Bp Bears Brunt of Blame for Deepwater Horizon Catastrophe
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BP bears brunt of blame for Deepwater Horizon catastrophe
Report says oil company is 'ultimately responsible' for oil spill but rig contractors also implicated in some areas
BP’s share prices rose almost 5% but fell back after report was published Photograph: Molly Riley/REUTERS
A key US federal report has focused the blame for the worst offshore oil spill in US history on BP, but criticised its contractors sufficiently for the markets to push BP's share price up. Amid a string of failures, BP's "cost or time-saving decisions… were contributing causes of the blowout," the report concluded.
Assigning ultimate responsibility for the disaster – and the billions of dollars of clean-up and compensation costs – will take years of legal action, but Wednesday's investigation report was seen as a significant indicator as it was conducted by the regulator responsible for offshore activities. The blowout at the Deepwater Horizon rig in the Gulf of Mexico in April 2010 killed 11 people and led to almost 5 million barrels of oil being spilt into the ocean.
BP's share price rose almost 5% in London on rumours the report would help avert the company being found grossly negligent in future, which would increase its financial liabilities hugely. But it fell back after the report was published, finishing the day up 3.5% at 395.1p.
The investigation, jointly conducted by the Bureau of Ocean Energy Management, Regulation and Enforcement (Boemre) and the US Coast Guard, stated that a "central cause" of the blowout was the failure of a cement barrier in the drilling apparatus. The cement job was done by a contractor, Halliburton, but the report states that BP was, as designated operator, "ultimately responsible" for safety on the rig. It also stated that, in the days before the blowout, BP had "made a series of decisions that complicated cementing operations, added incremental risk, and may have contributed to the ultimate failure of the cement job".
BP and Halliburton are...
Report says oil company is 'ultimately responsible' for oil spill but rig contractors also implicated in some areas
BP’s share prices rose almost 5% but fell back after report was published Photograph: Molly Riley/REUTERS
A key US federal report has focused the blame for the worst offshore oil spill in US history on BP, but criticised its contractors sufficiently for the markets to push BP's share price up. Amid a string of failures, BP's "cost or time-saving decisions… were contributing causes of the blowout," the report concluded.
Assigning ultimate responsibility for the disaster – and the billions of dollars of clean-up and compensation costs – will take years of legal action, but Wednesday's investigation report was seen as a significant indicator as it was conducted by the regulator responsible for offshore activities. The blowout at the Deepwater Horizon rig in the Gulf of Mexico in April 2010 killed 11 people and led to almost 5 million barrels of oil being spilt into the ocean.
BP's share price rose almost 5% in London on rumours the report would help avert the company being found grossly negligent in future, which would increase its financial liabilities hugely. But it fell back after the report was published, finishing the day up 3.5% at 395.1p.
The investigation, jointly conducted by the Bureau of Ocean Energy Management, Regulation and Enforcement (Boemre) and the US Coast Guard, stated that a "central cause" of the blowout was the failure of a cement barrier in the drilling apparatus. The cement job was done by a contractor, Halliburton, but the report states that BP was, as designated operator, "ultimately responsible" for safety on the rig. It also stated that, in the days before the blowout, BP had "made a series of decisions that complicated cementing operations, added incremental risk, and may have contributed to the ultimate failure of the cement job".
BP and Halliburton are...