The Economic Impact Of The Gulf Oil Spill

While it is generally assumed BP is responsible for all costs associated with the cleanup, White House press secretary Robert Gibbs was asked Monday whether the Oil Pollution Act of 1990 limits the amount of liability assessed to a company at $75 million, that is, beyond the initial cleanup cost. At the time, Mr. Gibbs wasn't clear on the specific provisions of the bill.

Later in the day, Kenneth Baer, Communications Director for the Office of Management and Budget, issued the following statement: "Let's be clear: BP is responsible for -- and will be held accountable for -- the very significant clean-up and recovery costs. If BP is found to be grossly negligent or to have engaged in willful misconduct or conduct in violation of federal regulations, then there is no cap under the Oil Pollution Act for damages. "You can be sure'' Baer wrote, "that BP will be held accountable to the full extent of the law.''

NOTE EU-Digest: The oil slick is now estimated at about 3,800 square kilometers.
Unfortunately the consumers numbed by empty environmental slogans of the Oil Industry can't care less. At stations selling BP gas across the world, there is no apparent sign of a consumer backlash at the pump, like the boycott triggered by the Exxon Valdez spill in Alaska 21 years ago. Click here to see pictures taken from outer space of the BP Oil spill in the Gulf.
 
For more: The Economic Impact Of The Gulf Oil Spill