BP has lost 17% of its market value since the oil spill. While there's a lot of emotion surrounding the current oil spill issue and as a lover of the Gulf of Mexico (I love fishing for snook), I have personal feelings about BP's oil well ruining my favorite fishing spots and hurting the tourism industry of Florida.
Nonetheless, the company has said they are willing to pay for all for the damages and help restore what was damaged. With the amount of money and political pressure that's going to come from this fall out, this short term problem might be have long term benefits to the Gulf states. For one, I doubt they'll approve anymore additional oil drilling until there's new technologies and safeguards developed. Second, it will serve as a warning to everyone else to have safety checks on their oil rigs and more federal scrutiny.
We will see how this plays out in the next few years after a decade of legal rambling, but these types of mistakes do drive innovation and safety measures to better our nation.
What is sure though is that the world is running out of oil and BP still has wells around the world and in the long run we will still all use its oil.
It's the third largest energy company and the 4th largest company in the world. While the potential damage estimates go up as high from $3 billion $28 billion, BP will continue to help lead the world in delivering the goods: energy and oil.
In short, BP looks very attractive for a medium term buy.
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