More ominously for BP, Sen. Robert Mendez of New Jersey is trying to pass legislation that would increase BP’s liability from $75 million – the legal cap – to $10 billion. As such, Moody’s downgraded its outlook for Aa1 senior unsecured ratings from stable to negative. [ETFs to Hedge 3 Inflationary Risks.]
But amidst the negative press, a Bank of America Merrill Lynch team of analysts, led by Doug Leggate, is optimistic that any added costs to exploration and drilling would not be a significant deterrent to oil companies.
For more stories on oil sector, visit our oil category.
- iShares Dow Jones U.S. Oil & Gas Exploration Index (NYSEArca: IEO)
- iShares Dow Jones U.S. Oil Equipment Index (NYSEArca: IEZ)
- PowerShares Dynamic Energy Exploration & Production (NYSEArca: PXE)
- SPDR S&P Oil & Gas Exploration & Production (NYSEArca: XOP)
Sumin Kim contributed to this article.