WASHINGTON, (Reuters) – A White House panel probing BP’s massive oil spill called for an overhaul of a regulatory system that was “entirely unprepared” for disaster and outlined stringent, new oversight, a plan sure to face opposition from Republicans reluctant to expand government involvement.
The White House oil spill commission said in its final major report that the U.S. government needs to expand its drilling regulations, as well as set up an independent drilling safety agency.
“None of the major aspects of offshore drilling safety — not the regulatory oversight, not the industry safety standards, not the spill response practices — kept pace with the push into deepwater,” said commission co-chair Bill Reilly.
“In effect, our nation was entirely unprepared for an inevitable disaster,” he said.
Many of the recommendations would require Congressional approval, however, and Republicans have been critical of extensive new regulations, saying they would further slow the exploratory pace following last year’s drilling moratorium that was imposed in response to the spill.
Republican lawmaker Fred Upton, who heads the House Energy and Commerce Committee, blasted the commission’s findings, saying they failed to clearly identify the root cause of the “unprecedented disaster.”
“Neither this nor any investigation should be used as political justification for a pre-determined agenda to limit affordable energy options for America,” Upton said in a statement.
Oil companies have voiced concerns that onerous new regulations could hamper offshore exploration and drive up oil prices. U.S. Gulf of Mexico oil production fell by 70,000 barrels per day in fourth quarter of 2010, with further drops expected this year and in 2012.
