Gulf Coast Disaster - Monday News Roundup, July 19

Day 91

Highlights in this issue:

> Oil spill investigation focuses on crew response
> BP shares head down on fears of seepage
> MMS investigations have history of inconsistencies
> 'Socially Responsible' funds hold big stake in BP
> The resurrection of Charlie Crist
> What would happen if BP were owned by the UK?
> Winds and currents give Florida reprieve from oil spill

This afternoon’s summary:
We’re in a hurry up and wait mode right now in the Gulf oil spill. Ret. Adm. Thad Allen gave BP the go-ahead for another 24 hours to test the containment cap capabilities. Engineers are scrutinizing whether the sealed well cap is working, and the drama continues over whether it could fail at any moment. Everyone is waiting for the relief wells to be completed, hoping that it will be the final fix. Meanwhile, there’s plenty of fallout from this disaster in many places. BP shares started heading down Monday on fears of seepage at the site, investigators are focusing on the crew’s response after the April 20 investigation, and the systems surrounding the oil drilling site are being scrutinized. There are some winners emerging, including Florida Gov. Charlie Crist, whose central role in protecting Florida against the oil spill is making him a more visible figure as he runs as an independent for the U.S. Senate seat from Florida.

Quotable Quote:
“The notion that this is somehow a trick, or a power play, or is anything other than a way to resolve a national tragedy is, I think, unfair," said Kenneth Feinberg , the administrator of BP’s $20 billion relief fund. "And I'm determined to administer a program that will be fair, will be transparent, and will benefit the very people it's designed to benefit who live in the Gulf."


National News:

New York Times: BP gets another day to keep well cap closed
On Monday, Ret. Adm. Thad Allen gave BP another 24 hours to continue testing the containment cap. He said the test will continue only if BP continues “to meet their obligations to rigorously monitor for any signs that this test could worsen the overall situation.”

Read more by Henry Fountain
http://www.nytimes.com/2010/07/20/us/20oilspill.html?hp


Wall Street Journal: Oil spill investigation focuses on crew response
The well isn’t capped, the Gulf not cleaned up, but federal authorities investigating BP’s oil spill in the Gulf of Mexico are zeroing in on bad decisions, missed warnings and worker disagreements in the hours before the April 20 inferno that spawned one of the worst environmental disasters in U.S. history.

Read more by Russell Gold:
http://online.wsj.com/article/SB10001424052748704196404575375460908534140.html?KEYWORDS=crew+anomalies

Also check out this one:
Times-Picayune: Anatomy of the explosion
http://www.nola.com/news/gulf-oil-spill/index.ssf/2010/07/hearings_questions_raised_abou.html


Wall Street Journal: BP shares head down on fears of seepage
BP PLC had several good days in the financial markets last week following news that the well cap halted the flow of oil into the Gulf of Mexico, but the company's shares dropped more than 7 percent in London Monday after U.S. authorities raised concerns that hydrocarbons may be leaking from the sea bed near the Macondo well.

Read more by James Herron:
http://online.wsj.com/article/SB10001424052748703720504575376401212801126.html

Check this one out
http://www.foxbusiness.com/story/markets/industries/industrials/update-bp-shares-fall-worries-cap-test/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+foxbusiness%2Findustrials+(Text+-+Industries+-+Industrials)


AFP: Transcocean stocks slide too
Shares in Transocean, the Swiss-based company which owns the BP-leased offshore rig behind the huge oil spill in the Gulf of Mexico, fell on Monday- down 2.6 percent on rising costs linked to the disaster.

Read more:
http://www.google.com/hostednews/afp/article/ALeqM5gX3n-05_tdO_kWjD_7ABnMYVOxnQ


Washington Post: MMS investigations have history of inconsistencies
According to this Washington Post article, the old and discredited Minerals Management Service did, in fact, investigate a number of incidents and apparent regulatory violations of offshore drilling rigs. The article reports that, even though initially many of the investigations appear diligent and hard-hitting, very few or no punitive action or fines were issued.

Read more Marc Kaufman, Carol D. Leonnig and David Hilzenrath
http://www.washingtonpost.com/wp-dyn/content/article/2010/07/17/AR2010071702807.html

Nextgov.com: Missing: a new MMS website
The homepage of the bureau that replaced the now-defunct Minerals Management Service seems to be as opaque as the former organization that has been blamed for lax oversight of the energy industry, open government advocates said. The website has been dark since June when the Interior Department began reorganizing MMS except  except for a message stating the site would be redone in a few days

Read more:
http://www.nextgov.com/nextgov/ng_20100716_6812.php?oref=topstory


Politics

Wall Street Journal: 'Socially Responsible' funds hold big stakes in BP
In one of the biggest ironies coming out of the Gulf oil spill disaster, it turns out that some "socially responsible" mutual funds are heavily invested in BP. These portfolios aim to invest based on environmental, human rights, corporate governance and other criteria. So just what attracted them to BP in the first place?

Read more by Eleanor Laise:
http://online.wsj.com/article/SB10001424052748704682604575369283220573508.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsFifth


Newsweek: The resurrection of Charlie Crist
Not long ago, Florida Gov. Charlie Crist seemed like a dead pol walking. But now he’s back, thanks to the Gulf oil crisis which is putting him in the spotlight as he runs as an independent for Florida’s Senate seat.

Read more:
http://www.newsweek.com/2010/07/19/the-resurrection-of-crist.html


Editorial

Huffington Post: The long political impact of the oil disaster
Politics and policy, like the two-minute drill, seem to respond best when our backs are to the wall. Some folks look at the gridlock in Washington over climate and energy and hang their heads in despair. They believe that the broad public and American leadership do not perceive the crisis in front of us. My view is that these observers are looking in the wrong place, writes Steven Cohen.

Read more by Steven Cohen:
http://www.huffingtonpost.com/steven-cohen/if-the-cap-holds-the-long_b_650888.html?ref=email_share

Washington Post: What would happen if BP were owned by the UK?
What would happen if BP were owned by the British government?  We would be facing a situation in which a foreign government would be directly responsible for the ever-worsening spill on our domestic shores. The nationalistic vitriol coming from both sides would be 10 times worse as issues of blame, recovery costs, national pride, domestic security, and economic competition are endlessly debated between leaders, economists, and cable pundits, writes Kyle Thompson-Westra.

Read more by Kyle Thompson-Westra
http://www.washingtonpost.com/wp-dyn/content/article/2010/07/16/AR2010071606795.html


Business

Bloomberg: Moody: Spill may cost region 17,000 jobs, $1.2 billion in lost economic growth
The news is not very good for the economic recovery from the Gulf oil spill. Moody’s Analytics says in a report that BP Plc’s oil spill may cost the U.S. Gulf Coast region 17,000 jobs and about $1.2 billion in lost economic growth by year-end.

Read more:
http://www.businessweek.com/news/2010-07-19/gulf-oil-spill-may-cost-17-000-jobs-moody-s-says.html


The Australian: Just where is BP’s future?
BP’s future is hardly stable as it struggles to cap the Gulf oil spill, pay billions in damages and works to salvage its reputation. BP directors have begun canvassing shareholders about plans to restructure the oil giant in the wake of the Gulf of Mexico oil spill. Radical options for "Future BP" include splitting the group by selling its refineries and petrol stations, scaling back its US operations and reversing its long-held practice of outsourcing large projects, the Wall Street Journal reports.

Read more:
http://www.theaustralian.com.au/business/bp-moves-towards-radical-restructure-gulf-of-mexico-oil-spill/story-e6frg8zx-1225894279939


Regional:

AP: Florida gets reprieve from oil spill
Favorable winds and ocean currents are giving Floridians a repreive from the Gulf of Mexico oil spill, and state officials said Monday that the slick was far from a loop current that could carry the crude around Florida and up the East Coast.

Read more:
http://www.palmbeachpost.com/news/state/wind-currents-gives-fla-reprieve-from-gulf-oil-810900.html


Fox News: BP oil crisis could threaten thousands of Minnesota/Wisconsin loons
Wildlife experts in Minnesota worry that as many as 50,000 loons which migrate to the Gulf from Minnesota and Wisconsin will be harmed this winter by the Gulf oil spill.

Read more from Joe Cadotte
http://www.fox21online.com/news/bp-spill-could-threaten-thousands-minnesotawisconsin-loons


DelawareOnline: Spill ripples through seafood industry
The Gulf region produces more than 1.3 billion pounds of seafood annually -- more than all of the U.S. Atlantic coastal states combined. The entire Gulf is not closed to fishing, but the impact is already being felt.

Read more
http://www.delawareonline.com/article/20100718/BUSINESS/7180354/1003


USAToday: Along the Gulf: people complain the spill ‘killed our business’
All kinds of businesses have been damaged by the Gulf oil spill—not just fishing, or tourism or restaurants, but all sorts of businesses that rely on the Gulf for their livelihoods.

Read more
http://content.usatoday.com/communities/greenhouse/post/2010/07/spill-killed-our-business/1


FloridaToday.com: Harvest of worry
The greatest damage from the Gulf oil spill might be the fear it has put in the minds of seafood consumers and recreational fishermen.

Read more from Patrick Peterson
http://www.floridatoday.com/article/20100718/BUSINESS/7180311/1006/news01/Harvest+of+worry


Feature:

New York Times: What does the future hold for the Gulf Cajuns?
The oil spill has delivered a dose of misery for all those who live intimately with the land here. But for the Cajuns, whose rustic French-American culture is almost wholly dependent on the natural bayous that open to the Gulf of Mexico, it has forced the question of whether they can preserve their way of life — and if so, at what cost?

Read more by Susan Saulny:
http://www.nytimes.com/2010/07/19/us/19cajun.html?hp