BP Stock Down and Still Dropping

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It was 56 days ago today that one of the largest oil spills in US history took place, and since then BP has been in a world of hurt. The London-based company is meeting to discuss whether or not to issue their first quarter dividend.

The company faces a multi-billion dollar debt to cover the environmental and economic damage caused by the ongoing oil spill. Lawmakers fear that BP might not be able to withstand funding the clean up.

On April 20th, the Deepwater Horizon offshore oil rig exploded, killing eleven workers and leaking 1.7 million gallons of oil into the Gulf each day. This week, BP executives are expected to appear before Congressional committees to testify about the oil spill.

BP executives are also set to meet with President Obama to discuss how the company will fund an escrow account set to pay the damages sustained by individuals and businesses during the oil crisis.

Since the oil explosion, BP stocks have sunk 48%. Today the stock dropped an additional 7%. If BP claims bankruptcy, the economic ramifications could be disastrous. BP employs over 100,000 people in 100 countries around the world. Expecting the company to cover all damages incurred by the spill, could lead to a bankruptcy claim.

Economists will have a better idea of what's ahead for the company, after the meeting with President Obama later this week. Stay tuned for more information in the weeks ahead.