Wednesday, September 24, 2014
A federal judge concluded in a ruling earlier this month what most of us already had long suspected: “Profit-driven decisions” by international oil giant BP led to the explosion of the Deepwater Horizon rig in the Gulf of Mexico four years ago last April.
That recklessness resulted in the loss of 11 lives and in the largest and most damaging oil spill in the history of the United States.
Judge Carl Barbier of the U.S. District Court in New Orleans minced no words in ruling Sept. 5 that BP acted “recklessly,” with “gross negligence” and “willful misconduct.”
Judge Barbier’s judgment, supported by intense scrutiny of reams of evidence, is tough and makes the energy giant liable for up to $18 billion in additional penalties in an upcoming phase of the case.
To be sure, the harsh words and high penalties from the judge are just. It’s just too bad that even sterner punishment could not have been meted out to BP for its misconduct. Unfortunately, legal precedents barred the federal judge from exacting tougher sanctions.
COURT’S FINDINGS
The court found that BP workers made a series of mistakes on the leased offshore rig Deepwater Horizon on April 20, 2010, that led to the massive blowout 50 miles off the coast of Louisiana. In addition to the deaths, the explosion injured 17 others, released nearly 200 million gallons of oil over a three-month span and created the nation’s worst environmental disaster.
More than 8,000 animals (birds, turtles, mammals) were reported dead six months after the spill, including many that were already on the endangered species list. Coastal areas of the gulf remain fouled to this day.
The only good that can be served from the disaster today can come in serious reforms and rigid enforcement of them that make any repeat of Deepwater Horizon beyond the realm of possibilities. Poignant lessons can be learned for oil companies — even such behemoths as BP — as well as for regulators.
Oil companies must learn not to let the profit motive trump safety and environmental protection. At this point, BP should think twice about appealing Judge Barbier’s ruling and focus more heavily on cleansing its tarnished public image by working with authorities throughout the Gulf region to continue rehabilitation of the land and sea sullied from the spill. The ruling should also remind federal regulators to remain vigilant in ensuring reforms enacted after the spill are strictly enforced.
Because the fines BP has been ordered to pay will be distributed to a variety of ongoing recovery projects in the Gulf region, it is time for the international oil company to end the litigation phase and allow the recovery to play itself out.
Beyond BP, other companies subject to safety and environmental regulations should learn a broader lesson from the Deepwater spill and its long, painful and costly aftermath as well: Short-term savings from short-circuiting safety standards can be wiped out millions of times over when such shortcuts invite disasters.