What BP’s $18.7 Billion Spill Settlement Means for the Environment
A sea turtle struggles to free itself from a pool of congealed crude oil on June 8, 2010 off the coast of Grand Terre Island, LA. The turtle eventually swam away.
Photographer: Benjamin Lowy/Getty ImagesBP’s announcement that it’s wrapping up legal hostilities over the 2010 Gulf of Mexico oil spill brought cheers from all sides. Here’s what it means.
Everyone’s talking about records. The $5.5 billion portion of Thursday’s $18.7 billion settlement is a “record” under the federal Clean Water Act. Fine. The real number to keep an eye on—from the perspective both of BP shareholders and of people who care about the environment and corporate accountability—is $53.8 billion. That’s BP’s new internal budget for its total liability related to the disaster that resulted in the death of 11 rig workers and spewed millions of barrels of crude into Gulf waters. The company has already paid out about half of that amount and will keep paying for years to come. By settling the Clean Water Act litigation and other federal, state, and local environmental claims, the company bought certainty—and it bought time.