Liability and Financial Responsibility for Oil Spills under the Oil Pollution Act of 1990 and Related Statutes

Michael Greenstone,

June 2011

Testimony of Michael Greenstone before the U.S. House Committee on Transportation and Infrastructure

June 9, 2010

I appreciate the opportunity to speak with you today about the economic incentives around drilling decisions that impact the chances of oil spills. The Deepwater Horizon spill is the greatest spill our country has experienced, in terms of both environmental and economic impacts, and I fear that we have yet to understand its full impacts. A key purpose of my testimony is to use economic theory and evidence to take a critical look at existing legislation that regulates drilling, with an eye toward identifying regulatory changes that would allow our country to better meet its energy objectives.