Oil reform isn’t cheap: Obama requests funds

Obama has asked for $90m

Following the catastrophe of the Deepwater Horizon rig explosion, where 11 workers died and oil spewed from the stricken well, BP have been digging deep into their pockets in an effort to win back hearts and minds and compensate those affected.

And the pockets would need to be pretty deep; BP has claimed that the spending so far has risen to $8 billion, which includes $399 million paid to settle 127,000 claims from businesses and others affected by the spill.

As a result, and in an effort to better prepare for future deep offshore oil drilling, President Obama has asked congress for $90 million to reform oversight of the oil and gas industry.

In an effort to raise the $90 million, the total sum would be made up of extra budget requests, and by offsetting more expenditure on oil and gas oversight elsewhere in the budget.

The extra funds in the 2011 fiscal year budget would pay for an overhaul of the Interior Department agencies that oversee the oil and gas industry.

Some victims of Gulf spill not entitled to pay-out

BP said yesterday that thousands of fisherman, hotel owners, seafood processors and restaurants that were affected by the millions of gallons of oil that spewed into the Gulf may not be entitled to compensation, according to court papers.

BP and its partners such as Transocean Ltd and Halliburton Co said the majority of alleged victims who have brought about 400 lawsuits must first take their claims to a $20 billion fund established by BP.

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