is bp oil spill bigger than exxon

Oil eating microbes considered as a possible solution to the oil spill

But still, can not pay the dividend, a purely financial management of BP should be seen. This message was clearly call for the conference that the management of BP held for investors on Friday. BP management well beyond the call of the importance of dividends to shareholders, but not categorically assure you that give its guarantee.

political speeches on the issue of dividends has been warming recent days. A number of senators have indicated they would like BP to suspend the dividend, while the full picture of the spill increases costs its responsibility is unclear. And the president, he commented last week that states "I do not want to hear, nickel and Diminga BP is" the people of the Gulf Coast, while on the image to continue to spend money on advertising and dividends.

The essential is that, although BP may be financially able to support the dividend on the political context, it is indefensible.

Sizing Until the liability in connection with the BP oil spill

All of this analysis, it depends on the size of the ultimate responsibility Total exposure resulting from the BP oil spill BP. And it is not easy to quantify - at least not right now.

A benchmark 1989 was the Exxon Valdez spill, which eventually cost $ 4,500,000,000 ExxonMobil, including remediation costs, legal settlements and actions for punitive damages. But BP is much larger spill sits, and therefore the bill much larger base of BP.

BP has already spent about $ 1300000000 BP oil spill in the cumulative costs incurred, which amounts to about $ 28 million Daily cost since the explosion of about 45 days. For the production of a riddle, "" I rely on the assumption that these estimates Daily expenditure execution rate continued at least until the end of the completion of relief in late August. This amounts to a gross additional expenditure of approximately $ 2400000000, which the total number at that level above $ 3.7 billion e

But BP's oil spill clean up will probably continue for some time after this step. A true accounting arbitrary doubling of the riddle - to oil spill clean-up costs compared to August - would count $ 7.4 billion gross e As already mentioned, This is a very rough estimate, the actual number will almost certainly be quite different.

Then there is the matter very relevant issue, both the Gulf Coast, and residents and businesses and federal and state governments. While some consider sanctions expected could be taken under the Clean Water Act, for example, it is extremely difficult to make a full assessment of liability BP exposure against lawsuits future.

But while the levels of exposure, which is unknown at this stage, just to assume that it will take many years, BP has to make payments. In comparison, in the eyes Keep this Exxon before final payment obligation under the 1989 oil spill completed shortly.

We should keep in mind that 65% of oil BP and questioned, with the rest of 35% of Anadarko (APC - Report of the analyst) and Japan instead of Mitsui. Although BP, apparently the largest share of the responsibility will be an exhibition, he is not 100% of the total cost, either.

BP can survive the oil spills?

There is no doubt that the appearance and BP's reputation has been torn by the oil spill from BP. And liabilities of the BP oil spill will undoubtedly be very great. But we doubt that even an enormous responsibility bill - from, say, $ 25000000000 $ 30000000000 TO - spread over several years can cripple businesses this very rich in natural resources. BP helps the profile of an investment grade credit has billions of barrels of oil reserves of precious and generates a lot of money.

Thus, while the stock of BP can be risky and unsuitable for many investors is the existence BP not in question, in my opinion.

Oil Spill Gulf of Mexico, Diving into the into Gulf's oily waters.