Five questions answered on… BP's record fine for Deepwater Horizon

The oil giant's in giant trouble.

How much does BP have to pay in the settlement? 

The oil giant pleaded guilty to the manslaughter of 11 men during the 2010 spill and have been ordered to pay $4.5bn (£2.8bn) to the US authorities. 

How much has the oil spill cost BP altogether? 

After this latest settlement it is estimated the biggest oil spill disaster in America’s history has caused the offending company £43bn. 

However, there is also a civil case that remains unresolved accusing BP of gross negligence, which if BP are found guilty it will no doubt have to pay out even more. 

What about the manslaughter charges?

BP has pleaded guilty to the manslaughter of 11 men. The Department of Justice has also charged BP’s two highest-ranking supervisors on the Deepwater Horizon, Robert Kaluza and Donald Vidrine, with manslaughter, negligence and gross negligence.

Also, David Rainy a former senior BP executive who served as deputy commander during the spill has been arrested for allegedly underestimating the spill. 

BP will also plead guilty to two criminal misdemeanor counts over the spill and to a criminal felony charge of obstructing Congress by lying about the amount of leaking from the Macondo well. 

What have officials said about the settlement? 

The Telegraph report that the New Orleans assistant attorney general Lanny Breuer said:

“Perhaps the greatest tragedy is that the deaths of the 11 men on board the Deepwater Horizon could have been avoided. As the oil spill continued, BP made a tragic situation worse: it began misleading Congress and the American people about how much oil was pouring out of the Macondo well.”

What has BP said? 

BP chief executive Bob Dudley said:

“All of us at BP deeply regret the tragic loss of life caused by the Deepwater Horizon accident as well as the impact of the spill on the Gulf coast region.

“We apologise for our role in the accident and, as today’s resolution with the US government further reflects, we have accepted responsibility for our actions.”

Deepwater Horizon burns in 2010. Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Photo: Getty
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Sooner or later, a British university is going to go bankrupt

Theresa May's anti-immigration policies will have a big impact - and no-one is talking about it. 

The most effective way to regenerate somewhere? Build a university there. Of all the bits of the public sector, they have the most beneficial local effects – they create, near-instantly, a constellation of jobs, both directly and indirectly.

Don’t forget that the housing crisis in England’s great cities is the jobs crisis everywhere else: universities not only attract students but create graduate employment, both through directly working for the university or servicing its students and staff.

In the United Kingdom, when you look at the renaissance of England’s cities from the 1990s to the present day, universities are often unnoticed and uncelebrated but they are always at the heart of the picture.

And crucial to their funding: the high fees of overseas students. Thanks to the dominance of Oxford and Cambridge in television and film, the wide spread of English around the world, and the soft power of the BBC, particularly the World Service,  an education at a British university is highly prized around of the world. Add to that the fact that higher education is something that Britain does well and the conditions for financially secure development of regional centres of growth and jobs – supposedly the tentpole of Theresa May’s agenda – are all in place.

But at the Home Office, May did more to stop the flow of foreign students into higher education in Britain than any other minister since the Second World War. Under May, that department did its utmost to reduce the number of overseas students, despite opposition both from BIS, then responsible for higher education, and the Treasury, then supremely powerful under the leadership of George Osborne.

That’s the hidden story in today’s Office of National Statistics figures showing a drop in the number of international students. Even small falls in the number of international students has big repercussions for student funding. Take the University of Hull – one in six students are international students. But remove their contribution in fees and the University’s finances would instantly go from deficit into debt. At Imperial, international students make up a third of the student population – but contribute 56 per cent of student fee income.

Bluntly – if May continues to reduce student numbers, the end result is going to be a university going bust, with massive knock-on effects, not only for research enterprise but for the local economies of the surrounding area.

And that’s the trajectory under David Cameron, when the Home Office’s instincts faced strong countervailing pressure from a powerful Treasury and a department for Business, Innovation and Skills that for most of his premiership hosted a vocal Liberal Democrat who needed to be mollified. There’s every reason to believe that the Cameron-era trajectory will accelerate, rather than decline, now that May is at the Treasury, the new department of Business, Energy and Industrial Strategy doesn’t even have responsibility for higher education anymore. (That’s back at the Department for Education, where the Secretary of State, Justine Greening, is a May loyalist.)

We talk about the pressures in the NHS or in care, and those, too, are warning lights in the British state. But watch out too, for a university that needs to be bailed out before long. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.