If an oil spill accident can almost wipe out BP, we have to rethink the risks involved in investing in oil companies. When investing in oil and gas companies, analysts and investors usually consider the risk of commodity prices, exploration, access to capitals and political (country) risk. But given the accident in BP, I doubt any insurance companies would be willing to insure deep sea drilling given the unlimited liability.
The government needs to work with industry to set up a reasonable cap on liability (5-10 billion dollar range) in order for deep sea drilling to continue. Before that happens, I will be very cautious to invest in large oil and gas companies.
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