How much should BP's penalty be?
As BP’s oil spill clean-up efforts reached Operation “Top Kill” today, one thing is becoming clear: people want justice.
And there has been a lot of speculation over how much accountability the energy giant should have for its spill last month, the explosion that’s already spewed an estimated 1.4 million barrels of oil into the Gulf of Mexico.
Some say BP is totally negligible, others (well, BP itself) say it’s not. But everyone wants to know, once and for all, how much the British multinational should have to pay for its mess.
There are a myriad of government loopholes, wads of red tape and sticky legislation in this whole scandal, but there are three legitimate penalty scenarios I can see here:
1. The "Slap On The Wrist": This repayment is the clear-cut favourite for BP because pre-existing liability rules for oil spills top out at $75 million. That would mean, if BP is found not to have exhibited gross negligence in the spill, it would only be on the hook for $75 million, no matter the total clean-up/fallout costs.
2. The "Stocks": Since the spill, legislation has been introduced inside U.S. courts to raise the aforementioned liability cap by more than 100 times. “I believe that we have a system in dire need of repair,” said one Democratic politician opposed to the $75 million cap. The U.S. Justice Department admitted yesterday that Congress could retroactively impose a $10 billion liability cap on BP for damages from the growing oil spill, and that the oil corporation would “likely lose if it challenged the higher cap in court,” according to Reuters.
3. The "Full Monty": A bit of a stretch, but something entirely plausible. Based on a clause within the U.S. Clean Water Act, BP could – in theory – be fined a huge sum for every barrel of oil spilled into the Gulf. How huge? Try $4,300 per barrel. By that calculation, BP would already owe about $6.2 trillion in fines so far from its spill, according to estimates Wednesday. Such a penalty might have little chance of catching on, but you can’t say for sure it’s out of the cards.
Of the three listed penalties for BP, which do you think is fair? How much should the corporation be forced to pay?
By Jason Buckland, MSN Money
Posted by: Lisa | May 31, 2021 8:06:03 AM
Kerianna...I will only say "move on" to bigger things.
Thanks for what you wrote "neil." I learned alot and will be much more careful the next time I see a gravel truck. I agree that Mr. Buckland is in "another world" sometimes. lol Oh, Kerianna, sorry for the referral to one of your soaps. lol Was "Lost" a good episode this past week? (Don't even know when it's on.) Don't answer that. I'm teasing you. lol
Posted by: Dale | May 31, 2021 2:36:40 PM
who will pay and how much? all the helpless marine life wil,l all due to mankinds addiction to fossil fuels. Hey people its time to end your addiction to oil and gas time to give up your polluting , lazy lifestyles. It's time to give up your auto's and switch to a more friendly mode of transportation or you know what? eventually mother earth will make it right she always does in the end. Life will go on after man has left this earth its happened before it will happen again. in the meantime I'll just shut my big yap.
Posted by: snupee | Jun 2, 2021 11:45:18 AM
Well...I read most of the opinions as to what the punishment be for B.P. ...Lisa?? I commend you for at least TRYING!! TO BE REALISTIC ...your comment's were both interesting and notable. I agree whole heartedly with your veiws,unfortunatly...this subject is only going to escalate,and opinions will continue to be less than tasteful as the weeks and months pass.All I can add ... is this.!!
wake up people!! and get a grip..!! Any attemp at off-shore drilling,and dry land drilling for Fossil Fuel's needs to stop.We are not knuckle draggers..!! and we have the inteligence to seek new and more earth friendly way's to produce energy.There are several option's that could be adopted in order to do this..but big buisness refuses to consider these options because of the financial fall-out.
Greed, and power!! dictate what is to be done in order for those that want eternal wealth...to control the constant flow of oil...and money.The U.S. Demand for oil and gas...hydro electric energy, is only going to increase...and the Monster which they have created will continue to rear it's ugly head,that people...is a Very sad... but undeniable fact.!! We ..as human beings have become too complacent... too lazy, greedy...and selfish.We consider ourselve's ADULT'S?? but we act more and more like a spoiled child..demanding to be neurtured..and cuddled..and it is high time we all grew up !! and started taking REAL responsability for our very foolish ...and irreversable mistakes!! j.m.o.
Posted by: comeuppance | Jun 4, 2021 12:59:45 AM
if we don't talk about it, the people that can prevent this from happening...will think we don't care. if we don't hold them accountable, then they won't bother trying to prevent any further disasters. if their only goal is the pursuit of wealth, then the only way to make them invest in failsafes and further preventative measures, is to hit them in the wallets.
do i know their business? no.
do i know what is unacceptable? yes.
we are only powerless as long as they remain the only voices that can be heard.
if we get mad enuff, vocal enuff, and our demands cannot be hushed, then gov't and business will worry about their own livelihoods. if we are a threat to their livelihoods, then some of the crimes we have seen in the last couple of years will lessen considerably.
ignoring what is wrong in this world is silent acceptance.
Posted by: Shelly Smith | Jun 10, 2021 8:53:01 AM
LISA is obviously working as a pubic relations specialist for BP....or she is a complete IDIOT!!! OF course BP should pay through the nose #3!!! Do you know how many people's lives they've ruined....how many animals they've destroyed.....the beautiful beaches and ocean are a completed hazardous waste dump now!!! THE damage is unimaginable.....and this bitch LISA has a nerve to even say move on!!! NEVER.....these people at BP will have to answer and pay for all this damage....we WILL NOT MOVE ON until it is righted....with billions/trillions of dollars payout!!
Posted by: kerianna | Jun 12, 2021 11:13:23 AM
I'm starting to think that penalties will seem miniscule in comparisonto what's starting to come out about this spill. Do some research and see what some experts are starting to say about how catastrophic this spill may turn out to be.
Posted by: Bob | Jun 15, 2021 9:22:20 AM
I don't know who did the math here, but...$4300/brl x 1.4 mill brls = 6.02 billion NOT
6.2 Trillion BIG Difference!!!
Posted by: Bob | Jun 15, 2021 9:24:44 AM
I don't know who did the math here on everyday money, but...$4300/brl x 1.4million brls =
6.02 billion NOT 6.2 trillion BIG Difference!!!!
Posted by: Bob | Jun 15, 2021 11:00:14 AM
your full monty math is waaaaaay off. should be 6.02 billion not 6.2 trillion. Biiiiiiggg diff.
Posted by: tom | Jun 15, 2021 9:27:52 PM
mark my words , BP will, in the long, run get off scott free. The world population (average working stiff ) will , one way or another , pay the full cost. Why you ask ...because their rich and were not.
Posted by: cameron | Jun 15, 2021 9:33:22 PM
BP should be responsible for paying 100% of the clean-up costs and damages to any residents on or near affected waters. Damages to those whose income is affected by the spill would be fair too.
Posted by: Brian from Montreal | Jun 15, 2021 9:52:43 PM
The main problem here is that BP and many other oil companies do not adhere to proper procedures, regulations and specifications as they are supposed to. They do not follow protocall nor do they use designed spec materials that they are supposed to use as specified by engineers...this is why they make the big bucks. The oil companies only care about one thing and one thing only...in pocket profits and not out of pocket expenses. Oil is a finite resource and they have no choice but to drill off land as they are running out of places to find it. As soon as an inventor builds a car that runs off of anything but oil, they kill this person or pay him off. This is how it has always been done and will continue to be done as the government agencies need to make the trillions of dollars in payable taxes that we as consumers have no choice but to pay. If we use any other source the gouvernment will lose out big time and they will stop at nothing to avoid this. BP Oil did not do what they were supposed to do and did not adhere to the proposed regulations...I mean who really is going to go down 1 mile to check to see what materials were used and how good the wells were built and so on...no one!! BP Oil should pay at least $1,000,000 per barrel that is lost every day until they are out of business. They just do not care and it will soon be like it never happened just like EXXON Valdez...and what will happen in 1 year or 5 years or even 10 years to all of the wildlife in the surrounding Gulf areas...like BP Oil really cares! Cleaning up does not make them millions of dollars in profits...it only costs them billions of dollars and it should be even trillions and hundreds of trillions. President Obmama is not really taking this seriously...he has to play both sides really...yes he has to look good for his Nation and people but he has to also make sure that BP Oil stays in business as there are workers there who might pay a few dollars in taxes to the US of A...so many days have gone by and so many more will continue to go by. The clean up will never be 100% perfect and that is a total shame...BP Oil will get to the point and say well it is clean enough...that is all we can do. Let's just face it, way too many bad unsafe decisions were made by BP Oil that deep water welll drilling is just no good and way too dangerous. They just keep on pumping until a disaster hits! LE VOILA!!! The biggest disaster of all time and one that we may never really know the entire side effects of. Shame on you BP Oil...may God strikeith thee down.
Posted by: T-Man | Jun 15, 2021 10:10:57 PM
Wow. No wonder nothing gets accomplished on this planet.
Posted by: chad | Jun 15, 2021 10:21:12 PM
why didn't they have a shut off valve for emergencies such as this? Because they didnt want to pay the price , well too bad for them now our world is paying the price. DEATH SENTANCE TO EVRY INCOMPETENT FOOL RESPONSIBLE !!
Posted by: Richard Blakely | Jun 15, 2021 10:28:53 PM
BP has insurance. Every rig and contractor has insurance. Insurance companies should be the only liable parties. If you have a traffic accident you are not liable, your insurance company is liable.
Posted by: Carolynn | Jun 15, 2021 11:39:33 PM
I think the government should look very close to this whole situation. What happened before, during and after. Find out exactly what happened. I do believe that BP should carry most if not all the cost. I mean if my vehicle breaks down and causes an accident I would be paying for all costs involved. This of course is way more serious but the same rules should be followed. Their company, their equipment, their employees. Even if it was a equipment breakdown its their responsibility. No one but them should be responsible for the costs.
Posted by: DaveL | Jun 15, 2021 11:56:11 PM
people pay for everything thru taxes, their consumption and their greed. We all abuse our world, some rape it. It seems that we all play a part in the destruction of our planet. We know what we should do, but don't. Most things that we do in life tend to direct us to results that will either be considered good or bad, these days either praised or penalized. The event that has taken place is horrific. The loss is unbelieveable and unacceptable. We measure an event by our need to fix dollar value to it. If it is for justice a dollar value is usually applied. So be it. The world, the people need to be the jury. No doubt, the final acceptable figure will be heard in the court room. But what about the innocent? They too should have their day in court. An equal amount should be allocated to the preservation of nature and widlife. We must protect the innocent for they know not what they do .... we do.
Posted by: bruce | Jun 16, 2021 4:20:47 PM
On a smaller scale...if you or I, business or personal take on some task that end in a wreck....you end up with your butt turning to grass and someone smokes it.....your insurance company looks for a loop hole so they don't have to pay leaving you holding the bag.....big companies get incentives and tax breaks to exploit natural resources for creating jobs, etc....and governments look the other way while they are doing it because they benefit in all the various ways while everything is going well....but when the unthinkable happens.....we the people and environment end up paying the price again .....these big companies have roots so deep....that effects are felt around the world....any one having anything at all to do with the disaster, from planning, permitting, development, operations, or any one who gains monetarily from this well drilled in the Gulf should pay....if it breaks the company.....so be it!!!
Posted by: FF | Jun 17, 2021 1:18:55 PM
This horrific oil spill is an other way to kill life and the world has to wake up and stop killing Period. The blame is not important because it should be seen as a natural disaster of our man made needs. When such things happen,an all around effort from everywhere should become the main need. Peace would help, there is no money required. The pictures of the Oil Spill are very sad.
Posted by: DepressedOverMess | Jun 17, 2021 4:41:14 PM
No amount of money in the world can fix this so quite frankly, whether BP pays out or not really doesn't matter anymore. The ocean is dead. It will never heal. The marine life is dead and many species may even become extinct. To this day, barely any of the oil from the Exxon Valdez spill has weathered away after scientists predicted that by this time it would have disappeared. The Gulf of Mexico in one week receives as much oil as the entire Exxon spill. Put that in perspective. If I hear one more comment about the fisherman suffering, I'm going to explode. Get real people! This is bigger then someone's stupid job!! We're eradicating our planet's natural resources at an enormous speed. I wish the useless government would get this huge important detail and fact straight and stop talking about future offshore oil drilling.
Even though this will achieve nothing, yes BP needs to pay for any cleanup of marine life that survived and the ocean - if it's even possible. The CEO needs to be put in the electric chair and anyone who was involved with the decision to ignore safety measures should be imprisoned for life.
On top of this, we need a President that doesn't cater to the oil industries.