Effect gulf oil spill stock market

Effect gulf oil spill stock market

Posted: Ars_Art Date: 03.06.2017

This article covers the effect of the Deepwater Horizon disaster and the resulting oil spill on global and national economies and the energy industry.

Oil Spill Hits BP's Stock, Threatens It's Future - hypufiyuyuq.web.fc2.com

Weeks after the event, and while it was still in progress, the Deepwater Horizon oil spill was being discussed as a disaster with far reaching consequences sufficient to impact global economies, marketplaces and policies.

These potentially included structural shifts to energy policy , insurance marketplaces and risk assessment , and potential liabilities of the order of tens of billions of US dollars for one or more large and well known companies - principally BP. As a response to the disaster, on 30 April President Barack Obama ordered the federal government to hold the issuing of new offshore drilling leases until a review determined whether more safety systems were needed [1] and authorized teams to investigate 29 oil rigs in the Gulf in an effort to determine the cause of the disaster.

An Outer Continental Shelf safety review board within the Department of the Interior is to provide recommendations for conducting drilling activities in the Gulf. On 22 June, a United States federal judge on the United States District Court for the Eastern District of Louisiana Martin Leach-Cross Feldman when ruling in the case Hornbeck Offshore Services LLC v.

Salazar , lifted the moratorium finding it too broad, arbitrary and not adequately justified. A three judge panel is scheduled to hear oral arguments on 8 July. On 30 June, Salazar said that "he is working very hard to finalize a new offshore drilling moratorium". By this amendment he wants to ban BP from leasing any additional offshore area for seven years because of "extensive record of serious worker safety and environmental violations".

On 28 April, the National Energy Board of Canada, which regulates offshore drilling in the Canadian Arctic and along the British Columbia Coast , issued a letter to oil companies asking them to explain their argument against safety rules which require same-season relief wells. Energy Information Administration EIA reported that in , At the time of the disaster it was said that there were only 4 companies able to insure risks of such size.

Until this incident loss of an entire semi-submersible rig in this way was considered "an unprecedented tragedy" [21] with an underwriter at Pritchard Capital commenting "It's never happened that a semi could burn into the sea and completely sink.

effect gulf oil spill stock market

Now underwriters have to include that as a risk. The Organization for International Investment , a Washington -based advocate for overseas investment into the U. In BP's Initial Exploration Plan, dated 10 March , it said that "it is unlikely that an accidental spill would occur" and "no adverse activities are anticipated" to fisheries or fish habitat.

On 2 May , NOAA closed commercial and recreational fishing in affected federal waters between the mouth of the Mississippi River and Pensacola Bay. The continued fishing ban was meant to assure the safety of seafood, and NOAA inspectors announced that as of 9 July, Kevin Griffis of the Commerce Department said, only one seafood sample out of tested did not pass, and even that one did not include "concerning levels of contaminants".

On 31 August, a Boston lab hired by the United Commercial Fishermen's Association to analyze coastal fishing waters said it found dispersant in a seafood sample taken near Biloxi, Miss.

The foundation combined satellite data showing the oil spill extent each week with data on weekly tuna spawning to make their conclusion. This was the twelfth and final reopening in federal waters since 22 July, and opened all the formerly closed areas in Federal waters. In July BP released a report [47] claiming that the economy had recovered and there was no reason to believe that anyone would suffer future losses from the spill, with the limited exception of oyster harvesters.

However, Bruce Guerra, a crab fisherman in Louisiana for 25 years, said that since the BP oil spill crabbers are trapping 75 percent fewer crabs and that "crabs have been coming up dead, discolored, or riddled with holes since last year's spill". Others in the fishing industry say it could take years to fully realize the spill's effects.

So although we may have fish now, we may not have them in five to 15 years. In late local fishermen report that crab, shrimp, and oyster fishing operations have not yet recovered from the oil spill and many fear that the Gulf seafood industry will never recover.

One Mississippi shrimper who was interviewed said he used to get 8, pounds of shrimp in four days, but this year he got only pounds a week. Mississippi's oyster reefs have been closed since the spill started.

A Louisiana fisherman said the local oyster industry might do 35 per cent this year, "If we're very lucky. Although many people cancelled their vacations due to the spill, hotels close to the coasts of Louisiana, Mississippi, and Alabama reported dramatic increases in business during the first half of May However, the increase was likely due to the influx of people who had come to work with oil removal efforts.

Jim Hutchinson, assistant secretary for the Louisiana Office of Tourism, called the occupancy numbers misleading, but not surprising. People aren't sport fishing, they aren't buying fuel at the marinas, they aren't staying at the little hotels on the coast and eating at the restaurants.

The Bay Area Tourist Development Council bought digital billboards showing recent photos from the gulf coast beaches as far north as Nashville, Tennessee and Atlanta.

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Along with assurances that the beaches were so far unaffected, hotels cut rates and offered deals such as free golf. Also, cancellation policies were changed, and refunds were promised to those where oil may have arrived.

However, revenues remained below levels. The real estate prices and a number of transactions in the Gulf of Mexico area decreased significantly during the period of the oil spill.

effect gulf oil spill stock market

As a result, area officials wanted the state legislature to allow property tax to be paid based on current market value, which according to Florida State Rep. Dave Murzin could mean millions of dollars in losses for each county affected. BP - at the time the United Kingdom's largest corporation [56] and a major business in the UK investment world - came under intense popular, media, and political pressure to cancel its dividends in their entirety.

On 25 June, BP's market value reached a 1-year low. BP announced that it was setting up a new unit to oversee management of the oil spill and its aftermath, to be headed by former TNK-BP chief executive Robert Dudley , [73] who a month later was named CEO of BP. On 1 October, BP's London Stock Exchange price reached By , BP had dropped from the second to the fourth largest of the four major oil companies.

Some BP station owners that lost sales said the name should change back to Amoco , while others said after all the effort that went into promoting BP, such a move would be a gamble, and the company should work to restore its image. From Wikipedia, the free encyclopedia. United States offshore drilling debate and United States deepwater drilling moratorium. Hornbeck Offshore Services LLC v. Retrieved 1 May Retrieved 29 April Archived from the original on 2 July Court To Hear Arguments In Drilling Moratorium Case 8 July Archived 11 June at the Wayback Machine..

The Globe and Mail. Archived from the original on 6 May The Christian Science Monitor. Archived from the original on 20 July Archived from the original on 2 August Let's drop dependence on foreign oil ". Energy Information Administration EIA. Retrieved 16 July BP Exploration and Production. Archived from the original PDF on 5 July Gulf of Mexico Oil Spill: No End in Sight for Eco-Disaster.

State of Louisiana Department of Health and Hospitals. Deepwater Horizon Incident Joint Information Center. Retrieved 2 May Deepwater Horizon Oil Spill: Emergency Area Closure in the Gulf of Mexico" PDF. NOAA, National Marine Fisheries Service, Southeast Regional Office, Southeast Fishery Bulletin. Archived from the original PDF on 1 May Retrieved 3 June NOAA Modifies Commercial and Recreational Fishing Closure in the Oil-Affected Portions of the Gulf of Mexico" PDF.

Size and Percent Coverage of Fishing Area Closures Due to BP Oil Spill". NOAA, National Marine Fisheries Service, Southeast Regional Office. Archived from the original on 18 June Gulf seafood tested so far is safe to eat". Archived from the original on 13 July Archived from the original on 3 September Archived 13 September at the Wayback Machine.

The Horrific Consequences of BP's Spill". Archived from the original PDF on 15 May Retrieved 9 February Archived from the original on 27 April Archived from the original PDF on 7 May The impact on your savings and investments". Retrieved 20 January Archived from the original on 18 February Congress can stick BP with bigger liability cap Reuters.

BP's stock hits new low". Archived from the original on 30 September Retrieved 5 September Deepwater Horizon oil spill. Deepwater Horizon explosion Volume and extent Efforts to stem the spill Timeline May June July August Anadarko Petroleum BP Mitsui Oil Exploration. Cameron International Halliburton Nalco Holding Company Transocean Wild Well Control.

Bureau of Ocean Energy Management Flow Rate Technical Group Minerals Management Service National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling Unified Command U. Coast Guard Worst Case Discharge.

BP Stock Price - BP PLC ADR Stock Quote (U.S.: NYSE) - MarketWatch

Bob Dudley Tony Hayward Doug Suttles Carl-Henric Svanberg Darryl Willis. Elizabeth Birnbaum Michael R. Thad Allen Mary Landry James A. Macondo Prospect Mississippi Canyon Perdido Pass. Development Driller III Discoverer Clear Leader Discoverer Enterprise GSF Development Driller II Helix Producer 1 Loch Rannoch Mighty Servant 3 Overseas Cascade Q Seacor Lee Toisa Pisces A Whale Pacific Responder California Responder.

Environmental impact Health consequences GuLF Study. Deepwater drilling moratorium court case Economic effects Investigation Litigation Response fund.

If God Is Willing and da Creek Don't Rise documentary "Coon 2: Hindsight" South Park episode Deepwater Horizon film Hornbeck Offshore Services LLC v. Salazar Spillcam Wendy Schmidt Oil Cleanup X Challenge United States offshore drilling debate.

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ARCO Arena BP Ford World Rally Team BP National Championships BP Natural World Book Prize BP Pedestrian Bridge BP Portrait Award BP Professor of Organic Chemistry BP Top 8 BP Ultimate Acropolis Rally. Robert Anderson Sylvia Baca Baron Browne Robert Dudley William Fraser William D'Arcy Tony Hayward Robert Horton Doug Suttles Carl-Henric Svanberg. Abadan crisis Amoco Milford Haven Deepwater Horizon explosion Deepwater Horizon spill Invasion of Iran Iranian coup Torrey Canyon oil spill Prudhoe Bay spill Texas City explosion.

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effect gulf oil spill stock market

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BP Deepwater Horizon Explosion Oil spill Timeline Volume and extent Closure Response Environmental impact Health consequences Economic effects Reactions Investigation Litigation Compensation.

Owners Anadarko Petroleum BP Mitsui Oil Exploration. BP Bob Dudley Tony Hayward Doug Suttles Carl-Henric Svanberg Darryl Willis. Environmental Environmental impact Health consequences GuLF Study.

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