BP Oil Spill

AAA

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.

RELATED TERMS
  1. Water Quality Improvement Act Of ...

    Legislation that expanded the federal government's authority ...
  2. Oil Pollution Act Of 1990

    A law that caps civil liability for oil spills caused by tankers ...
  3. Wellbore

    A wellbore is a hole that is drilled to aid in the exploration ...
  4. Commercial Well

    Any oil or gas drilling site that produces enough oil or gas ...
  5. Oil Field

    A tract of land used for extracting petroleum, or crude oil, ...
  6. Crude Oil

    A naturally occurring, unrefined petroleum product composed of ...
Related Articles
  1. Fundamental Analysis

    The Green Marketing Machine

    Don't let corporations greenwash their dirty laundry. Learn how to spot a phony.
  2. Economics

    Peak Oil: What To Do When The Wells Run Dry

    Find out how to invest and protect your investments in this slippery sector.
  3. Investing Basics

    Oil: A Big Investment With Big Tax Breaks

    Oil and gas investments can provide unmatched deduction potential for accredited investors.
  4. Active Trading

    Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.
  5. Active Trading

    Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.
  6. Options & Futures

    Fueling Futures In The Energy Market

    The energy market influences every aspect of our lives, and these four options are its driving force.
  7. Forex Education

    A Primer On Offshore Drilling

    Learn the important ratios and terms that you'll need to know to get involved in this trading sector.
  8. Options & Futures

    Peak Oil: Problems And Possibilities

    Learn a little more about the "non" part of this nonrenewable resource.
  9. Budgeting

    Understanding Oil Industry Terminology

    The drillers are just one aspect of the oil & gas industry, and by knowing some details of their role, you'll be better suited to make investment decisions.
  10. Active Trading

    Unearth Profits In Oil Exploration And Production

    Drill down into financial statements to tap into the right companies and let returns flow.

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center