THE oil industry is in dangerous waters. In 2007, one-third of all crude oil came from offshore sources, according to the International Energy Agency. Last week saw a find off the Falkland Islands 鈥� in waters three times as deep as the source of the ongoing Gulf of Mexico spill 鈥� and it is clear that rigs will increasingly operate in abyssal marine environments.
Yet the oil industry has been complacent about the risks of deep-water drilling (see 鈥淯nder pressure, in the dark and all at sea鈥�). To focus minds, White House officials and Democratic lawmakers in Congress are seeking to raise the cap on liabilities from $75 million to $10 billion. Such a stringent requirement is welcome. But to keep oil companies from moving to less-regulated waters, the principle of 鈥減olluter pays鈥� should be applied to deep-water drilling worldwide.
