BP share price: Group’s refinery leaks oil into Lake Michigan

on Mar 26, 2014
Updated: Apr 9, 2020
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iNVEZZ.com, Wednesday, March 26: BP (LON:BP) has come under fresh scrutiny over its safety record after its largest US refinery leaked oil into Lake Michigan.

The London-based energy group confirmed yesterday that after a “malfunction”, crude was spilt from its Whiting refinery in Indiana on Monday afternoon. BP said the discharge had stopped, and the company and its response team had deployed a boom which had contained the oil in a cove located between the refinery’s waste water treatment plant and a steel mill. BP further remarked that there had been no injuries, and clean-up activities were under way.

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“After discovering the discharge, BP notified the US Coast Guard, US EPA [Environment Protection Agency} and the Indiana Department of Environmental Management, which were at the refinery Monday evening,” the firm said in its statement, adding that the refinery was now operating normally.
**Renewed scrutiny**
BP stated that at this stage it did not have an estimate for the volume of oil discharged. However, according to a local CBS report citing an inside source, between 10 and 12 barrels, or around 500 gallons, of crude oil spilled into the lake.

Although relatively small, the discharge may be another blow to BP, whose reputation was tarnished by the Macondo well blowout in the Gulf of Mexico in April 2010 — the worst offshore spill in US history, spewing millions of barrels of oil into the ocean and causing the death of 11 rig workers.

Monday’s incident also follows the lifting of a 16-month debarment imposed by the US Environment Protection Agency (EPA) on BP preventing it from winning any new federal contracts. It is set to win 24 out of 31 new exploration licences in the Gulf of Mexico after lodging bumper bids last week (BP share price: Oil giant rejoins Gulf of Mexico lease bidders).

**BP share price advances despite discharge**
Despite the latest hit to BP’s safety record, the oil giant has been trading higher today. Shares in the FTSE 100-listed company have gained 0.81 percent, to stand at 477.80p as of 10:18 UTC.
According to AnalystRatingsNetwork data, five research analysts have a ‘sell’ rating on BP, 14 have it as a ‘hold’ and 12 rate it as a ‘buy’. The consensus rating is ‘hold’ with an average price target of 484.26p.
**As of 10:15 UTC, buy BP shares at 477.85p.**
**As of 10:15 UTC, sell BP shares at 477.70p.**

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