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Washingtontheoilindustryreactedcautiouslyfridaytopresidentbarackobamaspledgetobringtougherenvironmentalandsafetyregulationtooffshoredrilling,withsomeanalystswarningthatmoreaggressivegovernmentoversightcouldresultinhighergasolinepricesandagreaterdependenceonforeignoil.Ourgoaliszero-fatality,zero-injuryandzero-spill,cathylandry,aspokesmanfortheamericanpetroleuminstitute,atradeassociationoflargeoilcompanies,saidinane-mail.Thisspillremindsusthatweneedtoredoubleourcommitment.Tonyhayward,chiefexecutiveofbp,whichownsthewellthathasdumpedmillionsofgallonsofcrudeoilintothegulfofmexicosincethedeepwaterhorizondrillingrigexplodedintoflamesapril20andsanktwodayslater,alsousedtheoccasiontovoicesupportforsafety.Weabsolutelyunderstandandsharepresidentobamassenseofurgencyoverthelengthoftimethiscomplextaskistaking,haywardsaidinastatement.Wewanttothankthepresidentandhisadministrationfortheirongoingengagementinthiseffortjeffeshelman,aspokesmanfortheindependentpetroleumassociationofamerica,whichrepresentssmallerproducers,alsostruckaconciliatorytone.Therearemanyemotions,understandably,involvedrightnow,hesaid.Controllingthewellandprotectingtheenvironmentarethemainprioritiestoday.Andweareurgingthefederalgovernment,astheyconsidernewregulationsandnewoffshoreexplorationpolicies,tofirstallowthefactsinthisincidenttobeinvestigated.Howfarthepresidentwillpushnewregulationisunclear.Fortoolong,foradecadeormore,theresbeenacozyrelationshipbetweentheoilcompaniesandthefederalagencythatpermitsthemtodrill,obamasaid.Itseemsasifpermitsweretoooftenissuedbasedonlittlemorethanassurancesofsafetyfromtheoilcompanies.Thatcannotandwillnothappenanymore.Toborrowanoldphrase,wewilltrust,butwewillverify.Henotedthathisadministrationalreadyhasannounceditwoulddividethemineralsmanagementservicesintotwoseparateoperations:onetoleaseoilexplorationsitesandcollectroyaltypaymentsandtheothertoenforceregulations.Healsosaidthattheadministrationwouldclosetheloopholethathasallowedsomeoilcompaniestobypasssomecriticalenvironmentalreviewsandwouldundertakeanewexaminationoftheenvironmentalproceduresforoilandgasexplorationanddevelopment.Hiscomments,however,madeclearhehasntdroppedhissupportforoffshoredrilling.Domesticoildrillingcontinuestobeonepartofanoverallenergystrategythatnowincludesmoreclean,renewableenergyandenergyefficiencythanatanyothertimeinourhistory,hesaid.Kenmorgan,directorofthetcuenergyinstituteinfortworth,saiditisinevitablethattheoilandgasindustrywillfacenewrestrictionsonitsoperations,andhowseveretheyarewilldeterminewhethertheyrestricttheindustrysprofitability.Drillinginthegulfofmexico,whichaccountsforabout17percentofoilconsumptionintheunitedstates,andeffortstorestrictdeepwaterexploration,whichaccountsformostofthenewsuppliesthatarecomingintoproduction,couldforcetheu.S.Toimportmoreoil.Buthowthatwouldaffectpricesorsuppliesishotlydebated.Whileamajorpartofu.S.Production,gulfofmexicooilaccountsforlessthan2percentofworldoilsupplythesameamount,oneanalystnoted,asazerbaijan.Oilpricesaremoresubjecttoconcernsaboutslowingeconomiesineuropeandasiathantoworriesaboutsupply.Sofarthismonth,theyvedroppedfromanaverageinaprilofabout$83to$71onfriday.Wheretheimpactofanyseriousrestrictionsonoffshoredrillingtherewouldbemostlikelyfeltwouldbeonemploymentinthegulfcoastregion.Thisisano-winsituationfortheu.S.,Saidmichaeleconomides,auniversityofhoustonprofessorandpetroleumengineerwhoconsultsforchineseandeuropeanoilcompanies.Iftheunitedstatescurbsproduction,oilcompaniessimplygoelsewhereabroad,takingwiththemimportantjobsfromtexas,mississippiandlouisiana,economidessaid.U.S.Productionwouldalsofall,andourneedtoimportoilwouldrise.Apermanentbanonoffshoreproductionoraregulatoryregimethatdiscouragesoilexplorationanddrillingmightalsohavelongertermimplications.Deepwaterproduction,bothinthegulfofmexicoandglobally,wasanimportantsourceofnewoilinthepastdecade,whenglobaldemandskyrocketed,thankstoboomingdevelopingcountriessuchaschinaandindia.Theamountofoilfromdeepwaterwellsgrewfromabout1.5millionbarrelsperdayto5millionbarrelsperdayinthelastdecade.Iftheconcernsoverthedeepwaterhorizondisasterdampensdeepwaterexplorationelsewhereintheworld,thatcouldhavefar-reachingeconomicimpact.Thereisanewelementofuncertaintyconcerningdeepwaterrightnow,saidjimburkhard,themanagingdirectorofglobaloilresearchforihscera.Theu.S.Willhavetobalancetheeconomictradeoffsagainstenvironmentalthreats.Whatistherightbalancethatthiscountrywantstomaintaininthefuture,thatsaquestionthatwillbeaddressed,hesaid.(Smith,ofthefortworthstar-telegram,reportedfromfortworth.Hallreportedfromwashington.)Morefrommcclatchyoilspill:bphadwrongdiagramtocloseblowoutpreventerfearovergulfoilspill:whathappensiftheycantstopit?Moremcclatchyoilspillcoveragecheckoutmcclatchysexpandedpoliticscoverageatplanetwashington arm apparatus is provided for inspecting and maintaining

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