Oil Spill Liability

Well it looks like the move to increase oil industry liabilities from 75 million dollars to some 10 billion dollars has failed having been blocked Alaska Senator Murkowski (R). The fact that liabilities remain so low for all extractive resource industries including energy, mining, logging, etc. is pretty crazy considering what is at stake when things go really wrong. Critics of liability increase fear that high costs will stifle industry and economic opportunity. Yet, I can't help but think higher liabilities would force greater responsibility and forward thinking on the part of firms that profit from extractive industry. The move would catalyze development of safer and more foolproof technology to improve the track record of industries that often find themselves in the public eye. Shame on Senator Murkowski for blocking this measure. This nation needs to stop letting the energy and oil industries write their own rules. Impartial regulation must become the norm.

Even the most conservative estimates of the oil spilled in the Gulf put the amount close to 3.5 million gallons. There is no end in sight and oil is now making landfall in some of the most prolific wetlands ecosystems on the continent. BP, Halliburton and Transocean are busy playing the blame game as they jockey to avoid the double edged sword of liability and litigation that will inevitably follow shortly.