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White House keeps 'boot' on BP's throat

Schwarzenegger against California off-shore drilling
Los Angeles (AFP) May 3, 2010 - Governor Arnold Schwarzenegger abruptly withdrew his support for drilling off the California coast on Monday, citing the environmental disaster in the Gulf of Mexico as the reason for his U-turn. Schwarzenegger had been in favor of the proposed drilling project off the coast of Santa Barbara, northwest of Los Angeles, saying it could help raise 100 million dollars towards narrowing California's budget deficit. However, the Republican former Hollywood star told reporters at a news conference in Sacramento on Monday that he was opposed to California drilling in the wake of the Deepwater Horizon catastrophe off the coast of Louisiana.

"I think it's clear that we have to make up the 100 million dollars," Schwarzenegger said. "But if I have a choice between the 100 million dollars and what I see in the Gulf of Mexico I'd rather just figure out how to make the 100 million dollars another way." Schwarzenegger said he would not have supported the drilling project if he did not believe it was safe. "I think we all go through the endless amount of studies and research and everything," he said. "Before you make a decision like that you're convinced that this will be safe. "But then you turn on the television and you see this enormous disaster and you say to yourself 'Why would we want to take that risk?' The risk is much greater than the money is worth."

Mexico, US evaluate possible joint oil clean up
Mexico City (AFP) May 3, 2010 - Mexico is closely monitoring the Gulf of Mexico oil spill and will evaluate possible joint cooperation with the United States in case of eco-system damage, the environment ministry said on Monday. "Environment Minister Juan Rafael Elvira Quesada is in close contact with US Interior Secretary Ken Salazar, with whom he agreed this afternoon (Monday) to evaluate scenarios of bilateral cooperation in case of eventual damage to their joint eco-system," a statement said. The ministry last week said that Mexico was not yet at risk from the giant oil slick in US territorial waters but warned that the situation could change rapidly. Energy giant BP said in a statement in London on Monday that it would pay "all necessary and appropriate clean-up costs," estimated at several billion dollars. At least 210,000 gallons of crude per day are estimated to be streaming out from below the Deepwater Horizon rig that sank on April 22, more than 1,200 kilometers (750 miles) from Mexico's coast, two days after an explosion that killed 11 workers.

Gulf oil spill could not happen in Canada: PM Harper
Ottawa (AFP) May 3, 2010 - Canada's prime minister on Monday assailed the "completely unacceptable" behaviour of oil firms in the Gulf of Mexico spill, adding such a "horrific" spill would never happen in Canadian waters. Responding to opposition concerns of a similar incident occurring in the Arctic Ocean, Stephen Harper said drilling would not be allowed in this country unless regulators were "convinced that the safety of the environment and the safety of workers can be assured." "The situation (in the Gulf of Mexico) truly is horrific," Harper commented. "It is an environmental catastrophe unlike anything we have seen in quite a long time." "The behaviour of the companies in question is completely unacceptable and would be completely unacceptable in this country," he added.

BP, which owns the still gushing Gulf oil well, also has exploration licenses in the Canadian Beaufort Sea. A 2008 US Geological Survey report estimates the Arctic holds 90 billion barrels of oil and 30 percent of the world's gas reserves. As Arctic sea ice melts away, a global race is intensifying for those reserves believed to be hidden beneath the seabed.
by Staff Writers
Washington (AFP) May 3, 2010
The White House on Monday kept its "boot" on the throat of BP, despite the British energy giant's assurance that it is "absolutely" responsible for paying to cleanup the Gulf of Mexico oil spill.

The Obama administration positioned itself as the "oversight" authority for the unfolding environmental disaster, stressing once again that BP, as operator of the sunken Deepwater Horizon rig, had a legal obligation to foot the bill.

Influential senators also ratcheted up pressure on British Petroleum, introducing a bill that would raise the liability of oil firms after a disaster to 10 billion dollars.

Political rancor mounted with an end to the crisis still elusive, as frantic efforts went on in the Gulf to plug the gushing oil leak, disperse a huge slick on the surface and protect the shoreline.

BP management, meanwhile, was meeting top administration officials Monday to discuss the operation to cap the well and the threatened ecological catastrophe for fishing grounds and vulnerable wetlands and tourist beaches.

"We will keep our... boot on the throat of BP to ensure that they're doing all that is necessary while we do all that is humanly possible to deal with this incident," White House spokesman Robert Gibbs said.

The White House also declined to offer an assessment of BPs performance since the crisis erupted, as the shrimping, fishing, and tourism industries on the Gulf Coast braced for a devastating financial hit.

"I think the president will be pleased when there's no more oil leaking on the floor of the ocean," Gibbs said, a day after President Barack Obama flew to the Gulf coast to inspect disaster relief efforts.

"The president will be pleased when we've taken sufficient measures to ensure its spread isn't vast," Gibbs said.

Earlier, facing a quickly escalating public relations crisis, BP chief executive Tony Hayward accepted claims that the company was liable under US law for "legitimate" claims for costs and damages following the incident.

"We will absolutely be paying for the clean-up operation. There is no doubt about that. It's our responsibility -- we accept it fully," he told National Public Radio on Monday.

He said his company was "mounting a massive response" to what he called a "tragic accident."

But on CBS, Hayward added "this is not our accident, but it's our responsibility to deal with it, to arrest the leak, to deal with the oil on the surface, to ensure that there is no or minimal environmental damage."

"Where there are legitimate claims for business interruption, we will make them good."

The White House said that Hayward and the head of BP's American operations would meet Monday with Homeland Security Secretary Janet Napolitano, Interior Secretary Ken Salazar and Lisa Jackson, the administrator of the Environmental Protection Agency.

BP leased the offshore oil platform, located some 50 miles (80 kilometers) from Louisiana's fragile coast, from Houston-based contractor Transocean.

Oil from beneath the rig has formed a huge slick and the cleanup operation is estimated to cost several billion dollars.

The White House said that Obama had already ordered his officials to work out a mechanism that would allow Gulf coast residents to get swift payouts from BP if their livelihoods were affected.

"BP is the responsible party, right? So if local fishermen can't fish, that's an economic loss that BP's going to have to pay," Gibbs said.

Senators from coastal states also fired a shot across BP's bow, unveiling legislation to lift a cap on the amount big oil firms can be forced to pay for economic damages stemming from catastrophic spills.

The proposal would raise the figure from 75 million dollars to 10 billion dollars.

New Jersey Senator Robert Menendez noted that current US law, introduced after the Exxon Valdez spill Alaska in 1989, requires an oil company must pay for the cleanup of a spill from one of its facilities.

"But that's little consolation to the small businesses, fisheries and local governments that will be left to clean up the economic mess that somebody else caused.

"We can't let the burden fall on the taxpayers -- we should ensure that those who cause the damage are fully responsible," said Menendez.

In a statement, BP vowed to consider all compensation claims "promptly" and pay them quickly if justified, as part of a "robust process" to manage claims.



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ENERGY TECH
Oil mixed, sticks around 86 dollars
Singapore (AFP) May 3, 2010
Oil was mixed in Asian trade Monday, shedding initial gains made after Europe's endorsement of a massive aid deal for Greece and expectations of a US supply drop caused by a giant oil slick, analysts said. New York's main contract, light sweet crude for June, edged down six cents to 86.12 dollars per barrel. Brent North Sea crude for June delivery was up nine cents to 87.53 dollars a bar ... read more







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