On June 1, 2010, US Attorney General Eric Holder opened a criminal investigation against British Petroleum. The investigation will determine whether criminal negligence or lawbreaking was involved in the disastrous April 20 explosion on the Deepwater Horizon oil rig in the Gulf of Mexico.
Following several failed attempts to stop the leak, oil continues to gush into the Gulf, at a rate many times higher than what BP had maintained for several weeks following the accident. In contrast to BP's reports of 5,000 barrels per day, estimates now range from 20,000 to 70,000 barrels per day. In a last ditch effort to stop the leak, BP is currently trying to cut the leaking pipe and cap it. If this attempt fails, the cut pipe may be left leaking at an even higher rate, and will likely continue until August when a relief well is completed.
BP and Obama Administration At Odds
Relations between BP and the Obama administration have become increasingly strained as the scale of the disaster mounts. Obama, clearly touchy about references to the disaster as “Obama's Katrina”, has attempted to maintain an image of visibility and competence. Given that the most knowledgeable oil experts in the world are working 24 hours a day to stop the leak, and failing, there is little else he can do.
Talk of criminal prosecution of BP, while justified, may also be intended at least in part to appease an increasingly angry public. With the marine economies of southern Louisiana effectively dead for the foreseeable future, there is plenty of anger to go around.
BP Value Plummeting
Legal prosecution may be the least of BP's worries. The company has seen $58 billion of its corporate value evaporate since the April 20 disaster, a 34 percent drop.. Its weak position may make it an attractive target for takeover, according to some investors.
Who Is Really At Fault?
While BP takes the heat for this unparalleled environmental disaster, some are beginning to question whether the fault may lie deeper than a possibly irresponsible oil company. Jeremy Warner of Britain's Daily Telegraph writes: “the environmental ruin now being visited on the Gulf of Mexico is not primarily about safety failures at BP, still less is it about lax regulation. Rather it is to do with America's insatiable appetite for oil.”
America used up 21 million barrels of oil yesterday. It will use up another 21 million barrels today. As millions gear up for the summer driving season, they may give some thought to the dying ecosystems of the Gulf Coast, and question with whom the fault may really lie.
More:
- Deepwater Horizon Oil Rig Was Given "Categorical Exclusion"
- Deepwater Horizon Spill May Be 19 Times Bigger Than BP Reports
- Top Kill Fails to Sop Leak From Deepwater Horizon
- BP Protests: Is British Petroleum a Culprit or Just a Scapegoat?
Sources (accessed June 2, 2010)
Kennedy, Helen. “BP facing criminal charges as Attorney General Eric Holder probes negligence over Gulf oil spill,” New York Daily News, June 1, 2010.
Swint, Brian, and Stanley Reed. “BP at Risk as Share Plunge Fuels Takeover Speculation,” Bloomberg.com, June 2, 2010.
Warner, Jeremy. “Don't blame BP – Gulf of Mexico oil spill is America's fault,” The Daily Telegraph, May 28, 2010.
