The effects on the environment from this oil spill should not be downplayed, but we should not overreact either. BP is going to pay the bulk of the expenses here, and it is no small amount. The company will survive, but people treat oil spills as the “downfall of capitalism” or something of that nature. There is absolutely no incentive for companies to want this to happen, yet many times environmentalists give the impression that companies want to ravage the environment in any way possible. Strong property rights ensure transparency, honesty, and resourcefulness. Of course, this event will likely result in more government regulation, more subsidies to energy sources politicians approve of, and yet another step back for the American people.

NEW YORK (MarketWatch) — BP on Monday disclosed $350 million in costs so far from its Gulf of Mexico oil leak, with the spill entering its 19th day since a giant oil rig sank and caused an estimated 5,000 barrels of oil a day to empty into the Gulf’s water.

Totaling up the estimated leak yields a figure of 95,000 barrels, or about 4 million gallons. By comparison, the 1989 Exxon Valdez accident spilled 10.8 million gallons into Alaska’s Prince William Sound.

After failing to cap the leak with a 100-ton containment dome, BP said Monday it will attempt to lower a smaller dome over the main leak point. The larger structure didn’t work because it became clogged with ice-like crystals as a result of cold temperatures and crushing ocean pressure a mile beneath the surface.

The oil major said such an operation has never been done at such a depth.

BP will also attempt a “top kill” option aimed at stopping the flow of oil from the well by injecting shredded rubber into the well as a stopper.

http://www.marketwatch.com/story/bp-spends-350-million-spill-no-end-in-sight-2010-05-10