$2 Billion And Counting

BP says the oil spill has cost $2 billion so far, and there is no end in sight.

The British oil giant released its latest tally of response costs Monday, including $105 million paid out so far to 32,000 claimants. The figure does not include a $20 billion fund that BP PLC last week agreed to set up to continue compensating Gulf residents and businesses. There are also scores of lawsuits piling up against BP for the April 20 rig explosion that killed 11 workers and ensuing oil spill that has yet to be capped.

Also Monday, the man President Barack Obama picked to run the $20 billion damage fund said many people are in “desperate financial straits” and need immediate relief.

“Do not underestimate the emotionalism and the frustration and the anger of people in the Gulf uncertain of their financial future,” Kenneth Feinberg told interviewers. “It’s very pronounced. I witnessed it firsthand last week.”

BP owns 65% of the rig, 25% is owned by Andarko, and Mitsui & Co. Ltd. of Japan owns 10%.  Andarko says its operating agreement with BP makes BP responsible for any damage because of gross negligence or willful misconduct.

By: Alan

Alan Colmes is the publisher of Liberaland.