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A U.S. crackdown on offshore drilling?

The downtown area of New Orleans is seen at sunset near the Mississippi River from the Gulf of Mexico in New Orleans, La.

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Tess Vigeland: As if things weren't bad enough in the Gulf Coast already, storms are in the forecast -- bringing high winds to choppy waters already polluted with hundreds of thousands of gallons of oil. The Coast Guard, the National Guard, shrimp boats and contractors are trying desperately to clean up the spill. Meanwhile, the White House dispatched inspectors to the Gulf to check safety conditions aboard deepwater rigs. And federal officials blasted British Petroleum -- the owner of the downed rig -- for not doing more to contain the damage.

Is a federal safety crackdown on the offshore oil industry far behind? Brett Neely has more from Washington.


Brett Neely: Tighter regulation is inevitable, says Tyler Priest of the University of Houston. He's written several histories about offshore drilling in the Gulf.

TYLER PRIEST: There will be new legislation I'm sure and possibly new regulations about blowout preventers, that seems to be the obvious one.

He's talking about a valve that can seal off a wellhead underwater. That seems to have malfunctioned. And U.S. regulators don't require remote-controlled shutoff switches.

Zach Corrigan of the nonprofit Food and Water Watch says he hopes now regulators will pay more attention. Currently, many industry safety procedures are voluntary. Corrigan says the industry is under the gun to produce more oil at a time of high prices.

ZACH CORRIGAN: You have this very complex industry with this rush to go out and drill deeper and faster. It's just a recipe for cutting corners.

Eric Smith is with the industry-backed Tulane Energy Institute in New Orleans. He says oil companies in the Gulf are already heavily regulated. Smith agrees new rules are coming -- though he thinks more regulation will cut Gulf oil production.

ERIC SMITH: Ultimately all of these tradeoffs become economic.

Production in the Gulf means the U.S. may have to import more oil from overseas. That oil will be shipped by tanker. And Smith says until this spill, most of the country's worst spills were caused by tanker accidents.

SMITH: So you will have an increase in risk, perhaps not intended but the net effect will be that you'll have more tankers running around the coastal parts of the United States than you do today.

The spill could the first in a series of headaches for the oil industry. Democratic Congressman Ed Markey said yesterday that he plans to hold hearings with oil company CEOs about the spill.

In Washington, I'm Brett Neely for Marketplace.

Garth Saalfield's picture
Garth Saalfield - May 17, 2010

Not 'the' solution, but something that could help and could help substantially and quickly. These guys are 'on the ground' folks who know what they are presenting here.

http://www.wimp.com/solutionoil/

This link is being presented to Florida's Governor and all of Florida's airports; all Florida airports, and most commercial service airports in the southern U.S. grow Bahia Grasses as ground cover. This material is readily available. With 'paratrooper' type aircraft large areas of our coastlines and the spill itself could be covered rapidly. Thanks and credit go to the folks in and doing this video.

Scott Hagaman's picture
Scott Hagaman - May 3, 2010

I heard earlier reports that one way to address the problem would be to manufacture a dome to place over the spout. It would take months to make it. So, why didn't the US require that such a dome be pre-manufactured and on hand for such a potential disaster, paid for by a combined trust of all the oil companies? Instead, everyone else suffers, and then has to go after BP for satisfaction. An ounce of preparation...

Jim Gallagher's picture
Jim Gallagher - Apr 30, 2010

Regardless of the cause, it is eye opening how ill prepared the oil industry is for a crisis of this magnitude. With billions and billions in profit, one would think they would be better suited for such disasters.

Jared Van Leeuwen's picture
Jared Van Leeuwen - Apr 30, 2010

I would find it very interesting if this explosion was caused by eco terrorists.