13 May 2010

Obama pushes for law to make oil companies pay

7:11 pm on 13 May 2010

United States president Barack Obama says he wants a law that will force BP to pay the full cost of the oil spill in the Gulf of Mexico.

Mr Obama has written to Congress saying he will spare no effort to help those affected by a massive and potentially unprecedented environmental disaster.

Eleven people died when an explosion - thought to have occurred after a surge of methane gas from deep within the well - destroyed the Deepwater Horizon rig on 20 April.

Millions of litres of oil have leaked into the sea from the damaged well to date and desperate efforts are being made to protect the Gulf coast's ecosystem from the slick.

The BBC reports the president's letter says the government will aggressively pursue full compensation and as part of that he wants the limit lifted on the amount oil companies are liable to pay after a spill.

At present, it is capped at $US75 million and although Mr Obama does not suggest a new figure, some politicians are talking about raising it to at least $US10 billion.

The BBC reports the new law would make the companies pay for unemployment benefits for people such as fishermen who are put out of work, emergency aid for them and agencies to help them find new jobs.

The law would also ensure increased safety inspections and even more frequent checks to make sure fish from the Gulf are safe to eat.

Meanwhile, a climate change bill just submitted to the Senate could allow states to veto some offshore drilling plans.

Device faulty, say investigators

The device meant to stop oil leaking from the well after the rig explosion was faulty, US Congressional investigators have said.

The blowout preventer, a set of huge valves, had a hydraulic leak and a failed battery, they said after studying documents from BP and others.

Oil industry chiefs say it is too early to conclude what caused the disaster.

Attempts to stop the leak have so far failed but engineers hope at least to begin reducing it later this week with a steel dome which has been lowered on to the seabed.