The Financial Effects of the BP Oil Spill

Posted by in Finaces, Oil Spills on Jan 6, 2014

It is perhaps a given that it would take a long time for the ecosystem in the Gulf of Mexico to again achieve some semblance of balance after the biggest environmental disaster in the history of the oil industry. This is of course referring to the Macondo oil rig explosion, which triggered the disgorgement of millions of barrels of crude oil into the deep waters of the Gulf of Mexico. There is also no dispute that bad judgment and tragic oversight led to the accident, making principal operator UK-based oil giant BP Plc and its partners liable for billions in oil spill claims for environmental, property, personal injury, and business loss damages.

The most direct financial effects of the BP oil spill were on small fishermen and tourism, whose livelihood seemed to vanish into air as quickly as the explosion on the oil rig, and the after-effects are just as difficult to contain. It took engineers five months to stopper the oil spewing from the ruined rig; it is now going on 4 years and many businesses which failed to ride the waves of the disaster are filing for bankruptcy, affecting the jobs of thousands of employees. It is estimated that while active cleanup operations in the affected areas have been completed, seafood in inland waters are not yet considered safe to eat, although what fishermen haul in further out into the Gulf are.

Hotels, restaurants and tourist spots in the area enjoyed a resurgence of custom in 2012, but too late for a lot of individuals and business owners who are now just hoping to get the promised compensation from BP to get back on their feet. If you have an oil spill claim and you are not part of the ongoing settlement, consult with a BP oil spill lawyer in your area for an assessment.

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