Spill May Screw the Gulf, but It Won't Kill BP

Oil giant's profits are prodigious enough to pay for cleanup
By Emily Rauhala,  Newser User
Posted May 11, 2010 7:22 AM CDT
They owe a lot of money, yes, but they make a lot too.   (AP Photo/Charles Dharapak, file)

(Newser) – If you've been up late worrying about BP, rest easy. Whatever the ultimate toll to the Gulf states, and indeed the nation, the still-gushing oil spill isn't likely to kill BP. The British firm may be shelling out $17.5 million per day in clean-up costs, but it averaged $93 million a day in profit last quarter, notes the Washington Post. True, they're leaking 5000 barrels a day, but can produce about 25,000. And, if things get tight, they can always borrow money. "Even a pretty large digging into the pockets would be within our capacity to handle," a BP rep says.

That doesn't mean they're not getting pinched. The company has big spending needs and, now, a lot of extra expenses. Laws passed after Exxon Valdez put BP and its partners on the line for cleanup costs and up to $75 million in damages.They expect to pay more, the Post notes. They've lost credibility, too. On Friday, Standard & Poor's dropped their credit rating from "Stable" to "negative." Click here for the latest on the Gulf spill.

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