish, broken pipe 5,000 feet below the surface (AP).

The U.S. government could fine BP up to $4,300 for every barrel of oil gushing into the Gulf of Mexico -- a provision in federal law that some lawmakers are citing in their efforts to keep precise record of the spill's magnitude.

The environmental group Sierra Club estimates that the April 20 explosion at Deepwater Horizon has released more than 1,444,952 barrels into the Gulf as of midday Wednesday. By that estimate, BP would owe more than $6.2 trillion in fines so far if the federal government imposes a $4,300 penalty per barrel.

Last week in one day numerous investors jumped ship bringing down their share value by 15%.

Shares of BP slid 15%, their worst one-day percentage drop since Oct. 3, 1974. Investors were particularly disappointed because early indications from the company were that the "top kill" operation was succeeding. BP said it is working on deploying a so-called lower marine riser package containment system, but as with other attempts by BP, the system has never been attempted at 5,000 feet under water.


[edit on 8-6-2010 by speculativeoptimist]

posted on Jun, 7 2010 @ 03:05 PM

Originally posted by marg6043
Well their yearly revenue from the drilling is about 7 billion dollars, so they still have 6 more billions to lose before claiming a lost.

And the rest marge, that's just their profit for one quarter, not a full financial year!

Now is probably a good time to buy BP stock. Shares are falling, but they're a dead cert when it comes to making money, so it'll bounce back eventually.

posted on Jun, 7 2010 @ 10:54 PM
So the cost is at 1.25 billion right now.
Canada is spending 1.0 billion on security for the G8/G20 Summit in Toronto.

Id much rather Canada donate 750 million or so to help the Oil Spill.
250 million seems like a solid amount to put towards security...not 1 billion.


posted on Jun, 7 2010 @ 10:58 PM
This is pocket change to an oil company.

posted on Jun, 7 2010 @ 11:01 PM
That's all it's cost them so far?

Sounds to me like they're pussyfooting around instead of putting any serious effort into cleaning up their mess.

posted on Jun, 7 2010 @ 11:10 PM
reply to post by Jeremiah Johnson

This might be pocket change to BP but that doesn't mean that they would be willing to pony it up, especially when you can pawn it off on the American people without us doing # about it, other than a few harmless gripes.


reply to post by FoxMulder91

I actually started a thread on that here. It's called, Toronto police unveil security tools.

Yes, that would be wonderful if Canada spent that money on the oil clean-up instead of throwing it away on oppressing the Canadian citizens. I guess if they actually did things that would benefit us instead of hurt us, sites like ATS wouldn't be so popular.


posted on Jun, 7 2010 @ 11:13 PM
reply to post by airspoon

Hey I agree with you, I am just stating that they can afford it easily IMO.

posted on Jun, 8 2010 @ 06:45 AM
reply to post by speculativeoptimist

Actually because they are under contract they are actually the party that is loosing here and they can brake the contract as a lost, abandon the drilling efforts in the gulf and just move to their many numerous drilling areas in Europe.

The gulf while profitable for BP is not by any means the biggest.

posted on Jun, 8 2010 @ 06:48 AM
reply to post by stumason

Thanks for the clarification of quarterly vs yearly, still 7 dollars and some for barrel of oil is still a bargain.

And yes shares are only going down because their gulf spill but they are still profitable with their other drilling sites.

I wonder if the shares of BP are divided by sites, many you buy shares and get to chose which site you are buying shares from.

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