BP Warns Congress About Ban On Offshore Drilling

BP’s executive vice president, David Nagel, stated “If we are unable to keep those fields going, that is going to have a substantial impact on our cash flow.” BP is trying to lift their ban on offshore drilling in order to maintain enough money to clean up the spill AND donate to charity programs surrounding the April explosion. The New York Times reports”

BP is warning Congress that if lawmakers pass legislation that bars the company from getting new offshore drilling permits, it may not have the money to pay for all the damages caused by its oil spill in the Gulf of Mexico.

The company says a ban would also imperil the ambitious Gulf Coast restoration efforts that officials want the company to voluntarily support.

BP executives insist that they have not backed away from their commitment to the White House to set aside $20 billion in an escrow fund over the next four years to pay damage claims and government penalties stemming from the April 20 explosion of the Deepwater Horizon drilling rig. The explosion killed 11 workers and spewed millions of barrels of oil into the gulf.

The company has also agreed to contribute $100 million to a foundation to support rig workers who have lost their jobs because of the administration’s deepwater drilling moratorium. And it pledged $500 million for a 10-year research program to study the impact of the spill.

Continues at The New York Times

5 Comments on "BP Warns Congress About Ban On Offshore Drilling"

  1. It doesn’t help that the Obama administration negotiated a contract that only allows one subsidiary of BP, the offshore drilling in the gulf subsidiary, to pay for the restoration. It pretty much guaranteed BP would react as they are above and would eventually strong-arm congress into letting them expand gulf coast drilling.

    See: http://www.democracynow.org/2010/9/3/another_oil_and_gas_rig_explosion

  2. Peetwilson | Sep 3, 2010 at 10:34 pm |

    BP – Revenue US $246.1 billion (2009)… taken from Wikipedia. enough said.

  3. justagirl | Sep 3, 2010 at 11:46 pm |

    “*sniff* *sniff* what smells like big business?”

  4. Earbudcontender | Sep 4, 2010 at 12:11 am |

    Sell the company, pay the people. It’s called failing BP, it happens and you might just get one of those internet black border pictures I so love. Just don’t lose that enthusiasm. Maybe they can get into the oil spill cleaning business for good now that they have all this gear. Just don’t go into the explosives industry because you might become too successful there.

  5. Haystack | Sep 4, 2010 at 4:21 pm |

    It’s weird. They talk about expanding offshore drilling, and the Gulf gets spewed with oil. They protest the moratorium, and another rig blows. Reality seems to be making a pretty good case for itself this time around.

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