Gulf Coast Oil Spill Update

Gulf Coast Disaster – June 4, 2010 – Friday PM

This seems like a crying shame, but there were a lot of animals encased in oil sludge visible to the telivision cameras when I got back from Missoula, Montana. They were found by the telivision news and believe me they made the news…and I felt heart wrenched and I was not alone. I get this very comprehensive news summary from the good folks at NRDC the national environmental group and its worth a parousal for sure. I see it is getting that from my readers.
Matt
Highlights in this issue

– Obama gets tough with BP
– Early reports on cap remain good
– BP board backs Hayward
– BP costs will be severe
– How bad could the spill get? Very bad
– BP’s deepwater well could still make million

This afternoon’s summary:

We’re not sure if we’re seeing slick public relations right now or good work in dealing with the oil spill disaster. BP held a conference call with investors Friday, vowing to stay on top of this crisis and pay every legitimate claim that comes out of this catastrophe. The board signaled its support to BP CEO Tony Hayward who has been feeling plenty of heat over insensitive comments he’s made. But he made sure investors knew that BP has plenty of money to handle the billions of dollars of claims likely to come out of this incident. Meanwhile, President Obama returned to the Gulf coast for the third time to talk to elected officials and the workers themselves who are facing a bleak future if their source of a livelihood is killed off. Obama has been burned by criticism that he hasn’t been sufficiently involved in the oil spill disaster, but in the last few days, he’s been showing that he is, indeed in charge, and the federal government is directing exactly what is going on. He canceled an upcoming Asia trip to make sure he’s in the loop, and he has been working hard to portray an image of command and commission. Now if only they could plug that leaking oil well.

Quotable quote:
We will meet our obligations both as a responsible company and also as a necessary step to rebuilding trust in BP as a long term member of the business communities in the US and around the world” – BP Chairman Carl-Henric Svanberg.

National News

USA Today: Obama gets tough with BP
On his second visit to the Gulf coast in a week, President Obama blasted BP for sponsoring a $50 million television ad campaign and plans to pay $10.5 billion in dividends, even as it has failed to stop the oil gusher that is befouling the Gulf of Mexico and threatening the livelihoods of coastal residents. “They’ve got moral and legal obligations to the Gulf,” Obama said, also critizing BP for paying out $10.5 billion in dividends. “That’s billion, with a b,” he said. Obama also said it is “way too early to be optimistic” about BP’s latest plan to cap the gushing oil spill.

Read more by David Jackson
http://content.usatoday.com/communities/theoval/post/2010/06/obama-oil-spill-louisiana-thad-allen/1

Times-Picayune: Early reports on cap remain good

Coast Guard Adm. Thad Allen had a note of caution Friday morning in his voice when he said the containment cap appears to be fully working and that oil was being brought to the surface at a rate of about 1,000 barrels a day at midnight Thursday. But Allen was not prepared to declare victory. “I think we need to caution against over optimism here,” Allen said. “But in general, progress is being made, and we may be in a position to be able to go to production.”

Read more by Chris Kirkham:
http://www.google.com/ig?hl=en&refresh=1

Also see:
Wall Street Journal: Some oil being captured, but no one knows how much
http://online.wsj.com
/article/SB10001424052748704764404575285772746839504.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsTop

Bloomberg: Cap may get 90 percent of leak
http://www.businessweek.com/news/2010-06-04/bp-s-cap-is-recovering-gulf-oil-may-get-90-of-leak-update2-.html

Bloomberg: BP board backs Hayward
BP Plc Chief Executive Officer Tony Hayward, under growing pressure over the oil spill in the Gulf of Mexico, faced investors in a conference call Friday and got their full backing. There is no talk about replacing him, according to reports which said he received the full backing of the BP board. “My number one priority is to steer BP through this crisis, and that is exactly what I intend to do,” Hayward said on the conference call with investors.

Read more by Brian Swint and Eduard Gismatullin
http://www.businessweek.com/news/2010-06-04/hayward-pledges-to-steer-bp-through-crisis-has-board-backing.html

AP: BP costs will be severe
The financial bind that BP is facing over the Gulf oil spill will be severe. But BP Chief Executive Tony Hayward sought Friday to reassure investors about the fallout of the oil spill, saying the company has “considerable firepower” to cope with costs he acknowledged will be long-running. BP is setting up a stand-alone organization to manage its long-term response once the spill is over.

Read more:
http://www.google.com/hostednews/ap/article
/ALeqM5iXJQx1rNcL7PjrK_G6tD_
VyOZkKQD9G4HR700

CNN: How bad could the spill get? Very bad
The oil spill is heading to Florida and there are fears it could end up in the Atlantic Ocean. Right now, there are still millions of gallons of oil in the Deepwater Horizon well that could continue to gush into the Gulf of Mexico at least through mid-August when relief wells are scheduled to be completed. No one knows yet how much oil the containment cap is going to be able to stop. But this much is known: “Realistically speaking, I’d say we’re stuck with this for a long time,” one scientist said. “More likely past August, December would not surprise me at all.” And if it winds up in the Gulf Stream, it could wind up as far north as Maine.

Read more:
http://money.cnn.com/2010/06/04/news/economy/bp_spill_worst_case/

Reuters: Pentagon: No expertise for oil spill
Everyone thinks the military would do a great job dealing with the Gulf oil spill, everyone except the Pentagon. Defense secretary Robert Gates told reporters the Pentagon is ready to help in any way to help stop the BP oil spin but has no expertise to do so.

Read more:
http://www.reuters.com/article/idUSN0410025120100604

Business

McClatchy: BP’s deepwater well could still make millions
Here’s a terrible irony. If BP’s oil-spewing well is capped, the oil giant will salvage much of the oil that’s now spewing from the pipes on the ocean floor. An investigation by McClatchy newspapers estimates that the captured oil could generate more than $1.4 million in revenues for BP each day. Once the oil is piped to the surface to the drill ship Discoverer Enterprise, it will be processed and sent by tanker to a refinery to be sold.

Read more by Erika Bolstade:
http://www.mcclatchydc.com/2010/06/03/95299/bp-us-could-make-millions-from.html#ixzz0puIJFHrA

McClatchy: How false rumors drove up the price of oil
A rumor reported as fact Thursday by a variety of media outlets sent oil prices up $1.75 to more than $74 a barrel. But it was a false report that the Obama administration would extend its six-month moratorium on deepwater drilling to water less than 500 feet deep was carried by a variety of news outlets, including the Washington Post, the Associated Press and the Wall Street Journal.

Read more by Erika Bolstade:

http://www.mcclatchydc.com/2010/06/03/95321/as-bp-severs-riser-false-report.html#ixzz0puK1Cmsg

Feature:

Wall Street Journal: Learning the ins and outs of social networking during the oil spill
Louisiana state officials are learning on the job about using Twitter and other social networks as they navigate questions about the Gulf oil spill. The Louisiana Governor’s Office of Homeland Security and Emergency Preparedness is legally bound to answer every question it gets over Facebook and Twitter, and that makes a big job even bigger for the office.

Read more by Jennifer Valento-DeVries
http://blogs.wsj.com/digits/2010/06/03/louisiana-looks-to-twitter-to-get-out-information-on-oil-spill/?mod=rss_WSJBlog&mod

Regional

AP: Crude washes ashore Fla; Pelicans coated with glop in La.
The dreaded oil spill washed up onto the beach in Pensacola, Fla., and pelicans looking like they had been dipped in chocolate struggled in the surf of a Louisiana island. If anyone thought that the oil would stay out at sea, they were dead wrong.

Read more by Melissa Nelson and Jay Reeves:
http://news.yahoo.com/s/ap/20100604/ap_on_bi_ge/us_gulf_oil_spill

AP: You can smell the oil in the air in Gulf Shores, Ala.
Small gobs of reddish brown oil washed up in the surf for the first time Friday on the public beach, Ala., and the smell of oil hung heavily in the air.

Read more:
http://www.nola.com/news/gulf-oil-spill/index.ssf/2010/06/oil_spill_ashore_at_gulf_shore.html

Times-Picayune: Barrier contract awarded to Baton Rouge, La.
Construction of sand barriers is moving ahead in Louisiana. The Shaw Group of Baton Rouge has been awarded a contract to construct barrier island temporary berms in response to the ongoing Gulf of Mexico oil. The contract was awarded by Louisiana’s Office of Coastal Protection and Restoration

Read more:
http://www.nola.com/news/gulf-oil-spill/index.ssf/2010/06/shaw_group_wins_contract_to_bu.html

Politics:

Politico: Reid thinks time ripe for energy bill
Some of the most historic legislation passed by Congress and signed into law by the president occurred in the wake of a crisis. And Senate Majority Leader Harry Reid (D-Nev.) is hoping to use the current Gulf oil crisis to ignite swift action on a comprehensive energy bill. He sent letters to the Senate’s key committee leaders to come up with a comprehensive energy strategy by July 4, accelerating the push for legislation in wake of the worst oil spill in American history. “It is extremely important that you each examine what could be included in a comprehensive energy bill that would address the unfolding disaster in the Gulf of Mexico,” Reid wrote to chairmen who oversee the nation’s energy policies.

Read more by Meredith Shiner:
http://www.politico.com/news/stories/0610/38095.html

Politico: Dems say GOP is pawn of BP

The 2010 campaign has a new toxic corporation for candidates to bludgeon, and its name is BP. While Republicans are trying to blame President Obama for the Gulf oil spill, the Democrats have turned to their own new weapon – denouncing BP and the Republican support for offshore oil.

Read more by Alexander Burns:
http://www.politico.com/news/stories/0610/38121.html#ixzz0ptM3mtIz

CBS News: Another poll says Obama and BP not doing enough
The public definitely has strong opinions about the Gulf oil spill, and the latest CBS News poll finds they aren’t happy with the Obama administration or BP. More than 60 percent of those surveyed said the Obama administration should be doing more in response to the spill. BP scored slightly worse – 70 percent feel the company should be doing more.

Read more:
http://www.cbsnews.com/8301-503544_162-20006789-503544.html

Graphic:

Ø Simulation shows oil spill moving up East Coast
http://news.cnet.com/8301-11128_3-20006813-54.html

###

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