With the new estimates on oil gushing into the gulf, currently at 4300 to 24,300 barrels a day, more economic impact studies are being released on the BP Deepwater Horizon disaster. Spillonomics estimates currently range from $29 billion to over $70 billion in direct costs for the spill and clean up. A study on the spill's economic impact on Florida estimates losses at $11 billion and 195,000 lost jobs. There are 2.8 million jobs associated with tourism alone in the gulf region. The fishing industry in Louisiana is estimated at $2.4 billion.
Earth Economics estimates the Mississippi Delta to be worth $330 billion and $1.3 trillion and provides an economic annual benefit of $12-$47 billion per year.
There is now a residential real estate estimate of a 10% decrease in gulf coast property values as a result of the spill. These losses alone are estimated at $4.3 billion dollars.
Meanwhile the U.S. coast guard is giving BP a 48 hour moratorium to increase oil capture capacity. I'm not sure how one gets a ship to move faster in water, but needless to say there is politics and then there is engineering, logistics and safety. You hang in there engineers and geeks. We get how hard this is through spillcam.
Insurance costs for deep water oil rigs increased 50%. Moody's also said the spill can increase borrowing costs for state and local governments. Gas is estimated to increase $1.65 per gallon on just the costs of the oil spill, to a whopping $4.37.
Below is a Dylan Ratigan video clip which shows just how tied in BP stock is to pensions and retirement accounts, otherwise known as TBTF 2.0.
Below is the cliff of BP's stock price, having lost $80 billion in value. BP's last quarterly profits were $6 billion.
Mexico is now planning on suing BP for damages. Forget there is another entire country out there in the gulf? In the United States there are already 130 lawsuits filed in connection with the oil spill.
The 1990 Oil pollution act costs $1000 per barrel spilled but $3000 per barrel is the company responsible is found negligent. These fines are currently capped at $75 million but there is a bill in the House of Representatives to repeal the cap on these fines. Of course our sociopathic Wall Street is busy adding up the tab, banking on BP reducing their actual costs of course, and issuing a screaming buy on the stock.
Consider this post the oil open thread.