Final oil spill report berates BP, contractors
Washington, DC, United States
September 14, 2011 02:28 pm EDT
Economy, Business And Finance, Company Information, Corporate Performance, Environmental Issue, Environmental Cleanup
Cost cuts at oil giant BP contributed to the massive Deepwater Horizon spill last year that fouled Gulf of Mexico shorelines for hundreds of miles and an incalculable level to damage to wildlife and the environment, according to a government report revealed Wednesday.
The Bureau of Ocean Energy Management, Regulation and Enforcement report berated BP and its contractors for risky decisions and for criticizing the government for oversights.
In addition to dressing down BP for lax procedures, the report compiled from a 17-month investigation contains dozens of recommendations for improving safety in the offshore oil industry,
According to the report, the government wants to require companies to more thoroughly report well-control problems. Government regulation could be strengthened, the report details, and it suggests more surprise inspections of rigs.
The Deepwater Horizon explosion and spill on April 20, 2010, resulted in 11 deaths. It is the largest accidental marine oil spill in the history of the petroleum industry. Oil gushed for three months before it was successfully capped. Businesses, marine life and the tourist industry sorely suffered in the region and are still feeling the effects.
In early September, Tropical Storm Lee washed ashore tar bars in Alabama and Mississippi.
The report, which did not diverge much from earlier reports, said the main cause of the incident was a failure of the cement at the bottom of the well to stop oil and gas from flowing up. Transocean, which operated the ill-fated drilling platform, was not cited for failure to maintain the preventer, but was reprimanded for its unclear well-control manual and lax training of personnel. Transocean was also blamed for not promptly alerting engine operators that a leak was detected.
At 2 p.m. EST Wednesday, shares of BP were up over 5 percent, trading at $38.30 on the NYSE. Transocean shares were up 2.28 percent at 57.70
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