BP executives meet with President Obama and high level cabinet members in the Roosevelt Room of the White House. (PHOTO CREDIT: Pete Souza/White House)
New York (CNNMoney.com) - BP has agreed to put roughly $20 billion into an escrow account to cover costs related to the oil spill in the Gulf of Mexico, a senior White House official told CNN Wednesday.
The official said the agreement was worked out ahead of a highly-anticipated meeting between BP executives and President Obama in Washington.
The amount to be placed in the fund is "in the ballpark of $20 billion," according to the official.
Obama is expected to make a statement later Wednesday.
This is the best news I've heard for weeks! I'd love to know how much President Obama is responsible for this accomplishment. And will he get credit?
That is like 3 days worth of earnings for BP, I would say that they pay 3 times the amount of money they would earn throughout the whole period that the spill is going, that is around 250-300 billion dollars.
Make an example out of them, including 20 to life jail sentences for 3rd degree manslaughter and reckless endangerment.
Cut their left arms off to mark them for the thieves they are.
And shoot one of them for good measure, just as an example to the rest of the oil execs who might think about bending the rules again.
Lisa Jackson's Environmental Protection Agency (EPA) is empowered to fine BP for each gallon of oil that is spilled. My estimate of the rate of the oil flow is 37,500 barrels to 50,000 barrels per day.
It will take 100 days for the relief well to work and cap the leak
The EPA can fine BP a little over $4,000 per barrel spilled.
Multiply 37,500 bbl/day X 100 day X $4,000 / bbl ... and you get ... $15 Billion. Use 50,000 bbls and you get $20B.
There are other fines, penalities and re-imbursement claims, that can be leveled on BP beyond these.
Now you can see the importance of the rate of BP oil leakage. The rate drives the decision process ... approaches that might not have been ruled cost effective in one case suddenly do become cost effective AT A HIGHER RATE. This is why getting the rate right has always been important.
Whew, that was hard. All done Chief Executing here. Back to golf.
To all you pundits who has been blasting our president, eat crow. The bill that congress was trying to raise the liability from 75 million to 10 billion and the republicans blocked every time they put it on the floor of congress. Well the president got 20 billion set aside for the gulf coast residents. I think he did a hell of a job. When I check the networks out I want to hear them apologize to the Commander-In-Chief. He is the man. To all you hate mongers you can got to hell.
Will ACORN administer the fund?
THANK YOU MR. PRESIDENT! president obama is doing a fine job with what he has to work with. now that he has BP paying for the loss of jobs in the gulf the republicans can look for something else to complain about. i don't see a one stepping up to the plate offering suggestions, only shouts and put-downs that he should be holding BP accountable. well ms palin and the bully face repubs, he is doing just that so what will your next suggestion be? this is unpresidented an yet the nay-sayers think obama needs to have the answer to plug the dam hole in his 'fancy pants'[as fox news called them] pocket.
the ugly blogs from the nasty right are the most disgusting remarks and make the morans sound even more stupid than they are.
all republicans are beginning to look just a like, not only are they all white but all of them have a sower look on their faces.palin looks down right scary lately on fox news, and i thought she was going to faint last night when o'rilley asked her if she knew how to plug the hole. all she could say was how obama should hold BP to the fire....da! so much for drill baby drill queen.
Well at last some progress.President Obama now seems to be getting a handle on things.
Its time too that we get other countries on board for help stem the flow.With 2.5 million plus gallons a day spewing out no one entity can hope to come up with a solution.
Now obummers cronies will have their hands on 20 billion dollars and I hope everyone ejoys trying to get their share from the DC insiders. You can bet your last dime the disbursement of monies will be slower than BP sending out checks.
I hope the Repubs will shut their mouth on how Obama runs this country. He knows the right way to settle a dispute with the force of hard words and fighting.
So now the GOP and all the Obama admin haters will say that the 20 billion was not enough and that he should be there helping cleaning up the spill as well.
jail OR assets seized OR put roughly $20 billion into an escrow
wise choice BP
From the start BP has said they'll pay for everything so it's good to see them back it up with cash. I'd just like to see any part of this operation, including the doling out of this cash, work smoothly.
Make every BP exec ( and their subcontractors) pay back the amount of their bonuses and sell any beachfront property they own and contribute the money to the cleanup. Then, require them and their families to report to the Gulf Coast where thy can don waders and put on plenty of sunscreen and start scrubbing birds and turtles and raking some tar balls.
$20 Billion from BP, OK: Don't forget Haliburton; You know , Dick Cheney !
Since no Repub. will say it, I will; GOOD JOB !!
who's the man in the picture riding the horse, and is there an ATM machine in the room????????
Try to squeeze 20 billion more, they can afford it.
And this may sound like a lot of money but is it really. I feel along with this $20 bil all their rigs should be shut down until BP can show no short cuts and safety is top priority. Remember the BP oil blast in Tex that also claimed lives. Now let's see if the GOP, wow something with GOP vs BP ya know there is something there, hey figured it out BUSH/CHENEY & HALLIBURTON.
Good – Bye BP! Who the heck is going want to invest in a company with at least a 20 billion dollar liability? Answer: nobody
Awww, what a beautiful PR photo Mr. President! You're the awesomest celebrity president we've ever had! You look so good. I'm sure you're really running these BP guys through the wringer. I really like how you assured British Prime Minister Cameron last week that you'll do everything in your power (aside from canceling your tee-times, White House rock concerts, trips to San Francisco, and other really important things) to ensure that BP doesn't "lose it's value." Wow! You totally like, understand how free markets are supposed to work Mr. President- financially support the inept and/or corrupt and/or incompetent corporations that have really big D.C. lobbies (like BP, who pays for Rahm Immanuel's multi-thousand dollar per month home rental in D.C.) and let those well-managed, honest, successful small businesses who have the audacity to make a profit and those greedy taxpayers compensate for those poor banks' and corporations' losses. You really get it! I'm so happy to have someone in the White House who finally rewards economic terrorists! You Ba-Rock my world! Keep up the killer job you're doing Mr. President! We love you! Honest! Ask me to walk to the Great Salt Lake with a bag of dog poo on my head and I'll do it for you Mr. Obama! Oh yes I can! Woops, did I say "I"? How individualist of me! I mean, yes WE can! Now that's the collectivist spirit!