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Posts Tagged ‘oil spill’

On the Huffington Post: oil plumes under the Gulf of Mexico. Apt study in light of the oil spill mess in the news.

“Sent from my BlackBerry® wireless handheld”

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The BP oil spill bill:

BP said the disaster, now into its tenth week, had already cost it $2bn. As of last night, the British company had paid out only $104m to claimants. In all, 64,000 demands have been submitted so far, totalling $600m. That pace will, however, only accelerate as oil continues to spew from the broken well-head, contaminating an ever-wider area of the Gulf.

From the looks of things BP will probably not have any trouble funding it:

BP is eyeing relatively modest new bank lending lines and is not planning bond sales or new increases in asset sales to fund its Gulf of Mexico oil spill clean-up, sources familiar with the company’s thinking said on Monday.

BP has considered a number of different scenarios to raise additional cash, should the need arise, such as additional asset sales and a potential bond offering.

And furthermore it also seems that even if BP were to declare bankruptcy, creditors wouldn’t mind.

There are no bank-style bailouts here, but structurally seems to be no deterrents either. Moral hazard just the same.

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Just checking in on the happenings since its been roughly a couple of months since the now infamous Deepwater Horizon oil spill from the BP oil rig.

As reported by Reuters, in New Orleans, while tourism ads are getting pulled for sensitivity to BP, oil firms are lobbying to overturn Obama’s 6-month ban on deepwater drilling, which was in reaction to the spill. On the Huffington Post, beach weddings are taking a dive in Florida.

Meanwhile, as you consider the total effect of the spill–social, economic and environmental–you might want to check out If It Was My Home, which apart from social activism features an interesting Google map of the oil spill which you can overlay on your own home to appreciate the scale. (Thanks to Freakonomics).

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