Today, the shares of British Petroleum (BP), the company responsible for the oil spill in the Gulf of Mexico, plunged 16 percent in heavy trading. There were nine times more shares traded in the company today than the average daily volume. The added trading was driven by the fact that many investors are now openly wondering if BP will face bankruptcy after enduring the costs of the recent spill.

The cost of insuring BP debt against bankruptcy rose to triple the rate being charged last month. One of the drivers of additional trading was an interview with oil guru Matt Simmons, who said that he believes the company would be bankrupt within a month. It also didn't help that President Barack Obama has vowed to "kick ass" over the oil spill, reflecting growing public anger over the long-term damage caused by the spill.

Recently, a group of nearly 50 lawmakers sent a letter to Tony Hayward, the CEO of BP, asking him to withhold paying a dividend to shareholders until the total cost of the cleanup is detetermined.

"There's been a lot of talk from politicians that's got people running scared about potential dividend cut," said Alex Morris, an analyst who follows BP.

In the weeks since the oil spill began, BP has lost half its market value. This has led to a $90 billion loss for the company thus far. Before the spill, BP was a formidable economic force, earning profits of roughly $40 million dollars per day. At the time the spill began, some thought the company could withstand the losses. Now, experts are not so sure.

The BP oil spill will go down in American history as a major turning point in how we view energy consumption and risk. A recent Washington Post/ ABC News poll showed that 31 percent of Americans want there to be less off shoring drilling in the future.

Politicians will also reduce their appetite for campaign financing from the oil and gas industry. The Oil&Gas industry has a great deal of Washington influence, giving over $238 million to candidates since 1990. The Obama Administration took $884,000 of this money during the 2008 Presidential campaign, with John McCain being the only political candidate accepting more money than Obama. Congress only recently (in 2008) voted to lift a ban on offshore drilling, so the oil spill is leading our nation and its leaders to reconsider their positions.

Sometimes, the greatest darkness creates the most light. Right now, our nation has lost a great deal due to this catastrophe. But in the long-term, we may be a better nation for it. When it comes to the consequences for BP, there may be no end in sight. The spill will never be fully cleaned up, so the cost could be seemingly infinite. If lawmakers take the hardest line possible, the company may cease to exist.


Dr. Boyce Watkins is the founder of the Your Black World Coalition and a Scholarship in Action Resident of the Institute for Black Public Policy. To have Dr. Boyce commentary delivered to your email, please click here.