Reynolds Holding and Christopher Swann discuss how a finding of gross negligence in the 2010 Gulf of Mexico oil spill will affect the energy giant and the faith of its investors.
BP is struggling to extract itself from the 2010 Gulf of Mexico oil spill the latest development yesterday a federal judge. Said that the oil company was not only negligent in dealing with the macondo spill but grossly negligent. Pat has big consequences in terms of the -- damages it may ultimately pay under the Clean Water Act. Chris. There's already been a lot of stuff happened with the PLO over this disaster there's a lot more than what happened. Tell us what calls were things that will be peace in the night match tonight because the right to that being seat in and -- many different directions. The decision yesterday was the federal. -- this is the US I think several states again and it's just under the clean water. -- the the expectation that set aside 3.5 billion dollars to that era that. Particular pot legal settlement -- it now could read something like seventeen point five -- -- I'm -- and expect it and what's gonna drive what are the factors that are gonna drive that'll. What -- gonna be -- days festival how much oil was spilled BP has had Bryant in the next ten more like 2.5 million barrels or something like that on federal government is. Getting firm round four million dollars fine -- pen barrel. -- and then. The the other fact as you mentioned -- when they let incompetent old Ericsson incompetent judges -- payment rates incompetent and that. Has massive implications the amount. Ryan DP in fairness to BP it and also some of some other people say it reacted fairly quickly and effectively would leave when they spill. Yes first occurred is that it's. Play into this at all with the fidelity -- people who meet me -- if they can if there and make that case. Do yet that the problem that we -- he was taxpayers not the spill response all right that it -- to thing comic flair to it at times because he remembered it. Had terrible trouble actually capping the well itself. It all in all the facts. It's that the accident happened in excess place and -- a hot center of coolness that -- That the well does not trailed in the next six yeah it now. Investors are not freaking out over yesterday's news why do you think while it did take -- -- nine billion dollars off nine billion pounds or else the company's share price. So that's essentially a chunk of change -- -- -- But of course this. The legal argument can't go for an extremely long time festival elegant repealed it. Friday will be in the 20/20 eighth that he'd he'd been stopped -- -- on sums of cash. And the pain maybe spreading very -- -- -- tying run right exposing couple's saddle it's. Cumulative. Years could drive -- time. And you know maybe maybe there's still some leeway with the judge but there are some other than it in the -- number no punitive damages. Well that was good news I guess that would that that was part of the settlement that would be an act of discretionary accounts. On top of the potentially seventeen point five billion dollar fine that -- testing. And you know it's about added an extra on quantifiable. Risks in -- it kind of uncertainty -- investors hate anything else now and that's levels of good news for them. It's an interesting story complex story will both be following it as we go along in the mean time stay tuned. For more breaking news next week.