Make us your home page
Instagram

Six years after gulf oil spill, BP has gushed an average $25.5 million a day to cover disaster

Fire boats battle a fire at the off shore oil rig Deepwater Horizon on April 21, 2010, in the Gulf of Mexico off the coast of Louisiana. Six years later, BP has paid out $56 billion in costs related to the spill -- an average of $25.5 million a day.  [U.S. Coast Guard via Getty Images]

Fire boats battle a fire at the off shore oil rig Deepwater Horizon on April 21, 2010, in the Gulf of Mexico off the coast of Louisiana. Six years later, BP has paid out $56 billion in costs related to the spill -- an average of $25.5 million a day. [U.S. Coast Guard via Getty Images]

Remember the disastrous BP oil spill in the Gulf of Mexico? BP sure hasn't forgotten, given that by this month's six-year anniversary, the giant oil-exploration company has paid out $56 billion in costs related to the spill.

That's $25.5 million spent on average every day by BP since the spill in April 2010. And it's not over yet.

The additional expenses looming aren't BP's only concern. By this fall, the entire oil spill nightmare will be reintroduced to the public, thanks to a Hollywood movie titled Deepwater Horizon starring Mark Wahlberg and Kate Hudson about what is billed as the biggest offshore oil spill in U.S. history and worst environmental disaster so far of the 21st century.

As if Floridians need to be reminded of the cost, pain and ongoing gulf consequences of the spill. BP's Macondo well exploded on April 20, 2010, killing 11 workers and releasing more than 3 million barrels of oil into the Gulf of Mexico over 87 days.

BP marked one financial plateau last year when it reached a $20 billion agreement resolving state and federal claims. Yet other legal claims remain.

Those expenses were spotlighted this week when BP announced a quarterly loss of $485 million, sparked by an unexpected $917 million writedown by the company related to the oil spill. Still, the financial performance was actually better than analysts had expected and BP shares rose in response, closing at $33.60.

Before the spill, BP's stock traded near $60, then fell below $30 in June 2010, once the severity of the spill began to be realized. After peaking at $52 in mid 2014, BP shares have trickled south and now trade in the low $30s.

BP on Tuesday told shareholders it could not guess how much more costs would rise due to the oil spill. "It's impossible to come up with a best estimate," BP chief financial officer Brian Gilvary told analysts.

Recent reports on the environmental impact from the oil spill six years later continue to indicate widespread damage to animal and sea life. A report by the conservation and advocacy group Oceana found far more coastline was affected by the spill than experts first anticipated. Scientists from the National Oceanic and Atmospheric Administration and private research companies recently reported finding oil along more than 1,300 miles of shoreline (out of 5,930 miles surveyed) after the spill. The area stretches from Texas to Florida.

Those findings underpin an assessment of oil spill damage published by the federal government earlier this year. "Unprecedented in both scope and nature, the Deepwater Horizon oil spill was the largest offshore oil spill in U.S. history," the report stated. "The spill dealt a heavy blow to the Gulf Coast region natural resources and its natural resource-dependent economy."

For BP, writing more and bigger checks to deal with the spill is not over.

In 2012, BP set aside $7.8 billion to cover a settlement with Gulf Coast businesses and residents. The company said Tuesday that sum had increased to $12.9 billion, including $600 million in the first quarter of the year as the company began accelerating its claims process.

Contact Robert Trigaux at rtrigaux@tampabay.com. Follow @venturetampabay.

Six years after gulf oil spill, BP has gushed an average $25.5 million a day to cover disaster 04/27/16 [Last modified: Wednesday, April 27, 2016 8:20pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Tampa is 15th-most popular city to move to with U-Haul

    Markets

    TAMPA —Tampa is undoubtedly a destination point, at least according to U-Haul.

    Tampa is the No. 15 destination for people moving with U-Haul trucks. | Times file photo
  2. Florida's economy growing faster than other big states and far better than U.S. overall

    Business

    When it comes to economic growth, Florida's running alongside the leading states and well ahead of the United States as a whole.

  3. Westshore Marina District project takes shape with another acquisition

    Real Estate

    TAMPA — One of Tampa Bay's prime waterfront areas took another major step toward redevelopment Friday as WCI Communities bought 2.35 acres in Westshore Marina District.

    WCI Communities, Lennar's high-end subsidiary,has paid $2.5 million for 2.35 acres in the Westshore Marina District for 35 townhomes. WCI is under contract  to buy an additional 9.5 acres.
[BTI Partners]
  4. Posh Guy Harvey RV park to open in Tampa Bay with $250,000 cottages

    Business

    HOLIDAY — Love those Guy Harvey T-shirts with the soaring marlins? In the not too distant future, you might be able to kick back in your own Guy Harvey cottage in the first-ever Guy Harvey RV park.

    Renderings of the clubhouse and an RV cottage site of the planned Guy Harvey Outpost Club & Resort Tarpon Springs.
[Guy Harvey Outpost Collection]
  5. Port Tampa Bay secures $9 million grant to deepen Big Bend Channel

    Business

    Port Tampa Bay has secured a $9 million grant from the U.S. Army Corps of Engineers for the widening and deepening of the Big Bend Channel in southern Hillsborough County.