Despite the best attempts of British Petroleum (NYSE:BP), the oil spill in the Gulf of Mexico isn’t reducing. The oil is still leaking to the tune of 50,000 barrels a day in the Gulf. After failing miserably in its top kill approach, BP’s “cut, cap, and contain” system also turned out to be partially successful only. Now the government, along with BP and experts from the oil industry are busy breaking their heads to contain the oil spill.

A few suggestions have also been made but none of them sound plausible enough to be implemented. Apparently, plans of rerouting oil from the leaking rig to nearby out of production platforms were rejected by BP itself.

As it turns out, the only practical solution in sight is at least a month in future when two relief wells are drilled. In the meantime, the fast approaching hurricane season in the Gulf is worrying the investors in BP. And the worries are translating into new lows with every trading day passing. As the financial liabilities of the oil spill are becoming clearer especially after the US$20 billion escrow account, investors are finding it easy to pare heavy losses than holding a dud stock.

Tension is increasing for the US government also. The whole episode has been a low down in the otherwise remarkable tenure of the Obama administration. However, the government’s decision to impose a six-month moratorium on deep-water drilling projects faced a setback in the form of an overturn by a federal judge in New Orleans.