Bp Oil Spill and Economic Effects

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The Deepwater Horizon oil spill (also referred to as the BP oil spill, the Gulf of Mexico oil spill, the BP oil disaster, or the Macondo blowout) is an oil spill in the Gulf of Mexico which flowed for three months in 2010. It is the largest accidental marine oil spill in the history of the petroleum industry. The spill stemmed from a sea-floor oil gusher that resulted from the April 20, 2010, explosion of Deepwater Horizon, which drilled on the BP-operated Macondo Prospect. The explosion killed 11 men working on the platform and injured 17 others. On July 15, 2010, the leak was stopped by capping the gushing wellhead, after it had released about 4.9 million barrels (780,000 m3) of crude oil. An estimated 53,000 barrels per day (8,400 m³/d) escaped from the well just before it was capped. It is believed that the daily flow rate diminished over time, starting at about 62,000 barrels per day (9,900 m³/d) and decreasing as the reservoir of hydrocarbons feeding the gusher was gradually depleted. On September 19, 2010, the relief well process was successfully completed, and the federal government declared the well "effectively dead". But that was not the end of it, the impacts of this oil spill spread far and wide, affected the entire global oil & gas industry. According the recent report done by scientists, they estimated that the BP oil spill incident in the Gulf of Mexico is the biggest oil disaster in the world. This Deep Horizon Disaster has badly affected the ecosystem of the Gulf region and many people have been suffering from financial difficulties. This unfortunate incident has actually brought a lot of negative impacts to the global economy.

The Deepwater Horizon accident will have a costly impact on global oil prices.

BP Group Chief Economist Dr. Christof Ruhl, in a visit to Western Australia in June, warned that oil and gas exploration will become more costly for everyone. “This is an accident which will change the industry. Think back to...
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