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. XW

    A symbol used to signify that a security is trading ex-warrant. XW is one of many alphabetic qualifiers that act as a shorthand to tell investors key information about a specific security in a stock quote. These qualifiers should not be confused with ticker symbols, some of which, like qualifiers, are just one or two letters.
  2. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  3. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  4. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  5. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  6. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
Trading Center