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

23rd Jun 2010 22:55

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. Meanwhile, a House panel approved legislation that would repeal a century-and-a-half-old law that Transocean Ltd. (RIG) has sought to use to limit its liability in the Gulf spill disaster. Later Wednesday, the House voted to give subpoena powers to President Barack Obama's newly formed National Commission On The BP Deepwater Horizon Oil Spill & Offshore Drilling. 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. If the containment cap isn't replaced quickly, BP will be unable to stick to its plan of capturing 53,000 barrels a day by early next week, the U.S. Coast Guard said. In related news, two people working on the spill response effort died, but neither of the deaths were work-related. 'Substantive Reforms' Of Oil Agency In testimony to a subcommittee of the Senate Appropriations Committee, Salazar said the government was looking at a possible, revised moratorium. 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. 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. 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 closed down 1 cent to $29.67. The London-listed shares closed down 0.2% at 333.50 pence. Shares of Transocean, from whom BP leased the Deepwater Horizon rig, closed up 0.5% to $52.76. For more coverage of the oil spill, please search under the code BP for these stories: -House Gives Subpoena Power To Obama's Oil-Spill Commission -Salazar: Could Issue New Drilling Moratorium -US House Panel Passes Oil-Spill Liability Bill -BP Containment Effort Hits Snag After Underwater Robot Collides With Cap -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 -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 17:55 ET (21:55 GMT)