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BP faces seven year ban on US drilling
A US congressional committee has passed a bill to stop BP from drilling for offshore oil or gas in the US for seven years.
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A US congressional committee has passed a bill to stop BP from drilling for offshore oil or gas in the US for seven years.
The amendment, passed by the House Natural Resources Committee in the US yesterday, would ban BP ‘or any other company with a significant history of violating worker safety or environmental law’ according to Representative George Miller, who first tabled the amendment.
Under the law, which would have to be passed by the House and Senate and does not specifically name BP, a company would be banned from drilling if it showed five times the industry average for wilful or repeat worker safety violations at their oil and gas facilities, if more than 10 fatalities occurred at any of its facilities, or if it incurred fines of $10 million or more under Clean Air or Water Act within the preceding 7 years.
BP shares were down 1.38% in early trade to 395p.
BP faces a criminal investigation over the accident at the Deepwater Horizon well on April 20 that killed 11 rig workers. However, it has not been convicted of any criminal charges and has not admitted any criminal liability. In 2007, BP admitted it was guilty for failing to have adequate procedures in place before a March 2005 explosion and fire at a Texas City refinery.
Miller said: ‘Companies with a history of being dangerous to workers or to the environment should not have the privilege of drilling off America’s coastline for our natural resources. It is a privilege to be able to drill for the valuable resources that belong to the American people. And the American people have a right to insist that only the companies of the highest caliber and with the best records be permitted to drill off our shores for oil and gas.’
However, in addition to the threat to its drilling license, the company also faces an investigation into charges that it lobbied for the release of the Lockerbie bomber as part of an oil-for-terrorist deal, according to reports. US secretary of state Hillary Clinton has said she would look into the claims.
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37 comments so far. Why not have your say?
Truth Searcher
Jul 15, 2010 at 09:34
Lucky Exxon Mobil, what a surprise, not.
report thisDayTrader
Jul 15, 2010 at 09:36
Would that include the relief wells they are trying to drill at the moment, I wonder?
report thisAnonymous 1 needed this 'off the record'
Jul 15, 2010 at 09:38
More Brit bashing from the Obama administration of BP
I suppose knowing Obama they will exclude the likes of American companies
Transocean, Haliburton and Anadarko who were partners or operators of the Gulf Rig that blew up
report thisM H
Jul 15, 2010 at 09:39
What a joke, when are the British government going to grow a pair and start looking after British interests in this saga ? Let us not forget that American companies own a 35% share in this well and that it was an American company that installed the BOP that failed.
Come on Cameron stop staring lovingly into Clegg's eyes for 5 mins and do your bloody job !
report thisAnonymous 2 needed this 'off the record'
Jul 15, 2010 at 09:43
and the U.S. isnt dangerous to the environment ? , if it wasnt for their thirst for the black stuff we wouldnt be there in the 1st place. tossers
report thisploughboy
Jul 15, 2010 at 09:43
Will it include the other American companys with a share of the rights to drill ?
report thisSkibo
Jul 15, 2010 at 09:43
Lets applaud the Americans desire to have safety as a number 1 priority.
They could call it the Bopal Bill to illustrate the History of American companies failure in this area.
The rig that killed 11 employees was an American owned rig.
BP leased the rig-operated it under US jurisdiction & to US regs.
This Bill looks like window dressing to secure a second term in office.
Thick Dark Smelly Oilly spills need a clean up -Will they Cap the politicians
blatant electioneering or will they continue to gush vitriole and abuse at the "Foreign Devils" operating in their back yard ?
BP may be paying a heavy price for operating in an area where real perspective operates at a 1 mile below the surface of the US politicians FALSE smiles.
report thisGeorge Woodhouse
Jul 15, 2010 at 09:58
Presumably Halliburton will be caught by this aa well - or is thta too naive??
report thisAnonymous 3 needed this 'off the record'
Jul 15, 2010 at 10:01
What a shower of idiots, they have oil on their own doorstep, but would rather invade another country and take theirs I suppose?
report thisDavid Husband
Jul 15, 2010 at 10:10
Agree with all the above.
BP must think they're in Russia all over again.
report thisKK
Jul 15, 2010 at 10:11
Get real, guys. This is not Brit bashing. This is BP bashing, and they richly deserve it.
report thisDerek McCormick
Jul 15, 2010 at 10:21
The American hypocrisy is as hard to stomache as the oilslick which pervades their politics.
report thisAnonymous 4 needed this 'off the record'
Jul 15, 2010 at 10:32
Good job we have the "special relationship" with the US! Is it too much to hope that when Cameron meets Obama shortly he will tell him to lay off BP because we are heartily sick of US blame shifting? It is high time our politicians remembered what they were elected for, namely first and foremost to look after UK interests, not play the international statesman. Learn a lesson from the French.
report thisRicpent
Jul 15, 2010 at 10:37
Stop whining!
report thisjoe stalin
Jul 15, 2010 at 10:40
US Senators are merely taking a leaf out of their leaders book . We have all discovered that the great new force in American politics is little more than an opportunist with a penchant for the camera and the autocue. He will not be re-elected for a second term as the US electorate have come to realise that they were sold a pup. BP is the whipping boy and will likel remain so until these turkeys have faced their electorate. As for Libya it is again obvious that the chumps do not realise that US companies have been active there for decades with a brief hyatus between 1985 and 90 I seem to recall. Libya came in from the cold when they gave up their nuclear ambitions and offred to help out with intelligence in the post 9/11 world. Obama and his media obsessed circus troop should tread very very carefully.
report thisAnonymous 5 needed this 'off the record'
Jul 15, 2010 at 10:45
Funny thing, due to the ‘Halliburton Loophole’ firms involved in fracking operations associated with Shale-Gas extraction are specifically exempt from the Clean Air and Water acts (Energy Policy Act 2005). Isn’t that lucky? Otherwise you’d have thought many more firms would be impacted by this wonderful piece of legislation.
report thisSmithy
Jul 15, 2010 at 10:50
BP have had three major catastrophes in the last decade; the Texas refinery, the Alaskan pipeline and now Deepwater Horizon. All three occurred in the USA under the management of the US division of the business. It looks more and more like the British part of BP that has been operating for many years takes safety seriously whilst the Amoco part that was bought 10 years ago is a crowd of gung-ho Texans. It takes many, many years to change an organisation's culture and BP has not managed to do this with the Amoco bit.
And I agree with the sentiments above; Cameron is turning out to be completely spineless.
report thisAnonymous 6 needed this 'off the record'
Jul 15, 2010 at 11:09
BP should down size and pull out of USA- Petrol/Desiel prices would hopefully go up so the Americans have to pay the going rate instead of cheap energy prices.
We should also look at the special relationship with USA - I firmly believe Britain wouldnt be as big a target with these terriost organisations if we freed up our relationship and got closet to Europe.
report thisAnonymous 7 needed this 'off the record'
Jul 15, 2010 at 11:16
Ironic all the anti-American comments attacking them for being nationlistic. Utterly ironic.
If you haven't, check out BP Texas City Refinery Explosion - it's not like this is the first time BP has been involved in a disaster in the US.
report thisAnonymous 8 needed this 'off the record'
Jul 15, 2010 at 11:25
Agreed Anon 6, BP should sever all connection with the US and concentrate on the rest of the world.
It wouldn't be long before the US discovered what a major blooper it had made.
In fact I'd like to see the rest of the world sever all connection with the US.
report thisDave Chalmers
Jul 15, 2010 at 11:27
Special relationship to the Obama crew means you play ball with us and we will stick the bat up your arse. Anyone remeber Piper Alpha and Occidental? or would it be bad manners to mention that one?
report thisAnonymous 9 needed this 'off the record'
Jul 15, 2010 at 11:28
Can someone remind me but wasn’t it the USA that sprayed millions of gallons of the herbicide Agent Orange on Vietnam and its people.
Wasn’t the USA the first to employ a concentration camp which they operated sadistically during their civil war, only to be copied by Adolf, and don’t they still maintain such a camp on the island of Cuba?
What provisions are they making to compensate farmers the worldwide for their perfectly safe genetically modified crops?
Contrast the Nelson Mandela’s reconciliation for all the atrocities committed in SA and the viciously vindictive Baraka Obama’s anti British stance in this relatively minor incident.
It’s a never-ending list.
report thisNilesh Kerai
Jul 15, 2010 at 11:30
Britain needs to realise that America will not be a top 5 superpower in the future. There is no point in sniffing their arses. We need to play hard ball with them to in every opportunity. When the going gets tough they have no problems in stabbing their own mothers in their backs to save their own arses. Britain should start defending ITS interests as the last time I checked we have pension black holes all over the place. Loosing a company this large for cheap to the yanks is in no ones interest.
The corrupt American Congress is full of rich people stuffing cash in the back pockets of congressmen and women. This is how they do business. I can't wait for the American car industry to go bust, and for the next American lead global financial meltdown. We should block all American banks from investing outside of the "Land of the stupid" and get real men or women in power running this country, as lets face it this LibCon gov is only trying to improve their own images so when it comes to election time in 4 years they have a better chance of securing the hot seat for themselves.
Plus how much did the prisoner exchange fiasco play into the possible 7 year drilling ban? They are just pissed they didn't think of it first I guess!!! There is always a hidden agenda with the yanks, they can't even be honest to their own people, like the victims of 9/11 who still don't know everything that happened on that day.
report thisMr Chips
Jul 15, 2010 at 12:01
"Lucky Exxon Mobil, what a surprise, not" ... Exactly. We're approaching peak oil and there are those in the US trying to take advantage of the BP spill to secure it's licenses. The latest being off-shore Libya. It's a resource war, only at this time, it's being fought through politics and law.
report thisjames corbett
Jul 15, 2010 at 12:16
Nobody is whining, what we have here is an understandable backlash against the obvious "let's bash BP until it really hurts" mentality that the Americans are operating under.
This is a disaster that as far as I know hasn't been fully explained yet. What would happen I wonder if it is found that some of the fault was due to the faulty kit or procedures that were under American control? Would BP get any compensation? Or is it a forgone conclusion that ALL the blame is going to be heaped on BP?
President Obama is a hypocrite of Olympic proportions, as are many of the American politicians.
Our very own Cameron is a wimp of the same class. I despise anyone who wont stand up for themselves, which in Camerons case is the British people. Why the man has no guts I cannot say. I can say though that if he doesn't start realising what the rest of us already know he is going to go down as the worst Prime Minister since Chamberlain, namely, that the Americans are no friends of ours. Never have been. Everything they do, are have ever done has a price!
I am sick to death of the lot of them.
report thisMr Chips
Jul 15, 2010 at 12:37
@James ... It's called self-interest. Much like our own aristocracy that did not want to stand up to Germany and Jews that grew wealthy from sacrificing their own nationals. We haven't been invaded though and the enemy is less clear. When the country generally recognises the need to rebalance the economy away from banking and speculation, how should we regard the british banks and speculators that sell successfull British companies to make a fast profit? How far down the track will our dependance on oil take us?
report thisAnn
Jul 15, 2010 at 13:08
I really find it hard to believe that Transocean who have lost about $750m worth of rig did not have a say in the decisions. I similarly find it astonishing that Anardarko could imply that they had no idea what was going on. They should be included if they are really serious in the admirable aim of protecting life and the environment. I wonder how many companies drilling exploratory bores at the moment use Transocean?
The next big question will be what happens to the exploration leases that BP already own. If they are not allowed to drill this area will they allowed to sell them at market rate - after all the area is obviously proven or will the next step be a forced sale?
BP may well be guilty of unnecessary risk taking but I find it increasingly hard to believe they will get anything remotely like a fair trial and that we will get to the real truth that will enable the industry to be made safer going forward.
report thisFoggiest
Jul 15, 2010 at 13:51
Cameron costing us billions!
Why oh why does Cameron let himself be bullied into staying quiet on BP while Obama and others have a field day for political gain.
Cameron stays quiet while retroactive laws are passed against us.
Cameron stays quiet while BP is found guilty without an investigation/trial.
Cameron stays quiet while American companies involved go scot free.
Cameron stays quiet while pension funds (mine included) lose billions to the US.
To think I voted for this wimp and he has turned out so Camewrong.
report thisAnonymous 6 needed this 'off the record'
Jul 15, 2010 at 14:13
Cameron by keeping relatively quiet is keeping his powder dry.
There may be worse to come in this BP Saga and I have no doubt that Cameron when the timing is right will stick up for theBP & British Companies.
We dont know what is being said behind the scenes- just be patient its a British Trait which is well worth preserving.
BP will come out of this mess as a profitable company but more care must be taken on deep sea under water drilling- and appointment of reliable trust worthy sub contractors
report thisIan ?????
Jul 15, 2010 at 15:12
There is 13 other transocean rigs in GOM, . BP produces 40% of the
oil coming out of the GOM, I believe and that GOM is worth 30% of the US
requirement. One thing that will happen is OIL WILL go up before year end.
It is reasonable to think that wars are fought now over oil( government change)
why not sabotage a 50% UK owed co. is it such a strech ? Obama will loose more votes because of job losses in GOM. and higher oil prices.
report thisAnonymous 10 needed this 'off the record'
Jul 15, 2010 at 15:34
You can almost smell the hypocracy of an element of the US establishment. Union Carbide killed 25000 people in Bhopal 25 years ago and there are many who live today, crippled by this disaster. The US senate and media desperately continue to cast around for more pressure to place on BP - it is the US ("the great polluter") itself, whose thirst for cheap energy, which has been the driving force behind this disaster.
It is time that we stopped our angst over the so called "special relationship" it works only one way - and not in our favour. We need our coalition to stand up please and support the UK's biggest company and thwart the torrent of anti Britsih sentiment currently growing.
report thisAnonymous 11 needed this 'off the record'
Jul 15, 2010 at 15:38
Whilst you can't blame the US for being furious about the oil on their beaches, their stance is in sharp contrast to their arrogant refusal to act to limit their disproportionate contribution to air pollution and global warming and their greed in consuming the world's natural resources. Obvious pollution of the beaches unpleasant though it is, in the long run will do much less damage to the environment than their "consume now and to hell with the rest of the world" attitude.
report thisMeccanoMan
Jul 15, 2010 at 16:46
Maybe, if the Obama administration is intent on making this whole BP saga reflect on us as a problem of pure British origin, then perhaps BP should snub the US by reminding them of the dual-nation interest in its economic fortunes by removing its share listing from the NYSE. That would save a few million a year in fees no doubt to help pay the fines.
report thisAnonymous 12 needed this 'off the record'
Jul 15, 2010 at 17:51
It seems (Guardian Newspaper (Nigeria) Tues July 13) that the Nigeria Oil Spill response Agency is taking a keen interest in US action in the GoM. It seems to have some relevance to recent 'devastating oil spills by Exxon Mobil in Akwa Ibom State.
As noted ain other comments Bhopal and Piper Alpha also spring to mind.
report thisChris Shaw
Jul 15, 2010 at 18:06
Some of these Washington politicians need Blow-out preventers installed in their mouths
report thismichael coxson
Jul 15, 2010 at 18:45
Well said Chris Shaw.
report thisThoughtfull
Jul 16, 2010 at 21:48
Lets show a little calm balance here folks. As I recall, some American big dealers let some big American bank who swindled HSBC of the hook by ignoring their existance. High time that HM Goverment made a few diplomatic and not too belicose noises (we tend to be little more delicate) while we provide HSBC with the best advice and legal support necessary. Let us do unto etc
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