Thursday, April 29, 2010

Obama Administration Escalates Response to Gulf Oil Spill


JARED A. FAVOLE And ELIZABETH WILLIAMSON
WSJ

WASHINGTON—The White House escalated its response Thursday to the growing oil spill in the Gulf of Mexico, as administration officials said that the disaster could prompt a rethink of President Barack Obama's recently announced proposal to allow expanded offshore oil and gas drilling.

In an afternoon appearance in the Rose Garden, Mr. Obama promised to use "every single available resource" of government to help with the spill. Federal officials said that the slick is spreading and could make landfall as early as Friday evening. The prospects for slowing the spread of the oil appear dim.

Homeland Security Secretary Janet Napolitano, speaking at a White House briefing, said that the slick "is crossing different regions" and that the federal government would set up a second command center in Mobile, Ala., in addition to an existing command center in Louisiana. The leaking well took 90 days to drill and it could take another 90 days for a relief valve, intended to stop the leak, to be put in, said Deputy Interior Secretary David Hayes.

The spill, which could be one of the biggest in U.S. history, threatens to cause significant environmental damage and disruption to business along the Gulf Coast. It also could change the dynamics of an energy-policy debate in the U.S. Capitol.

White House energy czar Carol Browner said the spill will be a factor as the administration evaluates future offshore drilling proposals. Ms. Browner said the spill will become a "point of debate" if Congress discusses climate legislation containing proposals to allow more offshore drilling in the eastern Gulf of Mexico, a plan that has been opposed by environmental groups and some Florida political leaders.

Crude oil released into the Gulf of Mexico after an oil rig explosion last week is now threatening the Louisiana shore. WSJ reporter Angel Gonzalez takes a look at the damage from the air, where oil sheen seems to extend to the horizon.
More

* Leaking Oil Well Lacked Safeguard
* Obama Aides Seek Advice From Oil Executives
* Oil Spill Estimates Raised Fivefold
* Vote: Has the oil spill changed your view on offshore drilling?

White House Press Secretary Robert Gibbs said that the future of President Obama's proposal to allow expanded oil drilling could depend on the cause of the spill.

"The president's announcement [allowing expanded drilling] was the beginning not the end of a process. We don't know what caused this. Could that possibility change the president's view point on drilling? Of course," Mr. Gibbs said.

Administration officials said it appears that the well, damaged after a rig hired by BP PLC exploded and sank last week, is leaking 5,000 barrels of oil a day, five times the rate thought earlier this week. But officials said that figure may be revised.

The officials wouldn't detail the exact size of the oil spill but "are prepared for the worst case" scenario, U.S. Coast Guard Rear Admiral Sally Brice O'Hare said.

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OILSPILL
Associated Press

A worker looks over an oil boom as it collects oil from the leaking Deepwater Horizon pipeline in the Gulf of Mexico.
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OILSPILL

Ms. Napolitano said she will designate the oil spill of "national significance," which will allow the federal government to put more people and material on the effort to stop and clean up the oil leaking from an undersea well.

The Interior Department said it has assembled a "swat team" of inspectors to review safety at offshore drilling rigs across the U.S. The Environmental Protection Agency said separately that it has launched a network of monitor systems to evaluate air quality amid concerns that plans to burn off the oil slick in a controlled process could pollute the air.

Officials emphasized that BP will be legally responsible for the cost of the cleanup, and said the U.S. demands the strongest response possible from the company.

They declined to provide a price estimate for the costs. BP has already said that it is spending $6 million a day to combat the oil spill. It is unclear what the cost, including federal support, will total.

The oil rig, which was owned an operated by Transocean Ltd., went into operation in January, Mr. Hayes said.

He said it is subject to monthly inspection and was last inspected "less than two weeks" before the incident. When asked if he felt the incident shows that inspections don't work, he defended the process by saying, "No, we don't think so."
—Siobhan Hughes and Ian Talley contributed to this article.

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