Gulf of Mexico Oil Spill, Blamed on Failed Equipment

The huge oil spill caused by the sinking of the Deepwater Horizon oil rig in the Gulf of Mexico is now blamed by the rig's leaser, BP PLC, on failed equipment. The oil spill, which may very well turn out to be the biggest ecological disaster in the history of the US, began on April 20 and continues to this day. According to The Associated Press, 200,000 gallons of oil are spilled into the Gulf each day by a blown-out underwater well.

The US government is already taking drastic measures to contain the spill, while BP PLC is yet to find a solution to stop the well from dumping oil into the water. BP America chairman Lamar McKay told ABC there's no telling when the leak will be contained, as fail-safe mechanisms designed to prevent such a disaster failed to work properly.

Meanwhile, the US banned commercial and recreational fishing in areas from Louisiana to the Florida Panhandle. President Obama says he holds BP responsible for the leak and it will be the British company who will pay the bill.

"I'm not going to rest -- and none of the gentlemen and women who are here are going to rest -- or be satisfied until the leak is stopped at the source, the oil on the Gulf is contained and cleaned up, and the people of this region are able to go back to their lives and their livelihoods," Obama was quoted as saying by MarketWatch.

BP shares dropped 12 points since April 20, with fears that the clean-up bill will amount to some $16 billion fueling the drop. Oil prices are for the time being unaffected by the spill, as most stand and watch whether US refineries or the supply routes are affected.