tag:blogger.com,1999:blog-12257856.post1282461498076883641..comments2024-01-20T12:46:47.740-05:00Comments on To Get Rich is Glorious: The BP oil spillColinhttp://www.blogger.com/profile/03573575140584770666noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-12257856.post-21864414253622700142010-05-07T19:11:40.191-04:002010-05-07T19:11:40.191-04:00What is the appropriate response to the oil spill?...What is the appropriate response to the oil spill? Well, frankly from a public policy perspective I'm not sure there is one. We are not going to live in a world with zero accidents, and we must discard any notion that if we just keep piling on the rules that somehow 100% safety can be attained. Further, even if we could, I'm not sure it would make sense. Let's say for example that airline safety could be 100% guaranteed if a series of safety measures were put in place, but their cost would drive up the cost of a seat to $5,000 -- would that be worthwhile? I don't think the cost-benefit really holds. <br /><br />That's not to say that a response isn't taking place. I can guarantee you that not only BP but every other major oil company out there is reviewing their internal rules and regulations, as well as safety features, to ensure this type of disaster doesn't strike them. And if watching this mess unfold, and the hundreds of million it will cost BP, isn't enough to spur a company into action, nothing is. Companies are absolutely going to try to learn and apply lessons from what has transpired. Risk management, especially for these types of firms, is a big deal.<br /><br />Your question about those whose businesses are placed at risk is a good one. I think it is reasonable to demand that BP compensate those who have suffered a loss such as fishermen. Of course, calculating who has suffered and exactly how much is tough. It's worth noting that Exxon paid out over $1 billion to settle civil and criminal charges from the Valdez spill, and I wouldn't be surprised if BP ends up shelling out a similar amount.Colinhttps://www.blogger.com/profile/03573575140584770666noreply@blogger.comtag:blogger.com,1999:blog-12257856.post-10521430985180967292010-05-07T16:30:00.977-04:002010-05-07T16:30:00.977-04:00Colin, thanks for this. It's helpful to hear y...Colin, thanks for this. It's helpful to hear your point of view.<br /><br />I guess my initial question is in response to your statement,"More regulation does not strike me as the appropriate solution."<br /><br />What is? And, how would you frame it to someone who's business is at risk because of the spill?<br /><br />We all know more regulation is coming down the pike because of this, and I'd love to understand the alternative.Atticusnoreply@blogger.com