VENICE La / LONDON – BP plc faces a grim future on Tuesday the failure to stop a Gulf of Mexico oil spill a dip in the shares of energy giant and the government, Obama said that the opening prompted a criminal research. President Barack Obama, struggling to the top of the worst oil spill in U.S. history, undertook a review of U.S. laws and regulations required for a repeat of April 20 rig explosion that 11 people slain and provided the leakage occur.
A mile below the sea surface, BP began a new strategy to six weeks old drama to tackle, using underwater robots cut foreign pipes before trying to contain the leaking oil and the channel to a ship on the surface.
After meeting co-chairmen of a commission that will investigate the accident, Obama offered the prospect of criminal prosecution.
“If our laws were broken leading to this death and destruction, my pledge is that we have those responsible to court on behalf of the victims of this disaster and the people of the Gulf region,” said Obama.
U.S. Attorney General Eric Holder said in New Orleans, the U.S. government has launched a criminal probe and that the federal agencies, including the FBI, to participate.
“We will not rest until justice is done,” Holder told reporters.
The Ministry of Justice will look for violations of the Clean Water Act, the Endangered Species Act, the Migratory Bird Treaty Act and the Oil Pollution Act of 1990, which can be used to offenders liable for remediation and compensation for government efforts account.
SHARES Plunge
The oil giant’s shares closed in London on Tuesday 13 percent at 430 pence, after falling as much as 17 percent. In New York, BP’s American Depositary Receipts lost nearly 15 percent to close at $ 36.52.
The shares were badly hit by the news that her last weekend down its blown-out sea bed and had not worked, sparking fears of oil would leak into the Gulf until August.
BP shares lost more than one third of their value, or about 46 billion pounds since the leak started. The cost of dealing with the crisis now stands at 990 million U.S. dollars (676.4 million pounds) and is rising.
Shares of other companies with interests in the pit were down between 10 and 19 percent, including Anadarko, Transocean, Cameron and Halliburton.
Meanwhile, the cost of protecting the debt of what was once the largest company in Britain against default has risen sharply. Five year credit default swaps widened BP by 71 basis points to 173 basis points, Markit CDS monitor said.
The cost for the protection of Anadarko, Halliburton and Transocean debt also soared.
Analysts were more pessimistic about the BP as an investment, an issue of a sales and says he thinks the company will be broken by the crisis.
A poll by CNBC, a Wall Street news watched beaten by several smart U.S. investors, said that 63 percent of respondents said BP will be good in one year, while 25 percent believe the company will be under the protection of bankruptcy and 12 percent think BP would go under.
But the White House said BP had the means to the financial costs of the disaster to cover.
“You have a company came up with the type of market capitalization that can and will fully pay for the damage caused by the disaster they are responsible for,” spokesman Robert Gibbs said when asked for a briefing when the Obama administration is concerned leakage can financially BP ruin.
The next attempt to leak, robotic will use giant scissors and a diamond saw a pipe section contains 35 feet (11 meters) above the wellhead which BP is a dome on top of the sit and oil pipe to a tanker on the surface.
“We are intent on minimizing the flow of oil in the Gulf and we started a series of activities to ensure just that,” BP’s managing director Bob Dudley told CNN.
It would take 72 hours to the containment device to get operational, said the Coast Guard Admiral Thad Allen, the top American official monitoring the cleanup.
If this attempt fails, it is possible that to 19,000 barrels (800,000 liters / 3 million liters) per day in the Gulf will leak to the relief wells, in August, are completed.
The leak is a financial and public relations nightmare for BP and its problems have just begun.
Holder, U.S. Attorney General, Justice Department and met top officials of state and federal prosecutors in Louisiana, Alabama and Mississippi and then announced that the criminal probe was under way.
“We started well with a criminal or civil investigation and our obligation under the law,” Holder told reporters. “Our environmental laws are very clear.”
OBAMA vows legal OVERHAUL
Obama, who is fighting allegations that he did not react quickly enough to a disaster that Louisiana billion industry fishing industry threatens sit with the heads of a committee to find the leak – Former Senator Bob Graham and former head of the Environmental Protection Agency, William Reilly .
“If the laws on our books are not sufficient to prevent such leakage, the laws must change. If the monitoring was not sufficient to enforce these laws, monitoring should be reformed,” said Obama.
The committee will be similar to those two previous disasters unprecedented U.S. – the explosion of the Space Shuttle Challenger in 1986 and the Three Mile Island nuclear accident in 1979 examined.
The fate of BP’s shares weighed on investors, but is of little interest to the inhabitants of the coast of Louisiana, which is crippling losses due to the closure of some Gulf suffered from fishing.
“I really do not really care,” Kimberly Mertz, who works at a marina in rural Venice, Louisiana, said the share price. “We want to get everything cleaned up.”
The slick has spread over 100 miles (160 km) off the coast of Louisiana, Mississippi and Alabama, but have so far escaped with only scattered tar balls and oil debris reached their shores.
That may change. National Oceanic and Atmospheric Administration said moderate southwesterly winds south this week and can begin moving oil closer to the Mississippi and Alabama coasts.
The prediction was a reminder that the oil from the uncontrolled leakage, broken and worn by wind and currents, could threaten Florida tourist attraction and Cuba and Mexico.
Commercial boats engaged to the oil spill response were used to monitor the Alabama coastline and increase skimming vessels were confirmed to respond to reports of oil. Beach support teams were also deployed in anticipation of the oil comes ashore.
Increasing the commitment even further, Tuesday was the official start of the 2010 Atlantic hurricane season, which forecasters predict be the most intense since 2005.
That year, Hurricane Katrina devastated the region and disrupted offshore oil and gas production.
Experts fear a big storm could drive more oil to the shore and force BP and the U.S. government to clean up efforts should be suspended.
source:reuters
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