CEO: BP Oil Spill Was “Near-Death” Experience
January 6th, 2016
In an interview with the British Broadcasting Corporation, the chief executive officer of the troubled oil giant called the 2010 BP oil spill a “near-death experience” for the company. BP CEO Bob Dudley told the BBC that the company had to sell off more than $45 billion in assets to cover the costs of the BP oil spill. These costs included cleanup efforts, drilling well repairs, government fines, and thousands of lawsuits. Mr. Dudley told the interviewer that the expenses from the spill, combined with a drop in global oil prices, nearly led the firm into financial ruin.
Details of the BP Oil Spill
The BP oil spill started on April 20, 2010, when a pipeline under the Deepwater Horizon oil rig exploded. Eleven workers lost their lives the day of the explosion, while more than 40 suffered severe injuries. The spill dumped more than three million barrels of crude oil into the Gulf of Mexico. The spill spread oil from Texas to Florida, with most of the damage striking the Louisiana coast. Repair crews required nearly three months to repair the damaged pipe and stop the massive BP oil spill.
BP Oil Spill Settlement
After nearly five years of legal actions, the company reached a settlement with the U.S. government for its role in the BP oil spill. The settlement totaled over $20 billion, including more than $5 billion in fines for violations of the federal Clean Water Act. The BP oil spill settlement also included billions of dollars paid to the five states affected by the disaster (Texas, Louisiana, Mississippi, Alabama and Florida), as well as hundreds of local government entities ranging from wildlife preservation agencies to local school boards.
BP Oil Spill Rocked Company “To Its Core”
In the BBC interview, Mr. Dudley called the BP oil spill a “tragic accident” and said that the disaster impacted the company “to its core.” He also said that the incident forced the company to “radically change” its corporate structure. Just after the BP oil spill, global oil prices also fell, leaving the company with both high expenses and low revenues. According to Mr. Dudley, the combination of epic disaster, legions of lawsuits and harmful market forces led to a “near death experience” for the company.
BP Oil Spill and “Stranded Assets”
The interview also addressed the company’s future after dealing with the fallout from the BP oil spill. Mr. Dudley commented on remarks from Bank of England governor Mark Carney regarding the future of “stranded assets” for the oil industry in the wake of the Paris climate change agreements. Mr. Dudley said that he had spoken to Mr. Carney about his remarks and “questioned (him) about that term.” Mr. Dudley agreed that the oil industry will face a “really difficult problem” in dealing with calls for reduced emissions of greenhouse gasses.
Know Your Rights In A BP Oil Spill Lawsuit
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NOTE: This blog post is a news story and does not imply an endorsement of the Amaro Law Firm by any parties mentioned herein.