BP shuffles top executives

BP's new chief executive, Bob Dudley, has ousted the company's chief of exploration and production in the wake of the massive oil spill in the Gulf of Mexico and divided his responsibilities among three other BP executives.

Dudley, an American who formally takes over the London-based oil giant Friday, also said he would elevate the company's safety chief, Mark Bly, the author of the recent report on the Macondo well blowout, and give him broader powers over the company's worldwide operations.

Andy Inglis, BP's head of global exploration and production, will leave the company at the end of the year and lose his seat on the company's board of directors effective Oct. 31. A graduate of Cambridge University, he joined BP 30 years ago.

The moves are the first management changes since chief executive Tony Hayward announced in late July that he would step down effective Oct. 1. They are designed to address widespread criticism of BP for failing to identify or punish key decision makers in the blowout.

"These are the first and most urgent steps in a program I am putting in place to rebuild trust in BP - the trust of our customers, of governments, of our employees and of the world at large," Dudley said in a statement.

BP has also come under criticism for the Bly report, which a senior executive from another major oil company, speaking on condition of anonymity to protect his business relationships, said was "devoid of the human factor."

The human factor played a key role, experts and oil executives say, because senior people on the rig, including BP and Transocean employees, failed to respond to multiple signs that oil and gas were leaking into the well after it was supposed to have been sealed.

Bly will report directly to Dudley, and his safety division will have employees embedded in all of BP's operations, the company said.

Inglis will be replaced by three executive vice presidents: Mike Daly heading exploration, Bernard Looney in charge of development and Bob Fryar responsible for production. Together with Andy Hopwood, who becomes executive vice president for strategy and integration, they will join an expanded top management team reporting directly to Dudley.

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BP, 8 other firms sued by Justice Dept. over gulf oil spill

The Justice Department sued BP and eight other companies Wednesday over the Gulf of Mexico oil disaster, the federal government's first legal filing in its broad investigation of the worst oil spill in U.S. history.

The lawsuit accuses BP and other firms of violating federal regulations and failing to prevent the April 20 explosion and fire, which destroyed the Deepwater Horizon offshore drilling rig. It seeks civil penalties under the Clean Water Act and a second federal statute for cleanup costs and widespread damage to the environment.

Although the Justice Department did not spell out an amount, legal experts said the case could expose the companies to tens of billions of dollars in fines, under civil environmental laws. Justice officials emphasized that the filing - on the day of a deadline for civil filings - is a first step and that aggressive civil and criminal probes into the disaster are continuing.

"Even though the spill has been contained, even though it is no longer the focus of round-the-clock news coverage and the subject of front-page headlines," said Attorney General Eric H. Holder Jr. at a news conference Wednesday, "the department's focus on investigating this disaster, and preventing future devastation, has not wavered."

Scott Dean, a spokesman for London-based BP, said the government's filing in federal court in New Orleans was expected and "does not in any manner constitute any finding of liability or any judicial finding that the allegations have merit." He said the company - whose stock price dropped sharply during Holder's announcement, then partially recovered by day's end - is cooperating with all government inquiries.

Other companies involved in the spill and named in the lawsuit affixed much of the blame on BP. Brian Kennedy, a spokesman for Transocean, which leased the Deepwater Horizon rig to BP, said: "Responsibility for oil and natural gas discharged from a well lies solely with the well's owner and operator. . . . Transocean is indemnified in this matter."

John Christiansen, a spokesman for Anadarko Petroleum Corp., a minority owner of the well, said the company was "not involved in the operations or decisions that occurred on the drilling rig." MOEX Offshore, another minority owner, said in a statement that it had "no authority or responsibility to direct activities on the Deepwater Horizon."

The Justice Department civil probe is on a parallel track with a criminal investigation that Holder said is "very serious." Law enforcement officials and other sources have said the criminal investigation is focusing on BP, Transocean and engineering giant Halliburton, which was in charge of cementing the well.

Sources said the FBI and other investigators are examining whether, in addition to violating environmental laws, company officials made false statements to regulators, obstructed justice or falsified test results for devices such as the rig's failed blowout preventer. Another line of inquiry, sources said, is whether the companies' cozy relationship with federal regulators contributed to the disaster.

Halliburton, which has declined to comment on the investigation, was not named in the civil lawsuit. The suit is expected to become part of broad civil litigation pending in U.S. District Court in New Orleans. Nearly 400 lawsuits against BP and other companies - filed on behalf of fishermen, environmental groups and others in the Gulf of Mexico region - have been consolidated before the same judge.

Justice Department officials said their participation will give them access to documents and other materials handed over in pretrial discovery, which will aid the government's broader civil and criminal probes. Officials said the timing of their filing was related to Wednesday's deadline set by the judge.

The 27-page document says the companies failed to use the safest drilling technology and to maintain equipment "necessary to ensure the safety and protection of personnel, equipment, natural resources, and the environment." It offers little evidence for those assertions, but officials said additional grounds - and defendants - could be named later.

Roger Marzulla, an environmental lawyer who headed the Justice Department's environment division in the Reagan administration, said it appeared that "the government got rushed by the court's deadline. They filed as generic a complaint as possible and figured 'we'll sort it all out later.' "

Experts said the legal standard to prove liability under the Clean Water Act and the Oil Pollution Act - the other law under which the government sued - is low. "You just have to show that an event occurred and that a particular entity or person is responsible," said William Carter, a former federal environmental prosecutor. "Anything short of an act of God - a lightning bolt hitting something - and that person is going to be responsible for the cleanup."

Under the Clean Water Act, if the government can prove that BP or other companies engaged in "gross negligence," each firm could be fined up to $4,300 per barrel of oil spilled. Nearly 5 million barrels were spilled into the gulf, according to federal estimates.

"Tens of billions of dollars is certainly a legitimate prospect here," Marzulla said.

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E.U. rules let Iran import, export oil, creating possible split from U.S. policy

TEHRAN - The United States and Europe have worked cooperatively on Iran policy since President Obama took office, but a small crack might have begun to open over sanctions that are beginning to pinch ordinary Iranians.

The European Union issued regulations this week that went well beyond a U.N. Security Council resolution passed in June, outlining tough restrictions on the sale of equipment and technology to the Iranian oil and gas industry, as well as on investment in those sectors. But the regulations - unlike legislation passed by the U.S. Congress - allow for the import and export of oil and gas to the Islamic republic.

"If you want to send a tanker filled with refined petrol to Iran, and you have proved that you are not carrying any other goods that we deem illegal, Europe has no problem," said a European official who specializes in sanction policies and spoke on the condition of anonymity because of the sensitivity of the subject. "We don't want any negative effect on the Iranian population or to deprive them of energy, so we do not follow U.S. measures that go beyond United Nations sanctions."

The E.U. will also permit financial transactions needed to import of oil and gas to Iran. The United States, by contrast, penalizes companies if they sell gasoline to Iran, and has increased pressure on international oil companies and refineries to cancel their contracts with the country.

The practical effect of the European action might be minimal because European oil giants might still refuse to supply Iran with fuel for fear of appearing to thwart U.S. sanctions.

U.S. officials said Wednesday that they were broadly pleased with the European regulations, which they said could devastate Iran's oil and gas industry. "We are going at the supply, while they are going at the back end," said a senior administration official who handles the Iran portfolio. "We have had the kind of cooperation and coordination with the Europeans that has been unprecedented."

The U.S. official said he had never heard any concerns raised by his European interlocutors about the effect of the sanctions on ordinary Iranians. "The regulations turned out to be pretty solid," he said. "At each stage, when they have faced a choice between going soft or going heavy, they have gone heavy."

U.S. officials have in the past said that if the increased pressure is hurting ordinary Iranians, they should blame their leaders for the Islamic republic's increasing isolation.

But E.U. officials said Wednesday that they specifically allowed fuel sales to ease the burden on average Iranians.

According to June statistics, Iran needs to import 4.7 million gallons of refined petroleum each day because of the country's low refining capacity. After U.S. sanctions were implemented in July, Iranian leaders announced that they had started an emergency plan to increase local production by mixing oil with high-octane products.

At several European airports, planes belonging to Iran's national carrier, Iran Air, are being refused refueling services by representatives of major oil companies. According to the European Union, there is no legal basis for denying the airline services.

Iran Air has been able to refuel at only three European airports since a Sept. 30 agreement among the State Department and European oil firms Total of France, Statoil of Norway, Eni of Italy and Royal Dutch Shell of Britain and the Netherlands.

They pledged to end their investments in Iran and avoid new activity in the country's energy sector. In turn, U.S. officials said, the companies would be protected from possible U.S. penalties for doing business with Iran.

"We have complained to the U.S. about the extraterritorial effects of their measures on European companies," the European official said. "If those companies submit to U.S. wishes, it is their decision, but we are against these policies. This is a major issue for us."

There have been complaints in the European parliament over U.S. pressure on E.U. companies regarding Iran.

"If Europe accepts U.S. interference through pressure on its businesses, it is giving up independence," said Marietje Schaake, an influential parliament member who represents a liberal party. "The influence of U.S. interference beyond our own sanctions harms the E.U.'s credibility as a global player.

Kessler reported from Washington.

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Reminder from Egypt: The age of oil isn't going away

The Age of Oil continues; we need to deal with it. The upheaval in Egypt reminds us of lessons that, despite decades of warnings, Americans have consistently sidestepped: The United States and the rest of the world will depend on oil for the indefinite future; global oil markets remain hostage to political crises that cannot be predicted or controlled; and we have not taken the prudent steps that would reduce - though not eliminate - our vulnerability to catastrophic oil interruptions.

Just what Egypt's crisis will do to oil markets is, as yet, unclear. Driven by cold weather and strong demand from developing countries, oil prices were already increasing before Egyptians took to the streets. After averaging about $2.80 a gallon for most of last year, U.S. gasoline prices pierced the $3 barrier in December. Prices rose further on the turmoil, but the gains could be short-lived. Egypt produces only about 700,000 barrels a day. That's not much compared with global demand of nearly 90 million barrels daily (mbd). If all of Egypt's production halted, it could be replaced because the world now has about 4 mbd of surplus capacity elsewhere.

A greater risk involves oil shipments. The Suez Canal and the SuMed pipeline (Suez-Mediterranean) together now move about 3 mbd between Asia and Europe. If these supplies were blocked, prices would almost certainly rise. But, again, accommodations would be made. Tankers would be rerouted; shipments via other pipelines would increase.

The real flash point would occur if a cascade of political turmoil cut production from major suppliers: Saudi Arabia (present output: 8.5 mbd), Kuwait (2.3 mbd), Iran (3.7 mbd), Iraq (2.4 mbd) or Algeria (1.3 mbd). This danger will remain no matter how the present crisis ends.

What can we do? Well, two things: decrease oil consumption, preferably by a stiffer gasoline tax; and increase production, preferably by less-hostile regulation. The Obama administration isn't doing either. Instead, it's touting a goal of 1 million electric hybrid vehicles by 2015. This is more public relations than policy. The goal is probably unrealistic; first-year sales of the Chevy Volt may reach 25,000. Even if the 1 million is attained, the oil savings would be tiny - perhaps 40,000 barrels a day, about two-tenths of 1 percent of U.S. consumption of 19 million barrels a day. There are already 240 million cars and light trucks using gasoline.

By contrast, lost production from restrictions on drilling in the Gulf of Mexico could total 200,000 barrels a day in 2012, by one government estimate. The administration overreacted to the Deepwater Horizon blowout. There hasn't been much encouragement of on-shore drilling, either, despite better prospects. In 2009, domestic oil production rose for the first time since 1991, in part because higher prices and new drilling techniques (hydraulic fracturing, horizontal drilling) made it profitable to extract once-inaccessible oil. Production in North Dakota's Bakken field has surged; there are guarded hopes for gains in Texas's Permian Basin.

A higher gasoline tax - gradually introduced to avoid wrecking the economic recovery - would dampen wild swings in fuel prices and push consumers to buy the more-fuel-efficient vehicles that the government is ordering auto companies to make. Americans have traditionally preferred bigger vehicles and, without the prod, might cling to old habits. There is a convergence here between energy and budget policy. An energy tax would help both. It would improve oil security and, with spending cuts, curb budget deficits. Neither the Obama administration nor congressional Republicans seem willing to grasp the possibilities.

None of this will achieve "energy independence," which has been a mirage since it was proposed in the 1970s. Our need for imported oil - now about half our consumption - is simply too great to be overcome by production increases or efficiencies. But we could temper that dependence and the cost of imports, which routinely exceeds $250 billion annually.

Barring unforeseen technological breakthroughs, oil isn't going gently into the night. That's confirmed by recent projections of future energy markets: from the International Energy Agency in Paris; from the U.S. Energy Information Administration; and from ExxonMobil. All make generous assumptions about gains from energy efficiencies, including vehicles, and expanded renewable supplies. All still conclude that oil will meet a quarter or more of global energy demand for decades. ExxonMobil projects that the number of light-duty vehicles worldwide will grow 50 percent, to 1.2 billion, by 2030. Most will use gasoline. Two-fifths of the increase will occur in China. Competition for global oil supplies will intensify. We cannot escape that reality, even if we ignore it.

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BP names Dudley as CEO, announces $17 billion loss

BP gave investors a glimpse of its future Tuesday, one that will feature a new American chief executive, slimmed-down operations, and $32.2 billion or more in payments to clean up and compensate people affected by the massive oil spill in the Gulf of Mexico.

In announcing its second-quarter earnings, the London-based oil giant tried to walk a line between reassuring bankers and investors about its vast assets and financial strength, and avoiding the appearance of being a rich, powerful company insensitive to the plight of the Gulf Coast.

"We have much to do to make it right," BP Chairman Carl-Henric Svanberg said in a conference call with investment analysts Tuesday, referring to the spill. But he added that BP's directors are also "determined to restore value to our shareholders."

In mapping out plans to pay for damage and cleanup, BP said it will sell $25 billion to $30 billion in assets over 18 months, shedding about 10 percent of its oil and natural gas output. That should enable it to shrink its outstanding debt and reinstate dividends next year for shareholders while still covering payments to the massive escrow fund for spill damage claims.

"It's still going to be the second-largest oil and gas producer among international oil companies," said Fadel Gheit, oil analyst with Oppenheimer & Co. "Smaller than Exxon Mobil but bigger than Royal Dutch Shell."

In a sign of how difficult it will be for BP to turn the page on the crisis, however, Rep. Edward J. Markey (D-Mass.) lashed out Tuesday at the company for concealing its estimates of the rate at which oil had flowed into the gulf. Markey released a letter from BP Chief Operating Officer Douglas Suttles to the Coast Guard in early July in which Suttles estimated that oil was pouring forth at a rate of 53,000 barrels (2.23 million gallons) a day.

The BP briefing for investment analysts was a somber one, as Svanberg announced that the board had picked Robert Dudley, a BP managing director and former Amoco executive, to replace chief executive Tony Hayward, a British geologist who had spent his entire career with BP. Dudley, 54, who grew up in Mississippi and spent summers boating with his family in the Gulf of Mexico, will become the first foreigner to lead the century-old company.

"Today is a very sad day for me," Hayward said. "I love the company and everything it stands for." He said, however, he realized that for BP "to move forward, particularly in the United States, it should do so under new leadership."

Hayward's compensation package includes a pension valued at about $17 million and a severance of $1.6 million, or a year's salary.

Without costs from the spill, the company would have declared a profit of $5.6 billion for the second quarter. Spill charges turned that into a $17.2 billion loss.

The appointment of Dudley, who will take charge Oct. 1, comes at a turning point in the calamity. After gushing for three months, the damaged oil well in the Gulf of Mexico has been capped for the past 12 days. Kenneth Feinberg, the master for the $20 billion escrow fund, is taking over the task of scrutinizing and processing claims and proposing settlements.

Still, Dudley's task will be immense. Congress is set to raise liability limits for oil spills and to impose tougher regulations on offshore drilling. Some lawmakers want to prevent BP, the largest producer of oil and gas in the United States, from acquiring new federal leases. The Justice Department is investigating criminal charges against the company, which could complicate its ability to do business with the federal government or bid for leases.

Asked how BP would be viewed in five years, Dudley said in "a perfect world" people would realize that "BP met its commitments to restore the Gulf Coast and as a result of that BP has restored its reputation" and it would be allowed to grow its U.S. business. He said, "Five years from now, I hope that people look back and say that was a quite incredible response to a quite tragic accident."

Although BP's provision for claims and cleanup is unprecedented in size, some analysts questioned whether it is big enough. If found to be "grossly negligent" in the way it was drilling the Macondo well that exploded on April 20, BP could wind up paying an additional $12 billion in fines alone and nearly twice as much overall, said Gheit of Oppenheimer.

BP's chief financial officer, Byron Grote, said that in calculating the size of anticipated federal fines under the Clean Water Act, BP assumed that it was not guilty of negligence. By doing so, it pegged its fines at $1,100 per barrel spilled. If found negligent, BP would have to pay $4,300 a barrel. It would also have to pay 100 percent of the fines, while Anadarko Petroleum and Mitsui, its partners in the lease, would not have to share the cost of the penalties.

Critics in Congress decried the company's failure to say precisely how much oil it thinks has spilled into the gulf. Hayward said only that BP had used a number around the middle of published estimates, which most recently have been 35,000 to 60,000 barrels a day.

In addition, BP's financial statement reflected an offsetting tax benefit from lower earnings. Because the reserve for claims is deducted from profit, BP will not pay $9.9 billion in taxes that it would have otherwise owed.

Bracing for unknown costs, BP also said that it would shrink its outstanding debt to $10 billion to $15 billion, from its current $23.2 billion.

Dudley assumed his new title with modesty. He said he has the "greatest respect" for Hayward.

"I did not seek out this job," he said in a conference call with journalists. "I was asked to step into these shoes."

But in Washington, some people were ready to bid good riddance to Hayward, who had aggravated public anger by saying he wanted his "life back" and by going sailing on his yacht on his return to England after weeks on the gulf coast and in Washington.

"While it's now happy sailing for Tony Hayward, rough conditions will persist in the Gulf of Mexico for years to come because of his failed leadership," Markey said. "The new leaders of BP will have an uphill climb to correct the legacy left by Hayward, indelibly inked by the disaster in the gulf."

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Passwords Generator 2.95

Generate random difficult to crack passwords. Simplest way to get random and difficult to crack passwords is to use Passwords Generator. This program is incredibly simple in use, but the same time it allows all necessary functions. Now you can create countless set of passwords with one click.

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High-quality voice communication for gamers. Low-latency, high-quality voice communication for gamers. Includes game linking, so voice from other players comes from the direction of their characters, and has echo cancellation so the sound from your loudspeakers won't be audible to other players

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EML to PDF (Attachments Embedded in PDF) 6.8

EML to PDF Embedded Attachments Converter Attachment EML to PDF Converter tool that handles the conversion of EML emails in PDF in perfect manner to save attachments & embed in PDF file as well as save Attachments in Separate folder with no loss of data.

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Freemore MP4 to AVI Converter 2.4.3

Free MP4 to AVI converter software. Freemore MP4 to AVI Converter is a powerful MP4 to AVI converter which can fast convert MP4 to AVI with optimal quality. It supports batch conversion and setting relative output parameters before conversion. Released:Feb 7, 2014 Keywords:, , , , , , , , , , , ,

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PCHeal 2.2.3.2014d

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! Photo-Lux Image Viewer 3.7c

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