Here’s the NYT on what BP’s on the hook for:
There were no employee fatalities involved in the Exxon Valdez incident, while 11 people died in the Deepwater Horizon incident. Those deaths follow 15 fatalities in an explosion at BP’s Texas City Refinery in 2005.
“In the damage to their reputation … [the cost] is quite substantial,” said Andrew Lipow of Lipow Oil Associates LLC consultants in Houston. “It’s just another in a series of events that have associated fatalities with the BP name since 2005.”
Analysts who put the cost of the Deepwater Horizon spill at anywhere from $2 billion to $8 billion also cautioned that the numbers could change quickly.
“Those estimates can either skyrocket or come down depending on when the flow of oil is stopped,” Lipow said.
Molchanov predicted, “It’s going to be in the billions. … How many billions? The jury’s still out.”
BP earned $17 billion in net income last year and is projected to earn $23 billion in 2010, according to Raymond James.
“BP certainly is more than capable of covering all of the expenses that they’ll be liable for,” Molchanov said.
Isn’t that part of the problem?