{"id":296,"date":"2010-04-30T09:38:07","date_gmt":"2010-04-30T17:38:07","guid":{"rendered":"https:\/\/blog.rev.mydaye.com\/?p=296"},"modified":"2010-04-30T09:38:07","modified_gmt":"2010-04-30T17:38:07","slug":"oil-spill-blow-to-bps-image-may-eclipse-costs-cnbc","status":"publish","type":"post","link":"https:\/\/blog.mydaye.com\/?p=296","title":{"rendered":"Oil Spill Blow to BP&#8217;s Image May Eclipse Costs &#8211; CNBC"},"content":{"rendered":"<div class=\"initial-letter\"><p><a href=\"http:\/\/www.cnbc.com\/id\/36869985\">Oil Spill\u2019s Blow to BP\u2019s Image May Eclipse Costs &#8211; CNBC<\/a>.<\/p>\n<div class=\"marB20\">\n<h1 class=\"cnbc_blghdln\">Oil Spill\u2019s Blow to BP\u2019s Image May Eclipse Costs<\/h1>\n<\/div>\n<div class=\"w100p clr cnbc_blgwlt_dot\">\n<div class=\"padT\">\n<div class=\"fL w349\"><a href=\"http:\/\/www.nytimes.com\/index.html?src=cnbc\"><img decoding=\"async\" src=\"http:\/\/media.cnbc.com\/j\/CNBC\/Components\/Art\/nyt_logo_118_20.standard.gif\" border=\"0\" alt=\"\" hspace=\"0\" vspace=\"0\" \/><\/a><\/p>\n<div class=\"fL tool_datetime clr\">Published:  \t\t\t\t\t\t<span class=\"cnbc_sbhd_comp\">Friday, 30 Apr 2010 | 12:16 PM ET <\/span><\/div>\n<\/div>\n<div class=\"fR tool_textsize padR\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/media.cnbc.com\/i\/CNBC\/CNBC_Images\/header\/icon_textT.gif\" alt=\"\" hspace=\"0\" vspace=\"0\" width=\"20\" height=\"20\" align=\"left\" \/><span class=\"cnbc_sbhd_comp fL padR\">Text Size <\/span><a onclick=\"dcrFontContent('cnbc_textbody');return false;\" href=\"http:\/\/www.cnbc.com\/id\/36869985#\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/media.cnbc.com\/i\/CNBC\/CNBC_Images\/header\/icon_text_minus.gif\" border=\"0\" alt=\"\" hspace=\"0\" vspace=\"0\" width=\"16\" height=\"20\" align=\"left\" \/><\/a><a onclick=\"incrFontContent('cnbc_textbody');return false;\" href=\"http:\/\/www.cnbc.com\/id\/36869985#\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/media.cnbc.com\/i\/CNBC\/CNBC_Images\/header\/icon_text_plus.gif\" border=\"0\" alt=\"\" hspace=\"0\" vspace=\"0\" width=\"16\" height=\"20\" align=\"left\" \/><\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"w100p clr cnbc_blgwlt_dot\">\n<div class=\"w100p fL clr padT marB20\">\n<div class=\"fL clr padB20\">\n<div class=\"fL\"><span class=\"cnbc_sbhd_comp\">By: Clifford Krauss<br \/>\n<a href=\"http:\/\/www.nytimes.com\/\">The New York Times<\/a><\/span><\/div>\n<\/div>\n<\/div>\n<div class=\"partnerCompWrapper shareTop\">\n<ul class=\"partnerShare\">\n<li>\n<div class=\"diggShare story\"><a class=\"diggShare\" href=\"http:\/\/digg.com\/submit?url=http%3A\/\/www.cnbc.com\/id\/36869985\/Oil_Spill_s_Blow_to_BP_s_Image_May_Eclipse_Costs&amp;title=Oil%20Spill%u2019s%20Blow%20to%20BP%u2019s%20Image%20May%20Eclipse%20Costs%20%20-%20CNBC&amp;bodytext=BP%20says%20that%20the%20offshore%20drilling%20accident%20could%20cost%20the%20company%20several%20hundred%20million%20dollars.%20But%20the%20long-term%20damage%20to%20BP%u2019s%20reputation%20is%20likely%20to%20be%20far%20higher%2C%20says%20the%20NYT.\" target=\"_blank\">Digg<\/a><\/div>\n<p><script>\/\/ < ![CDATA[getDiggParams(); ]]><\/script><\/li>\n<li><a class=\"yBuzzShare\" href=\"http:\/\/buzz.yahoo.com\/buzz?publisherurn=cnbc&amp;targetUrl=http%3A\/\/www.cnbc.com\/id\/36869985\/Oil_Spill_s_Blow_to_BP_s_Image_May_Eclipse_Costs&amp;headline=Oil%20Spill%u2019s%20Blow%20to%20BP%u2019s%20Image%20May%20Eclipse%20Costs%20%20-%20CNBC&amp;summary=BP%20says%20that%20the%20offshore%20drilling%20accident%20could%20cost%20the%20company%20several%20hundred%20million%20dollars.%20But%20the%20long-term%20damage%20to%20BP%u2019s%20reputation%20is%20likely%20to%20be%20far%20higher%2C%20says%20the%20NYT.\" target=\"_blank\">Buzz<\/a> <script>\/\/ < ![CDATA[cnbc_createYBuzzURL(); ]]><\/script><\/li>\n<li><script>\/\/ < ![CDATA[function fbs_click() {u=location.href;t=document.title;window.open('http:\/\/www.facebook.com\/sharer.php?u='+encodeURIComponent(u)+'&#038;t='+encodeURIComponent(t),'sharer','toolbar=0,status=0,width=626,height=436');return false;}]]><\/script> <a class=\"cnbc_fb_share\" onclick=\"return  fbs_click()\" href=\"http:\/\/www.facebook.com\/share.php?u=%3Curl%3E\" target=\"_blank\">Facebook<\/a><\/li>\n<li><a class=\"twitterShare\" title=\"Add to Twitter\" href=\"http:\/\/twitter.com\/home?status=Oil%20Spill%u2019s%20Blow%20to%20BP%u2019s%20Image%20May%20Eclipse%20Costs%20%20-%20CNBC-http:\/\/www.cnbc.com\/id\/36869985\" target=\"_blank\">Twitter<\/a> <script>\/\/ < ![CDATA[cnbc_createTwitterURL();]]><\/script><\/li>\n<li><script type=\"text\/javascript\">\/\/ < ![CDATA[\naddthis_pub  = 'cnbccomrssfeeds';\naddthis_hide_embed=false;\naddthis_options = 'linkedin, digg, delicious, google,facebook,more';\n]]><\/script> <a class=\"moreShare\" onclick=\"return addthis_sendto()\" onmouseover=\"return  addthis_open(this, '', '[URL]', '[TITLE]')\" onmouseout=\"addthis_close()\" href=\"http:\/\/www.addthis.com\/bookmark.php\">More Share<\/a> <script src=\"http:\/\/s7.addthis.com\/js\/152\/addthis_widget.js\" type=\"text\/javascript\"><\/script><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<div class=\"storyBody\">\n<span id=\"byLine\"> <\/span><strong><\/strong><strong>BP<\/strong> says that the offshore drilling accident that is spewing thousands of  barrels of oil a day into the Gulf of Mexico could cost the company  several hundred million dollars.<br \/>\n<a name=\"StoryImage\"><\/a><br \/>\n<span id=\"byLine\"> <\/span>Nobody really knows  whether the London-based oil giant is being too conservative about the  cost for the April 20 accident, which some experts say could end up as  the biggest oil spill in history.<\/p>\n<table style=\"padding: 5px 15px 0pt 0pt;\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" width=\"1%\" align=\"left\">\n<tbody>\n<tr>\n<td><img loading=\"lazy\" decoding=\"async\" title=\"A boat works uses a protective boom to collect oil that has  leaked from the Deepwater Horizon wellhead in the Gulf of Mexico\" src=\"http:\/\/media.cnbc.com\/i\/CNBC\/Sections\/News_And_Analysis\/__Story_Inserts\/graphics\/__EMERGENCY_DISASTER\/OIL_SPILL_GULF_OF_MEXICO\/mexico_oil_rig_explosion5_200.jpg\" border=\"0\" alt=\"A  boat works uses a protective boom to collect oil that has leaked from  the Deepwater Horizon wellhead in the Gulf of Mexico\" hspace=\"0\" vspace=\"0\" width=\"200\" height=\"150\" align=\"Left\" \/><\/td>\n<\/tr>\n<tr>\n<td>\n<div class=\"credit\" style=\"text-align: right; margin-bottom: 5px;\">Getty  Images<\/div>\n<div class=\"credit\">A boat works uses a protective boom to  collect oil that has leaked from the Deepwater Horizon wellhead in the  Gulf of Mexico.<\/div>\n<hr size=\"1\" noshade=\"noshade\" \/><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span id=\"byLine\"> <\/span>The 1989 grounding of  the Exxon Valdez off Alaska, for example, cost <strong><\/strong><strong>Exxon Mobil<\/strong> <span id=\"WSODQ_COMPONENT_XOM_ID0EQH15839609\"><script type=\"text\/javascript\">\/\/ < ![CDATA[cnbc_comboQuoteMove('popup_xom_ID0EQH15839609');]]><\/script><span id=\"span_quote_xom_ID0EQH15839609\" style=\"text-decoration: none;\" onmouseover=\"cnbc_spanTipPopShow('combo_popup_xom_ID0EQH15839609',this,'0','15');\" onmouseout=\"cnbc_spanTipPopTimeHide('combo_popup_xom_ID0EQH15839609',this,'0','15');\"><a class=\"black_no_change\" style=\"font-family: Arial; font-weight: bold; font-size: 12px; color: #004276; text-decoration: none;\" onmouseover=\"this.style.color='#Fc7410'\" onmouseout=\"this.style.color='#004276'\" href=\"http:\/\/data.cnbc.com\/quotes\/xom\"><span id=\"set_quote_xom_ID0EQH15839609\">[<\/span><span id=\"WSODQSTREAMOFF_XOM_SYMBOL_1_ID0EQH15839609\">XOM<\/span> <span id=\"WSODQSTREAMOFF_XOM_LAST_1_ID0EQH15839609\">68.75<\/span> <span id=\"WSODQSTREAMOFF_XOM_CHANGEARROW_1_ID0EQH15839609\"><img decoding=\"async\" src=\"http:\/\/media.cnbc.com\/i\/CNBC\/CNBC_Images\/componentbacks\/watchlist_up.gif\" border=\"0\" alt=\"\" \/><\/span> <span id=\"WSODQSTREAMOFF_XOM_DYNACOLOR0_1_ID0EQH15839609\" class=\"green_pos_change\"><span id=\"WSODQSTREAMOFF_XOM_CHANGE_1_ID0EQH15839609\">0.09<\/span> <span id=\"WSODQSTREAMOFF_XOM_UNCHHIDE_1_ID0EQH15839609\" class=\"WSODQ_CHGSHOW\">(<span id=\"WSODQSTREAMOFF_XOM_CHANGEPCT_1_ID0EQH15839609\">+0.13%<\/span>)<span id=\"WSODQSTREAMOFF_XOM_FLASH_1_ID0EQH15839609\"> <\/span><\/span><\/span> <span><img decoding=\"async\" src=\"http:\/\/media.cnbc.com\/i\/CNBC\/CNBC_Images\/backgrounds\/realtime_icon.gif\" border=\"0\" alt=\"\" \/><\/span>]<\/a><\/span><\/span><script type=\"text\/javascript\">\/\/ < ![CDATA[\n        cnbc_quoteComponent_init_getData(\"xom\",\"WSODQ_COMPONENT_XOM_ID0EQH15839609\",\"WSODQ\",\"true\",\"ID0EQH15839609\",\"off\",\"false\",\"inLineQuote\");\n        ]]><\/script> more than $4.3 billion, including compensatory  payments, cleanup costs, settlements and fines.<\/p>\n<p class=\"textBodyBlack\">But regardless of the  out-of-pocket costs, the long-term damage to BP\u2019s <span id=\"WSODQ_COMPONENT_BP_ID0EYEAC15839609\"><script type=\"text\/javascript\">\/\/ < ![CDATA[cnbc_comboQuoteMove('popup_bp_ID0EYEAC15839609');]]><\/script><span id=\"span_quote_bp_ID0EYEAC15839609\" style=\"text-decoration: none;\" onmouseover=\"cnbc_spanTipPopShow('combo_popup_bp_ID0EYEAC15839609',this,'0','15');\" onmouseout=\"cnbc_spanTipPopTimeHide('combo_popup_bp_ID0EYEAC15839609',this,'0','15');\"><a class=\"black_no_change\" style=\"font-family: Arial; font-weight: bold; font-size: 12px; color: #004276; text-decoration: none;\" onmouseover=\"this.style.color='#Fc7410'\" onmouseout=\"this.style.color='#004276'\" href=\"http:\/\/data.cnbc.com\/quotes\/bp\"><span id=\"set_quote_bp_ID0EYEAC15839609\">[<\/span><span id=\"WSODQSTREAMOFF_BP_SYMBOL_1_ID0EYEAC15839609\">BP<\/span> <span id=\"WSODQSTREAMOFF_BP_LAST_1_ID0EYEAC15839609\">52.2818<\/span> <span id=\"WSODQSTREAMOFF_BP_CHANGEARROW_1_ID0EYEAC15839609\"><img decoding=\"async\" src=\"http:\/\/media.cnbc.com\/i\/CNBC\/CNBC_Images\/componentbacks\/watchlist_down.gif\" border=\"0\" alt=\"\" \/><\/span> <span id=\"WSODQSTREAMOFF_BP_DYNACOLOR0_1_ID0EYEAC15839609\" class=\"red_neg_change\"><span id=\"WSODQSTREAMOFF_BP_CHANGE_1_ID0EYEAC15839609\">-0.2782<\/span> <span id=\"WSODQSTREAMOFF_BP_UNCHHIDE_1_ID0EYEAC15839609\" class=\"WSODQ_CHGSHOW\">(<span id=\"WSODQSTREAMOFF_BP_CHANGEPCT_1_ID0EYEAC15839609\">-0.53%<\/span>)<\/span><\/span> <span><img decoding=\"async\" src=\"http:\/\/media.cnbc.com\/i\/CNBC\/CNBC_Images\/backgrounds\/realtime_icon.gif\" border=\"0\" alt=\"\" \/><\/span>]<\/a><\/span><\/span><script type=\"text\/javascript\">\/\/ < ![CDATA[\n        cnbc_quoteComponent_init_getData(\"bp\",\"WSODQ_COMPONENT_BP_ID0EYEAC15839609\",\"WSODQ\",\"true\",\"ID0EYEAC15839609\",\"off\",\"false\",\"inLineQuote\");\n        ]]><\/script> reputation \u2014 and possibly, its future prospects for  drilling in the Gulf of Mexico \u2014 is likely to be far higher, according  to industry analysts.<\/p>\n<p class=\"textBodyBlack\">The  magnitude of the Deepwater Horizon disaster seems to be finally sinking  in with investors. BP\u2019s stock plunged more than 8 percent Thursday in  American trading in an otherwise strong day for stocks. Since the  accident, the American depositary receipts of the company have fallen  about 13 percent, closing Thursday at $52.56.<\/p>\n<p class=\"textBodyBlack\">\n<div id=\"playerIFRAMEVid\" class=\" fL vidInlineWrapper\" style=\"width: 340px;\"><object id=\"cnbcplayer\" classid=\"clsid:D27CDB6E-AE6D-11cf-96B8-444553540000\" width=\"320\" height=\"285\" codebase=\"http:\/\/download.macromedia.com\/pub\/shockwave\/cabs\/flash\/swflash.cab#version=9,0,0,0\"><param name=\"type\" value=\"application\/x-shockwave-flash\" \/><param name=\"allowfullscreen\" value=\"true\" \/><param name=\"allowscriptaccess\" value=\"always\" \/><param name=\"quality\" value=\"best\" \/><param name=\"wmode\" value=\"transparent\" \/><param name=\"bgcolor\" value=\"#000000\" \/><param name=\"salign\" value=\"lt\" \/><param name=\"movie\" value=\"http:\/\/plus.cnbc.com\/rssvideosearch\/action\/player\/id\/1481753531\/code\/cnbcinline\/module\/videoModule\" \/><embed type=\"application\/x-shockwave-flash\" width=\"320\" height=\"285\" src=\"http:\/\/plus.cnbc.com\/rssvideosearch\/action\/player\/id\/1481753531\/code\/cnbcinline\/module\/videoModule\" pluginspage=\"http:\/\/www.macromedia.com\/go\/getflashplayer\" allowfullscreen=\"true\" allowscriptaccess=\"always\" bgcolor=\"#000000\" quality=\"best\" salign=\"lt\" wmode=\"transparent\" name=\"cnbcplayer\"><\/embed><\/object><\/div>\n<p class=\"textBodyBlack\">For Tony Hayward, who  has led BP for the last three years, the accident threatens to  overshadow all of the efforts he has made to burnish the tattered  reputation of the company after a refinery explosion in Texas in 2005  and a pipeline leak in Alaska in 2006.<\/p>\n<p class=\"textBodyBlack\">As Mr. Hayward said to fellow executives in his  London office recently, \u201cWhat the hell did we do to deserve this?\u201d<\/p>\n<p class=\"textBodyBlack\">A BP spokesman said no  executives were available for an interview Thursday. But in response to a  written question, Mr. Hayward said, \u201cReputationally, and in every other  way, we will be judged by the quality, intensity, speed and efficacy of  our response.\u201d<\/p>\n<p class=\"textBodyBlack\">So  far, the company\u2019s failure to stop the seepage from the underwater well  has frustrated government officials. On Thursday, President Obama  offered the assistance of an array of government agencies, including the  military, while noting that, under federal law, \u201cBP is ultimately  responsible for funding the cost of response and cleanup operations.\u201d<\/p>\n<p class=\"textBodyBlack\">Mr. Hayward, who has  blamed the rig\u2019s owner and operator, <strong><\/strong><strong>Transocean <span id=\"WSODQ_COMPONENT_RIG_ID0E5KAC15839609\"><script type=\"text\/javascript\">\/\/ < ![CDATA[cnbc_comboQuoteMove('popup_rig_ID0E5KAC15839609');]]><\/script><span id=\"span_quote_rig_ID0E5KAC15839609\" style=\"text-decoration: none;\" onmouseover=\"cnbc_spanTipPopShow('combo_popup_rig_ID0E5KAC15839609',this,'0','15');\" onmouseout=\"cnbc_spanTipPopTimeHide('combo_popup_rig_ID0E5KAC15839609',this,'0','15');\"><a class=\"black_no_change\" style=\"font-family: Arial; font-weight: bold; font-size: 12px; color: #004276; text-decoration: none;\" onmouseover=\"this.style.color='#Fc7410'\" onmouseout=\"this.style.color='#004276'\" href=\"http:\/\/data.cnbc.com\/quotes\/rig\"><span id=\"set_quote_rig_ID0E5KAC15839609\">[<\/span><span id=\"WSODQSTREAMOFF_RIG_SYMBOL_1_ID0E5KAC15839609\">RIG<\/span> <span id=\"WSODQSTREAMOFF_RIG_LAST_1_ID0E5KAC15839609\">73.35<\/span> <span id=\"WSODQSTREAMOFF_RIG_CHANGEARROW_1_ID0E5KAC15839609\"><img decoding=\"async\" src=\"http:\/\/media.cnbc.com\/i\/CNBC\/CNBC_Images\/componentbacks\/watchlist_down.gif\" border=\"0\" alt=\"\" \/><\/span> <span id=\"WSODQSTREAMOFF_RIG_DYNACOLOR0_1_ID0E5KAC15839609\" class=\"red_neg_change\"><span id=\"WSODQSTREAMOFF_RIG_CHANGE_1_ID0E5KAC15839609\">-5.16<\/span> <span id=\"WSODQSTREAMOFF_RIG_UNCHHIDE_1_ID0E5KAC15839609\" class=\"WSODQ_CHGSHOW\">(<span id=\"WSODQSTREAMOFF_RIG_CHANGEPCT_1_ID0E5KAC15839609\">-6.57%<\/span>)<\/span><\/span> <span><img decoding=\"async\" src=\"http:\/\/media.cnbc.com\/i\/CNBC\/CNBC_Images\/backgrounds\/realtime_icon.gif\" border=\"0\" alt=\"\" \/><\/span>]<\/a><\/span><\/span><script type=\"text\/javascript\">\/\/ < ![CDATA[\n        cnbc_quoteComponent_init_getData(\"rig\",\"WSODQ_COMPONENT_RIG_ID0E5KAC15839609\",\"WSODQ\",\"true\",\"ID0E5KAC15839609\",\"off\",\"false\",\"inLineQuote\");\n        ]]><\/script><\/strong>, for the accident, said that it was  nevertheless BP\u2019s responsibility to deal with the immediate problem. \u201cWe  take it with the utmost seriousness,\u201d he wrote. \u201cNothing else matters  right now.\u201d<\/p>\n<p class=\"textBodyBlack\">Wall  Street experts say that while the company is spending an estimated $6  million a day on fixing the mess, it is impossible to accurately  estimate how much the incident will eventually cost.<\/p>\n<p class=\"textBodyBlack\">\n<div id=\"relatedLInks\" class=\"clr\" style=\"display: block; width: 300px; float: right; margin-left: 10px;\">\n<div class=\"RLMC_\">\n<div class=\"RLMC_H\">\n<div class=\"RLMC_HI\">\n<div class=\"RLMC_HC\">\n<div class=\"fL w100p\" style=\"height: 20px;\">\n<div class=\"fL padL\" style=\"line-height: 20px;\">\n<h2 class=\"CNBC_refreshH1  RLMC_HC cstrong cFont txttrans_none \" style=\"line-height: 20px;\">RELATED  LINKS<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"RLMC_B RLMC_BI clr\">\n<div id=\"cnbcMCBody_ID0EGAAE19808406\" class=\"w100p\" style=\"height: auto;\">\n<div style=\"display: none; width: 80%;\">\nCurrent DateTime: 10:04:07 30 Apr 2010<br \/>\nLinksList  Documentid: 36870239<\/div>\n<div class=\"CNBC_boxB CNBC_boxBI\">\n<ul class=\"ll_bullet\">\n<li class=\"ll_bullet cFont cf11 clr\"><a class=\"cf11 cnorm\" href=\"http:\/\/www.cnbc.com\/id\/36872198\">Scenes From  Gulf Oil Spill<\/a><\/li>\n<li class=\"ll_bullet cFont cf11 clr\"><a class=\"cf11 cnorm\" href=\"http:\/\/www.cnbc.com\/id\/36864135\">Oil Slick  Reaches Wetlands<\/a><\/li>\n<li class=\"ll_bullet cFont cf11 clr\"><a class=\"cf11 cnorm\" href=\"http:\/\/www.cnbc.com\/id\/36869622\">BP to Pay  Spill Claims: CEO<\/a><\/li>\n<li class=\"ll_bullet cFont cf11 clr\"><a class=\"cf11 cnorm\" href=\"http:\/\/www.cnbc.com\/id\/36851250\">World&#8217;s Worst  Oil Disasters<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"textBodyBlack\">BP, which leased the  platform from Transocean, has said that drilling and operating relief  wells to plug the runaway well may cost as much as $300 million, but  those same wells will eventually be used to produce profitable oil.<\/p>\n<p class=\"textBodyBlack\">The cost of an  environmental cleanup will depend largely on how much oil reaches shore.  The government could assess fines or other penalties. And lawyers have  already filed a flurry of suits on behalf of commercial fisherman,  shrimpers and injured oil workers against BP; Transocean; Cameron, the  company that manufactured the blowout preventer; and other companies  involved in the drilling process.<\/p>\n<p class=\"textBodyBlack\">Cleanup costs will be divided among BP, which has a  65 percent ownership of the field, and minority partners <strong><\/strong><strong>Anadarko<\/strong> and <strong><\/strong><strong>Mitsui<\/strong>.<\/p>\n<p class=\"textBodyBlack\">Transocean\u2019s stock price fell nearly 7.5 percent  Thursday, and is down more than 14 percent since the accident. The  company has insurance that covers the rig that was lost, but any broader  assessment of Transocean\u2019s liability will be determined after  investigators understand what caused the accident.<\/p>\n<p class=\"textBodyBlack\">Regardless of the final  assessment of blame, Wall Street analysts warned that everything BP does  from now on will come under increased scrutiny by regulators and that  potential partners in drilling ventures may well look elsewhere.<\/p>\n<p class=\"textBodyBlack\">\u201cIn the last two years,  it seemed BP had really cleaned up their act,\u201d said Fadel Gheit, a  managing director and oil analyst at <strong><\/strong><strong>Oppenheimer &amp;  Company<\/strong>. \u201cNow it looks like a house of cards that has  totally collapsed.\u201d<\/p>\n<p><a name=\"StoryImage\"><\/a><\/p>\n<table style=\"padding: 5px 15px 0pt 0pt;\" border=\"0\" cellspacing=\"0\" cellpadding=\"0\" width=\"1%\" align=\"left\">\n<tbody>\n<tr>\n<td><img loading=\"lazy\" decoding=\"async\" title=\"Coast Guard Attempts Burning Off Oil Leaking From Sunken Rig\" src=\"http:\/\/media.cnbc.com\/i\/CNBC\/Sections\/News_And_Analysis\/__Story_Inserts\/graphics\/__EMERGENCY_DISASTER\/OIL_SPILL_GULF_OF_MEXICO\/mexico_oil_rig_explosion4_200.jpg\" border=\"0\" alt=\"Coast Guard Attempts Burning Off Oil Leaking From Sunken Rig\" hspace=\"0\" vspace=\"0\" width=\"200\" height=\"150\" align=\"Left\" \/><\/td>\n<\/tr>\n<tr>\n<td>\n<div class=\"credit\" style=\"text-align: right; margin-bottom: 5px;\">Getty  Images<\/div>\n<div class=\"credit\">Coast Guard Attempts Burning Off Oil  Leaking From Sunken Rig<\/div>\n<hr size=\"1\" noshade=\"noshade\" \/><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"textBodyBlack\">Under Mr. Hayward\u2019s predecessor, John Browne, BP  rebranded itself as \u201cBeyond Petroleum,\u201d a company that was  environmentally conscious and wanted to develop alternative energy  sources like solar and wind power. Its insignia of a blooming flower was  intended to portray the company as one that was responsive to growing  public concerns about climate change.<\/p>\n<p class=\"textBodyBlack\">But the company seemed to lose its focus on  maintenance and safety, BP executives later acknowledged. The 2005  explosion at a refinery in Texas City, Tex., killed 15 workers and  injured hundreds more. The Occupational Safety and Health Administration  fined BP a record $87 million for neglecting to correct safety  violations.<\/p>\n<p class=\"textBodyBlack\">Only a  year later, a leaky BP oil pipeline in Alaska forced the shutdown of one  of the nation\u2019s biggest oil fields. BP was fined $20 million in  criminal penalties after prosecutors said the company had neglected  corroding pipelines. Soon after the incident, Mr. Browne quit amid  tabloid headlines about his private life.<\/p>\n<p class=\"textBodyBlack\">Mr. Hayward, a geologist who had been in charge of  exploration and production, took over and promised to refocus the  company and change the culture, emphasizing safety.<\/p>\n<p class=\"textBodyBlack\">He also expanded the  company\u2019s already aggressive exploratory efforts in the deep waters of  the gulf. Last year, the same platform that has now sunk to the sea  floor drilled the deepest well in history, opening one of the largest  new fields in the world.<\/p>\n<p class=\"textBodyBlack\">Despite  the accident, BP says it remains committed to its gulf drilling  program, which contributes 11 percent of the company\u2019s worldwide  production.<\/p>\n<p class=\"textBodyBlack\">Senior  executives insist that the explosion that sank the Deepwater Horizon rig  and killed 11 workers does not reflect the company\u2019s safety standards  or Mr. Hayward\u2019s management.<\/p>\n<p class=\"textBodyBlack\">\u201cThis accident took place on a rig owned, managed and  operated by Transocean,\u201d said Andrew Gowers, a BP spokesman. \u201cIt  involves the failure of a piece of equipment on that rig. So the  unfolding events do not arise from a failure of BP\u2019s safety systems.\u201d<\/p>\n<p class=\"textBodyBlack\">\n<div id=\"MasConId_ID0ENFAE22528597\" class=\"clr\" style=\"display: block; width: 300px; float: left; margin-right: 10px;\">\n<div class=\"CNBC_box\">\n<div class=\"CNBC_boxH\">\n<div class=\"CNBC_boxHI\">\n<div class=\"CNBC_boxHC\">\n<div class=\"fL w100p\" style=\"height: 20px;\">\n<div class=\"fL padL\" style=\"line-height: 20px;\">\n<h2 class=\"CNBC_refreshH1  CNBC_boxHC cstrong cFont txttrans_none \" style=\"line-height: 20px;\"><a href=\"http:\/\/www.nytimes.com\/\">MORE FROM NYTIMES.COM<\/a><\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"CNBC_boxB CNBC_boxBI clr\">\n<div id=\"cnbcMCBody_ID0ENFAE22528597\" class=\"w100p\" style=\"height: auto;\">\n<div style=\"display: none; width: 80%;\">\nCurrent DateTime: 09:42:11 30 Apr  2010<br \/>\nLinksList Documentid: 22528756<\/div>\n<div class=\"NO_B NO_BI\">\n<ul class=\"ll_bullet\">\n<li id=\"linkslist22528756\" class=\"ll_bullet cFont cf11 clr\"><a class=\"cf11 cnorm\" href=\"http:\/\/topics.nytimes.com\/top\/reference\/timestopics\/subjects\/e\/energy_and_power\/index.html\">Topics: Energy &amp; Power<\/a><\/li>\n<li id=\"linkslist22528756\" class=\"ll_bullet cFont cf11 clr\"><a class=\"cf11  cnorm\" href=\"http:\/\/www.nytimes.com\/pages\/business\/index.html\">Business<\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"textBodyBlack\">But critics in Congress  and elsewhere have questioned BP\u2019s commitment to safety.<\/p>\n<p class=\"textBodyBlack\">Last year, when the  federal Minerals Management Service proposed a rule that would have  required companies to have their safety and environmental management  programs audited once every three years, BP and other companies  objected. The agency is also investigating charges by a whistle-blower  that the company discarded important records from its Atlantis Gulf  platform.<\/p>\n<p class=\"textBodyBlack\">Henry A.  Waxman of California, chairman of the House Energy and Commerce  Committee, is demanding documents from BP and its drilling contractors  in what looks likely to be a full-blown investigation. \u201cA striking  feature of the incident is the apparent lack of an adequate plan to  contain the spreading environmental damage,\u201d he said in a letter to  company officials.<\/p>\n<p class=\"textBodyBlack\">The  faltering cleanup effort comes at a time when the company\u2019s business is  otherwise going well. Continuing the excellent performance of recent  years, BP just announced earnings of $5.6 billion for the first quarter,  more than double the profit during the same quarter a year ago.<\/p>\n<p class=\"textBodyBlack\">\u201cCertainly, BP will  survive this,\u201d said Cathy Milostan, an oil stock analyst at <strong><\/strong><strong>Morningstar<\/strong>.  \u201cThis will test Tony and his ability to respond to this situation. We  will see if we are seeing a new BP.\u201d<\/p>\n<div class=\"textBodyBlack\"><em><\/em><em> <\/em><em>This story originally appeared in the The New York Times<\/em> <\/div>\n<p><img alt=\"\" width=\"100%\" height=\"0\" \/><\/div>\n<div class=\"cnbc_tags_comp w100p clr marT20 marB20\">\n<div class=\"cnbc_keywords cnbc_rdMore\">\n<div><span class=\"title\">Topics:<\/span><span class=\"content\"><a href=\"http:\/\/www.cnbc.com\/id\/15837548\/cid\/110543\/Natural_Gas\">Natural  Gas<\/a> |  <a href=\"http:\/\/www.cnbc.com\/id\/15837548\/cid\/97276\/Energy\">Energy<\/a> |  <a href=\"http:\/\/www.cnbc.com\/id\/15837548\/cid\/110544\/Alternative_Energy\">Alternative  Energy<\/a><\/span><\/div>\n<div><span class=\"title\">Sectors:<\/span><span class=\"content\"><a href=\"http:\/\/www.cnbc.com\/id\/15837548\/cid\/97123\/Oil_and_Gas\">Oil and Gas<\/a><\/span><\/div>\n<div><span class=\"title\">Companies:<\/span><span class=\"content\"><a href=\"http:\/\/www.cnbc.com\/id\/15837548\/cid\/98065\/Transocean_Inc\">Transocean  Inc<\/a> |  <a href=\"http:\/\/www.cnbc.com\/id\/15837548\/cid\/102456\/BP_p_l_c\">BP p.l.c.<\/a> |  <a href=\"http:\/\/www.cnbc.com\/id\/15837548\/cid\/97799\/Exxon_Mobil_Corp\">Exxon  Mobil Corp<\/a><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Oil Spill\u2019s Blow to BP\u2019s Image May Eclipse Costs &#8211; CNBC. Oil Spill\u2019s Blow to BP\u2019s Image May Eclipse Costs Published: Friday, 30 Apr 2010 | 12:16 PM ET Text Size By: Clifford Krauss The New York Times Digg Buzz Facebook Twitter More Share BP says that the offshore drilling accident that is spewing thousands [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,1],"tags":[],"class_list":["post-296","post","type-post","status-publish","format-standard","hentry","category-main","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.mydaye.com\/index.php?rest_route=\/wp\/v2\/posts\/296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.mydaye.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.mydaye.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.mydaye.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.mydaye.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=296"}],"version-history":[{"count":0,"href":"https:\/\/blog.mydaye.com\/index.php?rest_route=\/wp\/v2\/posts\/296\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.mydaye.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.mydaye.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.mydaye.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}