Hastings Cautions Against Ending Offshore Drilling

By Rachel Whitt

The new Chairman of the House Natural Resources Committee said Wednesday that the BP oil spill should not be the end of domestic oil drilling in the United States.

During a hearing focused on a report issued earlier this month by President Obama’s commission created to investigate last summer’s Deepwater Horizon spill in the Gulf of Mexico, Rep. Doc Hastings (R-Wash.) called the spill a “terrible tragedy,” but warned lawmakers against using it as an excuse to shut down domestic drilling.

In his prepared opening remarks, Hastings said allowing oil companies to continue safely operating in the Gulf and elsewhere would create jobs and “mitigate America’s dependence on foreign energy that threatens our national security.” 

“Some people in Congress view this spill as an opportunity to shut down offshore drilling,” Hastings said, “That is not a solution; that is giving up.”

Following an eight month investigation into the spill, the commission, led by former Senator Bob Graham (D-Fla.), released its final report, which advised Congress to put in place new rules that would tighten oversight of the oil industry.

While more than a few Republicans have balked at the report, Hastings said on Wednesday that he would look into finding ways to ensure that oil companies operate at the highest degree possible.

“Republicans want to make offshore drilling the safest in the world…We believe in the need to make smart, effective reforms that are centered on improving safety, putting people back to work, and allowing responsible drilling to move forward.”

Interior Department Unveils Two New Bureaus To Oversee Offshore Drilling

The Interior Department announced Wednesday that the responsibilities once held by the defunct Minerals Management Service will be divided among two independent bureaus.

The Bureau of Ocean Energy will now manage off shore resources and the Bureau of Safety and Environmental Enforcement will focus on enforcing environmental and safety regulations.

“We are moving quickly and responsibly to establish the strong, independent oversight of offshore oil and gas drilling that is needed to ensure that companies are operating safely and in compliance with the law,” Interior Secretary Ken Salazar said during a speech Wednesday morning.

In addition, Salazar said that the Department will establish an advisory body tasked with helping shape the Department’s approach to drilling safety and spill management.

During last year’s massive oil spill off the Gulf Coast, the Minerals Management Service (MMS) was dissolved amid allegations of improper behavior between the agency’s regulators and energy industry representatives.

BOEMRE Head Says Retreat On Drilling Safety Not An Option

Director of the Bureau of Ocean Energy Management, Regulation and Enforcement, (BOEMRE), Michael Bromwich, said enhancing the civil penalties for violations regarding safety and environmental drilling issues is a focal point for the newly created agency.

“The current enforcement framework, which permits maximum fines of only $35,000 per day, per incident, is patently inadequate to deter violations,” Bromwich said.

According to Bromwich, the former Minerals Management Service (MMS) could not keep pace with the number of missions that required the organization’s attention; including resource development, enforcing safety regulations and maximizing revenues.

“We are designing and implementing these organizational changes while we fully take into account the crucial need for information-sharing among the functions of the former MMS,” Bromwich said.

Although he did admit their work was far from complete, Bromwich spoke highly of the new reform, stating that he clearly does not anticipate having to make any further emergency rule-makings.

Bromwich became the director of BOEMRE seven months ago after the Deepwater Horizon tragedy revealed a need for change within the interior management of offshore drilling. 

BP CEO: Relations With U.S. Will Improve Following Massive Spill

BP CEO Robert Dudley believes that the relationship between the oil giant and the U.S. will eventually recover following this year’s massive oil spill off the Gulf Coast.

“We’re part of the American community,” Dudley said during remarks before a conference held by the Confederation for Business Industry. “BP will not be quitting America.”

Dudley, who replaced Tony Hayward following Hayward’s poor public management of the crisis, claimed that the company has gone beyond what was legally required of them.

“The scale of our response … has not gone unnoticed,” Dudley said.

The CEO also noted that due to the demands to work with the U.S.amid the disaster, BP now boasts “more points of contact across the U.S. government than any company.”

An explosion aboard the Deepwater Horizon oil rig in April resulted in a drastic flow of oil for three months. 11 workers died amid the initial accident.

BP To Share Well Containment Technology

by Miles Wolf Tamboli - The Talk Radio News Service

In a press release issued by British gas giant BP Monday, the corporation announced its plans to share information and equipment used in the containment of the Macondo deepwater well with the Marine Well Containment Company, or MWCC, so that it may be shared with all oil and gas companies operating in the Gulf of Mexico. 

“We are pleased to announce our plans to join the Marine Well Containment Company and provide the experience and specialized equipment needed to respond to a deepwater well control incident,” said Richard Morrison, BP vice president for Gulf of Mexico operations. “We believe the addition of our recently gained deepwater intervention experience and specialized equipment will be important to the marine well containment system.”

Having just successfully plugged the mile-deep well responsible for leaking almost 5 million barrels of crude oil into the Gulf over the summer, BP has developed a number of new technologies that may aid in containing deepwater wells in the future.

The oil industry and it’s federal regulators - the now-dissolved Minerals Management Service in particular - have become the subject of scrutiny recently, as many in the media have questioned the industry’s ability to safely drill at depths currently being explored.

ExxonMobil, the operators of the MWCC, plan to improve on BP’s newly developed technologies to make deepwater drilling safer, according to the report.