People protest the BP oil spill in Jackson Square on May 30, 2010 in New Orleans, La. (Photo Courtesy of Infrogmation/Wikimedia Commons)
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Roughly four years ago in the warm waters of the Gulf of Mexico, a cement seal on a deep-sea oil rig exploded, spewing millions of barrels of crude, unrefined oil into the ocean. A total of eleven lives were lost, sixteen were wounded and the largest environmental disaster in US history unfolded. Though BP owned the rig, they used a series of subcontractors to actually build and operate it, meaning when it came time to place blame and seek reparations, costs to the petroleum giant were slender.
That all changed this year on Sept. 4, when a federal judge ruled that BP was the sole party responsible for the Deepwater Horizon disaster. No longer could BP point fingers at smaller companies. Now, regardless of having paid over $28 billion in damages already, BP is up to bat for the US government again, this time potentially footing a new bill with a tab of over $18 billion.
The new charge to BP stems from gross negligence as an operator. Basically, what that entails is that the Federal Government believes BP both knew about and could have prevented the problems that caused Deepwater Horizon, but chose against it. In retrospect, BP very likely regrets not changing the gaskets that would have potentially saved them $46 billion and the face of their company, former CEO Tony Hayward, who resigned amidst pressure from media after the spill. Nonetheless, the ruling marks a momentous leap forward in U.S. energy policy and justice alike, ensuring oil operators everywhere that those responsible for damaging the environment under their own watch will be held accountable.
So what does this ruling mean for you? Unfortunately, it could mean that to cover its own pockets, BP’s going to reach into yours. The promise that oil spills and accidents come with a massive price tag could potentially be reflected in the price of gasoline, as oil companies scramble to recover increasing operating costs. Further, the turmoil of BP’s stock in the years preceding Deepwater Horizon — even prior to the latest federal ruling — show another reason why oil companies might raise the price. Fearing being left high and dry without enough capital to recoup losses after a disaster once seemed a mute concept, but BP has proven that even oil companies risk running dry.
But I behoove you, consumer: never avoid a spike in price when it comes from environmental progress. By showing oil companies that the earth is not an entity that can be treated carelessly, the U.S. government is stepping up efforts to safely produce oil and standing on the side of environmental protection. If we can’t be on a path to being completely drill-free, at the very least we can push harder to get to a point where the environmentally damaging practices we use are a bit safer, and powerful energy companies are held accountable.
Contact CU Independent Staff Writer Sam Schanfarber at Samuel.schanfarber@colorado.edu.
