BP (BP) and Transocean (RIG) Slammed On Headline Risk From Gulf Oil Spill

BP (NYSE: BP) and Transocean Ltd. (NYSE: RIG) are under heavy pressure today as the oil leak in the Gulf of Mexico appears much bigger than originally thought, and now fears about future liabilities of the two companies involved have investors spooked.

The oil rig which exploded on April 20th, left 11 workers missing and presumably dead. It sank two days later and since oil has been sweeping out into the Gulf.

The oil spill has become big news and today it was the New York Times' lead story.

Government officials said the spill could be 5x larger than initial estimates at about 5,000 barrels per day. Attempts to cap the spill have been unsuccessful.

The spill is nearing shore and the wind may push the spill into the coast of Louisiana by Friday night.

When investors see pictures of the massive spill they immediately think "Exxon Valdez," which spilled 10.8 million gallons of crude.

Shares of Transocean are down 6.6% and BP is down 6.9%.

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