HENRI LEJEUNE

NEW IBERIA — The Iberia Parish Council voted unanimously Wednesday to give $25,000 to a tri-parish communications facility that would be used to combat the growing oil slick in the Gulf of Mexico.

Parish President Ernest Freyou told the council he will sign an executive order today declaring Iberia Parish a disaster area.

He said he is making the move in advance of any damages the parish will incur so that the necessary paperwork is in place for what local, state or federal action may need to be taken next.

Prescott Marshall, director of the Iberia Parish Office of Homeland Security and Emergency Preparedness, has been visiting the main federal incident command center in Houma where most of the oil slick containment and cleanup operations are being directed.

He said he was told that a separate local incident command center will be set up, possibly this weekend, in Morgan City at the Port of West St. Mary.

The $25,000 would be used to rent a building or other property near the command center. Iberia would join St. Mary and Vermilion parishes in the facility to keep in constant contact with British Petroleum and federal officials.

St. Mary and Vermilion parishes also will supply money for it as well.

Marshall said all three parishes will work together when dealing with the federal and BP Amoco PLC officials to ensure the coasts of all three parishes are protected.

Marshall added that BP will reimburse the parish for costs at a later time.

Marshall also said that the Coast Guard approved Iberia’s disaster plan, which was submitted last week, except for a provision to close off Vermilion Bay. He said Coast Guard officials told him that the strong currents and wave action in the bay would make closing it off too difficult.

Marshall added that Coast Guard officials also said that the spreading oil sheen could kill juvenile shrimp living within Vermilion Bay and that these habitats would be protected should the oil sheen drift their way.

Freyou told the council that other damages could be seen to local shrimp fisherman and shrimp processors located in the parish.

Even if no oil damages the coast, many boats shrimp near the Mississippi River Delta, and economic damages will be seen from loss of catches in that area and to processors who could see fewer shrimp being supplied to them.

The next council meeting is set for May 26.

Original Article

Robert Campbell

MEXICO CITY, May 11 (Reuters) – Driving home along rough, poorly lit roads to the southern Mexican city of Villahermosa, an oil executive and his driver stopped at a roadside eatery for dinner when they were cornered by armed men.

The gunmen seized Nestor Martinez, who manages a production unit for energy monopoly Pemex in the oil-rich state of Tabasco, and sent his driver on to deliver the news he had been kidnapped, industry sources say.

Martinez was released a few days after his abduction last month but a spate of kidnappings of Pemex executives has shaken the oil industry in a country where drug cartels and organized crime gangs are increasingly spooking foreign investors.

“Everyone has heard about it but there has been no official statement. It’s really frightening,” said a Pemex employee in Villahermosa, who declined to be identified because he is not authorized to speak with reporters.

A Pemex spokesman declined to comment on the case, and the industry sources could not confirm local media reports that a large ransom was paid to free Martinez, also president of the national petroleum engineers’ association.

Mexico is in the grip of a brutal drugs war that has killed some 23,000 people, mainly traffickers and police, since President Felipe Calderon took power in late 2006. The army crackdown launched by Calderon has fanned turf wars between rival gangs and battles against security forces.

Extortion of businesses and kidnapping is rife, although many abductions are not reported because of a widespread mistrust of Mexico’s police, so numbers are hard to pin down.

Businesses often deal with private security experts rather than the police when executives are abducted and they usually try to keep cases quiet for fear of attracting more criminal attention.

Calderon’s government has appealed to the public to report more crimes, and around 100 kidnappings a month were reported to authorities last year, a more than 80 percent jump on 2008, according to Mexican consultancy RRS y Asociados.

PEMEX A TARGET

Organized crime in Mexico is dominated by powerful drug gangs that hold sway in different areas, running everything from cocaine-smuggling routes to car thefts.

A majority of firms surveyed by the American Chamber of Commerce of Mexico said earlier this year they felt less safe than before. More than a quarter said they were reconsidering their investment plans in Mexico due to security concerns.

“We have clients that in the past year have spent a lot of money on physical security and many are now restricting the travel of their executives,” said Fred Burton, vice president of intelligence at U.S. security consultancy Stratfor.

Burton estimates official Mexican statistics may only account for a third of all abductions. “It’s not uncommon for a senior executive to fly into the country and leave the same day rather than take the risk of staying overnight.”

Martinez is the fourth Pemex employee to be abducted from his production unit since March, according to a Tabasco newspaper. A fifth Pemex employee, who works in petrochemicals, was also abducted recently, the paper reported.

“This is not a good development for the oil industry and shows security is a growing concern,” said a U.S. consultant who works with Pemex, asking not to be quoted by name.

Security concerns are unlikely to lead to an exodus of oil services companies from Mexico due to the lucrative work doled out by Pemex as it struggles to halt declining oil production.

But the abductions are one more headache for Pemex which already struggles with criminal gangs and corrupt employees pilfering some $750 million of fuel and oil from its pipelines each year and stealing valuable spare parts and equipment.

Calls have intensified to move Mexico’s annual petroleum conference in June from the Gulf coastal city of Tampico in the drug-gang infested state of Tamaulipas to a safer location.

“Nobody wanted to go to Tampico before but now there is a lot pressure to change the location. Who wants to send their executives there?” said a person at a Pemex contractor

Original Article

BILL LODGE

KENNER — The Deepwater Horizon drilling rig was registered by owner-operator Transocean with the Republic of the Marshall Islands more than five years before it exploded last month in the Gulf of Mexico.

Michael Saucier, a regional supervisor for field operations of the federal Minerals Management Service, noted the Pacific island registration during testimony Wednesday at a federal hearing intended to answer questions about the catastrophic accident.

Eleven of the 126 men aboard the rig are listed as missing and believed to have perished. The rig sank in 5,000 feet of water.

“Was this the first deepwater blowout in the Gulf of Mexico?” asked Jason Mathews, an MMS accident investigator on the hearing panel.

Saucier said several other rigs were lost decades ago to bad weather, but none to blowouts.

The MMS supervisor said there are approximately 16 other Gulf wells located in water that is at least 5,000 feet deep.

The Deepwater Horizon was equipped with a blowout preventer that was supposed to have cut and sealed the drilling pipe during the fatal accident last month.

Saucier testified that an MMS study revealed that blowout preventers cannot cut some larger drill pipes, but he added that he does not know what size pipe was used by well owner BP at the site of the Transocean rig.

Coast Guard Capt. Hung Nguyen, co-chairman of the hearing panel, asserted that the blowout-preventer industry is essentially self-regulated. And Saucier agreed.

Saucier also testified that there are approximately 3,400 oil platforms in the Gulf of Mexico that are supposed to be inspected annually. He added that he does not know how many actually are inspected by MMS.

At one point, Saucier testified that rig crews are trained by experienced members of rig companies. He said the crews also conduct rig safety tests, the records of which are then reviewed by MMS inspectors.

Transocean representative Ned Kohnke noted that rig workers and managers cannot afford to cut corners on safety tests and maintenance of equipment because their lives depend on good practices.

Saucier agreed with that assessment.

Officials of the Republic of the Marshall Islands testified that Deepwater Horizon was one of 2,200 vessels that fly the nation’s flag. Of that total, 117 are mobile oil drilling units like the Deepwater Horizon.

Thomas Heinan, one of the republic’s deputy commissioners for maritime affairs, testified that the small nation will conduct an investigation of the Deepwater Horizon tragedy and cooperate with both the MMS and Coast Guard.

Brian Bulbar, another of the island republic’s deputy commissioners, testified that a December inspection of the rig revealed an “unacceptable accumulation of oil” in two of its propulsion thrusters.

Bulbar added that the problem had been corrected by February.

Deepwater Horizon, Bulbar testified, had “been in full compliance” with national and international standards before it exploded.

The Coast Guard’s Nguyen announced at the close of testimony Wednesday that three additional hearings will be conducted by the government panel.

Nguyen said the next hearing is scheduled May 25-29 in Kenner.

Original Article

Workers skim oil residue from the water as oil and tar balls from the spill created by the explosion aboard the Deepwater Horizon drilling rig reach land near South Pass, La.

Wall Street and the world of oil and gas offshore in the Gulf of Mexico are separated by miles and cultural eons. But the Street and the Gulf have this much in common in May 2010: Both are in a mess of their own making that requires stepped-up supervision by government regulators.

In 20-20 hindsight, it’s clear that years of laissez-faire policies did not work much but mischief in the world of investment, leaving taxpayers with an expensive mess to mop up. No less in the Gulf: As the threat of the BP oil spill off the Louisiana coast increases, it is becoming ever more apparent that the oil and gas industry also requires a stronger guiding hand, especially in matters related to workplace safety and the environment.

The moratorium on offshore drilling imposed last week by the Obama administration seems both prudent and politically inevitable. Secretary of the Interior Ken Salazar has said the moratorium will focus on improving the safety of offshore rigs before any decisions about additional drilling are made. It should.

Indeed, it must. Salazar long ago identified what he has described as a culture of corruption inside the Mineral Management Service , the federal agency that regulates offshore drilling. Charges that the agency was playing too cozy with industry first came to light in 2008. The spill has only sharpened that focus — as well as pointed up the inability of the agency to keep pace with technological change in the offshore industry.

On Tuesday the Interior secretary launched a broad reorganization of MMS. Under Salazar’s plan, the fatally conflicted MMS would be divided into two pieces: a new independent safety and environmental enforcement authority in charge of overseeing the oil industry and its drilling operations; and another agency to oversee the issuing of drilling leases and collecting federal royalties for oil and gas production on public lands.

Splitting the MMS’ duties along these lines makes obvious sense. Doing so would create a much-needed fire wall between the regulatory areas of safety and environmental protection and the revenue-related areas of leasing and royalty collection.

These two duties — regulation and revenue — are inherently at odds with one another. They must be independently conducted.

Such a wall would be similar in concept to the one being proposed in the banking industry. In that arena, government reformers are proposing to separate traditional banking duties such as lending from high-flying investment activities.

The BP spill poses a survival threat to the offshore oil and gas industry that is every bit as real as the one faced by wildlife in the Louisiana marshes and bayous. In the best of times the industry has been viewed by critics as grossly insensitive to its impact on the natural world. The bickering, finger-pointing performance offered by executives of BP America, Transocean and Halliburton at congressional hearings this week has only confirmed that impression.

One comes away from these awkward performances with the clear notion that corporate positioning to minimize the costs of anticipated litigation comes well ahead of any genuine concern for the potential damage to the Louisiana environment. That is an impression the industry will live to regret.

Public confidence in offshore drilling has plummeted in the wake of the BP spill. A record of 36,000 wells drilled without incident pales beside images of a spill that now threatens ever larger areas of the Gulf and important industries such as fishing and shrimping that have long coexisted with oil and gas. It does not help the industry’s cause that BP’s record on safety had been problematic before the Deepwater Horizon rig exploded. A business philosophy that seems to emphasize savings over safety is unacceptable.

We favor splitting MMS as an important component of revitalized regulation. No more of industry lobbyists pleading to cut corners. No more exceptions granted by regulators in bed with the interests they oversee. Such an approach is in the long-term best interests of the industry, too.

We have been strong backers of offshore drilling in the Gulf and elsewhere. We’ve argued strongly and often in favor of the large role these resources — especially natural gas — can play in the building of a bridge to a sustainable energy future for the country.

We still believe that is the case.

But the industry must communicate a commitment to worker safety and protection of the environment — and mean it. To do less would be to jeopardize its very future.

Original Article

By MIKE SORAGHAN

The administration is sending a wide-ranging spill-response package to Capitol Hill that includes raising the $75 million cap on economic damages. It would also seek to accelerate assistance to people left unemployed by the spill, expand eligibility for food stamps and raise an 8-cent-per-barrel oil tax by 1 cent.

The cap on natural resource damages would be raised from $500 million to $750 million. Some lawmakers have said the cap on economic damages, such as lost wages or canceled hotel bookings, should be raised to $10 billion. But the administration did not offer its recommendation as to what the cap should be.

“We will work with Congress on the final number for that liability cap,” White House energy and climate adviser Carol Browner said in a conference call with reporters today.

The bill would apply to future spills, but White House officials say they also want the legislation to impose measures retroactively on BP PLC, the oil company whose well has been belching crude into the Gulf of Mexico since an April 20 rig explosion. Such a maneuver will not run into constitutional ex post facto problems, they say, because the bill updates existing legislation and applies broadly to any oil company that spills.

White House officials said existing laws dealing with oil spills were written 20 years ago, when offshore drilling was a smaller part of the nation’s oil and gas production.

Browner said the administration is taking BP at its word that it will pay all damages, but wants additional authority in case it or future polluters fail to pay claims “quickly and fairly.”

The administration has talked to both Republicans and Democrats about the legislation, though officials wouldn’t detail their legislative strategy. Still, they said they hope to have the legislation done in the “next few weeks.”

The penny-per-barrel (42 gallons) oil tax increase would be paid into the Oil Spill Liability Trust Fund, an account established to ensure that there are sufficient resources available to clean up spills and pay damages. The per-incident spending cap from the fund would be raised from $1 billion to $1.5 billion.

The administration also wants more inspections, enforcement and study of potential spills, and the bill would provide $29 million to the Interior Department to start that process. It would also give the Interior Department’s Minerals Management Service more time to do environmental reviews of oil exploration plans.

Officials also want to expand unemployment insurance in new ways for oil spills and disasters, such as helping fishermen who are self-employed.

The legislation would authorize $118 million in new, one-time discretionary spending, expanding access to food stamp programs and creating “one-stop shopping” sites for assistance that officials hope will prevent bureaucratic delays. But Browner and others repeatedly said they expect BP to pick up the tab.

Also included in the bill:

* $15 million to guarantee that out-of-work fishermen will be compensated for lost earnings.

* $2 million to the Food and Drug Administration to monitor the spill’s impact on seafood caught in the Gulf of Mexico. That could include deploying technology to speed the analysis of seafood samples for contamination.

* $2 million to U.S. EPA and $5 million to the National Oceanic and Atmospheric Administration for environmental studies to aid in responding to the spill.

* Permission for the Department of Agriculture to provide food directly to Gulf Coast states to distribute to those who are in need.

* $5 million for grants from the Economic Development Administration’s Economic Adjustment Assistance program for strategic planning and technical assistance.

Other legislation

The administration’s proposal comes on top of numerous other bills related to the Gulf spill already introduced by lawmakers. Among them:

* S. 3337, by Sen. Mary Landrieu (D-La.), which would amend the Public Works and Economic Development Administration Act of 1965 to establish a program to provide technical assistance grants for use by organizations in assisting individuals and businesses affected by the Deepwater Horizon oil spill in the Gulf of Mexico. The Environment and Public Works Committee is handling the measure.

* H.R. 5267, by Rep. Anh “Joseph” Cao (R-La.), which would amend the Gulf of Mexico Energy Security Act of 2006 to accelerate the increase in the amount of Gulf of Mexico oil and gas lease revenues that is shared with states. The bill was sent to the House Natural Resources Committee.

* S. 3343, by Sen. Frank Lautenberg (D-N.J.), which would direct the Interior secretary to establish an annual fee on federal offshore areas that are subject to a lease for production of oil or natural gas and to establish a fund to reduce pollution and the dependence of the United States on oil. The bill is being handled by the Energy Committee.

* S. 3344, by Sens. Sheldon Whitehouse (D-R.I.), Robert Menendez (D-N.J.) and Barbara Boxer (D-Calif.), which would establish an independent, nonpartisan commission to investigate the causes and impact of, and evaluate and improve the response to, the April 20 explosion, fire and loss of life on the Deepwater Horizon. The energy panel is handling the bill.

* S. 3345., by Whitehouse, Menendez and Sen. Patrick Leahy (D-Vt.), which would amend Title 46, U.S. Code, to remove the cap on punitive damages established by the Supreme Court in Exxon Shipping Co. v. Baker. The bill is in the Commerce Committee.

* S. 3346 by Whitehouse and Menendez, which would increase the limits on liability under the Outer Continental Shelf Lands Act. The Energy Committee is handling the measure.

Original Article

Initiative Reduces Energy Consumption, Lowers Carbon Emissions;

Promotes Growth in CNG Vehicle Use and Market

OKLAHOMA CITY, OKLAHOMA, May 11, 2010 – Chesapeake Energy Corporation (NYSE:CHK) was recognized by the NAFA Fleet Management Association (NAFA) for its environmental leadership when it was awarded the 2010 Sustainable Fleet Award. Presented by NAFA during its annual Institute & Expo held in Detroit, Michigan, the award recognized Chesapeake’s program to convert its light-duty truck fleet to operate on clean-burning American natural gas.

An international competition, NAFA’s Sustainable Fleet Award recognizes ground-breaking fleet programs for reducing energy consumption, lowering carbon emissions and reducing operating expenses. Chesapeake was recognized in the Sedan/Light-Duty – Non-Mandated Clean Air Category, highlighting Sedans/light-duty fleets located in areas of the U.S. or Canada that are not covered by a government mandate to reduce carbon emissions.

The Sustainable Fleet Award was presented by NAFA’s Treasurer, Bryan Flansburg, who directs the association’s Fuels & Technology Advisory Council, and was accepted by Anthony Foster, Chesapeake’s Fleet Operations Manager. “It is a privilege to accept this award on behalf of Chesapeake and our NGV Team. As Fleet Managers, we want to have a positive impact on the communities where we operate. Converting our company fleet to run on clean, American natural gas is one way we can have a positive impact because CNG is good for both the environment and economy,” said Foster.

“Chesapeake Energy has been at the forefront of the growing CNG movement in America,” said NAFA Executive Director Phillip E. Russo. “The company’s robust CNG fleet conversion program is part of a bigger initiative to adopt sustainable practices within its company fleet operations. NAFA is proud to recognize Chesapeake Energy for its efforts.”

Aubrey K. McClendon, Chesapeake’s Chief Executive Officer, commented, “We appreciate this recognition by NAFA of our NGV program, which was implemented as we convert our entire

fleet to run on CNG as part of our corporate ‘Fueling America’s Future Initiative’. Our country enjoys a significant competitive advantage when it comes to addressing economic, environmental and energy issues from the discovery and development of a once unimaginable supply of natural gas. Without question, natural gas will allow our country to transition our transportation system away from expensive and carbon-heavy gasoline and diesel towards carbon-light, affordable American produced natural gas. At Chesapeake, we always try to lead by example, encourage innovation and invest in the greater use of natural gas, which we know is a superior fuel for transportation, power generation and industrial usage.” CNG has 30% less carbon dioxide, 97% less carbon monoxide, 99% less Particulate Matter, and 100% less evaporative emissions than gasoline. CNG costs approximately 50% less per gallon than gasoline and diesel.

Chesapeake will convert 1,000 trucks within its corporate fleet in the next 12-18 months with plans to convert the entire fleet of 3,300 over the next 3-4 years. Through the fleet conversion, Chesapeake will enable local fuel retailers to add CNG pumps to existing facilities or build new CNG stations that will provide public fueling for the community as well as access for Chesapeake’s fleet. As a result of the first phase of this program, nine public CNG stations will be built this year in Oklahoma and two in Arkansas. The company plans to expand the program to its other operating regions throughout the country over the next four years.

PABLO GORONDI (AP)

Oil prices continued to rise Tuesday, bouncing back from an early decline and lows last week not seen since February.

Benchmark crude for June delivery gained 24 cents at $77.04 a barrel on the New York Mercantile Exchange. The June contract rose $1.69 to settle at $76.80 on Monday.

“As initial rallies go, this was a strong one,” said energy consultants Cameron Hanover. “There is still a great deal to sort out in this market before it will be clear where we are going next.”

Oil is off an 18-month high of $87.15 a barrel reached May 3, after the European debt crisis undermined investor confidence in the euro. Commodities priced in dollars, such as oil, become more expensive for investors holding euros as the dollar strengthens.

BofA Merrill Lynch Global Research analysts said in a note to investors that the currency effect on oil prices may be limited. “We are still of the opinion that energy will remain a large share of the global economy on the back of relatively limited oil supply growth,” they wrote. “We remain positive on the outlook for oil prices, and still believe oil prices will break through $100 per barrel sometime next year.”

Rising stock prices helped push up oil prices. The Dow Jones Industrial Average recovered from some early losses after Monday’s 408-point rally and was about 45 points higher at midday.

The Organization of Petroleum Exporting Countries monthly report on oil demand released Tuesday predicts an increase in global demand this year. OPEC thinks it will reach 85.38 million barrels a day, a rise of 1.12 percent — or 950,000 barrels a day — over the 2009 level.

“Although the recent upward revision to GDP must be matched with oil demand, the increase in oil demand will be less,” OPEC said, due to factors including “turbulence” in the transportation sector — which accounts for nearly half of the world’s oil use.

The Energy Information Administration on Tuesday released its annual energy outlook with projections for the next 25 years. The EIA expects moderate growth in energy use, more renewable energy use, less reliance on imported oil and strong growth in shale gas production.

EIA forecasts total U.S. energy consumption will increase by 14 percent by 2035, and energy costs will rise by 2.4 percent per year. It also sees GDP growth returning to pre-recession levels next year, while unemployment rates stay above pre-recession levels until 2019.

On Wednesday EIA will release its weekly petroleum inventories report. Analysts expect supplies to expand by 1.7 million barrels, according to Platts, the energy information arm of McGraw-Hill.

Drivers are starting to see some benefit from lower oil prices as cheaper crude makes its way through refineries to the pump. The national average for a gallon of unleaded regular fell overnight by more than half a cent to $2.90, according to AAA, Wright Express and Oil Price Information Service. It’s down 0.4 cent from a week ago, but still 67.5 cents above a year ago.

In other Nymex trading in June contracts, heating oil rose 2.29 cents to $2.1431 a gallon, and gasoline added 2.32 cents at $2.1958 a gallon. Natural gas gained 4 cents at $4.210 per 1,000 cubic feet.

In London, Brent crude rose 34 cents to $80.46 on the ICE futures exchange.

Original Article

Ninety eight years ago, the ornate Senate caucus room was the site for hearings on how the “unsinkable Titanic” sunk in the north Atlantic.

On Tuesday, in the same hearing room, executives from BP and two oil services companies exchanged blame for a Gulf of Mexico rig accident that occurred despite similar assurances that technological upgrades had made offshore drilling perfectly safe.

“Unfortunately, despite these claims, both technological marvels ended in tragedy,” Sen. Robert Menendez, D-N.J., said.

Neither the hearing by the Senate Energy and Natural Resources Committee, or another Tuesday by the Senate Environment and Public Works Committee, succeeded in getting solid answers to the two major questions: What caused the accident that killed 11 workers and how soon will the oil spill be controlled?

At both hearings, BP America President and Chairman Lamar McKay said the failure of the “blowout preventers” owned by rig operator Transocean, had to be considered as a possible cause.

Steven Newman, CEO and president of Transocean Limited, said the blowout preventers “were clearly not the root cause,” suggesting they might have been damaged from debris from cement barriers installed by Halliburton just before the accident.

Tim Probert, Halliburton’s president of Global Business lines, said the company had followed BP directions, and noted that the drilling contractor “used seawater for the final cement plug,” which some industry officials said is unusual.

All three executives, emphasized, however, that it is much too early to determine a precise cause.

Still, the casting of blame angered some lawmakers. Sen. Lisa Murkowski, R-Alaska, a strong supporter of the oil industry, said the public needs to be convinced there won’t be a repeat of the Louisiana rig accident – something all the “finger pointing” won’t accomplish.

“I would suggest to all three of you that we are all in this together. … If we can’t continue to operate and convince people that we can perform safely, then not only will BP not be out there, but Transocean won’t be there to drill the rigs and the Halliburtons won’t be there to provide for the cementing,” Murkowski said.

mary_landrieu_lamar_mckay.JPGPablo Martinez Monsivais/The Associated PressSen. Mary Landrieu and Lamar McKay, president and chairman of BP America, were photographed Tuesday at a meeting of the Senate Committee on Environment and Public Works.

Sen. Mary Landrieu, D-La., said the first question she receives from fishers and government officials affected by the oil spill is whether BP “will pay” for economic losses.

“We’re going to pay all legitimate claims,” McKay said. “All legitimate claims.”

Asked by Landrieu to define “legitimate,” McKay said “substantiated ones.”

Sen. Maria Cantwell, D-Wash., also tried to pin down McKay, asking if BP would pay for losses incurred by fishers and tourism businesses. “All legitimate claims,” he said.

But when asked about repaying governments for lost tax revenue, McKay replied, “Question mark.” And on long-term losses to fishers, he couldn’t say how long losses might be reimbursed.

“I can’t speculate on every individual case, but I can tell you this is not about legal words,” McKay said. “This is about getting it done and getting it done right.”

Some senators were critical of any new effort to expand drilling given the consequences of the recent oil spill. In the audience, were 10 young people wearing black T-shirts that proclaimed “Energy shouldn’t cost lives.”

But Landrieu, as she has argued since the April 20 explosion at the BP oil rig, said while it’s important the cause be determined and steps taken to ensure no repeat, this isn’t the time to give up off shore drilling.

“The record will show from 1947 to 2009, 175,813 barrels have been spilled out of 16.5 billion produced,” Landrieu said. “That is one one-thousandth percent of the total production. I think it is important to keep that in perspective. I also think it is important to understand that America uses 20 million barrels of oil a day. We produce less than half of that.”

Sen. David Vitter, R-La., expressed concerns that not enough of the equipment, particularly boom to keep the spill from reaching the coast, has reached Louisiana, suggesting a disproportionate amount was heading to other Gulf states.

He also said that that much like after Hurricane Katrina, work is being given to big national companies, rather than locals who are suffering the consequences of the spill.

Some senators were particularly critical of BP. Sen. Ron Wyden, D-Ore., said the company has a history of bad accidents, including two major refinery fires. “The culture of this company is that there’s been one accident after another,” he said.

McKay said the company acknowledges its past accidents, but is now more safety-oriented than ever.