The BP Plc stock decreased due to the deepwater horizon explosion in 2010. Last Thursday, the U.S. Federal Judge ruled that British Petroleum (BP) has committed gross negligence on the incident. They were to pay up to $18 billion under the Clean Water Act. This is a British multinational oil and gas company located in England and also ranked as the sixth largest energy company through market capitalization. It is one of the six oil and gas major companies where they operate in production, refining, production, petrochemicals, and trading.
The Deepwater Horizon accident happened on April 20, 2010 where there was a gas release and subsequent explosion that happened on the oil rig. The location was working on the Macondo exploration well for the BP plc in the Gulf of Mexico. The accident caused 11 casualties while others were injured. The fire continued to burn for 36 hours prior to sinking of the rig and hydrocarbons leaked to the Gulf of Mexico prior to sealing and closing of the rig.
This accident has involved loss of hydrostatic control and failure of controlling the blowout preventer equipment thereby allowing the subsequent ignition and release of hydrocarbons. In response to the incident, BP plc has spent almost $14 billion for rescue and other aid. Moreover, the company has proposed long-term funding of independent research to enhance knowledge of the Gulf of Mexico ecosystem to better mitigate and understand the impacts of oil spills on marine and the coastal ecosystems.
After the decision on the said incident, the BP plc stock decreased last Thursday. The stocks decreased at 2.82 (loss) and $44.89 which resulted to a 10-month low on the part of BP. Its continued support to people who were affected by the accident is a hope of increasing the BP plc stock prices.