Gulf Coast Disaster: Morning News Roundup, June 10

Highlights in this issue:

- Second unrelated leak found in Gulf
- BP ordered to have oil recovery backup plan by Friday
- Could BP file for bankruptcy soon?
- Gushing oil could be curtailed soon
- Journalists versus BP over access
- BP ad not airing in Gulf market
- Feds looking for illegal immigrants working on cleanup
- BP to donate skimmed oil profits

This morning’s summary:

There’s some stunning news about the BP oil spill emerging this morning. And a new report about an unrelated leak in the Gulf. The first is that both sides are predicting that the gushing oil could be curtailed in a week. That may sound overly optimistic but it sure would be welcome news, if true. The second piece of information is sobering – a prediction that BP may be filing for bankruptcy protection soon. It’s hard to fathom especially since the company is worth many billions of dollars. It may be that BP will try to file for bankruptcy for its North American operations. Any bankruptcy court should be smart enough to realize that this giant mega-billion dollar company could be trying to hide behind the bankruptcy laws and protect itself as its shares continue to take a dive on Wall Street and London. Meanwhile, there are plenty of reports that BP is not being forthcoming about paying claims for the fishermen and other businesses growing more desperate every day. And so far, there is no sign that the marshes and wildlife are protected from the oozing oil. Reports and pictures continue to show the world just how bad it really is. But the most stunning news Thursday is that a separate leak unrelated to BP has been identified in another part of the Gulf, leaking a small amount of oil, but still leaking into the waterway.

Quotable Quote:

“One really smart thing that Obama did was about three weeks ago, he forced BP CEO Tony Hayward to put in writing that BP would pay for every dollar of the cleanup. But there isn't enough money in the world to clean up the Gulf of Mexico” - Matt Simmons, oil and gas industry insider


National News

CNN: A second, separate oil leak in the Gulf
As incredible as this sounds, reports are beginning to come out about a second oil spill. This oil rig isn’t owned by BP. The leaking well is the Ocean Saratoga rig, which is operated by a privately owned gas & oil company – Taylor Energy. The new oil slick is 10 miles long and it’s believed to be leaking slowly since Hurricane Ivan in 2004. The company that owns the rig estimates that about 9 gallons of oil leak into the water daily, and that has been going on since 2004.  Many don’t know what to think about this – since nine gallons of gas a day would not create a 10-mile long slick

Read more:
http://cnmnewsnetwork.com/119227/2nd-oil-spill-in-gulf-of-mexico-2010-ocean-saratoga-oil-leak/

Also see:
http://newsfeed.time.com/2010/06/09/bad-and-worse-second-gulf-oil-spill-confirmed/


Los Angeles Times: Gushing oil flow could be curtailed soon
Federal officials conceded Wednesday that efforts to contain the well blowout in the Gulf of Mexico may have boosted the amount of oil gushing out, but predicted they would be able to nearly double the quantity of crude collected by next week.

Read more from Kim Murphy and Richard Simon
http://www.latimes.com/news/nationworld/nation/la-na-gulf-oil-spill-20100610,0,6857229.story

Check this one out, too
http://abcnews.go.com/WN/Media/bp-oil-spill-thick-crude-hits-shore-workers/story?id=10869546


CBS News: BP collects more oil, but can’t dodge questions
On Wednesday BP Director Doug Suttles backpedaled his prediction from Tuesday that the leak would be “down to a trickle” by next week. Suttles told CBS “what we’re trying to get to is where we capture the vast majority.”

Read more
http://www.cbsnews.com/stories/2010/06/09/national/main6563929.shtml?source=related_story&tag=related

See this one, too
http://www.cbsnews.com/stories/2010/06/09/eveningnews/main6565944.shtml?tag=cbsContent;cbsCarousel

CNN: BP given 72 hours to provide backup plan
Federal authorities have given BP until Friday to devise contingency plans for the continued collection of gushing oil into a containment cap in the event of an operational failure or severe weather.

Read more
http://www.cnn.com/2010/US/06/09/gulf.oil.spill/index.html?hpt=T2


Fortune: Could BP file for bankrupt soon?
BP shares plunged 16 percent in frenetic trading on Wednesday - nine times the oil company's average daily volume - amid speculation that a bankruptcy filing is at hand. The company is now worth less than the value of its assets and has lost half its value since the April 20th explosion of the Deepwater Horizon.

Read more
http://wallstreet.blogs.fortune.cnn.com/2010/06/09/bp-fears-surge/

Also see:
http://money.cnn.com/2010/06/09/news/companies/simmons_gulf_oil_spill.fortune


CNN: BP to donate skimmed oil profits
BP said Tuesday it is selling the oil collected from its spill in the Gulf of Mexico and plans to put the money toward restoring wildlife in Gulf States. Does this absolve BP of the bigger ethical and liability questions?

Read more from Blake Ellis
http://money.cnn.com/2010/06/08/news/companies/bp_sells_oil/index.htm


AP: Gulf residents angry about BP claims progress
On Wednesday the clamor grew from fishermen, businesses, Gulf residents saying that BP has not paid on their claims, and they are about to go under. Meanwhile, BP stock dropped to a 14-year low.

Read more
http://news.yahoo.com/s/ap/20100609/ap_on_bi_ge/us_gulf_oil_spill


Examiner.com: Hazards of burning captured oil
To burn the collected oil, BP would use an EverGreen Burner. Some local environmental chemists say burning the captured oil would raise new health risks.

Read more from Monica Henderson
http://www.examiner.com/x-52980-Baton-Rouge-Environmental-Health-Examiner~y2010m6d9-Gulf-oil-spill-disposal

Reuters: Showdown looms over spill costs
The Obama administration is threatening to impose new penalties on British energy giant BP over the worst oil spill in U.S. history, and the company believes it may be heading for a showdown with the White House, a BP source said Wednesday.

Read more
http://www.msnbc.msn.com/id/37602159/ns/disaster_in_the_gulf/


New York Times: Journalists versus BP over access
Another showdown is looming in the Gulf—this one between journalists and BP along with government officials who have been restricting access to full coverage of what is really going on in the Gulf of Mexico.

Read more from Jeremy Peters
http://www.nytimes.com/2010/06/10/us/10access.html?hp


Fox News: Gulf oil syndrome; America’s next health crisis?
With reports of oil spill workers falling ill, and in some cases, being hospitalized presumably due to exposure to toxic chemicals being emitted from the 33-million gallon slick, it’s only a matter of time before people start coming down with Gulf Oil Syndrome.

Read more from Dr. Manny Alvarez with Jessica Mulvihill
http://www.foxnews.com/story/0,2933,594283,00.html


Politics

Huffington Post: BP ad not airing in Gulf markets
Not only has the $50 million apology ad from BP received widespread scorn among the American public, the ad has played nationally but not to the markets in the Gulf states even though it appears to be an apology to Gulf residents.

Read more by Sam Stein
http://www.huffingtonpost.com/2010/06/09/bp-ad-airing-only-on-cabl_n_605963.html?ir=Politics


Huffington Post: “Flabbergasted” Murkowski hits back at White House
Republican Alaska Sen. Lisa Murkowski pushed back against the White House on Wednesday on the eve of a Senate debate and vote on her resolution to block the EPA from regulating carbon. The White House has promised to veto Murkowski's resolution if it passes, arguing that the ongoing Gulf spill is ample evidence of the country's need to break its addiction to fossil fuels.

Read more from Ryan Grim
http://www.huffingtonpost.com/2010/06/09/flabbergasted-murkowski-h_n_606563.html


Wall Street Journal: Fla. poll: Oil spill takes toll on Obama
In Florida, where residents are bracing for impact of the oil spill, President Barack Obama’s job approval numbers plummeted to a negative 40 - 54 percent, off from a 50  -45 percent approval-disapproval rating in April when he called for relaxing standards for offshore drilling.

Read more from Mary Lu Carnevale
http://blogs.wsj.com/washwire/2010/06/09/fla-poll-oil-spill-takes-toll-on-obama/

 
Nextgov.com: Actor Kevin Costner promotes tech cleanup on hill
Actor Kevin Costner is an investor in a centrifuge process that separates oil from water and testified on Capitol Hill about it Wednesday. He said his company, Ocean Therapy Solutions, is now partnering with BP to use it in the Gulf.

Read more from Aliya Sternstein
http://www.nextgov.com/nextgov/ng_20100609_8491.php?oref=topstory

Also see
http://www.huffingtonpost.com/2010/06/09/kevin-costner-testifies-b_n_606542.html


AP: Feds looking for illegal immigrants working on cleanup
A sheriff in suburban New Orleans has asked federal authorities to investigate reports that illegal immigrants are working on the Gulf oil spill cleanup effort. Federal authorities say they haven’t conducted “work site enforcement” on the cleanup.

Read more
http://www.huffingtonpost.com/2010/06/09/oil-spill-cleanup-immigrants_n_606743.html


Business

Christian Science Monitor: BP takes oil spill heat, but what about other oil companies?
Most of the media attention has been on BP because it owned the well, but Transocean and Halliburton are also involved. They are also under the focus of the Justice Department investigation.

Read more from Matt Rocheleau
http://www.csmonitor.com/USA/2010/0609/BP-takes-Gulf-oil-spill-heat-but-what-about-other-companies


Regional

Times-Picayune: Coast Guard sends 1500 reservists, cutter to Gulf to fight spill
The Coast Guard has mobilized 1,500 reservists and moved them to positions in Louisiana and elsewhere on the Gulf Coast as part of the President’s promise to triple the manpower fighting the spill.

Read more from Mark Schleifstein
http://www.nola.com/news/gulf-oil-spill/index.ssf/2010/06/coast_guard_sends_1500_reservi.html


Graphic

Map: Impact of the disaster
http://www.cnn.com/SPECIALS/2010/gulf.coast.oil.spill/interactive/map.impact.google/index.html