BP (BP) has lost over $20 billion in market cap since the Deepwater Horizon oil spill. Some folks have called the selloff overdone on the argument that the cleanup would ultimately be fairly cheap for the company (which is legally obliged to pay for it all).
But estimates of the total bill continue to spiral higher.
According to The Telegraph (via ForexLive), many are now pegging the cost at around $3 billion. Morgan Stanley believes the cleanup will go as high as $3.5 billion. Either way, at this point we’re talking real money. And beyond that, it now seems unfathomable that this won’t lead to serious limits on new drilling, not to mention added safety and regulatory costs for current operations.
The only question, though, for the US, is: Where do we get our new oil from?
Don’t miss: Amazing photos from the rig explosion >