Should BP Be Liable for Economic Losses Due to the Moratorium on Oil Drilling Imposed After the Deepwater Horizon Accident?
PDF · Steven Shavell · Nov-29-2011 · 64 Vand. L. Rev. 1995 (2011)
In the aftermath of the Deepwater Horizon accident and the BP oil spill, the government imposed a moratorium on deepwater oil drilling in the Gulf of Mexico. The issue addressed here is whether, on grounds of policy, BP should be held responsible for moratorium-related economic losses. The answer that is developed is no. The reason, in essence, is that, although the spill caused the moratorium, the moratorium might be viewed as a socially beneficial event on net because its purpose was to avert a significant danger.