OIL SPILLS AND FINANCIAL RESPONSIBILITIES1
ABSTRACT Under the international convention system for oil spill liability and compensation, shipowners and oil cargo owners are sharing the costs of oil pollution (cleanup and damages). While the industries find the burden of financial liability too heavy, the compensation provided through the Conventions (Civil Liability Conventions and Fund Conventions [CLCs/FCs]) has become increasingly insufficient to satisfy the total admissible claims. What has to be done? Increase the financial liability of the responsible parties? Let the victims of pollution shoulder part of their uncompensated claims alone? Neither can be fairly accepted. This paper will discuss a solution based on the theory of risk-profit, upon which the current Conventions (CLCs/FCs) are founded. In this regard, the paper also will compare the Conventions with a domestic regime—the U.S. Oil Pollution Act of 1990.