The 2010 deep water horizon oil spill in the Gulf of Mexico was a tragedy brought on in part by new technology allowing development of oil and gas reserves in deep water.Given the scope of the spill,why would companies take a risk of such a disaster given the scope of the litigation following the disaster?

Question

Quizplus · Accepted Answer

The potential profit from a major oil find in deep waters is so large that companies are willing to take the risk, while also taking precautions to minimize the risk of a disaster. However, accidents can still happen, as was the case with the Deepwater Horizon oil spill. The scope of the litigation following the disaster is undoubtedly a consideration for these companies, but it does not necessarily deter them from pursuing the potential profits of exploring for oil in deep waters.

The 2010 Deep Water Horizon Oil Spill in the Gulf