Summary of BP Oil Spill Commission Findings and Recommendations
On January 11, 2011, a presidential commission appointed to investigate the causes of the Gulf oil spill issued its final report. The following highlights key findings and recommendations, which the Commission believes would help to reduce the likelihood of a similar tragedy and better prepare the country and industry to respond to future deepwater drilling disasters.
Findings
Overall, the
Commission concludes that the “Deepwater
Horizon disaster was foreseeable and
preventable. Errors and misjudgments by three
major drilling companies – BP, Halliburton,
and Transocean – played key roles in the
disaster. Government regulation was
ineffective, and failed to keep pace with
technology advancements in offshore
drilling.” Moreover, the Commission finds
that the “well blowout was the product of
human error, engineering mistakes, and
management failures.” These errors and
mistakes include the repeated failure of
special wellhead cement in lab tests; failure
to recognize problems with pressure tests of
the well, which are designed to test the
integrity of cement and other seals; and the
failure of company managers to ask tough
questions and probe for answers when such tests
and other procedures failed to produce results
associated with safe and effective
operations.
The Commission also looked closely at government oversight and concludes that such oversight was also ineffective in reducing the risk of a blowout. Oversight was compromised by commingling regulation and promotion of energy development within the former Minerals Management Service (MMS). In addition, government regulation and staff expertise within MMS and the Department of Interior failed to keep pace with rapid technological change associated with deepwater drilling.
Among the more
self-evident findings, the Commission states
that neither the oil industry nor the
government was prepared to respond to a massive
deepwater spill. It also concludes that spill
response technology and approaches were little
changed since the Exxon Valdez accident in
1989. This indicates that while drilling
technology has been modernized, equipment and
strategies to respond to major oil spills have
not.
Recommendations
Based on
the results of its investigation, the
Commission offers a series of recommendations
designed to reduce the risk of similar
disasters and improve response
capability. The Commission acknowledges
the risks associated with oil exploration and
drilling in deeper and deeper waters, but also
makes clear that it “believes that deepwater
drilling can be done safely.” Key
recommendations include
- Creating an independent offshore drilling safety agency: The Commission recommends that “Congress and the Administration should create an independent safety agency with the Department of Interior, headed by an official shielded from political interference by a fixed term (as we do with other critical, non-political positions like the Director of the Federal Bureau of Investigation)…”
- Augmenting NOAA’s oversight role: The National Oceanic and Atmospheric Administration (NOAA), which is responsible for marine research and protection, should have a more formal role in offshore oil and gas leasing decisions.
- Boosting science and technical research: The Commission states that “better scientific and technical information is essential to making informed decisions about risk before exploration or drilling commence.”
- Increasing the cap on industry liability for spills and accidents: Under the Oil Pollution Act, company liability for spills from offshore facilities is capped at $75 million. According to the Commission, this amount is “totally inadequate and places the economic risk on the backs of victims and the taxpayer. The cap should be raised significantly to place the burden of catastrophic failure on those who will gain the economic rewards, and to compensate innocent victims.”
- Directing the majority of financial penalties paid by BP and others to Gulf restoration: The Commission recommends that Congress direct 80% of any Clean Water Act penalties, which could total billions of dollars in fines and other penalties not include within the $75 million cap above, to the long-term restoration of the Gulf of Mexico. Although multiple plans have been developed to restore wetlands, barrier islands, and habitat throughout the region, implementation has been limited, in part, because such restoration requires billions of dollars in new investment.
This reflects a broad and general summary of the Commission’s findings and recommendations. For its complete report and supporting materials, visit http://www.oilspillcommission.gov/.
Next Steps
Although
issuing the report is critical, Commission
Co-Chair William Reilly, who served as EPA
Administrator under President George H.W. Bush,
signaled clearly that the most important steps
are yet to come. He said, “Our most
important work may occur in the next two months
as we meet with all affected parties and
impress upon the Congress, industry, and the
nation the urgent need to act on these
recommendations.” In late January, the
Committee on Natural Resources in the U.S.
House and Committee on Energy and Natural
Resources in the U.S. Senate held hearings on
the findings. However, it remains unclear
how Congress and the Obama administration will
utilize the Commission’s findings and
recommendations in the future.
– Scott Kovarovics, IWLA Conservation Director