June 16th, 2010
12:20 PM ET
5 years ago

BP to escrow $20 billion for Gulf claims

ALT TEXT

 BP executives meet with President Obama and high level cabinet members in the Roosevelt Room of the White House. (PHOTO CREDIT: Pete Souza/White House)


New York (CNNMoney.com) - BP has agreed to put roughly $20 billion into an escrow account to cover costs related to the oil spill in the Gulf of Mexico, a senior White House official told CNN Wednesday.

The official said the agreement was worked out ahead of a highly-anticipated meeting between BP executives and President Obama in Washington.

The amount to be placed in the fund is "in the ballpark of $20 billion," according to the official.

Obama is expected to make a statement later Wednesday.

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Filed under: BP • Energy
soundoff (71 Responses)
  1. Pete

    Obama is fixing the problems created by Bush. 2 wars (1 never needed, 2 badly managed by Bush), oil companies Bush slept with that created dangerous unregulated unsafe wells offshore and and an economy gone to hell under the watch of the ever-holidaying-clueless Bush.

    June 16, 2010 12:54 pm at 12:54 pm |
  2. jbakaregit

    Good job Obama. Get the money from this multinational corporation that has trashed our shores.

    Every last red cent they need to cough up. (Of course, the haters will complain that this compensation payout to the folks this oil spill has impacted will hurt jobs, make Tony Haywood live in a $5 million mansion insead of a $10 million one, and is nothing more than to get votes along the Gulf Coast.). Queuing the maestro...

    June 16, 2010 12:54 pm at 12:54 pm |
  3. Angus McDugan

    Obama is such a child. It was obvious on TV last night. He looked like a deer in the head-lights. I guess he needs a "large receptive crowd" as the NYT put it. He appeared to be uncomfortable and insecure last night. He looked very small on the screen.

    But the biggest failure is that he did not focus on stopping the leak. Instead he whored out the disaster to push for his legislation.

    He has sold out to unions by not letting European companies come to our aid (advanced skimmer technology).

    A very sad and political man.

    June 16, 2010 12:56 pm at 12:56 pm |
  4. one voice

    You think McCain and Palin would have put the pressure on B.P. to do the right thing for the struggling people and businesses in the gulf region? HELL NO. DRILL BABY DRILL is their motto. Protecting the BOTTOM LINE over safety and the enviornment is the issue, ALL GOP Representitives in Government need to go, they don't care about small business and the Average Americans.

    June 16, 2010 12:56 pm at 12:56 pm |
  5. Carmelle

    Yes he did! To gulf residents:

    I HOPE YOU REMEMBER THAT THE NEXT TIME YOU WANT TO SAY THAT THIS PRESIDENT IS A MUSLIM,LIAR,CON-ASRTIST, ETC....

    This is for you!

    June 16, 2010 12:58 pm at 12:58 pm |
  6. steve

    Mr. President, Kudos for taking care of the business.
    Good job. 20 Billion is a good start.

    June 16, 2010 01:00 pm at 1:00 pm |
  7. Sniffit

    "All the guy can do is talk, promise everything, and underdeliver."

    I can think of 20B reasons you're wrong.

    June 16, 2010 01:01 pm at 1:01 pm |
  8. vet in tx

    the interest alone can cover the compensation to the gulf residents as well as BP's stock holders as well as compensation for the government involvement regarding supplies, fuel, equipment, etc.

    Remember America, without regulation, corporations will poison your water, give your kids cancer, and steal all of your money!

    June 16, 2010 01:03 pm at 1:03 pm |
  9. Ann

    wouldn't you feel much better if it was Hillary (and Bill's mind) dealing with issue in the Oval office? Stupid Dems made a horrible mistake.. now listen to Mr. Speech and pray.

    June 16, 2010 01:03 pm at 1:03 pm |
  10. Chuckster

    Yes BP, your sad safety record has finally caught up with you. I find it amazing that a Corporation like you has the balls to go to your suppliers and perform safety checks and inspections but, you don't do them yourselves. I guess this $20 billion dollars will remind you of your many short comings as well as getting you back on track with safety. This will probably cost the 3 top BP gents their jobs, AND IT SHOULD, THE CEO, THE CFO, AND THE COO NEEDS TO GO AWAY FOR THIS MESS. I just find it ironic how just because you are an organization with more money than brains you think you can do what you want. Well guess what, I would think someone should also go to prison for murder or negligence!!! What do you think BP????

    June 16, 2010 01:03 pm at 1:03 pm |
  11. lmonta

    Go President Obama. This is what counts getting people there lives back not speeches. This President knows what he is doing it may take him some time but he does get things done

    June 16, 2010 01:04 pm at 1:04 pm |
  12. The Clear Thinking Independent Voter

    This is what competence looks like in the Oval Office . I'd much rather have a President that gets even rather than getting mad.

    By securing this $20B from BP, Mr Obama has done an end run around those REPUBLICAN politicians that were, for some ungodly reason, prepared to fight AGAINT raising the oil company liability beyond the current paltry $75M.

    I believe part of the country's angst was concern that BP would be able to dodge responsibility with the aid of scum sucking lawyers and "IN-THE-POCKET" GOP'ers. While I"m sure this installment is only the beginning ... even if it didn't go any further .... it is 26 times LARGER than what current industry favoring legislation calls for.

    Way to go President No-Drama-Obama!

    June 16, 2010 01:05 pm at 1:05 pm |
  13. Anonymous

    Tell bp to dug depper in ther poket they will make there money back at the gas pump

    June 16, 2010 01:08 pm at 1:08 pm |
  14. Augsbee

    This $20 billion should have been in an escrow account from the first week our President could see that BP was not shutting down, plugging the oil well and it was spilling all over our ocean so that the people of Louisiana could immediately apply for money and not be in the financial situation that they are in right now!!!!!!!!!!!! This poor families right now have still no idea how and how much they will see of this $20 billion. Or, the President should have gotten FEMA out there immediately to help the families of Louisiana start dealing with oil spill financial impact on their lives. This is heartbreaking.

    June 16, 2010 01:12 pm at 1:12 pm |
  15. eunice

    If there is anyone out who can stop the OIL LEAK you should do that If not stop blaming the President - HE DIDN'T CAUSE THIS LEAK ---BP CAUSE THIS LEAK --- BP SHOULD PAY FOR THE CLEAN UP AND BP SHOULD KNOW HOW TO STOP THIS LEAKS ------–SO EVERYBODY THAT COMPLAINING ABOUT THE PRESIDENT NOT DOING ANYTHING -– SINCE MOST OF YOU THAT IS COMPLAINING IF YOU ARE SO SMART LET'S SEE IF YOU CAN STOP THIS OIL LEAK ----

    June 16, 2010 01:12 pm at 1:12 pm |
  16. Obamas' clan...oops..plan..!

    'I will restore the gulf better than before..and hold them (BP) accountable if my plan fails"....and fail it will ....what is dead cannot be restored....unless Obamba thinks he has the power...!

    ..................................................it is too little and too late...............................

    June 16, 2010 01:14 pm at 1:14 pm |
  17. Tim

    Wow, great political theatre. Since the HOLE IS NOT YET PLUGGED, it's great they are focusing on how much BP will pay. Let's hope that 6 months from now, when the hole is still not plugged, we don't have a trillion dollars of damages.

    Good going Barry, show the folks you are engaged.

    June 16, 2010 01:15 pm at 1:15 pm |
  18. Donnatella

    I am real glad to hear this, I just hope it is enough.

    June 16, 2010 01:15 pm at 1:15 pm |
  19. Tim

    Can someone please stop him from making any more political statements. Or just let me slap him upside the back of the head, with a frying pan.

    June 16, 2010 01:16 pm at 1:16 pm |
  20. Claudia, Houston, Tx

    The RNC spent $50 thousand on a video like BP in the wake of this diaster claiming our President was doing nothing.

    June 16, 2010 01:16 pm at 1:16 pm |
  21. MatthewDetroit

    HOPEFULLY.....The Democrats dont steal the money and start a new welfare program......

    June 16, 2010 01:18 pm at 1:18 pm |
  22. thor

    This should save them a bunch of money since they'll be able to write this off on their taxes !!!!

    June 16, 2010 01:18 pm at 1:18 pm |
  23. Rick

    thats the amount BP has promised all along, SLObama had NOTHING to do with that amount, but I am sure just like always that flop eared SLObama will take credit for it. SLObama is the biggest lieing wanna be leader America has ever seen. It is time for SLObama to be impeached for lies and theft of American lives and their livelyhoods.. SLObama is a waste as a leader, we would be better off with Nixon.

    June 16, 2010 01:19 pm at 1:19 pm |
  24. SLP

    President Obama just needs to stop with the 'I am so outraged routine!". It is so easy to see through. See, this is what happens with big government. BP is responsible for this mess, I am not disputing that fact. However, who gave them the go ahead to drill in that deep of water? Who is responsible for all of the rules and regulations that have been put on the oil industry? The answer to these questions would be, wait for it..... our government. Therefore, they are just as much to blame as BP. They need to realize that you can't intrude and take over everything and then start pointing fingers when something goes wrong.

    June 16, 2010 01:21 pm at 1:21 pm |
  25. Terry607

    Let's just make sure we all understand Obama should not get any credit for this. BP Came to the table ready to do what's right.
    The credit Obama should get is for proposing a new tax on us for oil and running a dog and pony show. Really proactive Obama! You won't get my vote a second time!

    It would just be nice if the news media would promote non biased reporting. So many in the media inject their own opnions and offer biased reports that no one knows who to trust. I wouldn't trust anything CNN (TJ Holmes) or NBC (Brian Williams) or maybe the worst CNBC's (Keithe oberman) reporters say. They all need to review old tapes of Walter Cronkite and learn how to report non biased news.

    June 16, 2010 01:22 pm at 1:22 pm |
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