BP incompetence and deception leads to a $60 billion marketcap loss after Oil Spill

British Petroleum shares have crashed by almost 33% since the news of the Gulf Oil Spill broke out.Despite BP being a stable mega cap Energy company which do not usually see big price swings,it has lost almost a third of its market value in the last one month.This is unusual for a MNC of this size during normal operations.BP’s conduct during the whole Oil Spill has been one of Lying,Cover ups,making over inflated claims and plain incompetence.It woke up a week after the Oil Spill as pressure mounted on it from the US administration and the civil society.It was making tall claims  during its “dome” and “top kill” efforts which were untried at these ocean depths.Its conduct previous to the disaster with regard to safety has also been just short of criminal negligence.BP has also consistently under balled the barrels of oil figures leaking from the doomed oil rig.The monetary claim is certain to rise into a multi billion dollar figure politicians join the bash BP bandwagon.The Hurricane Season in the Gulf of Mexico has the potential to magnify the scale of the environmental disaster which is already the largest in US history.Investing in the BP stock even after such a large fall might be catching a “falling knife”

BP Oil Spill Threatens Wider Coastline as Storm Season Starts – Bloomberg

Oil from the biggest spill in U.S. history could spread this week to threaten the coasts of Mississippi and Alabama, according a weather forecast that comes as the Atlantic hurricane season officially starts.Winds from the southwest are predicted this week, pushing the oil from BP Plc’s broken well in the Gulf of Mexico to a wider area of the U.S. coast, the National Oceanic and Atmospheric Administration said in a statement on its Website.

“Results indicate that oil may move north to threaten the barrier islands off Mississippi and Alabama later in the forecast period,” the agency known as NOAA said.BP abandoned an attempt to plug the well spewing millions of gallons of oil and said it will now try to contain the spill by fitting a pipe over the leak later this week to bring the oil to a drillship on the surface. Ships seeking to funnel oil from the leak a mile under the Gulf may need to head to port in the event of a hurricane.

Fifteen to 20 named storms may develop in the season threatening both the Gulf of Mexico and the U.S. East Coast, according to Greg Holland, director of the Mesoscale and Microscale Meteorology Division of the National Center for Atmospheric Research.