Law Office of Scott A. Nelson, P.C.

The BP oil spill fund has been established. Oil rig accident lawyers in Texas need to know that BP will pay $20 billion into an independently managed fund. They will also suspend dividend payments for the year. BP will sell $10 billion of 'upstream' oil exploration assets to helppay for the fund. BP will also ask for contributions to the fund from the various contractors who were involved in the Deepwater Horizon oil spill. These contractors will include Transocean, Halliburton and Anadarko.

The oil spill fund will be administered by Kenneth Feinberg. Mr. Feinberg has overseen compensation for executives at companies that received federal bailout funds. BP’s fund commitments are much harsher penalties than many investors wanted. Many investors did not want BP to sell any assets or cut investment. This will tend to slow BP’s growth.

To date, the oil still flows from the Deepwater Horizon well. Offshore oil rig accident lawyers in Texas and the Gulf Coast are monitoring the situation, hoping for a solution. in mid-August. Unfortunately, BP’s recent effort to temporarily control the flow by cutting off the damaged riser pipe and then capping the pipe to divert the majority of the oil to a ship has not succeeded.

Last week, BP struggled to stop the gusher, slicing off the bent well pipe with huge shears after the diamond-tipped saw got stuck during the operation. The cut was jagged, so placing a cap over the flow of oil to capture it and then funnel it to a surface ship, may be difficult. Since the cut is jagged, the cap may not fit properly.

The relief well should be finished by mid-August, but some experts say it may not succeed.

Offshore oil rig accident lawyers in Texas and other states will see interesting developments over the next few years.  The giant oil slick presents serious risks to the energy sector. Federal offshore drilling in the Gulf of Mexico produces about one-third of the United States’ total crude production. Floating oil in nearby waters poses a serious threat of fire and is also a threat to workers’ health. As such, other rigs may have to shut down if the oil spreads to their location.

Shipping may also face serious challenges. Although oil does not usually damage these ocean-going vessels, it can cling to their hulls. They will have to be cleaned before they enter U.S. ports or waterways so they do not contaminate the inland waters. The incoming oily ships would have to transfer their cargo or be thoroughly cleaned.

Texas oil rig accident attorneys are monitoring the oil spill daily.  The oil spill continues to spread across the waters southeast of Louisiana and the Gulf of Mexico. BP and various federal agencies continue now with their emergency response and control efforts. BP plugged one of three leakage points on May 5, but the oil continues to be gushing out at 5,000 barrels per day. Some estimate the rate could be as high as 60,000 barrels per day. This oil rig accident is not only horrible because of the death and injuries of the workers, but also the terrible environmental disaster.