BP Oil Spill Now Largest in History PDF Print E-mail
Written by Rebecca Jones   

On April 20, 2010, an offshore drilling rig in the Gulf of Mexico exploded and sank two days later. This caused a massive oil spill threatening the coast of Louisiana, Mississippi, Alabama, Texas and Florida. The rig that exploded was owned and operated by Transocean Ltd. on behalf of BP, which owns the oil field.

BP now faces several lawsuits and criticism related to this Deepwater Horizon Oil Spill. The company’s stock fell by 52 percent in 50 days on the New York Stock Exchange. On April 20, BP’s stock was $60.57 per share and fell to $29.20 by June 9.

 

Some economists suggested BP may have to cut payments to shareholders, file for bankruptcy or be taken over by another oil company as a result of the oil spill and the related liabilities.

Steve Wereley, a professor at Purdue University, says that the leak isn’t just bigger than the 1989 Exxon Valdez oil spill in Alaska, but it’s so big that it could be leaking that amount every four days. In the Exxon Valdez accident, at least 250,000 barrels of oil leaked into the waters of Prince William Sound.

Wereley has spent the past 20 years studying fluid dynamics and says he found something very different than the estimates the company and coast guard have been using. BP estimated that it was leaking 5,000 barrels per day, but Wereley estimates that it’s leaking 70,000 barrels per day.

While BP faces these looming lawsuits and possible dissolution or bankruptcy, citizens can vote with their dollar by patronizing other gas stations. This is an easy change to make because most stations have the same quality gas. Even though it may seem that large corporations run the world, citizens can make a big difference with their dollar.


 

 
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