BP shares plummet around the world

By David Goldman, staff writer


NEW YORK (CNNMoney.com) -- Shares of BP tumbled in U.S. and overseas stock markets Tuesday after its latest attempt to stop the Gulf of Mexico oil leak failed.

BP's (BP) stock sank 15% in U.S. trading, down $6.40 to $36.55. It also fell 14% on the London Stock Exchange. The British oil giant's stock has plummeted nearly 40% since the Deepwater Horizon oil rig exploded on April 20, losing $74.9 billion of shareholder value. BP's market capitalization fell by $20 billion on Tuesday alone.

The company on Saturday announced the failure of its "top kill" solution, an effort to use mud to slow down the flow of oil into the Gulf. Similarly, BP's "junk shot" solution did not work, after attempts to slow the leak with garbage failed.

Shares fell farther at the end of the day, after Attorney General Eric Holder announced that he has launched a criminal investigation into the Gulf of Mexico oil spill.

Meanwhile, oil continues to spill into the Gulf at a pace of about 19,000 barrels a day, according to government estimates. The oil spill is now officially the worst in U.S. history, surpassing the Exxon Valdez spill off the coast of Alaska in 1989.

BP is currently working on a new solution, in which robots will saw off the "lower marine riser package" on the gushing oil well, preparing for the placement of a custom-made cap on the package. But even if that cap works, it would not completely stop the leak. A long-term solution to the oil leak -- the drilling of a relief well -- will not be completed until August.

The company said Friday its spill-related costs have totaled $930 million to date, but that figure could soar higher, even if the leak is soon contained.

Hurricane season officially started Tuesday, and the National Oceanic and Atmospheric Administration forecasted an unusually severe storm season. Meteorologists worry that strong hurricanes could hinder the oil-containment efforts or blow oil into coastal areas, causing catastrophic damage to Gulf economies.

BP also has to pay for the wildlife killed by the spill, and could be subject to lawsuits. The Obama administration has pledged that BP will be responsible for all cleanup costs.

Analysts have thrown out a wide range of estimates -- from $4 billion to $25 billion -- on how hard the incident will hurt the company's bottom line. Exxon (XOM, Fortune 500) paid $3.4 billion in cleanup costs, but ultimately only paid $507.5 million for the legal settlement, in addition to $500 million in interest payments.  To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET
Sponsors

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.