BP's Escalating Costs Put Investors on Edge
BP PLC said Friday that it would honor all "legitimate claims" for damages stemming from the Louisiana oil spill, as the company's stock continued to fall amid investors' concerns about potential litigation and a total clean-up bill that could run well into the billions of dollars.
The disaster was set in motion when the Deepwater Horizon, which had been leased by BP to drill a well in the Gulf of Mexico, caught fire and sank, killing 11 crew members. BP's efforts to stop the flow of oil from the well have failed.
The company is spending about $6 million a day on the clean-up, but those costs are expected to escalate with the oil making landfall. Analyst estimates of BP's total costs stemming from the disaster range from around $2.5 billion to $8 billion. BP says it is self-insured.
Read the full Wall Street Article Here.
Continue reading " BP's Escalating Costs Put Investors on Edge " »
