2010年6月22日星期二

Deepwater drill ban in court, more Gulf fishing shut

Oil services companies were waiting on Tuesday to see if their legal bid would succeed in overturning a six-month ban on deepwater drilling in the Gulf of Mexico as more fishing areas were closed in response to the worst oil spill in U.S. history.
The ban by President Barack Obama's administration was imposed in response to the explosion aboard an oil rig in the Gulf of Mexico on April 20 that killed 11 workers and ruptured a well owned by BP Plc (BP.L) (BP.N), unleashing millions of gallons of crude oil and causing an environmental catastrophe.
U.S. District Court Judge Martin Feldman promised he would decide by Wednesday whether to temporarily lift the ban while the case is heard. More than a dozen companies involved in offshore drilling operations filed the lawsuit, calling the ban "arbitrary and capricious."
"The government's unchecked authority has shut down this entire industry," argued lawyer Carl Rosenblum, representing the oil industry.
The lawsuit is the first seeking to reverse Obama's May 27 moratorium, which the companies say will force job cuts in the labor force needed to service offshore oil platforms. The ban has caused the shutdown of 33 deepwater drilling rigs.
The Obama administration argues that the moratorium is necessary to prevent further accidents while a presidential commission investigates what caused the BP well to rupture.
The spill, now in its 64th day, has soiled the coasts of four U.S. states, threatening tourism and fishing industries. It has seeped into ecologically sensitive wetlands and tested Obama, who has come under fire for his handling of the crisis.

2010年6月21日星期一

Judge considers request to block drilling ban

A federal judge could decide as early as today whether to block the Obama administration's ban on deep-water drilling, responding to a legal challenge mounted by drilling companies and backed by Louisiana state leaders worried the ban will cost jobs and tax revenue.
U.S. District Judge Martin Feldman said he would rule no later than noon Wednesday in a decision that could dictate the future of the White House plans to pause deep-water oil and gas exploration while an independent commission probes the cause of the April 20 blowout of BP's Macondo well in the Gulf of Mexico. It destroyed the Deepwater Horizon drilling rig, killed 11 workers and triggered the nation's worst oil spill.
Feldman heard arguments on the case Monday. It originally was filed by Hornbeck Offshore Services of Covington, La., and other oil field services companies have since joined the bid to block the ban on deep-water oil and gas exploration.
The companies argue that the ban on drilling in 500 or more feet of water is arbitrary and capricious because it halted activity at 33 permitted wells without any evidence they weren't complying with safety standards.
Separately, Houston-based rig owner Diamond Offshore has filed a lawsuit in federal district court arguing that the ban amounts to an unconstitutional taking of its drilling contracts.
Parties in that case are set to meet today with U.S. District Judge Nancy Atlas of Houston to outline the hearing schedule for that case.
In appealing for a temporary restraining order to block the ban's enforcement, Diamond insists that the moratorium could cause widespread harm to the drilling industry.
"Tens, if not hundreds of thousands of individuals could lose their jobs," Diamond Offshore alleges. And other companies that serve deep-water drillers, such as caterers and tug crews, also are at risk, the plaintiff says.
Louisiana Gov. Bobby Jindal and Attorney General James "Buddy" Caldwell argued in a friend-of-the-court filing in the Hornbeck case that the ban threatens coastal economies and jeopardizes royalty revenue that would have been delivered to state coffers from suspended drilling projects.
The officials cite findings by the Louisiana State University Center for Energy Studies that even if the ban lasts just five months, it will result in the direct layoff of 3,339 Louisiana workers and cost another 7,656 jobs indirectly in the state.
Instead of a blanket moratorium, Jindal and Caldwell argue, the administration can put federal inspectors on all deep-water drilling operations.
The Obama administration defends its ban — formally imposed May 27 - as necessary to prevent a repeat of the Deepwater Horizon disaster.
In a court filing, the administration says the deep-water drilling delay will allow federal regulators time investigate the causes of the disaster and recommend additional safety measures.
Absent a court ruling to the contrary, it appears the ban will stay in place for now. William Reilly, co-chairman of a White House-appointed commission investigating the Deepwater Horizon disaster, told the New York Times it's unlikely the panel will recommend lifting the moratorium before it completes its report early next year.
In other developments Monday related to the oil spill:
The U.S. Chemical Safety and Hazard Investigation Board, which investigated the deadly 2005 explosion at BP's Texas City refinery, said it will study the company anew in a probe of the Deepwater Horizon disaster.
House Energy and Commerce Committee Chairman Henry Waxman, D-Calif., and Bart Stupak, D-Mich., who chairs the investigative subcommittee of the Energy and Commerce Committee, requested the investigation.
In a letter responding to them, board Chairman John Bresland said the investigation team will include some who were involved in the investigation of the March 23, 2005, explosion at the refinery.
The CSB reported in March 2007 that a combination of cost-cutting, a lack of vigilance and a lack of investment in training and mechanical integrity were factors in that disaster, but Bresland said that finding won't prejudice the blowout investigation.
"Although we will be vigilant for any similarities to the Texas City explosion ... we believe it is also important that this investigation be approached without any preconceptions," Bresland wrote.
Former Justice Department Inspector General Michael Bromwich was sworn in to lead a shake-up of the agency formerly called the Minerals Management Service.
Interior Secretary Ken Salazar has renamed it the Bureau of Ocean Energy Management, Regulation and Enforcement, and it's to be split into three separate organizations - the Bureau of Ocean Energy Management; the Bureau of Safety and Environmental Enforcement; and the Office of Natural Resource Revenue.
Retired Coast Guard Adm. Thad Allen, commander of the spill response team, said BP will place flow-rate sensors in a new containment cap that may be placed on the Macondo well in the coming weeks. An existing cap and other equipment are now capturing about 25,000 barrels of oil a day from the well, but it's not certain how much still is entering the Gulf.

Crude Oil Declines as Optimism Over China’s Currency Move Fades

Crude oil declined for the first time in three days as optimism faded that China’s plan to add more flexibility in the yuan’s fixed exchange rate would strengthen the global economic recovery.
Oil gave up yesterday’s gains as equities fell on renewed concern that Europe’s sovereign-debt crisis will affect economic recovery. Goldman Sachs Group Inc. reduced its crude price forecasts today. The People’s Bank of China said June 19 it’s increasing the flexibility for the yuan, marking an end to the crisis policy of pegging the currency to the dollar.
“Traders realized that whatever the Chinese will do regarding the yuan will be gradual and so the likely impact on immediately boosting Chinese demand for oil will be modest,” said Victor Shum, a senior principal with energy consultants Purvin & Gertz Inc. in Singapore. “The European debt crisis, the fragile recovery of the U.S. economy -- those things still prompt investors to lock in profits when oil prices gain.”
Crude for July delivery dropped as much as 85 cents, or 1.1 percent, to $76.97 a barrel in electronic trading on the New York Mercantile Exchange, and was at $77.06 at 1:45 p.m. Singapore time. Yesterday, oil rose 64 cents, or 0.8 percent, to settle at $77.82. The contract expires today.
The more-actively traded August contract declined as much as 85 cents, or 1.1 percent, to $77.76 a barrel, and was at $77.86 a barrel. Futures have dropped 2.9 percent this year.
China, the world’s most-populous nation, consumes more oil than any country except the U.S. China’s central bank said there’s no basis for “large-scale” moves in its currency even as it pledged increased exchange-rate flexibility.
Brent Crude
Brent crude for August settlement declined as much as 84 cents, or 1.1 percent, to $77.98 a barrel on the ICE Futures Europe exchange in London, and was at $78.10 at 1:46 p.m. Singapore time. Yesterday, the contract advanced 60 cents, or 0.8 percent, to settle at $78.82.
Asian stocks fell for the first time in nine days after Fitch Ratings downgraded Paris-based BNP Paribas SA and Standard & Poor’s Ratings Services said Spanish lenders face difficult years because of the nation’s slow growth. The MSCI Asia Pacific Index fell 0.7 percent to 118.28 at 2:12 p.m. in Tokyo.
The S&P 500 lost 0.4 percent to 1,113.20 as of 4 p.m. in New York, wiping out an earlier advance of 1.2 percent. The Dow Jones Industrial Average decreased 8.23 points, or 0.1 percent, to 10,442.41.
“It was a pretty significant reversal for the U.S. equity markets, which feeds through to oil market sentiment,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. China’s decision to end the yuan’s peg “is a double- edged sword. It’s going to negatively affect U.S. importers, those importing Chinese goods, but at the same time it can be seen as a positive to those exporting to China,” he said.
U.S. Inventories
Goldman Sachs Group Inc. cut its price forecasts for crude oil because commodity markets are “fragile” on concern growth in Europe and China will slow, the bank said in a report today.
“Commodity markets are generally rebounding strongly off their lows but sentiment remains fragile on European and Chinese concerns,” said analysts led by New York-based Allison Nathan.
West Texas Intermediate oil was forecast at $87 a barrel for a three-month period, down 9.4 percent from a $96 prediction Goldman Sachs made in a May 10 report. It also downgraded estimates for six-month and 12-month crude and for Brent oil.
Oil prices at the top end of the $70-to-$80 a barrel range are “a little high” at the beginning of the summer driving season in the U.S., said Purvin’s Shum. Gasoline consumption peaks from the Memorial Day weekend in late May to Labor Day in early September.
“When we go deeper into summer, if indeed there is strong demand growth for gasoline in the U.S., then there will be more reason for oil pricing to get to the top end of the $70-$80 range,” Shum said.

Burnett Struggles Again, Digging Too Deep a Hole

One poor start by Burnett was a blip, two were an anomaly and three were a disturbing trend. Four in a row, then, is a downright problem, and the Yankees now have to solve a pressing identity crisis: Who replaced the confident strike-thrower that thrived in April with the erratic guy who has a 10.35 earned run average this month? In 20 innings, Burnett has surrendered nine homers, and his overall earned run average has soared to 4.83 from 3.28.
Recently, he has been bothered by a bruised right foot, sustained when he was drilled by a grounder during his last start, but Burnett said it felt better heading into Monday’s game. Over all, his struggles have coincided with the absence of the pitching coach Dave Eiland, who began an indefinite leave of absence for personal reasons on June 4, the day of Burnett’s first start this month. All nine hits that Burnett allowed came with two outs, and the first six runs scored on rallies that began with two outs and no one on base.
The Yankees might have had a better chance at overcoming that six-run deficit if a Cy Young Award winner had been pitching for the Diamondbacks. After toppling two Cy Young winners, Roy Halladay and Johan Santana, within a six-day span, the Yankees managed only three runs and had eight hits in eight innings against Rodrigo Lopez, who entered Monday at 2-6. Their lone extended rally produced two runs in the sixth, and Lopez foiled a potential comeback by retiring Mark Teixeira with runners on the corners to end the seventh. Brett Gardner was a bright spot, going 4 for 4 with two runs scored.
Burnett’s latest misery came on the same day that Manager Joe Girardi announced a significant, if temporary, change in the rotation. In keeping with their plans to restrict Phil Hughes’s innings, the Yankees will skip his scheduled start Friday in Los Angeles to give him three more starts before the All-Star break instead of four. His next start will come June 29 at Yankee Stadium against Seattle. By pitching so well, by logging so many innings, Hughes has accelerated their preservation plan. He has exceeded their expectations, going 10-1 with a 3.17 E.R.A, while pitching 82 1/3 innings across 13 starts — an average of six and a third innings per start. If he were to continue on that pace without extra rest, Hughes would demolish his professional season high of 146 in 2006.
“This is a hard guy to sit and miss a start, just because of how well he’s pitching for us,” Manager Joe Girardi said. “We can’t be short-sighted. We have to think of this year, and we also have to think of his future and not hurt this kid. Starters are not easy to develop, and it takes time. We want to make sure that we have him for a long time.”
The Diamondbacks, at 28-43 and mired in last place in the National League West, do few things well. Hitting home runs is one of them, though, and Justin Upton began the barrage with a mammoth shot onto the concourse in center field. Two singles followed, and Adam LaRoche crushed a first-pitch fastball over the swimming pool in right field. Burnett’s fastball has not been sharp lately, but then again, neither has his curve. One hung for the next batter, Mark Reynolds, and he pummeled it over the left-field fence. As each homer cleared the wall, Burnett just stood on the mound, dumbfounded. He threw 35 pitches that inning, and 17 more in the second, when Miguel Montero’s two-out double knocked in Upton.
A crowd of 47,229, the largest since opening day, packed Chase Field for a rematch of the 2001 World Series, not that anyone inside was thinking back nine years or anything. Certainly not three players from the Diamondbacks’ championship team — Luis Gonzalez, Matt Williams and Mark Grace — who were asked to throw out the ceremonial first pitch. Or the fans who hooted when the video screen showed Gonzalez’s series-deciding broken-bat blooper in Game 7. Trying to drown them out, the Yankees fans let loose a long boo. They had practice with that reaction Monday night, when one of their own — Burnett — was the target.
INSIDE PITCH
The Yankees felt comfortable enough in JORGE POSADA’s ability to assume the bulk of the catching duties this trip that they dropped their third catcher, CHAD MOELLER. Their hope is that Posada, recovering from a fractured right foot, can catch four of the six games. He started Monday night. Replacing Moeller was COLIN CURTIS, a left-handed-hitting outfielder. He made his major league debut as a pinch-hitter in the fourth and flew out ... JESUS MONTERO and AUSTIN ROMINE are the Yankees’ most advanced catching prospects, but they have another, GARY SANCHEZ, whom they like just as much. In his second professional at-bat, Sanchez, 17, hit a grand slam Monday for the Yankees’ rookie-level team in the Gulf Coast League.

Back-and-forth game ends with Reds winning

Eight innings at the Coliseum on Monday night went quietly as the Reds and A's managed a run apiece. Each team produced a run in the ninth to send the game to extra innings at 2-2.
Ah, then came the 10th. Nothing quiet about three homers in an inning.
Long balls by former Oakland catcher Ramon Hernandez, Joey Votto and Scott Rolen propelled Cincinnati to a 6-4 victory.
Hernandez led off the 10th by taking Michael Wuertz off the left-field foul pole. With one out and a man aboard, Votto greeted Cedrick Bowers with a bolt to left-center for a 5-2 game.
That was Votto's 15th homer of the season. Rolen followed Votto with his 15th of the season, and Cincinnati owned a four-run edge.
Wuertz (2-1) would take the loss, ending his personal winning streak at seven games. He had not collected an "L" since May of last year.
The first three A's hitters reached base in the bottom of the 10th. Groundouts by Ryan Sweeney and Kevin Kouzmanoff each brought home a run.
Jordan Smith, the Reds' third pitcher of the inning, struck out Jack Cust to end the proceedings. Smith picked up his first major-league save.
In the ninth, pinch-hitter Jay Bruce's two-out, RBI single off Andrew Bailey put the Reds up 2-1.
That lead lasted about as long as it takes public-address announcer Dick Callahan to say Kouzmanoff's name.
The Oakland third baseman led off the bottom of the ninth by driving the first pitch from Francisco Cordero the opposite way. The ball had just enough carry to clear the fence in the right-field corner.
Kouzmanoff's eighth homer of the season got the A's even. He went 2-for-5 and is 33-for-79 (.418) in June. Oakland, though, is 6-14 this month.
Besides Kouzmanoff, the A's other encouraging sign Monday night was the performance of starter Gio Gonzalez.
The left-hander took losses in each of his previous two starts, against the Giants and Cubs, but his line Monday: seven innings, four hits, one unearned run, one walk and nine strikeouts.
The K's were one shy of his career high, set against the Angels on Oct. 2.
"Just trusting my stuff, building my confidence back up," Gonzalez said, "and just believing I could throw my curveball for a strike."
Manager Bob Geren called it "a real good swing-and-miss curveball."
Reds manager Dusty Baker got another solid outing from rookie right-hander Mike Leake. Cincinnati took Leake with the eighth overall pick in last year's draft. Leake, who went to Arizona State, did not pitch an inning in the minors.
Leake worked six innings, allowing one run on five hits. He walked four and struck out two.
Before the game, Baker talked about how Leake (5-1, 2.92 ERA) has been able to thrive without a minor-league education.
"He knows how to make adjustments," Baker said. "The guy studies. He pays attention."
Baker, who managed the Giants for 10 seasons (1993-2002), earned career win No. 1,352, tying him with Chuck Tanner for 26th place.

Tops Film Merchandise Shipments

Panjiva, a company that tracks international trade, has calculated that the Pixar picture has moved more merchandise than any other recent movie -- and that it's not a terribly close contest.
Toys, furniture, scooters, calculators and other such stuff emblazoned with images from the $110 million weekend champ Disney/Pixar's latest hit was packed into 724 massive cargo containers shipped to the U.S., according to Panjiva.
Panjiva looked at the 40 biggest films from the past 18 months, then checked incoming shipments of merchandise related to those titles using the official bills of lading. That means items manufactured in the U.S. are not counted, including 12 million McDonald's restaurant drinking glasses promoting "Shrek Forever After," though they were recalled anyway.
The majority of movie-related merchandise comes from China , said Panjiva CEO Josh Green. Besides the Shrek glassware, a notable exception was "Iron Man 2" bed sheets that came from Pakistan . "Iron Man 2," in fact, was second to "Toy Story 3" in the merchandising contest, scoring 474 shipped containers.
Proving there's not necessarily a correlation between volume of merchandise and box office performance, "G.I. Joe: The Rise of the Cobra" was third with 403 shipments, even though the movie grossed a disappointing $150 million domestically. And after that is "The Princess and the Frog" with 321 shipments and $103 million at the domestic box office.

Honduras want to end on a high

As Spain (second) and Switzerland (third) are only on three points after a loss and win apiece, there is still a slight chance for Honduras to advance to the second round if they produces a big win over the Swiss and Spain go down to Chile.
But Rueda is worldly enough to know such results are unlikely and has called on his players to produce their best for the simplest of reasons.
"(We want) to end on a high for the good of Honduran football," Rueda said.
"We'll now have to see if the players can bounce back mentally and go out and give their all.
"We had two or three chances but we weren't clinical enough to score," he added.
"I'm expecting another difficult game against Switzerland, although it will be very different to the one today."
Honduras produced a few nervy moments for a Spanish defence, still smarting from a shock 1-0 loss to Switzerland in the Group H opener.
The Europeans had already missed a number of chances before a deflected Walter Martinez cross threatened the Spanish goal, forcing stopper Iker Casillas into an unusual clearance with his knees.
But any resistance was soon snuffed out as a sensational solo effort from striker David Villa saw Spain open their account in South Africa.
Villa scored again in the second half, but should have had a hat-trick as he missed a penalty late in the encounter, the Spaniards laying siege to the Honduran goal after the break.
"We went down fighting," declared defender Osman Chavez.
"We came up against a great national side and I think that we did pretty well. It's no mean feat to make a team of their calibre sweat.
"So, even though we lost, I think we've got something to be pleased about.
"We're not totally down and out ... (so) we're going to keep working right until the end to try and make it through."
 
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