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deepwater horizon
Trump and Congress Just Gifted Big Oil a Multimillion Dollar Stocking Stuffer
By allowing an industry tax toward oil spill prevention and response to expire, GOP leaders are exposing the nation to the unnecessary risk of continued oil pollution, including major disasters like Exxon Valdez and Deepwater Horizon.
Dec 19, 2025
As Congress recesses this week without reauthorizing the Affordable Care Act subsidies needed by millions of Americans, it also quietly gave the oil industry a multimillion dollar tax break by allowing the 9 cent-per-barrel oil tax (on domestic and imported oil) into the federal Oil Spill Liability Trust Fund to expire as well on December 31. The OSLTF, administered by the Coast Guard’s National Pollution Funds Center, is the nation’s central financial instrument for oil spill prevention and response, earning about $500 million per year from the nominal excise oil tax—about 0.1% of annual US oil industry revenue.
In our current political climate prioritizing industry over public interest, many feared that Congress and the Trump administration might simply allow the oil spill tax to expire, as a “Return on Investment” for industry contributions made to their political campaigns. Congress did just that. As they increase costs for millions of Americans, the Republican congress and administration are decreasing costs for some of the richest companies in the world.
For decades, Congress and the administration have remained stubbornly resistant to using the OSLTF to fund necessary oil spill prevention measures across the nation, and as tax revenue and spill damage recoveries continued to be collected, the fund balance has now grown to over $10 billion. Since the fund’s use for a single oil spill is limited to $1.5 billion, we have long proposed that a substantial portion of the remaining balance be used to better prevent oil pollution across the nation. Instead of just leaving all of this money in the bank, it should be put to work, while saving enough (perhaps $5 billion) for conventional oil spill response activities.
A transcendent lesson learned in all major oil spills around the world is that once oil is spilled, there is precious little that can be done to limit environmental damage. Historically, an average of 2-6% of total spill volume is actually recovered in major marine oil spills (Deepwater Horizon was about 4%, Exxon Valdez about 8%). These multibillion dollar spill responses may look good for oil company and government public relations, but they are virtually irrelevant in limiting environmental harm. Prevention is key to environmental protection.
As a fundamental cause of the 1989 Exxon Valdez and the 2010 Deepwater Horizon disasters was inadequate government oversight, expanding drilling while cutting oversight is as reckless as it gets.
Spill prevention measures across the nation in need of more funding include enhanced Vessel Traffic Systems, escort-rescue tugs to prevent groundings and collisions of tankers and cargo ships in dangerous passages (e.g. the March 2024 cargo ship Dali collision with the Francis Scott Key bridge in Baltimore Harbor), enhanced inspection of oil and liquefied natural gas tankers, and so on. However, the federal government has resisted using the fund for such preventive measures.
With the OSLTF tax expiration approaching this summer, we proposed that the fund’s 9 cent-per-barrel tax on domestic and imported crude oil (less than 0.2% of today’s crude oil price, or less than one cent-per-gallon of gasoline) be fully reauthorized, and that the fund’s use for many oil spill prevention measures be significantly expanded. Congress and the administration were unresponsive, raising suspicions that they intended to allow the oil tax to expire, which they just did.
One proposed use for the fund is to safely cap and decommission the millions of derelict, abandoned oil and gas wells across the nation, both onshore and offshore. Regarding these orphaned and abandoned oil wells, a 2021 scientific paper found that, of the 4,700,000 historic and active oil and gas wells across the US, only 1 in 3 (1,500,000) are considered safely plugged. Leakage from improperly abandoned oil and gas wells causes groundwater and air pollution, ecological damage, risk of explosions, and damage to human health.
Costs for well decommissioning and abandonment have been estimated to range from $10,000-$50,000 to plug old, shallow wells; $300,000 for newer, deeper wells; and up to $1 million for more complex wells. In a 2015 study, the Government Accountability Office (GAO) estimated the cost to securely decommission the thousands of deepwater oil and gas wells in the US Gulf of Mexico (two-thirds of the 5,000 wells in the Gulf of Mexico are in deep water) at $38.2 billion. The GAO study reported that, of the $38.2 billion in decommissioning liabilities, $2.3 billion were not covered by existing financial assurances; and of the remaining $35.9 billion in decommissioning liabilities, the federal government held $2.9 billion in bonds and other assurances, while waiving the remaining $33 billion for companies that passed a “financial strength test.” The GAO expressed concern about such extensive waivers of financial assurances, as this exposes the federal government to substantial future costs.
Clearly, abandoned oil and gas wells present enormous oil pollution risk, public safety hazard, and substantial government financial liability that we as a nation have ignored for too long. We have to do better, and using the OSLTF for this purpose would clearly be in the national interest.
Further, while the Trump administration recently proposed opening virtually the entire US Outer Continental Shelf (more than 1 billion acres of the nation's offshore waters) to oil and gas drilling, it slashed the budget for the Department of Interior’s Bureau of Safety and Environmental Enforcement (BSEE) by roughly 35%, from $220 million to just $143 million. As a fundamental cause of the 1989 Exxon Valdez and the 2010 Deepwater Horizon disasters was inadequate government oversight, expanding drilling while cutting oversight is as reckless as it gets. Thus, an important use for the federal oil spill fund should be to expand BSEE's budget, as it is largely focused on preventing catastrophic oil spills from the nation's several thousand offshore oil rigs. There are countless other cost-effective pollution prevention measures as well that need OSLTF funding.
But with Congress and the Trump administration ignoring these real funding needs, and allowing the oil tax to expire (as a gift to their oil industry contributors), the nation remains exposed to unnecessary risk of continued oil pollution, including small chronic releases, as well as major disasters like the Exxon Valdez and Deepwater Horizon. So much for “government efficiency.” Hopefully Congress will come to its senses in 2026, and fix what it just broke.
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On Earth Day, Dems Push Bills to Ban Offshore Drilling 'Once and for All'
"Earth Day is an important reminder that every coastal community deserves healthy oceans and oil-free beaches," said one campaigner.
Apr 22, 2025
On Tuesday, to coincide with Earth Day, multiple Democratic senators renewed their effort to pass bills to protect the Pacific and Atlantic oceans from offshore oil and gas drilling—part of a broader legislative push by Democrats to safeguard U.S. coastal waters.
Sen. Alex Padilla of California has reintroduced the West Coast Ocean Protection Act, which would permanently end new oil and gas leases for offshore drilling off the coast of California, Oregon, and Washington.
"We must end offshore oil drilling in coastal waters once and for all," said Padilla in a statement on Tuesday.
Meanwhile, Sen. Cory Booker of New Jersey has reintroduced the Clean Ocean and Safe Tourism (COAST) Anti-Drilling Act, which would permanently prohibit the federal government from issuing leases for the exploration, development, or production of offshore oil and gas in the North Atlantic, Mid-Atlantic, South Atlantic, and Straits of Florida planning areas of the U.S. Outer Continental Shelf.
Reps. Jared Huffman (D-Calif.) and Frank Pallone Jr. (D-N.J.) are leading companion legislation for the two bills in the U.S. House of Representatives.
"California's spectacular marine life—including complex kelp forests and charismatic sea otters—and vibrant coastal economies rely on healthy ecosystems," said Pamela Flick, Defenders of Wildlife California program director, in a statement on Tuesday.
The West Coast Ocean Protection Act "could, once and for all, block offshore drilling activities along the continental shelf, and protect critical marine habitats along California's iconic Pacific Coast," she said.
The legislation comes as environmental leaders warn that this Earth Day puts a focus on the need to resist the Trump administration's attacks on environmental regulation and programs.
On President Donald Trump's first day in office, he initiated plans to make federal land and waters open for oil drilling and mining, including in fragile wilderness in Alaska. Trump also declared a national energy emergency.
Beyond the West Coast Ocean Protection Act and the COAST Anti-Drilling Act, Democratic lawmakers in Congress have reintroduced several other bills in recent weeks aimed at safeguarding coasts.
Those bills include the Florida Coastal Protection Act, which would protect the coast of Florida and eastern Gulf of Mexico from offshore drilling, exploration, and production, and the New England Coastal Protection Act, which would protect the coasts of Maine, New Hampshire, Massachusetts, Rhode Island, and Connecticut, in addition to portions of the North Atlantic Outer Continental Shelf, from offshore drilling.
Conservation groups said they welcome the suite of legislation.
"The path of so-called 'energy dominance' is paved with threats to American coasts," said Sierra Weaver, senior attorney for Defenders of Wildlife, in a statement on Tuesday. "This set of bills offers real protections for coastal communities and wildlife against unwanted, unreasonable, and unsafe offshore oil drilling."
Weaver added that the bills are the kind of leadership and action that's needed on the anniversary of the Deepwater Horizon oil spill, the largest marine oil spill in history.
"Oceana applauds these congressional leaders for reintroducing pivotal legislation that would establish permanent protections from offshore oil and gas drilling for millions of acres of ocean," said Oceana campaign director Joseph Gordon in a statement on Tuesday.
"Earth Day is an important reminder that every coastal community deserves healthy oceans and oil-free beaches," he added.
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Lingering Poison: My Witness to Deepwater Horizon’s Legacy on the Gulf Coast
Fifteen years after the oil spill, the legacy of Corexit dispersants continues to manifest in the broken bodies and shattered lives of those who were exposed, including those who spoke out to save future generations.
Apr 20, 2025
As the mother of a childhood cancer survivor from a coastal Alabama cluster, I reflect on the 15th anniversary of the Deepwater Horizon disaster with anger and frustration at the countless lives needlessly destroyed by the spill and its “cleanup.” But more than anything, I am afraid… I am afraid because the same chemicals that wrought havoc on Gulf communities aren’t being disposed of—they are being rebranded to be reused.
During my seven years of assisting cleanup workers at a Miami-based law firm and Government Accountability Project, I saw the stuff of medical nightmares manifest in real life as I came face-to-face with an innocuously named monster: Corexit. Corexit is a chemical oil dispersant that was used liberally in the wake of the Deepwater Horizon disaster to break up oil slicks into smaller droplets that can be submerged underwater. While Corexit was once described as being “as safe as dish soap” by a BP executive, the final chapter of its use in the Deepwater Horizon disaster was not to be told via feel-good commercials of freshly cleaned ducklings. It is still being written by outsiders documenting the broken lives of the men and women who can no longer speak for themselves after volunteering to clean the Gulf.
Many of the men and women who volunteered to clean the Gulf, a body of water that bound together their communities, jobs, and very way of life, died in the months and years after exposure to Corexit, often from serious diseases including blood and pancreatic cancers—silencing their voices long before justice could be served. I personally knew dozens who were exposed and subsequently left the Earth far too soon.
The corporate shell game of rebranding these toxic chemicals under new names must not distract us from the fundamental truth that these dispersants should never be used again in our waters.
I still think about Captain Bill, who came to us when Stage 4 colon cancer appeared after running a supply boat to the sinking Deepwater Horizon rig. He did not believe all the hype from environmentalists about the dangers of dispersants until he got crop-dusted with them. He developed softball sized cysts all over his body filled with bacteria and was left with just months to live. He left behind a wife and three children, including a young son with autism.
I remember Sandra, a woman who always exuded joy during the 20 years I’d known her. Her job for BP required her to hop on and off oil-contaminated boats; she tragically developed a rare myeloproliferative disorder that ended her life at age 60. She left behind a husband who missed her so profoundly that he lasted only a few months without her.
Corexit has been proven to have deadly side effects within humans, but that won’t stop corporate greed from slapping a new label on it and sending it to a different country. The U.S. Environmental Protection Agency (EPA) was in the process of finalizing new rules and regulations governing the usage of oil dispersants. Right before the rules were set to be finalized, the manufacturer of Corexit abruptly discontinued its product line which constituted over 45% of globally stockpiled dispersants. This was likely not coincidental; the new EPA rules require manufacturers to truthfully report known or anticipated harm to human health and wildlife from their products. Corexit’s parent company chose to withdraw from the U.S. market while re-registering the same toxic products in the United Kingdom and Brazil in 2024, with France also considering approval.
People and communities were falsely reassured about the safety of the working conditions, as BP told workers personal protective gear was unnecessary when dealing with the chemicals. Now, with the risks and threats of exposure known, the protective gear could have saved hundreds of lives and communities from devastation.
Fifteen years after the Deepwater Horizon oil spill, the legacy of Corexit dispersants continues to manifest in the broken bodies and shattered lives of those who were exposed, including those who spoke out to save future generations. The corporate shell game of rebranding these toxic chemicals under new names must not distract us from the fundamental truth that these dispersants should never be used again in our waters. The time has come to close this dark chapter in our history and commit to solutions that truly protect both our coasts and the people who call them home.
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