Quote:
Originally Posted by glatt
Why would this spill cause rate hikes? Maybe down the road if it results in greater safety regulations that cost more. But the oil lost is relatively small compared to the entire oil supply out there. It's huge in terms of an oil spill, but it's a drop in the bucket compared to what we use.
BP is going to lose a lot of money, and they may raise prices a little, but if they raise them too much, people will just shop elsewhere.
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This rig was not yet in production, so this spill does not impact what's available on the market unless other Gulf rigs are shut down due to oil slick.
As for BP's losses, yes they will be responsible for cleanup costs, however their liability for non-cleanup related costs are capped at $75MM. This cap was put in place by Congress after the Exxon Valdez spill in Alaska.