BP May Face Seven Year Drilling Ban
15 July 2010 - Which Way To Pay

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BP May Face Seven Year Drilling Ban

 

 

Oil company BP is facing a prospective seven-year ban on offshore drilling after a faction of US Congress agreed on new measures. 

 

The committee, which deals with natural resources, agreed that companies that have seen 10 or more deaths in the last seven years should be banned from offshore oil exploration.

 

While not specifically naming BP, the death toll at its recent Deepwater Horizon explosion was 11 people.  As such, it would therefore fall under the committee’s ban.

 

In 2005 BP experienced another accident in Texas, which killed 15 people.

 

Currently the Deepwater Horizon disaster, which caused gallons upon gallons of oil to gush into open oceans since April, is still being investigated. 

 

The British-born company has faced serious backlash since the explosion including from as high as the White House; President Barack Obama has openly voiced his anger at the oil spill and the events that may have caused such a catastrophe.

 

Shares in BP have taken a knock, while those hoping to receive dividends in the company will see nothing until the next two quarters are over.  This affects not only individual investors but also larger funds including many British pension funds.