• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes The Inconvenient Truth Of Electric Cars
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 19 mins Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 5 hours Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 8 hours Wonders of Shale - Gas, bringing investments and jobs to the US
  • 6 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 3 hours The Strait of Hormuz is the world’s most important oil transit chokepoint
  • 9 hours The Plastics Problem
  • 10 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 3 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 12 hours Cherry Picking Climate Data
  • 16 hours Oil Demand Needs to Halve: Equinor
  • 15 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 8 hours Is $60/Bbl WTI still considered a break even for Shale Oil
Alt Text

China Launches World’s First Smart Oil Tanker

China unveiled the world’s first…

Alt Text

The No.1 Trade-Off For U.S. Shale Companies

U.S. shale companies find themselves…

Alt Text

How To Buy Gold For $3 An Ounce

Gold is once again gaining…

Andy Tully

Andy Tully

Andy Tully is a veteran news reporter who is now the news editor for Oilprice.com

More Info

Premium Content

BP Agrees To Pay $18.7 Billion To Settle Deepwater Horizon Spill

British energy giant BP announced July 2 it has reached a tentative settlement with the U.S. government and five states along the Gulf of Mexico coast to pay at least $18.7 billion for the 2010 Deepwater Horizon oil spill, the worst such disaster in American history.

Under the proposed settlement, BP Exploration and Production, a U.S. subsidiary, will pay at least $7.1 billion to the federal government as well as to Alabama, Florida, Louisiana, Mississippi and Texas for environmental damages. The states also will get $4.9 billion to offset economic damages, and up to $1 billion more will go to the governments of more than 400 localities that suffered similar losses.

Already BP has agreed to pay criminal fines totaling more than $4 billion stemming from explosion on the oil rig off the Louisiana coast on April 20, 2010 killed 11 workers. The accident caused the structure to sink and started a spill from the sea floor that spewed an estimated 3.2 million barrels of crude oil into the Gulf. Related: Oil Faces Steep Downside Risk From China’s Stock Market

The well didn’t stop gushing oil until July 15, and by then BP already had spent $14 billion working to stop the spill. All told, BP has said the disaster will cost the company more than $40 billion. As for the settlement announced on July 2, BP estimated it at $18.7 billion, a figure similar to estimates made by the affected states. The Justice Department said the amount could exceed $20 billion. The largest payments will be paid over periods ranging from 15 to 18 years.

The settlement still must be the subject of forums for public comment as well as approval by the U.S. District Court in New Orleans, but Attorney General Loretta Lynch indicated in a statement that she believed the deal will be closed, saying the propsalproposal “would justly and comprehensively address outstanding federal and state claims.” Related: How Greece Crisis Could Drag Oil Prices Down

“If approved by the court, this settlement would be the largest settlement with a single entity in American history; it would help repair the damage done to the Gulf economy, fisheries, wetlands and wildlife; and it would bring lasting benefits to the Gulf region for generations to come,” she said.

BP also praised the tentative deal. Carl-Henric Svanberg, its chairman, said the proposed deal would open “a path to closure for BP and the Gulf. It resolves the company’s largest remaining legal exposures, provides clarity on costs and creates certainty of payment for all parties involved.” And he said BP’s board felt the agreement was “in the best long-term interest of BP and its shareholders”.

The company’s CEO, Bob Dudley, praised the “clarity and certainty” of the agreement. “For BP, this agreement will resolve the largest liabilities remaining from the tragic accident,” he said. “For the U.S. and the Gulf in particular, this agreement will deliver a significant income stream over many years for further restoration of natural resources and for losses related to the spill.” Related: Top Shale Takeover Targets

The deal also appeared to please local public officials. Gov. Bobby Jindal of Louisiana, the state that may have suffered the most from the spill, said, “This agreement will not only restore the damage inflicted on our coastal resources by the Deepwater Horizon oil spill, it will also allow Louisiana to continue aggressively fighting coastal erosion.”

And Alabama Gov. Robert Bently, at a news conference in Montgomery, described the settlement as a “landmark. … It is designed to compensate the state for all the damages, both environmental and economic.”

By Andy Tully Of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • The-Truth-Seeker on July 03 2015 said:
    Hopefully, a new technology called 'Quantum_Quench', developed by a tiny company in Michigan (rather any of the companies in the oil business), will be able to ensure that something like this NEVER happens again! Just too bad it took a catastrophe of this magnitude to motivate its developers to come up with their solution to the problem.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News