BP Posts Profit as Spill Costs Rise

By Richard Gibson
Nov 2 2010

This morning the announcement came that BP will post a profit for the last quarter in the amount of $1.8 billion.

For many companies this level of profit may be a blessing but for BP is shows that they are still struggling from the oil spill.

The profit announcement came before the company announced that the total price for the oil spill cleanup will top $40 billion. In the early days of the cleanup effort the company had estimated that the price would hit $20 billion.

BP has been slowly battling back from the brink of disaster following the massive Gulf Coast oil spill. Paying out on claims has become a thorn in the paw of BP leaders as the number of people who are turned away has caused a major stir in the media.

Like with any sort of trust fund, applicants that wish to receive funding from the oil spill trust must file out paperwork and provide documentation. However, BP has said that more than 75% of all applications have been filed out incorrectly or lack the proper documentation.

Legal groups in the Gulf area have started offering free help for those that wish to file a claim with the company. However, the mass movement to get a piece of the funding may cause a shortfall.

BP has asked a UK court to limit their liability for the spill to a certain dollar figure. However, the court ruled against the oil company which has opened the possibility for massive lawsuits.