Goldman Sachs Pegs Gulf Oil Cleanup At $24 Billion

OIL ETC

Worried about the economic impact of the Gulf Oil Disaster? Don’t be! There’s still money to be made! “Clean Harbors (CLH) is highly involved in the GoM cleanup effort; we estimate CLH will generate $1.0 bn of revenue from the cleanup effort over the next three years,” writes a Goldman Sachs analyst. The math in their report, issued yesterday, is based largely on Exxon Valdez: “Exxon spent approximately $8,100 per barrel of oil spilled in cleanup efforts. Adjusting for inflation (we have assumed 3% per year), we estimate the cost of the cleanup to be $15,000 per barrel in 2010.” And what of BP? “GS European analyst Michele della Vigna, who covers BP, estimated the pre-tax liability assumed by the market for BP to be $36 billion.”