70 Billion Dollars in Damages for BP Oil Spill

Beach clean up due to BP oil spill in Gulf of Mexico

The BP 2010 Gulf of Mexico oil spill disaster could ultimately cost the company $60.2B-$68.2B, meaning the remaining legal entanglements including impending environmental fines and settlement payments could run up another $16B-$24B, Bloomberg Intelligence energy analyst William Hares says.Given how far oil prices have fallen, BP may have to sell off more assets, increase its debt load, strip more from its budget or, as a last resort, slash its dividend to deal with its liabilities, Hares says.Judge Barbier could rule on as much as $13.7B in potential Clean Water Act fines at any time, although another Bloomberg analyst believes he will trim the fines down to $5B-$8B, giving BP credit for its spill clean-up.However, five Gulf Coast states have sued BP for damages under the Oil Pollution Act, seeking a combined $35B in damages, billions are being paid out to Gulf Coast residents and businesses as part of a settlement, and courtroom battles with shareholders could amount to another $3.5B-$5.5B.

BP’s Gulf spill toll could run up to $68.2B, analyst says, seekingalpha.com
Jun 23 2015

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