The rig explosion in April 20 has caused BP’s shares to fall sharply and reach its lowest drop in 13 years, down to 12 percent according to Thursday’s morning data. This company, Beyond Petroleum, is based in London and is one of the oil giants of the United Kingdom, with its desire to create environment friendly solutions, but now it’s reputation is highly tarnished due to what many consider as the worst oil spill in history, and the most expensive.
In fact, this situation has already caught the attention of the British government, and even the United States government, as Barack Obama promises to give any kind of support just to stop the leak, including military support and whatnot. Ultimately though, President Obama stated that BP will be responsible for all the costs. David Cameron, UK Prime Minister, and President Obama will discuss this issue over the phone this weekend.
BP has always been looked at as dependable in terms of paying dividends. Many people, especially retirees and those who need an income that is steady, have held to BP, and of all British stocks, it is one of the most held. Because of the oil spill, capitalization of BP’s market has dropped by half ever since the leak. Furthermore, pressures from Washington are mounting, and it’s possible that the Justice Department will take part.
The BP oil leak off the gulf of Mexico continues to worsen, and many predict that the worst possible scenario will be that the leak will stop by December. This is, according to Barack Obama, the worst environmental disaster in the history of the United States.