Moratorium on Offshore Deepwater Oil Drilling Wrong Move

Not only does the president's moratorium on deepwater drilling fail to stop the oil leak, it costs jobs on the offshore rigs that he has shut down; reduces the amount of crude oil available for refining into gasoline, diesel fuel and heating oil; and penalizes BP's competitors, who have been pumping oil from offshore wells responsibly for decades. Until BP's Deepwater Horizon rig exploded, no oil had been spilled as a result of offshore drilling in U.S. waters since an accident off the coast of Santa Barbara in 1969. Without energy production from deepwater areas, a vital source of jobs and tax revenue will be lost. And if offshore rigs remain idle for long, the Gulf's economy will wither. Yes, BP bears all responsibility for the explosion that killed 11 workers and caused staggering economic and environmental damage that is still ongoing. BP must be held accountable for its mismanagement. Among industry insiders, the fact that an "accident" occurred at a BP offshore drilling site was no surprise. BP has a reputation for cutting corners and disregarding risk. If President Obama truly wanted to supply incentives for trading off risk and reward optimally, he would press for legislation that holds oil companies strictly liable for the economic and environmental damages they cause. Because such damages may exceed the responsible company's ability to pay, the sanctions for wrong-doing also should include jail time and fines for the executives responsible for business decisions that harm others...more