In recent days, there has been more and more reporting on whether BP, one of the wealthiest corporations in the world, might be in financial trouble as the costs of the devastating oil gusher in the gulf continues into its seventh week for the oil giant.
Only financial reporters, and British officials are worrying about that right now. Certainly, nobody in Florida is, and today Attorney General Bill McCollum upped the ante further by calling on British Petroleum (I'm sorry, Beyond Petroleum) to put $2.5 billion in escrow for Florida as the state deals with the ramifications of future losses in the tourism industry and elsewhere in the coming weeks.
In a letter sent out today, McCollum writes:
“Based on recent estimates from an economist, Florida could ultimately see
losses as great as $2.2 billion, as well as a sharp decline in employment
in the industries directly impacted by the Deepwater Horizon oil spill. As Florida braces for what will likely be a staggering blow to its economy with significant impacts to our state’s
workforce and the revenues of the state and local governments, it is
essential that BP establish immediately a dedicated escrow account solely
for the purpose of paying claims and damages to Florida and its citizens."
BP has said the cost of its response to the oil spill so far is $1.73?billion. It has been hit by 42,000 compensation claims and made payments of $53 million in 20,000 cases.
This article appears in Jun 10-16, 2010.