The accurate measurement of the amount of oil flowing in the Gulf is vital to BP (NYSE:BP) (LON:BP), as for every barrel of oil that leaks into the waters, they could be fined $4,300, according to Clear Water Act penalties.
What determines whether or not BP will be fined is if they are charged with gross negligence. If so, the fine could be imputed on them, although if it got so costly they couldn't afford to pay it, it would be irrelevant, and could drive them to bankruptcy.
Assuming the upper end of government estimates of 60,000 barrels a day being released into the Gulf, and capture rates of a little over 27,000 (at this time), that would leave about 33,000 barrels a day they could be fined for.
That means on a daily basis, the cost to the company could be over $142 million, and that doesn't include the $20 billion in the escrow fund or any litigation costs.
The cost of doing business has skyrocketed as well, with insurance and credit default swaps surging in price.
As a growing number of people are realizing, a lot of the outrage needs to be contained, and if the only focus is to extract as much as they can from the company, there will be no company left to pay it.
It is in the best interests of everyone for BP to survive and thrive, otherwise they won't be able to handle the costs related to the disaster.
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