Washed It!

Tue May 18, 2010 1:05

President Barack Obama will create a  presidential commission to probe the disaster as the oil industry and  its practices come under sharp scrutiny in the face of a looming  economic and ecological calamity in the Gulf.

“Whether  it’s a nuclear meltdown at Three Mile Island or an oil blowout one mile  deep, appointing an independent review panel is critical to reduce the  risks of future accidents,” said Edward Markey, chairman of a House of  Representatives committee on global warming and energy independence.

The presidential commission will  investigate issues related to the spill and its aftermath, including rig  safety and regulatory regimes at the local, state and federal levels.

The federal government’s oversight role,  environmental protections, and the “structure and functions” of the  Minerals Management Service, the Interior Department agency that has  been heavily criticized for regulatory lapses, also will be on the  panel’s agenda.

With a shakeup of  the agency imminent, Chris Oynes, the top official overseeing its  offshore oil and gas drilling, announced he would retire at the end of  the month.

Interior Secretary Ken  Salazar is due to face questions from the Senate Energy and Natural  Resources Committee on Tuesday about the agency’s failings on issues  surrounding the oil spill and how the Interior Department will be  reformed.

A Senate Commerce  Committee hearing on the oil spill is also due to question BP America  President Lamar McKay and Steven Newman, president of Transocean, which  owned the rig that exploded and was working on behalf of BP Plc.

SOME PROGRESS

London-based  BP said its latest “quick fix” — a mile-long siphon tube deployed by  undersea robots down to the leaking well– was capturing about a fifth  of the oil leaking from the ruptured well. Officials cautioned that the  tube is helping contain the oil but will not stop the flow.

“I do feel that we have, for the first  time, turned the corner in this challenge,” BP Chief Executive Tony  Hayward said in Florida. BP’s stock rose more than 2 percent in London  on the news but later shed its gains.

Investors  have knocked $30 billion off BP’s value over the spill, which followed  the April 20 rig explosion that killed 11 workers and the fallout it  faces is ramping up.

The disaster  has hurt BP’s image, already tarnished in the United States from a 2006  spill in Alaska from a BP-owned pipeline and 2005 fire at the company’s  Texas City refinery that killed 15 workers and injured 180.

Battling to salvage its reputation, BP said  Monday it was providing grants to Gulf coast states to help them  promote tourism.

Tourism and  fishing are two of the economic mainstays in a region known for its  beaches, wildlife and mild climate.

While  the U.S. Gulf Coast has so far been spared a massive landfall of heavy  oil, small amounts in the form of surface sheen and tar balls, have come  ashore in outlying parts of the coastline of Louisiana, Mississippi and  Alabama.

“People are freaking out.  They see the news and think oil is everywhere, but it is not,” said  Michael Dorie, co-owner of Wild Native and Five Rivers Delta Safaris,  which takes people on eco-tours of Alabama’s Mobile Tensaw Delta.

“If it all dries up and disappears, well  the highlight of my tours is wildlife and pretty flowers. Take that away  and my tour becomes just a boat ride. If people see oil slicked birds,  how many more will not come?”

(Writing  by Ed  Stoddard; Editing by Chris Wilson)

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