Showing posts with label OIL SPILL. Show all posts
Showing posts with label OIL SPILL. Show all posts
In an interview with Sky News, Carl-Henric Svanberg dismissed comments by Russia's president that the oil giant may face "annihilation".
Mr Svanberg also confirmed that BP chief executive Tony Hayward would be handing over the day-to-day response to BP managing director Bob Dudley.
The BP oil rig exploded on 20 April.
Eleven people died in the Deepwater Horizon drill rig accident, which left a ruptured well spewing hundreds of thousands of barrels of oil into the Gulf of Mexico.
Despite BP efforts to contain the leak, oil continues to enter the sea, threatening states along the Gulf coast.
It has been described as the worst ecological disaster in the US.
A containment cap and another device are capturing some 25,000 barrels of oil a day - the latest estimates suggest 35,000-60,000 barrels a day are spewing out.
Mr Svanberg also confirmed that BP chief executive Tony Hayward would be handing over the day-to-day response to BP managing director Bob Dudley.
The BP oil rig exploded on 20 April.
Eleven people died in the Deepwater Horizon drill rig accident, which left a ruptured well spewing hundreds of thousands of barrels of oil into the Gulf of Mexico.
Despite BP efforts to contain the leak, oil continues to enter the sea, threatening states along the Gulf coast.
It has been described as the worst ecological disaster in the US.
A containment cap and another device are capturing some 25,000 barrels of oil a day - the latest estimates suggest 35,000-60,000 barrels a day are spewing out.
President Barack Obama has vowed to make BP pay for the damage.
The company has agreed to put aside $20bn (£13.5bn) to compensate victims of the oil spill - and has vowed to help with the clean-up.
On Friday, rating agency Moody's downgraded BP's credit rating by three notches, following similar moves by the other two rating agencies earlier this week.
It said the full costs of the oil spill would have a negative impact on the company's cash flow for "a number of years". Complaicency charges
On Thursday, Tony Hayward faced an angry US Congressional panel which told him BP had ignored dangers when drilling in the Gulf of Mexico.
House committee on energy and commerce chairman Henry Waxman said BP's "complacency" before the rig explosion had been "astonishing".
He accused Mr Hayward of "stonewalling" for failing to answer his questions.
But Mr Svanberg defended the chief executive, saying the answers would have to wait until a BP inquiry into what happened was completed.
The company has agreed to put aside $20bn (£13.5bn) to compensate victims of the oil spill - and has vowed to help with the clean-up.
On Friday, rating agency Moody's downgraded BP's credit rating by three notches, following similar moves by the other two rating agencies earlier this week.
It said the full costs of the oil spill would have a negative impact on the company's cash flow for "a number of years". Complaicency charges
On Thursday, Tony Hayward faced an angry US Congressional panel which told him BP had ignored dangers when drilling in the Gulf of Mexico.
House committee on energy and commerce chairman Henry Waxman said BP's "complacency" before the rig explosion had been "astonishing".
He accused Mr Hayward of "stonewalling" for failing to answer his questions.
But Mr Svanberg defended the chief executive, saying the answers would have to wait until a BP inquiry into what happened was completed.
Russian President Dmitry Medvedev said in an interview with the Wall Street Journal on Thursday that BP had to pay "a lot of money this year".
"Whether the company can digest those expenditures, whether they will lead to the annihilation of the company or its break up is a matter of expediency," Mr Medvedev said.
But the BP chairman rejected his company was facing that prospect.
"The company is strong, the company has strong underlying performance - strong cash flow, strong operations," Mr Svanberg said.
But he added that it was impossible to know the final cost of the spill until it had been stopped.
BP says it will withhold dividends until the end of the year as part of its response to the spill.
The long-term hope for ending the spill rests with two relief wells now being drilled, one of which has reached two miles (3km) below the seabed, or about two-thirds of the way to its target, US disaster co-ordinator Admiral Thad Allen reported on Thursday.
BP plans to seal the leak with concrete but that is not likely to happen until August at the earliest.
"Whether the company can digest those expenditures, whether they will lead to the annihilation of the company or its break up is a matter of expediency," Mr Medvedev said.
But the BP chairman rejected his company was facing that prospect.
"The company is strong, the company has strong underlying performance - strong cash flow, strong operations," Mr Svanberg said.
But he added that it was impossible to know the final cost of the spill until it had been stopped.
BP says it will withhold dividends until the end of the year as part of its response to the spill.
The long-term hope for ending the spill rests with two relief wells now being drilled, one of which has reached two miles (3km) below the seabed, or about two-thirds of the way to its target, US disaster co-ordinator Admiral Thad Allen reported on Thursday.
BP plans to seal the leak with concrete but that is not likely to happen until August at the earliest.
Barack Obama has vowed to "make BP pay" for the damage caused by the Gulf of Mexico oil spill, in his first national address from the Oval Office.
The US president said he would meet company executives later and tell them that they must set up a fund to compensate those affected by the spill.
He described the spill as an assault on the shores and citizens of the US that tested the limits of human technology.
Presidents use the Oval Office for what they regard as vital national issues.
The speech comes as opinion polls suggest a majority of Americans disapprove of how Mr Obama has handled the crisis - the worst environmental disaster in US history. 'Mutual goals'
In his speech, Mr Obama likened the spill to an "epidemic" and reiterated that BP would be made to pay for the damage.
The US president said he would meet company executives later and tell them that they must set up a fund to compensate those affected by the spill.
He described the spill as an assault on the shores and citizens of the US that tested the limits of human technology.
Presidents use the Oval Office for what they regard as vital national issues.
The speech comes as opinion polls suggest a majority of Americans disapprove of how Mr Obama has handled the crisis - the worst environmental disaster in US history. 'Mutual goals'
In his speech, Mr Obama likened the spill to an "epidemic" and reiterated that BP would be made to pay for the damage.
"We will fight this spill with everything we've got for as long it takes," he said.
Mr Obama said he would meet BP Chairman Carl-Henric Svanberg on Wednesday and "inform him that he is to set aside whatever resources are required to compensate the workers and business owners who have been harmed as a result of his company's recklessness".
In response to the speech, BP said in a statement that it shared Mr Obama's goal of cleaning up the oil and helping the people affected by the spill.
The firm said it was looking forward to Wednesday's meeting "for a constructive discussion about how best to achieve these mutual goals".
Mr Obama said he would meet BP Chairman Carl-Henric Svanberg on Wednesday and "inform him that he is to set aside whatever resources are required to compensate the workers and business owners who have been harmed as a result of his company's recklessness".
In response to the speech, BP said in a statement that it shared Mr Obama's goal of cleaning up the oil and helping the people affected by the spill.
The firm said it was looking forward to Wednesday's meeting "for a constructive discussion about how best to achieve these mutual goals".
Lack of detail
Mr Obama also used the speech to renew calls for the US to embark on a future of clean energy.
Mr Obama also used the speech to renew calls for the US to embark on a future of clean energy.
"I say we can't afford not to change how we produce and use energy - because the long-term costs to our economy, our national security, and our environment are far greater," he said.
But he gave few details and made no pledges about specific legislation, instead promising to look at ideas from Republicans and Democrats on the issue.
He also announced that the national commission he set up to investigate the causes of the oil spill would be headed by Ray Mabus, a former governor of Mississippi.
With this speech, the president has made a lofty appeal to American idealism, analysts say, but that appeal will not be universally welcomed at a time when Americans are mostly worried about the more pressing need simply to stop the leak.
The Republicans were quick to criticise the address, with party chairman Michael Steele accusing Mr Obama of exploiting the crisis for his own political gain.
But he gave few details and made no pledges about specific legislation, instead promising to look at ideas from Republicans and Democrats on the issue.
He also announced that the national commission he set up to investigate the causes of the oil spill would be headed by Ray Mabus, a former governor of Mississippi.
With this speech, the president has made a lofty appeal to American idealism, analysts say, but that appeal will not be universally welcomed at a time when Americans are mostly worried about the more pressing need simply to stop the leak.
The Republicans were quick to criticise the address, with party chairman Michael Steele accusing Mr Obama of exploiting the crisis for his own political gain.
Tumbling share price
Oil has been spewing into the Gulf of Mexico since a drilling rig leased by BP exploded on 20 April.
Oil has been spewing into the Gulf of Mexico since a drilling rig leased by BP exploded on 20 April.
The explosion killed 11 workers, and the rig sank two days later.
BP managed to place a cap over the leaking oil pipe earlier this month, and is now siphoning off much of the oil.
But estimates of how much oil was gushing out of the well before the cap was put in place have risen dramatically.
Initially experts said about 15,000 barrels were leaking each day, but scientists now believe the figure to be between 35,000 and 60,000 barrels.
US Congressmen have been fiercely critical of BP, accusing its executives of failing to follow proper procedures.
Politicians have spoken of legal action - and even the possibility of criminal charges - against BP.
As the rhetoric has become increasingly bitter, the firm's share price has continued to tumble, with billions of dollars being wiped off its value.
BP managed to place a cap over the leaking oil pipe earlier this month, and is now siphoning off much of the oil.
But estimates of how much oil was gushing out of the well before the cap was put in place have risen dramatically.
Initially experts said about 15,000 barrels were leaking each day, but scientists now believe the figure to be between 35,000 and 60,000 barrels.
US Congressmen have been fiercely critical of BP, accusing its executives of failing to follow proper procedures.
Politicians have spoken of legal action - and even the possibility of criminal charges - against BP.
As the rhetoric has become increasingly bitter, the firm's share price has continued to tumble, with billions of dollars being wiped off its value.
BP says it has begun pumping mud into a breached Gulf of Mexico oil well to try to stem the flow of oil caused by a rig explosion last month.
The US government had earlier approved the move, a so-called "top kill", which has never been tried at such a depth.
BP is under intense pressure to succeed with its latest attempt to stem the leak, after previous measures failed.
Thousands of barrels of oil have been spewing into the Gulf every day since the accident on 20 April.
BP is under intense pressure to succeed with its latest attempt to stem the leak, after previous measures failed.
Thousands of barrels of oil have been spewing into the Gulf every day since the accident on 20 April.
Company officials say it could be a couple of days before they know whether the "top kill" operation is working.
Mud will continue to be pumped into the well for hours, spokesman Steve Rinehart said.
"The procedure is intended to stem the flow of oil and gas and ultimately kill the well by injecting heavy drilling fluids through the blowout preventer on the seabed, down into the well," a BP statement said.
If the oil flow is successfully capped, engineers will follow up with cement to seal the well permanently.
BP Chief Executive Tony Hayward has put the operation's chance of success at 60-70%.
Mud will continue to be pumped into the well for hours, spokesman Steve Rinehart said.
"The procedure is intended to stem the flow of oil and gas and ultimately kill the well by injecting heavy drilling fluids through the blowout preventer on the seabed, down into the well," a BP statement said.
If the oil flow is successfully capped, engineers will follow up with cement to seal the well permanently.
BP Chief Executive Tony Hayward has put the operation's chance of success at 60-70%.
The procedure began at 1300 local time (1800 GMT), shortly after federal officials approved the plan.
Officials say the method has been used before in other areas of the world, but not at the depths required to stem the oil from the Deepwater Horizon rig.
There is a risk a weak spot in the blowout preventer that sits on top of the well could breach under the pressure, causing a brand new leak at the site 50 miles (80km) off the Louisiana coast. 'No guarantees'
Speaking in California, US President Barack Obama said his administration would commit all resources necessary to stop the flow of oil into the sea.
Officials say the method has been used before in other areas of the world, but not at the depths required to stem the oil from the Deepwater Horizon rig.
There is a risk a weak spot in the blowout preventer that sits on top of the well could breach under the pressure, causing a brand new leak at the site 50 miles (80km) off the Louisiana coast. 'No guarantees'
Speaking in California, US President Barack Obama said his administration would commit all resources necessary to stop the flow of oil into the sea.
If it's successful - and there are no guarantees - it should greatly reduce or eliminate the flow of oil now streaming into the Gulf from the seafloor. And if it's not, there other approaches that may be viable," he said.
Mr Obama said the "heartbreaking" oil spill underscored the need to find alternative energy sources.
"We will not rest until this well is shut, the environment is repaired and the clean-up is complete," he added.
Mr Obama is due to make his second visit to the Gulf of Mexico region on Friday.
His visit will come a day after he receives a report into offshore drilling that is expected to recommend tougher regulations and demand more safeguards.
Mr Obama said the "heartbreaking" oil spill underscored the need to find alternative energy sources.
"We will not rest until this well is shut, the environment is repaired and the clean-up is complete," he added.
Mr Obama is due to make his second visit to the Gulf of Mexico region on Friday.
His visit will come a day after he receives a report into offshore drilling that is expected to recommend tougher regulations and demand more safeguards.
'Series of failures'
London-based BP has acknowledged that a series of failures occurred on the Deepwater Horizon oil rig in the hours before the explosion that killed 11 workers and triggered the spill that has so far spewed at least 7 million gallons (26.5 million litres) into the Gulf.
London-based BP has acknowledged that a series of failures occurred on the Deepwater Horizon oil rig in the hours before the explosion that killed 11 workers and triggered the spill that has so far spewed at least 7 million gallons (26.5 million litres) into the Gulf.
Two leading US congressmen have meanwhile been briefed on thousands of BP documents relating to the accident.
In a memo, Representatives Henry Waxman and Bart Stupak say the explosion was preceded by several warning signs - including abnormal pressure readings and failures in some functions of the blowout preventer - but action appears to have been taken too late.
Questions have been raised over whether proper procedures were followed.
Speaking on US television on Wednesday, Mr Hayward said: "What we're seeing here is a whole series of failures. We've identified... at least seven.
"It's very clear that much more needs to be put in place to deal with this situation should it ever occur again."
He added: "It's clear that this will be a transforming event in the history of deep water exploration.
In a memo, Representatives Henry Waxman and Bart Stupak say the explosion was preceded by several warning signs - including abnormal pressure readings and failures in some functions of the blowout preventer - but action appears to have been taken too late.
Questions have been raised over whether proper procedures were followed.
Speaking on US television on Wednesday, Mr Hayward said: "What we're seeing here is a whole series of failures. We've identified... at least seven.
"It's very clear that much more needs to be put in place to deal with this situation should it ever occur again."
He added: "It's clear that this will be a transforming event in the history of deep water exploration.
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