April 29, 2010– The oil rig explosion and fire that occured in the Gulf of Mexico last week is now thought to be leaking out five times the oil than originally estimated. The new estimate is 42,000 gallons per day of crude. This can cause large scale damage to the marine environment in the area. The US Coast Guard has now stepped in to contain the slick and now plans are afoot to burn off the oil spill.
This seems to have a bad impact on the share price of BP, which saw continued weakness in the markets on the news. Upto now the shares have dropped more than 11%, resulting in a loss of market cap of about $20 billion. This shows how important Safety, health and the environment is to a companies financial health too. This issue is often not understood by some company managements, who see no value in spending on good and safe engineering practices and maintenance.
The video below (posted on YouTube) shows the problem with great visuals.