BP will likely survive spill, but worth much less
NEW YORK — BP is probably sturdy enough to survive the worst oil spill in U.S. history. But investors are shaving billions of dollars off its value with every day that crude gushes into the Gulf of Mexico.
On Tuesday alone, the first trading day since BP’s latest attempt at a fix failed, and the day the government announced it had opened a criminal probe into the disaster, its stock took a hit of 15 percent.
The British oil giant is worth $75 billion less on the open market than it was when the Deepwater Horizon rig exploded six weeks ago. Other companies involved in the spill — Transocean, Halliburton and Cameron — have all lost at least 30 percent in value.
And as oil seeps unchecked into the Gulf, nearby states, businesses, environmental regulators and injured workers and cleanup crews are eyeing damages that could total billions more.
“This will be the mother of all liability claims,” said Fred Kuffler, a Philadelphia maritime lawyer who has handled oil-spill lawsuits.
AP
6/1/10
Magnolia Tribune
