BP confirms oil spill will be expensive
BP has today issued a statement regarding the ongoing oil spill in the Gulf of Mexico which is pouring out thousands and thousands of barrels of oil a day. The company believes that the cost of cleaning up the disaster is in the region of USD350 million so far but many analysts believe it could top USD10 billion after compensation, fines and cleanup costs are taken into account.
Despite attempts to rectify up the situation it is believed it will take a matter of days not hours to finally plug the oil well which is causing the problems. Since the disaster begun the share price of BP has fallen by 16% wiping around USD30 billion of the company's market value. The company is unwilling or unable to give a definitive answer regarding the overall cost of the disaster but there are some very wild and exaggerated forecasts in the marketplace.
It is believed that the disaster began when a build-up of methane gas below the surface of a BP oil rig ignited and effectively blew the oil rig apart. There has been loss of life in this disaster and the impact on wildlife in the area is getting worse by the hour.
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