Center for American Progress

STATEMENT: Weiss, Gordon, Davenport Commend President Obama for Convincing BP to Commit to Establishing an Escrow Fund for Damages
Press Statement

STATEMENT: Weiss, Gordon, Davenport Commend President Obama for Convincing BP to Commit to Establishing an Escrow Fund for Damages

CAP's Energy Experts Daniel J. Weiss, Kate Gordon, and Health Expert Karen Davenport Weigh in on the $20 billion Damages Fund Designed to Compensate Gulf Residents for Their Losses.

"President Obama convincing BP to establish an escrow fund for damages is a silver lining behind the very dark clouds of the BP oil disaster. The "Claims and Escrow" fund should ensure that people harmed by this calamity receive prompt, fair compensation for their losses. It prevents BP from hiding behind liability caps and long, drawn-out court battles. 

"This $20 billion damages fund is quite reasonable. BP will only contribute $5 billion per year over four years. BP earned more than $5 billion in the first quarter of 2010. The $20 billion total is still less than the profits BP earned over the past 15 months.

"There will be a need for long-term monitoring of the health effects of crude oil and dispersants in exposed populations. Some of these effects may have a long latency period (20 years or more), and may then require assessment, treatment and care. Under such circumstances, $500 million should be considered a down payment on the needed monitoring systems and capabilities and health care services.

"President Obama and his administration deserve hearty thanks for designing a system that should help those harmed by the BP oil disaster and most in need of assistance."

To speak with our experts on this topic, please contact:

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202.481.8224 or [email protected]

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202.478.6345 or [email protected]

TV: Andrea Purse
202.741.6250 or [email protected]

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