April 27, 2013
The Deepwater Horizon Trial: A Headache for Obama?
Just over three years after the explosion aboard the Deepwater Horizon, Halliburton has finally decided to face the music and increase its reserves for payment of civil damages by $1 billion. Things did not go well for them in the seven weeks of testimony just concluded in federal court in New Orleans. They were caught hiding samples of the exact cement mixture that failed, which they had been ordered by the court to preserve. They had to admit that the cement formulation used "had a low probability of success." With Halliburton now more amenable to seeking a settlement and willing to provide cold hard cash, the prospects go way up for a settlement before the decision of the court is announced in a few months. BP's expert witnesses also scored some major points against the federal government and Transocean. So the inclination by most of the parties to sweep this unfortunate episode down the memory hole has presumably gotten much stronger. Here is a...(Read Full Article)