BP Reaches £4.9bn Gulf Oil Spill Deal
THE DAILY TELEGRAPH: BP has agreed to pay $7.8bn (£4.9bn) to American businesses hit by the Gulf of Mexico oil spill in an eleventh-hour deal that's likely to be welcomed in the City of London on Monday.

The UK oil company will pay damages to the thousands of hoteliers, shrimpers and oystermen along the Gulf Coast who were caught up in America's worst oil spill. The settlement follows a week of intense talks in New Orleans between lawyers for the local businesses and BP's legal team.

Following the agreement, US District Judge Carl Barbier delayed for a second time the trial into who should shoulder the blame for the explosion that killed 11 people and injured many more in April 2010. The trial had been rescheduled to start tomorrow after Judge Barbier had given BP another week to find a deal.

"The proposed settlement represents significant progress toward resolving issues from the accident and contributing further to economic and environmental restoration efforts along the Gulf Coast," said Bob Dudley, BP's chief executive. » | Richard Blackden, New York | Saturday, March 03, 2012

Ahmadinejad: Spill Shows US Weakness

The Arrogant and Insensitive Tony Hayward! US Anger as BP Oil Spill Chief Tony Hayward Watches His Yacht Sail Round the Isle of Wight
THE TELEGRAPH: BP chief executive Tony Hayward has come under fire in the US for taking a break from the Gulf oil clean-up to watch his boat sail in a yacht race off the Isle of Wight.

BP chief executive Tony Hayward's boat Bob sails in a yacht race off the Isle of Wight. Photo: The Telegraph
In a statement, BP described the outing as "a rare moment of private time" and said that "no matter where he is, he is always in touch with what is happening within BP" and can direct recovery operations if required.

But Mr Hayward, who has come under fire for verbal gaffes that some said suggested he was tone-deaf to the mood in America, was immediately criticised in the US.

Rahm Emanuel, chief of staff to President Barack Obama, said it was another “gaffe” by the BP chief executive. “Well, to quote Tony Hayward, he’s got his life back, as he would say,” he told ABC television. “And I think we can all conclude that Tony Hayward is not going to have a second career in PR consulting. This has just been part of a long line of PR gaffes and mistakes.”

He added: “There’s really a substance here that matters. That’s clearly a PR mistake, but he’s made a number of those mistakes. What’s important is: are we capping the well? Are we capturing the oil? Are we containing the cleanup? Are we filing the claims? Are we also cleaning up the mess? That’s what’s important.”

Richard Shelby, Republican senator for the Gulf state of Alabama, said during a tour of areas affected by the spill: "People here are not on their yachts today.

"I believe it's the height of arrogance. He is the chief executive of BP, he was testifying in Washington and now he's going out on his yacht in England. That yacht should be here, skimming and cleaning up the oil." >>> Philip Sherwell | Saturday, June 19, 2010

'Reckless' BP Blamed by Partner for Oil Spill
THE TELEGRAPH: Oil giant BP came under further pressure on Saturday after one of its partners said the company's "gross negligence or wilful misconduct" were to blame for the disastrous oil spill in the Gulf of Mexico.

Anadarko Petroleum, which owns a quarter of the ruptured Deepwater Horizon well, has refused to accept any blame for the explosion that killed 11 workers and sparked America's worst environmental disaster.

The company's chairman and chief executive Jim Hackett insisted in a statement that BP should foot the entire bill for the environmental and economic damage caused by the blow out.

Mr Hackett said: "Frankly, we are shocked. BP's behaviour and actions likely represent gross negligence or wilful misconduct."

He said that "mounting evidence clearly demonstrates" that the disaster that led to the explosion and sinking of a drilling rig and the deaths of 11 workers "was preventable and the direct result of BP's reckless decisions and actions." >>> Patrick Sawer | Saturday, June 19, 2010

Oil Spill: Russian President Dmitry Medvedev Fears BP's 'Annihilation'
THE TELEGRAPH: Russian President Dmitry Medvedev has expressed concerns that the massive Gulf of Mexico oil spill could lead to the "annihilation" of BP.

Russian President Dmitry Medvedev fears BP's 'annihilation' over the Gulf of Mexico oil spill. Photo: The Telegraph
Mr Medvedev stopped short of saying the disaster would prompt a review of Russia's partnership with BP, but he said: "This is a wake-up call."

"Certainly, we are not indifferent to their future... Hopefully, they can absorb the losses," he told the Wall Street Journal.

BP shares, which have fallen around 46pc since the spill began, rose 4.5pc in early tradiing on Friday.

BP is present in Russia through TNK-BP, the third largest oil producer in the country, accounting for roughly a quarter of BP's global production. It owns half of TNK-BP and the other half is owned by Alfa Access-Renova, a consortium of Russian businessmen.

When asked how the oil spill would affect Russia's view of BP as a partner, he said: "What I know is that BP will have 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 breakup into pieces is a matter of expediency."

Mr Medvedev's comment come as estimates of the damage caused by the US's biggest environmental accident spiral[.] >>> | Friday, June 18, 2010

Medvedev Sees Risk to Euro
Russian President Dmitry Medvdev speaks with The Wall Street Journal. Photograph: WSJ
THE WALL STREET JOURNAL: ST. PETERSBURG, Russia—Russian President Dmitry Medvedev expressed doubts about the future of Europe's common currency and said the Gulf of Mexico oil spill could threaten the survival of BP PLC.

Asked whether Europe's debt turmoil could threaten the euro, Mr. Medvedev said, "I don't exaggerate the threat, but it can't be underestimated."

The Russian president didn't rule out financial assistance to struggling European nations, but said the European Union should bear the burden of any major "financial injections."

"Russia's prosperity, to a large extent, depends on how well things are going on the European continent," Mr. Medvedev said in an interview with The Wall Street Journal. "We are not a member of the EU, but we are a European country."

On the eve of his first state visit to the U.S. next week, Mr. Medvedev also questioned whether the Gulf oil spill might lead to the "annihilation" or breakup of BP, as the company faces billions of dollars in losses from the disaster.

He stopped short of saying Russia would re-evaluate BP's lucrative partnership in Russia, which represents almost a quarter of its oil production, but predicted the spill will prompt a fundamental rethinking of oil exploration around the world.

"This is a wake-up call," Mr. Medvedev said. Of BP's fate, he added: "Certainly, we are not indifferent to their future. ... Hopefully, they can absorb the losses." >>> Gregory L. White, Robert Thomson, and Rebecca Blumenstein | Friday, June 18, 2010

BP's Tony Hayward Savaged by US Congressmen Over Oil Spill
THE TELEGRAPH: BP’s chief executive Tony Hayward has been subjected to a blistering attack by US Congressmen over the Gulf of Mexico oil spill, who accused the company of “astonishing complacency”.

BP Chief Executive Tony Hayward was singled out for failing to ignore warnings signs before the fatal rig explosion. Photograph: The Telegraph
The boss of the oil giant was appearing before an influential committee a day after pledging a £13.5bn compensation fund to make amends for the Gulf of Mexico oil spill.

Britain’s largest firm was condemned for increasing the risk of a “catastrophic blowout” by cutting “corner after corner”. It was accused of having a “cavalier attitude towards risk”.

Mr Hayward was singled out for failing to ignore warnings signs before the fatal rig explosion, which left 11 people dead and hundreds of thousands of barrels of oils spewing into the Gulf. BP has failed to contain the leak despite numerous attempts.

Henry Waxman, a California Democrat known as one of the toughest investigators in Congress, told Mr Hayward: “There is not a single email or document that shows that you paid even the slightest attention to the dangers at this well.

“There is a complete contradiction between BP’s words and deeds. You were brought in to make safety the top priority of BP, but under your leadership, BP has taken the most extreme risks.”

In a pointedly nationalist remark, Bart Stupak, from Michigan, said that while Mr Hayward could take “a golden parachute back to England, we in America are left to recover for years from the disaster”. >>> Alex Spillius, in Washington | Thursday, June 17, 2010

It really is difficult to see how Tony Hayward can remain in his position as BP’s chief executive. The buck stops with him. If the man had any honour, he’d resign; and without the golden parachute that these people have come to expect in recent years. The company, BP, has fouled up under his watch. The consequences should be faced. – © Mark

Facing Congressional Wrath, BP Chief Apologizes for Oil Disaster
BP CEO Tony Hayward arrives on Capitol Hill in Washington, Thursday, June 17, 2010, to testify before the House Oversight and Investigations subcommittee hearing on "the role of BP in the Deepwater Horizon Explosion and oil spill. Photo:
FOX NEWS: In a congressional hearing Thursday that some have described as a public execution, BP chief executive Tony Hayward told Congress that he is "deeply sorry" for the oil disaster in the Gulf of Mexico.

Hayward's testimony came after members of the House Energy and Commerce Committee's oversight and investigations subcommittee took turns in a long-awaited public flogging intended to capture the outrage of the nation.

Hayward sat grim-faced before the panel, which is investigating the explosion that killed 11 workers and unleashed a flood of oil that has yet to be stemmed.

Lawmakers accused Hayward, who has come to represent charges of corporate arrogance and greed, of being oblivious to the risks of the company's deepwater operations.

Some of the sharpest criticism came from Rep. Bart Stupak, D-Mich.

"We are not small people. But we wish to get our lives back," he told Hayward. "I'm sure you'll get your life back, and with a golden parachute to England."

It was a reference to Hayward's much-criticized earlier remark that some day he hoped to get "my life back" and to comments on the White House driveway on Wednesday by BP Chairman Carl-Henric Svanberg that "we care about the small people" of the Gulf Coast.

Hayward sipped a beverage and jotted notes as one lawmaker after another scorched him. Read on and comment >>> | Thursday, June 17, 2010

The Associated Press contributed to this report.

BP Chairman Apologises Over ‘Small People’ Gaffe
THE TIMES: BP’s chairman was forced into a new apology after calling those affected by the Louisiana oil spill “the small people”.

Hours after saying sorry for the worst oil spill in American history, Carl-Henric Svanberg was again apologising for what he admitted was “clumsy” wording. The latest misfortune came after BP had been forced into suspending dividends to shareholders and setting aside $20 billion (£14 billion) for compensation claims.

Carl-Henric Svanberg said that he was very sorry after he had earlier remarked: “I hear comments sometimes that large oil companies are greedy companies or don’t care, but that is not the case with BP. We care about the small people.” Read on and comment >>> Susan Thompson, Catherine Philp, Giles Whittell, Washington | Thursday, June 17, 2010

'We Care About the Small People': BP chairman's message for Gulf Coast residents affected by oil spill

Palin on Obama's Handling of the Oil Spill

BP Agrees to $20 Billion Escrow Fund; Cancels Dividends
President Obama, Vice President Joe Biden, Attorney General Eric Holder and Homeland Security Secretary Janet Napolitano, right, meet with BP executives at the White House. BP has agreed to put $20 billion into an escrow account for reimbursing oil spill damages. Photograph: Los Angeles Times
LOS ANGELES TIMES: Reporting from Washington -- The Obama administration has reached a preliminary agreement with BP executives that would see the oil company pay $20 billion over several years into an independently controlled escrow account to be established to compensate Gulf of Mexico residents affected by the disastrous oil spill, and BP's board of directors has eliminated the company's stock dividend, at least temporarily.

The agreement on the escrow was negotiated in a meeting at the White House on Wednesday morning, the first face-to-face gathering between President Obama and senior BP leadership. A White House official said that, under the terms of the deal, the fund would be administered by attorney Kenneth Feinberg, currently serving as the special master for executive pay under the Troubled Asset Relief Program. Feinberg ran a fund that compensated victims of the terrorist attacks of Sept. 11, 2001.

Immediately after the meeting, BP Chairman Carl-Henric Svanberg said that the oil company's board of directors has decided not to pay any more dividends this year. >>> Mike Memoli and Peter Nicholas | Wednesday, June 16, 2010

BP to Set Aside $20 Billion for Oil Spill Claims


BP Promises to Repair Damages to Gulf Region

Barack Obama Vows to Make BP Pay for Oil Spill 'Recklessness'
THE TELEGRAPH: President Barack Obama has vowed to "make BP pay" for not only the multi-billion dollar clean-up of the Gulf of Mexico but also the restoration of the region's economy, undertaking to force the British oil giant to set aside the money he believes it owes as "a result of [its] recklessness."



The US President, in his fiercest rebuke against the company in the 58 days since the Deepwater Horizon rig explosion 40 miles off the coast of Louisiana causing the catastrophic oil spill in the Gulf, promised to get tough with BP and to ensure that it meets all costs he believes it should pay.

In a direct attack on the company's dividend policy, Mr Obama said that BP must place the money needed to cover the as-yet unquantifiable costs in an independent "escrow" account to be run by a third party.

The staunch words – which came in Mr Obama's first national address from the historic Oval Office in the 18 months since he took office – came ahead of his crucial meeting with Carl-Henric Svanberg, BP's chairman, and Tony Hayward, its chief executive, at the White House later today.

"We will make BP pay for the damage their company has caused", he promised the millions of Americans who were expected to watch the televised prime-time address.

"I will meet with the chairman of BP 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," he continued.

"This fund will not be controlled by BP. In order to ensure that all legitimate claims are paid out in a fair and timely manner, the account must and will be administered by an independent, third party." >>> James Quinn, US Business Editor | Wednesday, June 16, 2010

For Christ’s Sake, Spare Us, the US, and BP from the Bliar*! BP Oil Spill: Tony Blair Is the Right Man to Be BP Chairman
THE TELEGRAPH: It's not a sinecure after all, being chairman of an international oil company. Nobody blames Carl-Henric Svanberg for taking the job at BP – it was an honour to be asked, and lack of experience in the oil business did not prevent his predecessor, Peter Sutherland, coping with his own crisis well enough.

Unfortunately, Svanberg's crisis is of a different order. The fall of chief executive John Browne when Sutherland was chairman was awkward for BP; the gusher in the gulf is potentially life-threatening.

Svanberg has failed to provide leadership and public support for his CEO, Tony Hayward. He will have to go. There seems little prospect of Hayward keeping his job, either.

The BP directors have dithered about the dividend so long that they have lost control; the fate of the payout is now effectively in the hands of the US president. Read on and comment >>> Neil Collins, Reuters Breakingviews | Wednesday, June 16, 2010

*It seems to be a case of, tell lies, will rise! The unrelenting rise of the Bliar! I have an alternative suggestion: Put the man out to graze? He’s past his sell-by date. – © Mark

Obama Pledges Clean Energy Policy to Cut America’s Dependency on Oil
President Obama said that the Deepwater Horizon disaster would change how people think about the environment, in the same way that 9/11 changed US foreign policy. Photo: The Times
THE TIMES: President Obama likened the impact of the oil spill disaster on the nation’s psyche to the September 11 terrorist attacks as he made his first multi-state tour yesterday of the Gulf of Mexico.

Facing questions about his leadership amid rising public anger 56 days after the Deepwater Horizon drilling rig exploded, he sought to reassert his authority by visiting Mississippi, Alabama and Florida, the states left out of three previous trips to the region.

Keen to dispel accusations that he has allowed BP to slacken in its efforts to stem the leak, Mr Obama noted that the company is now expecting to increase its containment capacity to 50,000 barrels a day two weeks sooner than planned. “We went back to them and said they needed to move faster and more aggressively and they have now come back with a plan,” he said.

The White House said it expected BP to place up to $20 billion in an escrow account to pay for the spill.

“One of the biggest leadership challenges for me going forward is going to be to make sure that we draw the right lessons from this disaster,” Mr Obama said in an interview with The Politico news website before he set off.

Vowing to move forward “in a bold way” with a clean energy policy that would help America to reduce its oil dependency, he added: “In the same way that our view of our vulnerabilities and our foreign policy was shaped profoundly by 9/11, I think this disaster is going to shape how we think about the environment and energy for many years to come.”

Mr Obama will address the nation from the Oval Office tonight, when he will announce new measures to help to restore the Gulf’s ecosystem. Tomorrow he meets BP executives for what the White House was keen to portray as showdown talks. Read on and comment >>> Jacqui Goddard, Orange Beach, Alabama | Monday, June 14, 2010

Barack Obama's Analogy Between the Gulf Oil Spill and 9/11: Dirty Politics from the Chicago School
Obama: He knows how to craft a cheap jibe. Photo: The Telegraph
THE TELEGRAPH – BLOGS: Barack Obama is easily clever enough to understand the effect of his comparison between the environmental challenge facing America after the Gulf oil spill and the terrorist challenge it faced after 9/11: a subliminal equation of heartless British oil executives with homicidal Islamists. But he’s also unscrupulous enough not to care.

This is how he put it: “In the same way that our view of our vulnerabilities and our foreign policy was shaped profoundly by 9/11, I think this disaster is going to shape how we think about the environment and energy for many years to come.” Nice.

I wondered recently how an expensively educated kid from Hawaii plunged into the filthy pool of Chicago machine politics and emerged smelling so sweet that America elected him president. David Remnick doesn’t address the question in his hagiography, and I’m not sure anyone knows the answer. But if there were any doubt about where Obama served his apprenticeship, then today’s little elision between a terrible accident and meticulously plotted mass murder clears it up. Read on and comment >>> Damian Thompson | Monday, June 14, 2010

Under False Colours
THE SPECTATOR: ‘With time,’ writes David Remnick, ‘political campaigns tend to be viewed through the triumphalist prism of the winner.’ Never more so, perhaps, than in Remnick’s idolatrous new biography of Barack Obama, which presents the First Black President’s ascension to the White House as nothing less than a glorious saga. >>> John R. MacArthur | Wednesday, May 05, 2010

Gulf of Mexico BP Oil Spill: Nick Clegg Warns Barack Obama Over 'Megaphone Diplomacy'
THE TELEGRAPH: Nick Clegg today warned that the BP disaster threatened to descend into “megaphone diplomacy” following Barack Obama’s fierce criticism of the British company.

Nick Clegg made the comments when asked for his response to President Obama's call for the sacking of BP chief executive Tony Hayward. Photo: The Telegraph
In a thinly veiled attack on the US President – who earlier this week said he was looking for “some ass to kick over the disaster” – the Deputy Prime Minister argued that a “tit for tat” attitude was not helpful.

But Mr Clegg stopped short of voicing support for the British company, which has seen billions of pounds wiped off its share value since the leak in the Gulf of Mexico.

“I’m not going to start intervening in a debate which clearly risks descending into megaphone diplomacy,” Mr Clegg told an audience at the Nueva Economic Forum in Madrid on Friday morning.

“I think everyone is united on both sides of Atlantic obviously, quite rightly, and understandably within US administration and I’m sure within BP itself, to deal with this problem. It is an ecological catastrophe – It does need to be dealt with."

Nick Clegg made the comments when asked for his response to President Obama's call for the sacking of BP chief executive Tony Hayward. >>> Fiona Govan in Madrid | Friday, June 11, 2010

Cameron Needs to Be Firmer with Obama
THE TELEGRAPH: Telegraph View: The long-term relationship between Britain and America should not be jeopardised by a presidential response that has been more petulant than statesmanlike.

At some point this weekend, David Cameron is due to talk to Barack Obama on the phone, ahead of his visit to Washington next month. Until a few weeks ago, such a conversation would have involved a businesslike exchange of pleasantries and reflected a strong desire on both sides to place their personal relationship on a sound footing. No doubt that remains their intention; but the controversy over the way the President has castigated BP for its handling of the oil spill in the Gulf of Mexico has added a potentially serious edge to these exchanges.

Mr Obama's aggressively jingoistic rhetoric might have been designed to shore up his own domestic position against criticism that he has failed to act decisively enough, but it is now sabotaging the fortunes of what was until recently Britain's biggest company. Its share price fell to a 13-year low after the American government threatened legal action to prevent the payment of dividends before compensation payments had been met, even though BP is sitting on enough cash to do both. Since the firm accounts for £1 in every £6 paid in dividends in the United Kingdom, this will have a deleterious impact on pension funds, which have £20 billion wrapped up in the company. Read on and comment >>> | Thursday, June 10, 2010

That’s Enough ‘Kicking Ass’, Mr President
THE TIMES: Barack Obama’s attacks on BP may play well at home, but they are damaging millions of British people

The great British love-in with Barack Obama may be coming to an end. While there has been deep understanding of the environmental catastrophe that has struck the United States and of BP’s responsibility, there is also growing concern that the President’s angry rhetoric is going over the top and risks dividing the United States and the United Kingdom.

The Prime Minister is due to speak to the President at the weekend. BP will be high on his agenda. But already, I suspect, Sir Nigel Sheinwald, our Ambassador in Washington, has been on the phone to the Chief of Staff at the White House making it clear that serious damage is being done to many common British and American interests.

That BP deserves criticism is not in doubt. There is also much sympathy for the President as he seeks to assure the American public that he is in control of a disaster that has still not been fully resolved since the oil spillage began in April. His predecessor, George W. Bush, was widely criticised for his inadequate response to Hurricane Katrina. Any politician understands President Obama’s political imperative.

But, in the same way, Mr Obama must understand that an American president does not just have a domestic audience. Whatever their political purpose for his own electorate, his words resonate throughout the world and, however unintended, can have serious and damaging consequences.

That is what is now happening. >>> Malcolm Rifkind | Thursday, June 10, 2010

Disaster in the Gulf

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Obama on Oil-regulation 'Scandal'

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BP Oil Spill: The British Backlash Has Begun
THE TELEGRAPH: Could the US backlash against BP extend to other British companies, asks Tom Leonard

Protest outside of the Washington DC headquarters of BP. Photograph: The Telegraph
When the US Interior Secretary Ken Salazar promised to keep “the boot on the neck of British Petroleum” over its giant Gulf of Mexico oil spill, the Republican Rand Paul rounded on the White House for being “really un-American” in attacking business.

If so, almost everyone is guilty of un-American activities, as the US has declared open season on the British oil giant. Just 50 yards up the street from The Daily Telegraph’s Manhattan office, the local BP petrol station had its sign daubed in paint the colour of drilling mud last week when 200 protesters turned up. “BP – a bunch of ----ing murderers!” said the message on a protester’s T-shirt. The chant was better: “BP, your heart is black, you can have your oil back.”

There have been similar protests at BP outlets across America and a call for a boycott which appears to have been roundly ignored. The demonstrations may be primarily anti-corporate and anti-oil but occasionally nationality of the corporation slips out. In New Orleans, a demonstrator stood on a Union flag. “We are all at the mercy of BP, a British-owned company,” wailed a Louisiana seaplane company boss in a letter to her senator after she was barred from taking US journalists to a possibly oily beach.

Notwithstanding the irony of a situation in which Americans are accusing a European corporation of putting “profits before people”, it is difficult to recall a more vicious backlash against a company here. The question of whether BP would have received so much vitriol if the initials had stood for, say, Boston Petroleum, has concerned those who worry about the implications for US-UK relations.

Although there is no sign of such a backlash at present, British officials in the US are concerned that if BP continues to fail to plug the leak or if it faces criminal charges, then other British businesses could suffer. >>> Tom Leonard | Saturday, June 05, 2010