Abstract:
In 2010, the BP spill in the Gulf of Mexico cast doubt on the efficacy of oil regulation and the future of offshore drilling. In this paper, I examine the causes and ramifications of the BP spill in the context of oil regulation and industry safety culture. I argue that the spill resulted from a deficient safety culture, poor regulatory oversight, and negligible prioritization of the environmental and safety protocol. To correct the incentive schemes and safety culture of the oil industry, I propose a model that utilizes consumer pressure to incentivize companies to maximize environmentally responsible production. Ultimately, disclosing the environmentally records of oil companies can capture environmentally minded consumers and align the best interests of the industry with environmental stewardship.
