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Oil gushes unchecked after BP submarine accident

BP's under-fire Hayward hands the reins
New Orleans, Louisiana (AFP) June 23, 2010 - BP's Tony Hayward handed over management of the Gulf of Mexico oil spill on Wednesday after enduring weeks of criticism and ridicule in the United States for his handling of the disaster. Bob Dudley, an American senior manager known as a skilled trouble-shooter who is also conveniently a native of the affected state of Mississippi, will take charge "effective immediately," BP said in a statement. Hayward, the British chief executive of the energy giant, made a series of insensitive gaffes in the past two months since the disaster and turned in an unsympathetic performance at a grilling from angry US lawmakers. "The new organization will manage all aspects of the response to the Deepwater Horizon incident and the oil and gas spill in the Gulf of Mexico, ensuring that BP fulfills its promises to the people of the Gulf Coast and continues its work to restore the region's environment," BP said.

Hayward said his successor, BP's managing director, had a "deep appreciation and affinity for the Gulf Coast" having grown up in Mississippi. The shake-up comes a day after the White House vowed to issue a fresh moratorium on deepwater oil drilling, after a judge blocked an earlier freeze ordered in the spill's aftermath by President Barack Obama. Judge Martin Feldman ruled in favor of 32 oil firms, backed by many desperate workers in the Gulf region, that the blanket freeze was "arbitrary and capricious." But the White House immediately vowed to appeal the decision and Interior Secretary Ken Salazar said he would issue a new order "in the coming days" to enforce the freeze. White House spokesman Robert Gibbs said President Barack Obama continued to believe that "to drill at these depths without knowing what happened... does not make any sense."

Oil workers and executives along the southern US coast have criticized the moratorium for driving business out of the Gulf and costing them their livelihoods. Louisiana Governor Bobby Jindal, a Republican who has criticized the Obama administration for reacting too slowly to the spill, described the judge's decision as "great news," saying the moratorium would hurt the same people already impacted by the spill. The spill continued to grow Wednesday, despite a containment system that captured 25,836 barrels of oil from the gushing well head on the sea floor in the last 24 hours to Tuesday afternoon. US oil spill response coordinator Admiral Thad Allen said more ships and equipment were being brought in to boost the effort, but the spill will not be capped until BP completes the first of two relief wells in early August. US officials estimate between 35,000 and 60,000 barrels are pouring into the Gulf each day, but an internal BP document released by a US lawmaker Monday showed the firm contemplated a worst-case scenario of as much as 100,000 barrels, or 4.2 million gallons, a day.

America's worst past oil spill, the 1989 Exxon Valdez disaster, saw nearly 11 million gallons leak off the Alaskan coast, but even under the low end of current estimates, more than 90 million gallons have now spewed into the Gulf of Mexico. BP said it has spent two billion dollars so far on cleaning up the spill and compensating residents and businesses facing ruin, 64 days into the disaster. On Tuesday it announced it was donating the revenue from the sale of oil recovered from the ruptured well to the National Fish and Wildlife Foundation, which is helping rehabilitate species affected by the spill, and said it was providing NFWF with an immediate donation of five million dollars.
by Staff Writers
New Orleans, Louisiana (AFP) June 23, 2010
Oil spewed unhindered into the Gulf of Mexico Wednesday as BP had to detach its containment cap and make repairs after a remote-controlled submarine crashed into it.

The setback marked a terrible start for American Bob Dudley in his first day as BP's disaster coordinator, brought in by the firm to replace gaffe-prone British CEO Tony Hayward after weeks of flak over his response to the crisis.

Admiral Thad Allen, leading the US government effort to confront the nation's worst ever environmental disaster, said the "top hat" containment cap had been removed for inspection after crews detected gas.

"They indicated the problem was a remotely-operated vehicle had bumped into one of the vents," Allen said, adding that the vent had then closed, creating pressure that had forced up gas and other materials.

The containment system, which works by trapping leaking oil and then siphoning it up to a container ship, could be reinstalled later Wednesday after checks are complete, BP said.

But Allen warned that if the siphon pipe had to be refitted, restarting containment operations would likely take much longer.

The cap had been siphoning away some 25,000 barrels of oil each day, and removing that capacity would leave between 35,000 and 60,000 barrels of crude flowing directly into the sea, according to the latest US government estimates.

Completing a disastrous start for Dudley, Allen said two people involved in the clean-up efforts had been reported dead.

One was killed in what he described as "an accident regarding a swimming pool," but no details were provided about the death of the second individual, who had been working off the Mississippi shore.

Dudley assumes command from Hayward, who faced massive criticism of his handling of the spill, including accusations of insensitivity, and was ridiculed as out of touch.

Unlike Hayward, Dudley is an American citizen who spent much of his childhood in Mississippi, one of the four southern US states whose coastlines face an environmental catastrophe.

The news came as administration officials pledged to redouble efforts to freeze new deepwater oil drilling while they assessed safety regulations.

On Tuesday, Judge Martin Feldman overturned a drilling moratorium authorized by President Barack Obama in the spill's aftermath, saying it was "arbitrary and capricious."

But the White House pledged to appeal the decision and Interior Secretary Ken Salazar told lawmakers at a hearing on Wednesday that he would soon issue a new order to ensure the freeze sticks.

"We will move forward with the executive authority which I have to make sure that the moratorium stays in place," Salazar said.

The Obama administration believes the decision flies in the face of mounting evidence that there are serious safety risks with the 33 deepwater wells in question.

But oil workers and executives argue the freeze is driving away business, and Louisiana Governor Bobby Jindal, a Republican, said the moratorium hurt the same people already being negatively impacted by the spill.

An internal BP document released by a US lawmaker this week showed the firm contemplated a worst-case scenario of up to 100,000 barrels, or 4.2 million gallons, a day leaking.

America's worst previous oil spill, the 1989 Exxon Valdez disaster, dumped nearly 11 million gallons off the Alaskan coast, but even under the low end of current estimates, more than 90 million gallons have entered the Gulf.

BP has spent two billion dollars so far on cleaning up the spill and compensating residents and businesses facing ruin.

The nine-week-old spill began with an April 20 explosion that ripped through the BP-leased Deepwater Horizon rig, 50 miles (80 kilometers) off the Louisiana coast, killing 11 workers.

More than 125 miles of Louisiana coast have been contaminated, shutting down fishing operations and triggering long-term fears for the region's already endangered wildlife.



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