Oil companies with their assets in US; have expressed their concerns over Obama’s move of temporary ban on deep sea drilling in US. The Companies alleged that the move can paralyze the Industry in USA and can cause huge job losses.
Meanwhile Govt. Lawyers have upheld the President’s Decision and said that Industry regulators require more time to study the hazards of deep-water drilling and to find solutions to make it safer. Steven Newman, the owner of Transocean’s Ltd on the other hand had criticized the ban and termed the move as “Arbitrary”. He further added that “There are things the [US] administration could implement today that would allow the industry to go back to work tomorrow without an arbitrary six-month time limit”. Chevron Executive also expressed unhappiness with move and said that the ban on deep water drilling would be a step back for energy security and would constraint supplies for world energy. Critics have also expressed concerns that the ban may devastate the economy of the entire region.
The disaster that struck on 20th April still continues to Spew up to 1,00,000 barrels of oil per day, the number though still continues to be debated. The highly anticipated solution of drilling the rescue wells continues and coast guard admiral Thad Allen commented that the construction was ahead of schedule, and expected it to be ready by August. BP earlier reported that it has spent more than $2 billion in clubbing the oil leak and has also agreed to establish a $20 billion fund to compensate victims of the disaster. The BP shares for now are down to 13year low, with all its attempts to club the leak proving unsuccessful.
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