BP clearly is culpable. And the
Many other factors also contributed to the accident, however.First among them is the important issue of ownership. BP did not own the Deepwater Horizon, but leased it from another company,
A second contributor to the disaster is the federal law limiting liability for damages caused by offshore oil spills...
Third, BP may have been misled in calculating its exposure to risk by MMS computer models that predict the likely path of large-scale oil spills in the
Fourth, BP and other oil companies have been forced to drill in ultra-deep waters as a result of federal laws and
There is plenty of blame to go around for the Deepwater Horizon disaster. But don't jump to the conclusion that the best way to prevent future catastrophes is simply through further regulation.
More regulation will not necessarily work any better than existing regulation. What will work is getting the incentives right — through clearly defined ownership, responsibility and liability — and exploiting proven oil reserves onshore and in shallow waters offshore.