A steep hike in damage limits could drive offshore oil drillers out of U.S. waters, one insurance official warned in recent testimony before Congress.
Robert P. Hartwig, the industry's leading economist and president of the Insurance Information Institute, told the House Transportation and Infrastructure Committee that a proposed increase in the limits for environmental liability from an oil spill from the current $75 million up to $10 billion is beyond the capacity of the industry to handle. The proposal is contained in a bill, S. 3305, introduced in the Senate by Sen. Robert Menendez, D-N.J.
The American Insurance Association said Senate Majority Leader Harry Reid, D-Nev., expects a vote on the bill by July.
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