BP’s Expected Oil Disaster Fine: $17.6B
According to the Federal Government the Deepwater Horizon well gushed up to 2.6 million gallons a day. That is the equivalent of more than 19 Exxon Valdezes. Of course, for months BP insisted it was only 5,000 barrels a day (less than one tenth the actual amount). Well the new government estimate means BP is liable for a $17.6 billion fine—$4,300 for each barrel of oil, less the 800,000 barrels directly siphoned from the wellhead.
At its height, BP’s leaking well gushed 62,000 barrels of oil a day, the federal government said Monday in a revision of its figures that reveals how far off initial estimates turned out to be. The government and BP initially offered estimates of the leak at 1,000 and 5,000 of barrels a day shortly after it began in late April, eventually reaching an estimate of between 35,000 and 60,000 barrels a day after several revisions. The new estimate Monday by federal scientists means 4.9 million barrels of oil likely were released by the well before it was temporarily capped last month. BP hopes to complete an operation this week that will permanently seal the ill-fated well.
With those type of dollars in play is it any wonder BP was low-balling the size and scope of the spill.
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