BP agrees to pay $4.5 billion for 2010 oil spill

BP will be paying the larget criminal fine in history

As this blog mentioned earlier this year, the Gulf Coast is continuing its recovery efforts following the massive oil spill that ravaged the area back in 2010. This week, British Petroleum (BP) has agreed to pay for its part in the devastating incident.

The British oil giant is going to pay a fine of $4.5 billion over a period of the next five years, making it the largest criminal fine in American history, according to a report from The Associated Press. BP is agreeing to plead guilty to a number of charges, including causing the deaths of the 11 crewmembers who lost their lives during the initial explosion that caused the spill.

Carl-Henric Svanberg, a BP chairman, spoke with the AP about the decision and suggested it is ultimately the right decision for all involved parties.

"We believe this resolution is in the best interest of BP and its shareholders," said Svanberg said. "It removes two significant legal risks and allows us to vigorously defend the company against the remaining civil claims."

Despite these developments, many legal ramifications are yet to be seen and the ultimate effects of this event have not fully reverberated throughout the oil industry. However, many analysts believe the BP incident was spurred by negligence and the lack of proper equipment on the part of the oil giant.

Oilfield producers can take action to help ensure they will not find themselves in a similar situation. Investing in oilfield equipment designed to improve operational efficiency and onsite safety can promote best practices and alleviate the risks associated with oil extraction.

By improving productivity and mitigating potential dangers, producers can experience higher profits. Working with an oilfield technologies provider can help companies acquire the right solutions to fit their needs.