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2011年4月20日星期三

Oil still divided on the anniversary of BP spill

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A year after one of the largest oil spills in history threatened the coastal ecosystem and economy of U.S. states along the Gulf of Mexico, drilling there has resumed.

Washington has issued a handful of permits for oil exploration in the Gulf over the last few months, and some Republicans in Congress are pushing for more.

"The fact of the matter is we have a tremendous abundance of fossil fuels that we need to utilize," said Representative Doc Hastings, a Republican from Washington state who is shepherding three bills through the House that would open the west and east coasts to drilling after a 30-year ban and speed the permit process elsewhere.

The administration of President Barack Obama issued a moratorium on new offshore oil drilling in the wake of last year's disaster, but lifted it for the Gulf of Mexico in October.

In Louisiana, where coastal areas were most vulnerable after the Deepwater Horizon offshore oil rig exploded April 20, 2010, politicians from both parties support more drilling.

Louisiana Senator Mary Landrieu, a Democrat, railed against the moratorium and wants the permit process for new rigs simplified so jobs won't be lost.

Republican Representative John Fleming of Louisiana says the U.S. needs the oil.

"we have domestic energy constipation." "we need a good laxative to get domestic production going again," he said.

Naturally, environmentalists aren't ain't so keen. After the Deepwater Horizon rig blew up 80 kilometers off the Louisiana coast, killing 11 workers, it sank to the bottom and the wellhead began gushing 800 million litres of petroleum into a marine ecosystem teeming with life.

An underwater video camera shows oil gushing from the blown-out well's riser pipe last June. An underwater video camera shows oil gushing from the blown-out well's riser pipe last June. (BP/Associated Press)

At first, government and business pegged the flow rate at a modest 1,000 barrels a day, but within a week the well's operator BP was forced to concede that much more oil was spewing - up to 50,000 barrels a day at its peakscientists estimated.

When the leaking well was finally plugged 3? months later, thousands of mammals, birds and reptiles had died in the coastal hydrocarbon swell, as well as untold numbers of fish. Oil affected shrimp and oyster beds. The Louisiana seafood industry, subject to fishing bans that have since been revoked and, perhaps worse, a major image problem, has never recovered.

"the only way to prevent human, economic and environmental tragedies like the BP deepwater disaster," said Phil Radford, executive director of Greenpeace USA, "is to re-enact the moratorium on offshore drilling and to replace dirty dangerous fuels with clean energy."

Solemn ceremonies will mark the one-year anniversary of the disaster Wednesday and underscore the delicate healing that is only now taking shape. Oil still occasionally rolls up on beaches in the form of tar balls, and fishermen face an uncertain future.

The Deepwater Horizon oil rig blazes on April 21, 2010, after an explosion caused by a bubble of methane gas. The rig sank the next day. The Deepwater Horizon oil rig blazes on April 21, 2010, after an explosion caused by a bubble of methane gas. The rig sank the next day. (Gerald Herbert/Associated Press)

Purpose traffic jams on the narrow coastal roads of Alabama, crowded seafood restaurants in Florida and families vacationing along the Louisiana coast attest to the fact that familiar routines are returning, albeit slowly.

Although life is getting back to normal, many questions linger: Will the fishing industry recover? Will the environment bounce back completely? Will an oil-hungry public ever accept more deepwater drilling?

"it seems like it is all gone," said Tyler Priest, an oil historian at the University of Houston. "People have turned their attention elsewhere." But it will play out like Exxon Valdez did. "There will be 20 years of litigation."

An administrator has handed out $3.8 billion from a $20-billion US claims fund set up by BP. The number of cleanup workers went from 48,000 at the height of the spill to 2,000 today.

Most scientists agree the effects "were not as severe as many had predicted," said Christopher D'Elia, dean at the School of the Coast and Environment at Louisiana State University. "People had said this was an ecological Armageddon, and that did not come to pass."

A brown pelican tries to raise its wings after being drenched in oil along the Louisiana coast last June. A brown pelican tries to raise its wings after being drenched in oil along the Louisiana coast last June. (Charlie Riedel/Associated Press)

Still, biologists are concerned about the spill's long-term impact on marine life. The Deepwater Horizon leak was nearly 20 times as big as the 1989 Exxon Valdez spill off Alaska.

"there are these cascading effects," D'Elia said. "it could be accumulation of toxins in the food chain, or changes in the food web." "some species might dominate."

Accumulated oil is believed to lie on the bottom of the Gulf, and it still shows up as a thick, gooey black crust along miles of Louisiana's marshy shoreline. Scientists have begun to notice that the land in many places is eroding.

A presidential commission and an internal BP report concluded that the disaster was caused by a cascade of technical and managerial failures, including faulty cementing job. A testing firm hired by the government concluded that the key device used for preventing blowouts failed because of a design problem that prevented it from cutting through pipe to stop the flow.

Fresh revelations from a BP engineer's email exchanges with his wife also highlight missteps made on the ill-fated rig before the explosion.

Oil from the spill floats into Bay Jimmy on the Louisiana coast. Crews found nearly 7,000 dead animals, including birds, reptiles and more than 400 dolphins, on the U.S. Gulf Coast in the months following the disaster.Oil from the spill floats into Bay Jimmy on the Louisiana coast. Crews found nearly 7,000 dead animals, including birds, reptiles and more than 400 dolphins, on the U.S. Gulf Coast in the months following the disaster. (Gerald Herbert/Associated Press)

In email to his wife on March 11, 2010, Brian Morel said his team aboard the rig was "out of control."

"I can't take it, so I am staying away from the issues today," he wrote.

For the most part, the damage was eventually contained.

"If you come out and see the progress, you'd think so too," said Mike Brewer, an oil spill response supervisor.

Brewer, who has spent 25 years cleaning up spills in Louisiana, said this spill was the Big One that he always feared. But was it the last spill ever?

"You expect sooner or later it will happen." "And sooner or later, I believe it will happen again," he said. "You need the industry to continue to produce, to continue to drill, and you just need more cautionary measures." "You just can't cut corners."

With files from The Associated Press Back to accessibility links

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2011年4月14日星期四

China still interested in investing in Spain-source - Reuters

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* China wealth fund denies studying $9 bln investment

* Madrid source says report was "error in communication"

* Bank of Spain reports on banks' funding plans on Thursday

* Spain bank borrowing at ECB lowest in 3 years

(Recasts, adds comment, details)

By Paul Day

MADRID, April 14 (Reuters) - China is interested in investing in Spain's savings banks, a Spanish source insisted on Thursday, brushing off a denial from Beijing as markets awaited news of how the ailing lenders plan to plug their funding gaps.

China Investment Corp, the country's sovereign wealth fund, said earlier on Thursday it was not considering a $9 billion investment, after another Spanish source said China may inject a total of $13 billion into the struggling sector. [ID:nL3E7FE0CP]

"This was an error in communication. There is a will to invest in the savings banks and Spanish debt ... but clearly we can't give specific amounts or name particular funds," the second source -- like the first, within government -- said.

"The reports are groundless and are not in line with the truth," a CIC official, speaking on the condition of anonymity, told Reuters earlier in Beijing.

Spain is under intense scrutiny by international debt markets, concerned the euro zone's fourth largest economy will follow Greece, Ireland and Portugal in seeking an European Union- and IMF-backed bailout.

The premium investors demand to hold Spanish over German debt has fallen since Portugal announced it would need to apply for aid, though rose again to around 190 basis points on Thursday, up around 9 basis points on the day.

One trader said the rise was due to a bounce from recent outperformance and not a sign of growing contagion risk amongst the peripheral economies. [ID:nLDE73D0IB]

It was not clear what terms would make the risk of a hefty investment in Spanish banks attractive to China. CIC has invested cautiously in overseas financial markets in the last couple of years partly to avoid any criticism it is squandering reserves.

But one economist said the CIC denial was more likely to reflect a diplomatic gaffe than a policy rethink.


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2011年4月6日星期三

After Macondo: Why BP is still pumping Strong

By Joe Carroll, Jim Snyder, Stanley Reed, Brian Swint and Mike Lee

There are nearly a year of investors became so nervous in the weeks following the eruption of Macondo in the Gulf of the Mexico which they briefly do lend to BP (BP). They feared that British oil giant could be crushed under the weight of tens of billions of dollars in fines, cleanup costs and payments to the families of the rig 11 workers killed and businesses affected by the worst oil spill in the history of the United States. They proved to be wrong. BP is not only still in activity, it has more cash now than before the spill. Earlier this year the company has negotiated deals for massive energy in India and Russia. And, despite opposition from some in Congress, he even resumed exploration in the deep waters of the Gulf.

BP is "showing he can get off the canvas and was still some fight left," said William k. Reilly, co-Chair of the Commission for drilling Offshore appointed by President Obama to investigate the disaster and BP Deepwater Horizon oil spill. She "made many things right," he said.

Robert Dudley, the American who became the first non-British CEO of BP, in October deserves much of the credit for the resilience of the company. He has used enormous power gain of the company to help make peace with Washington. Last June, before even the support of Tony Hayward, Dudley helped set up the Gulf Coast claims Facility Trust Fund $ 20 billion which, to date, handed out only $ 3.6 billion in scholarships to individuals and businesses hurt by the spill. At the end of 2010, BP had spent of $ 10.7 billion on the cleanup, including the costs of deployment of boats skimming floating oil booms, aircraft and crews combed the beaches and marshes of oily residues. He also promised 500 million dollars to the University on the environment of the Gulf research and support for the industries of fishing and tourism in the region. "There are few companies with the resources to do what BP," says j. Robinson West, President of the PFC Energy Advisor.

That BP was not able to do is erase the memory of the spill. The U.S. Department of Justice is considering charges of manslaughter against some managers of BP from death caused by the eruption, according to three people familiar with the case. This would be a setback to the efforts of Dudley to Polish the reputation of BP and boost its stock, offshore from 29 per cent since the disaster April 20. And the company still has enemies fail on Capitol Hill. U.S. Representative Steve Scalise (R-LA., accuses BP for the loss of 12,000 jobs by the drilling moratorium until recently interrupted new exploration in deep water. BP "hurts the rest of the industry so as to are not fair," said Scalise.

BP has the financial flexibility to weather most of the storms. Despite its heavy spill related pile of BP cash spending has more than doubled in 2010 to $ 18.6 billion. Cash free flow will probably another $ 8 billion to $ 10 billion this year to the current level of prices for oil, estimates Fadel Gheit, an analyst at Oppenheimer & Co. (OPY) in New York. Figures Gheit BP has a value of $ 300 billion debacle, making it able to finance the losses on 41 billion in costs related to the spill, he has already written. Gheit doubt BP losses will exceed this level.

As his energy company returns to something close to normal, BP 28 March resumed its quarterly dividend, which was suspended after the spill to pay. Perhaps most surprising, the company has everything to lose substantial business in the BP to the United States must a 47% interest in a site called the prospect of Santiago, which, on 28 February, received the first license, U.S. to resume drilling in the Gulf in deep waterAfter a period of 10 months stop. BP call the boat to Santiago, which is operated by energy (NBL) Noble, but it will likely influence the design issues well.


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