BP Announces a $6.3 Billion Replacement Cost Loss

For the 2nd quarter 2015, BP announced a replacement cost loss of $6.3 billion on June 28th. The replacement cost is a measure of changes in the price of oil and includes a $10 billion charge related to environmental costs on the 2010 Deep Horizon oil spill in the Gulf of Mexico. Chief executive, Bob Dudley said, "In the past few weeks’ oil prices have fallen back in response to continued oversupply and market weakness and the recent agreements regarding Iran. I am confident that positioning BP for a period of weaker prices is the right course to take, and will serve the company well for the future."