Some oil spill events from Tuesday, July 27, 2010

Some oil spill events from Tuesday, July 27, 2010

A summary of events Tuesday, July 27, Day 98 of the Gulf of Mexico oil spill that began with the April 20 explosion and fire on the drilling rig Deepwater Horizon, owned by Transocean Ltd. and leased by BP PLC, which is in charge of cleanup and containment. The blast killed 11 workers. Since then, oil poured into the Gulf from a blown-out undersea well until BP managed to stanch the leak Thursday — at least temporarily — with a massive, deep-sea cap.

DUDLEY

The American picked to lead oil giant BP as it struggles to restore its finances and oil spill-stained reputation pledged Tuesday that his company will remain committed to the Gulf region even after the busted well is sealed. Robert Dudley will become BP PLC’s first ever non-British chief executive, the company said as it reported a record quarterly $17 billion loss and set aside $32.2 billion to cover costs from the spill. Ending weeks of speculation, BP confirmed that gaffe-prone Tony Hayward will step down Oct. 1 as the London-based company seeks to reassure both the public and investors that it is learning lessons from the spill.

NEXT STEPS

BP Chairman Carl-Henric Svanberg said the company’s priority was to stop the Gulf leak permanently and then to clean up miles of spoiled waters and beaches and compensate people whose livelihoods have been lost. But he added that the company was determined to restore value to shareholders, after a 35 percent, or $60 billion, drop in market value to around $116 billion since the explosion. Under U.S. political pressure, the company also axed dividends to shareholders this year.

STOCK

BP’s stock started out marginally higher on Tuesday, but dropped 3 percent to 404.2 pence in afternoon trade on the London Stock Exchange. In New York, BP stock slumped about 2 percent to $37.87 after BP announced it would sell $30 billion in assets to help pay potential costs related to the spill. Analysts said they were disappointed at how many assets BP was willing to sell, and its cost estimate was thought to be on the conservative side.

LAWSUITS

MIAMI — BP PLC and the other companies involved in the Gulf of Mexico oil spill face fast-multiplying lawsuits that will provoke one of the most drawn-out and costliest legal battles in U.S. history. It could easily consume the $20 billion set aside by BP to pay for the disaster, according to legal experts and attorneys nationwide. One veteran complex litigation attorney estimated that unless there is a quick settlement that satisfies all sides, it will be 2015 before any trials begin and at least 2028 before appeals and other legal issues are fully resolved.

MEDIA

WASHINGTON — The chairman of the Florida Restaurant and Lodging Association is urging Congress to hold the media “accountable” for what he alleges is inaccurate reporting on the Gulf oil spill that has hurt tourism in his state. Keith Overton suggested at a hearing Tuesday that Congress charge a federal agency with reviewing news reporting. He complained many in media put “ratings ahead of accuracy” and exaggerated the amount of oil that hit Florida beaches. Overton is also chief operating officer of TradeWinds Island Resort in St. Pete Beach, Fla. He did not specify what government could do. Congressional action is limited, given the First Amendment’s protection of freedom of the press.

TOURISM

WASHINGTON — The head of the U.S. Travel Association is proposing that BP set aside $500 million for a marketing campaign to help draw tourists to the Gulf Coast. Association president and CEO Roger Dow has made the proposal in prepared testimony to a House panel looking at the oil spill’s impact on tourism. Dow says in his remarks that a study his group commissioned found the spill could result in lost tourism in coastal areas to the tune of $22.7 billion over three years. He says the $500 million could come from either $20 billion BP has set aside to pay for economic damages or could be added to it.