Factbox: Developments in the Gulf of Mexico oil spill

(BestGrowthStock) – Here are developments in the Gulf of Mexico oil spill:

SPILL CONTAINMENT EFFORTS

* BP Plc said the complex “top kill” maneuver to plug its Gulf of Mexico oil well had failed, ending hopes for a quick end to the largest oil spill in U.S. history that is now in its 40th day.

* The company said its next option was called the lower marine riser package cap, one that captures oil from the well rather than plug it. BP Chief Executive Tony Hayward said the cap would take about four days to install.

POLITICS

President Barack Obama visited the Louisiana Gulf Coast on Friday, which has been hardest hit by the oil slick. Facing mounting criticism over his handling of the crisis, Obama has sought to show leadership in the fight against the oil spill.

COMPANY NEWS

* BP shares closed down about 5 percent in London on Friday as investors fretted over whether the latest effort to plug the deep-sea well would work.

* BP said the total financial cost of the response to the disaster now stands at $930 million, up from a $760 million estimate on May 24.

MARKETS

* Shares of companies that lease drilling rigs, including Transocean Ltd, and oilfield services firms like Halliburton Co also fell on worries about financial fallout from the U.S. government’s six-month ban on new deepwater drilling permits.

ENERGY

* Offshore driller Transocean said some clients may leave the Gulf of Mexico this year, but long-term rig demand in U.S. waters looks intact despite the Deepwater Horizon accident and resulting deepwater drilling moratorium.

* A one-year delay on new deepwater projects stemming from the Gulf of Mexico well rupture could cut world oil supply by 500,000 barrels per day between 2013 and 2017, Bernstein Research said in a note to clients.

QUOTE OF THE DAY

* “We have not been able to stop the flow,” BP Chief Operating Officer Doug Suttles told a news conference, announcing the failure of the top kill option.

Investing Research

(Writing by Mary Milliken and Kristen Hayes; Editing by Peter Cooney)

Factbox: Developments in the Gulf of Mexico oil spill