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UK Government offers support to BP

The UK government offers support to BP as scientists warn the oil spill could be double initial estimates, report Envido

UK Government offers support to BP

The UK government offers support to BP as scientists warn the oil spill could be double initial estimates, report Envido

Published 06-24-10

Submitted by Envido

US scientists warned that the amount of oil spilled by BP at the centre of the Gulf of Mexico could be twice that previous estimated. This would upgrade the liabilities faced by BP and the other firms at the centre of the issue.

The figures are twice the level of previous estimates and the oil spill may already be eight times larger than the Exxon Valdez spill in 1989. Between 20,000 and 40,000 barrels a day were released between 20 April and 3 June when BP cut the ruptured pipe in an attempt to cap the leak. Precise details on the scale of the oil leak have been difficult to obtain given the depth of the leak and the need to use robotic submarines to work on the pipe.

BP said yesterday that the cap placed on the leak was working more and had collected almost 16,000 barrels of oil in the past 24 hours. However, that is triple its initial estimates for the leak's flow rate.

Any fines imposed under the Clean Water Act will be based on the amount of oil spilled

The estimates are relevant since any fines imposed under the Clean Water Act will be based on the amount of oil spilled. BP and others could face fines of up to $4,300 (£3,000) for every barrel of oil leaked into the gulf, although the administration has signalled that it could pursue a wide range of additional fines and legal actions.

BP's share price bounced back 7% this morning after British government officials offered modest support for the firm. The company saw its share price hit a 13-year low yesterday after US officials gave the clearest hint yet that they could try to block BP's attempts to pay a dividend to shareholders this year.

However, Chancellor George Osborne hinted today that the British government was willing to offer some support to BP whilst it continues to face fierce criticism from the White House and Congress. The prime minister said that we need constructive solutions and that we remember the economic value BP brings to people in Britain and America.

Envido is a leading UK provider of energy, carbon and sustainability solutions for private and public sector organisations.

Our unique 'Opportunity-Technology-Change' solution covers carbon consultancy, programme management, and technology and behavioural change delivery that has already enabled our clients to save millions of £'s and CO2 through improved energy and carbon management.

Envido has a national reach, with headquarters in London, and regional offices in Birmingham, Manchester and Ipswich. We work with over 180 organisations across the UK. Our clients include some of the largest private companies in the UK, as well as government entities, educational institutions and other companies across all industries, such as CNN/Turner Broadcasting, Investec, Eversheds, University of Brighton, NHS and more.

Visit our website www.envido.co.uk for more information.

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Envido

Envido

Envido is a leading UK provider of energy, carbon and sustainability solutions for private and public sector organisations. Our unique 'Opportunity-Technology-Change' solution covers carbon consultancy, programme management, and technology and behavioural change delivery that has already enabled our clients to save millions of £'s and CO2 through improved energy and carbon management. We have examples where clients have made energy savings of greater than 20%. If you want to get the most out of your energy and carbon reduction journey then Envido is the ideal partner. Contact us today for a free consultation. To learn more about Envido's energy, carbon and sustainability solutions, visit: www.envido.co.uk

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