BP

Judge finds BP grossly negligent

Published: 03:21, September 5, 2014

A federal judge found BP grossly negligent in its conduct that resulted in the worst offshore oil spill in American history. “Grossly negligent” rather than just “negligent” exposes BP to between $10.3 billion and $17.6 billion in new civil penalties, almost four times the maximum Clean Water Act fine for simple negligence.

The potential penalties dwarf the $3.5 billion BP has set aside.

In April 2010, while drilling at the Macondo Prospect in the Gulf of Mexico, an explosion on the Deepwater Horizon rig caused a blowout that killed eleven workers and ignited a fireball that was visible forty miles away.

The resulting fire could not be put out and a few days later the Deepwater Horizon rig sank, leaving the well gushing oil at the bottom of the sea, causing the biggest offshore oil spill in the history of the United States.

On Thursday, Judge Carl Barbier assigned blame as follows:

  • BP: 67%,
  • Transocean: 30%.
  • Halliburton: 3%.

According to Judge Barbier, BP’s “profit-driven decision” during the drilling led to the fatal blowout.

In his 153-page ruling, Judge Barbier wrote:

BP Oil Disaster
The fireball was visible forty miles away.

“The Court concludes that the discharge of oil ‘was the result of gross negligence or wilful misconduct‘ by BP. BP’s conduct was reckless. These instances of negligence, taken together, evince an extreme deviation from the standard of care and a conscious disregard of known risks.”

BP statement on the ruling

In an public statement issued on September 4th, 2014, BP said it strongly disagrees with the court’s ruling.

The British oil & gas giant says that evidence presented at trial does not support the decision that it was grossly negligent regarding the accident and that its activities at the oil well amounted to willful misconduct.

BP wrote:

“The law is clear that proving gross negligence is a very high bar that was not met in this case. BP believes that an impartial view of the record does not support the erroneous conclusion reached by the District Court.”

BP says it will appeal.

Halliburton settlement

Earlier this week, oil field services company Halliburton reached a settlement worth $1.1 billion.

The money is to be pain in three installments over the next 24 months into a trust until all appeals have been resolved.

The settlement, which needs to be approved, will void the risk of further damage, even if it is found grossly negligent by Judge Barbier.

It will also resolve a class action by a group of fishermen.

Christian Nordqvist Avatar

Other News

IMF says stablecoins could cut payment costs but weaken monetary control

Aug 30, 2026

Middle East energy shock drives renewables push and fossil-fuel safeguards

Aug 30, 2026

Build-A-Bear cuts outlook as retail sales fall and wholesale growth slows

Aug 30, 2026

HP raises outlook as PC revenue climbs 18% despite lower unit volume

Aug 29, 2026

OECD growth edges up to 0.5% as G7 economies slow

Aug 29, 2026

G20 trade accelerates as imports and services strengthen in second quarter

Aug 29, 2026

Free electricity may help grids use excess wind and solar power

Aug 28, 2026

Gap raises profit outlook as namesake brand gains but Old Navy struggles

Aug 28, 2026

Why “90% remaining” can make a premium product look like better value

Aug 28, 2026

Working from home has created a new kind of presenteeism

Aug 27, 2026

Global real house prices fall 1.2%, but most markets still rise

Aug 27, 2026

Best Buy raises outlook as computing and AI glasses lift sales

Aug 27, 2026

EU imports rise faster than exports as China and US remain top partners

Aug 27, 2026

Thailand holds interest rate at 1% as export strength masks weak domestic demand

Aug 26, 2026

SBA proposal would broaden which companies qualify as small businesses

Aug 26, 2026

Nvidia revenue more than doubles to $96.2 billion as AI demand accelerates

Aug 26, 2026

UK National Wealth Fund backs Hemerdon mine with up to £71 million

Aug 26, 2026

US economy grows 1.5% as stronger consumer spending offsets trade drag

Aug 26, 2026

Zoom enterprise revenue rises 7.8% as investment gain lifts profit

Aug 26, 2026

Why more bank connections can eventually leave banks worse off

Aug 25, 2026