BP Oil Spill

Definition of 'BP Oil Spill'


A 2010 oil spill that occurred in the Gulf of Mexico as a result of the explosion and sinking of the Deepwater Horizon oil rig. The rig was owned by an offshore drilling contractor, Transocean, and was leased to BP for exploration of the Macondo Prospect, an oil field off the coast of Louisiana. Due to extensive damage to the wellhead and the depth at which the damage occurred, BP was unable to stop the flow of oil for several months. Estimates place the total volume of oil released at over 200 million gallons. The United States placed liability with BP, and required the company to pay cleanup and economic impact costs.

Investopedia explains 'BP Oil Spill'


Reaction to the oil spill was a public relations nightmare for BP. The United States government temporarily halted all offshore oil drilling activities, which resulted in several legal battles between states and the federal government. While the ultimate blame for the disaster was laid on BP, BP brought suit against the oil rig operators, designers and manufacturers. The volume of oil leaked into the Gulf of Mexico threatened the commercial interests, including fishing and tourism, of several states. As of 2010, it was the largest oil spill in United States history.



comments powered by Disqus
Hot Definitions
  1. Direct Consolidation Loan

    A loan that combines two or more federal education loans into a single loan. A Direct Consolidation Loan allows the borrower to make a single monthly payment. The loan is facilitated by the U.S. Department of Education and does not require borrowers to pay an application fee.
  2. Through Fund

    A type of target-date retirement fund whose asset allocation includes higher risk and potentially higher return investments "through" the fund's target date and beyond.
  3. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold or disposed of first.
  4. Variable Universal Life Insurance - VUL

    A form of cash-value life insurance that offers both a death benefit and an investment feature. The premium amount for variable universal life insurance (VUL) is flexible and may be changed by the consumer as needed, though these changes can result in a change in the coverage amount.
  5. Monetary Policy

    The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as increasing the interest rate, or changing the amount of money banks need to keep in the vault (bank reserves).
  6. Weak Shorts

    Traders or investors who hold a short position in a stock or other financial asset who will close it out at the first indication of price strength. Weak shorts are typically investors with limited financial capacity, which may preclude them from taking on too much risk on a single short position.
Trading Center