Thursday, June 3, 2010

Responsibility for the Costs of the Gulf Oil Spill

The oil spill in the Gulf of Mexico has adversely impacted all the key players. BP's stock has dropped more than $32 billion, Likewise the stocks of Transocean which owned Deepwater Horizon, and Cameron International, which made the blowout preventer that failed, are also declining.

Transocean's shares lost almost half their value since closing above $92 on April 20th, today they are valued at under $50. Cameron has declined more than 25% from its peak.

Fitch Ratings estimated the cost of the cleanup could exceed $3 billion but insurance will likely cover most of that cost.

The Obama administration has pledged to recover "every dime" of taxpayer expense from the spill, however US law caps company liability at $75 million per spill. Transocean has already taken legal action to limit its liability to $27 million.

For the Exxon Valdez oil spill, Exxon Mobil paid out $4.3 billion in compensation, cleanup costs, fines and settlements before insurance kicked in.

A full accounting of blame appears to implicate the government agency in charge of monitoring oil rigs. The US Minerals Management Service (MMS) director, Elizabeth Birnbaum has been fired due to reports of fraternization between MMS employees and oil industry employees. The MMS regional supervisor is also alleged to have received inappropriate gifts from BP.
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Next: Obama Presidency and the Gulf Oil Spill

Related Posts
BP's Corporate Irresponsibility
The Costs of Offshore Drilling
Managing the Massive Gulf Oil Spill
Offshore Oil is an Avoidable Tragedy
Two More Reasons to Move Beyond Fossil Fuels
The End of Oil and the Next Energy Economy
Reigning in Irresponsible Oil Giants Chevron and Exxon Mobil
The Business of Climate Change Deception
Palin Renews Call for Offshore Oil Exploitation
Drill Baby Drill
Peak Oil
The Economic Calamity of Peak Oil
Planning a Future Without Oil
Koch Industries' Environmental Crimes
Koch Industries Financing Climate Denial
Koch Industries Destroys the Environment & Funds Climate Denial
Protecting the Planet from Corporate Influence

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