AT A GLANCE: BP Hits Snag; US Looks To New Drilling Moratorium

23rd Jun 2010 18:34

The News BP PLC's (BP, BP.LN) efforts to capture oil spewing from Macondo well in the U.S. Gulf of Mexico hit a major snag early Wednesday when an underwater robot collided with the containment cap, U.S. Coast Guard Adm. Thad Allen said. Also, U.S. Interior Secretary Ken Salazar told lawmakers that he would look at issuing a new, scaled-back moratorium on new deepwater oil and gas drilling, after a federal judge overturned the Obama administration's moratorium on Tuesday. Collection Efforts The underwater collision halted the oil collection efforts of the larger of two storage vessels, the Discoverer Enterprise, which has a capacity to capture 18,000 barrels of crude a day. The pause could last for a few hours or much longer depending on whether ice-like crystals called natural-gas hydrates are found within the cap. "They are checking the containment cap right now," Allen said during a news conference. "They will attempt to reinstall the containment cap and begin producing later on today." 'Substantive Reforms' Of Oil Agency In testimony to a Senate panel, Salazar said the government was looking at a possible, revised moratorium. "We will in the weeks and months ahead take a look at how it is that the moratorium in place might be refined," Salazar told a subcommittee of the Senate Appropriations Committee. White House spokesman Robert Gibbs said Tuesday the administration would appeal U.S. District Judge Martin L.C. Feldman's temporary injunction overturning the moratorium. At Wednesday's hearing by the Senate subcommittee, Sen. Dianne Feinstein (D., Calif.) said she supported the administration's plans to challenge the court ruling. The case's next destination is the U.S. Fifth Circuit Court of Appeals in New Orleans, which is expected to put the case on a fast track. Salazar also told the lawmakers he has been working for more than a year on "substantive reforms" of the agency that oversees offshore drilling, defending his efforts as the BP PLC oil spill in the Gulf of Mexico puts scrutiny on the federal government. BP Formalizes Cleanup Responsibility Handover BP on Wednesday formalized the handover of responsibility for the Gulf of Mexico oil spill containment and cleanup operation from embattled Chief Executive Tony Hayward to Robert Dudley, who becomes president and chief executive of BP's newly created Gulf Coast Restoration Organization. The new organization "will manage all aspects of the response" to the Deepwater Horizon accident and the spill, "ensuring that BP fulfils its promises to the people of the Gulf Coast and continues its work to restore the region's environment," the company said. U.K.'s Cameron: BP Important To U.S., U.K. U.K. Prime Minister David Cameron told Parliament on Wednesday it was in the interests of the oil company's U.S. and U.K. shareholders that BP remains strong and stable. "We do want to make sure this remains a strong and stable company for our benefit and for the benefit of the U.S.," Cameron said. He said the energy firm is owned 40% by U.S. shareholders and 39% by U.K. investors and "employs more people in the U.S. than it does in the U.K. so it's in all our interests that this company is strong and secure for the future." Market Reaction BP's American depositary receipts were up 1% in recent trading to $29.98. The London-listed shares were down 0.2% at 333.50 pence. Shares of Transocean Ltd. (RIG), from whom BP leased the Deepwater Horizon rig, were up less than 1% to $52.89. For more coverage of the oil spill, please search under the code BP for these stories: -BP Oil Containment Stopped After Gas Detected -US Coordinator -US Inspector General Reviewing Role Of MMS Employees In Spill -Lawmakers Weigh In On Ruling To Block Drilling Moratorium -NY State Pension Fund Sues BP Over Losses From Oil Spill >BP -US Interior Secretary: 'Substantive Reforms' Planned For Oil Agency -BP: 325,700 Bbls Of Oil Recovered Since Cap And Flaring System Installed -UPDATE: UK PM: Important BP Remains A Strong, Stable Company -BP Formalizes Handover Of Gulf Oil Cleanup Responsibility -MARKET TALK: Tropical Wave A Bigger Issue For BP Than Oil -US Senate Committee Introduces Offshore Drilling Bill -Obama Postpones Energy Meeting With Senators -WSJ Column: Blowouts Will Not Always Be Prevented -Louisiana Governor Praises Judge's Ruling Against Drilling Ban -Oil Companies, Rig Operators At Odds Over Who Pays For Idled Rigs (END) Dow Jones Newswires June 23, 2010 13:34 ET (17:34 GMT)