Dienstag, 31. Januar 2012

Experts: US ill-prepared for oil spill off Cuba (AP)

MIAMI ? The U.S. is not ready to handle an oil spill if drilling off the Cuban coast goes awry but can be better prepared with monitoring systems and other basic steps, experts told government officials Monday.

The comments at a congressional subcommittee hearing in the Miami Beach suburb of Sunny Isles come more than a week after a huge oil rig arrived in Cuban waters to begin drilling a deepwater exploratory well.

Similar development is expected off the Bahamas next year, but decades of tense relations between the U.S. and Cuba makes cooperation in protecting the Florida Straits particularly tricky. With memories of the Deepwater Horizon spill in the Gulf of Mexico still fresh, state and federal officials fear even the perception of oil flowing toward Florida beaches could devastate an economy that claims about $57 billion from tourism.

Florida International University Professor John Proni told officials to be proactive. He is leading a consortium of researchers on U.S. readiness to handle a spill.

"For the last few years, my colleagues and I have been visiting Washington to say the best time to start preparing for an oil spell is before it happens," Proni told leaders of the House Transportation and Infrastructure Committee, in a hotel-turned-hearing room overlooking the turquoise waters the group convened to protect. Proni said he has seen little action from officials in Washington, though they responded positively.

U.S. officials have turned their attention to preventing future spills since the Deepwater Horizon rig leased by BP blew up in April 2010, causing the well to blow out and unleashing millions of gallons of oil in the Gulf of Mexico. Crude washed up on pristine shoreline, soiled wildlife and left a region dependent on tourist dollars scrambling to rebuild its image.

Coast Guard officials said Monday they did not know if Cuba had started drilling. Experts testified current estimates have surface oil from a spill moving as quickly as 3 miles an hour due to the Gulfstream, but that the fast-moving current would make it difficult for the oil to quickly cross the Florida Straits.

Rear Adm. William Baumgartner, commander of the Coast Guard region that covers the Florida Straits, said a likely scenario would have the oil spreading and reaching U.S. waters in six to 10 days.

Proni said that lack of specificity is the problem. He wants a system that can monitor changes in underwater sounds to immediately alert U.S. officials to a spill or other unusual activity. He also wants the U.S. to invest in developing better computer models to predict oil movement and to do an assessment of the existing ecosystem and the type of oil Cuba possesses. That way, experts can better pinpoint any damage and find out if it came from Cuban wells.

Proni said the fast-moving water would make it difficult to burn the oil or strain it, as was done to halt the spread of the Deepwater Horizon spill. He added that more research is needed on the risks of using chemicals that break down the oil into tiny droplets.

Baumgartner said his agency has been working to develop a response plan. The Coast Guard and private response teams have been granted the required visas under the U.S. embargo to work with the Cuban government and its partners should a problem arise. Since March 2011, the agency has been working with Repsol RDF, the Spanish company leasing the rig off Cuba, and inspected the rig earlier this month.

The rig was given a good bill of health. Asked Monday about the rig's readiness, though, Baumgartner said inspectors found some minor problems with the safety systems that would have kept the ship from being allowed to drill in U.S. waters. He said it was unclear whether the required repairs had been made.

U.S. Rep. Mario Diaz-Balart, one of three South Florida Cuban-American lawmakers who attended the hearing, said he hopes the Obama administration will quickly respond to the consortium's concerns. He added that Proni's proposals could be applied to the Gulf of Mexico, where many more rigs are already drilling for oil in U.S. waters.

Meanwhile, U.S. Rep. Ileana Ros-Lehtinen, has authored a bill that would sanction those who help Cuba develop its oil reserves.

"We can't stop Repsol from drilling now, but we can act to deter future leaders to avoid the Castro brothers becoming the oil tycoons of the Caribbean," she told the committee.

Fellow South Floridian U.S. Rep. David Rivera is proposing to expand the 1990 Oil Pollution Act to fully cover companies operating outside U.S. waters, in the event oil reaches U.S. territory. The 1990 law requires oil companies to repay government agencies for any cleanup costs for spills; it also requires that companies have plans for preventing and cleaning up spills.

But Chairman John Micah, R-Fla., questioned whether the U.S. could enforce any law outside its own waters.

Source: http://us.rd.yahoo.com/dailynews/rss/environment/*http%3A//news.yahoo.com/s/ap/20120130/ap_on_re_us/us_cuba_oil_drilling

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Euro zone confidence improves, highlights divergence (Reuters)

BRUSSELS (Reuters) ? Confidence in the euro zone's economy strengthened in January for the first time since early 2011, EU data showed on Monday, but a recovery in Germany masked a deterioration in France and Italy, highlighting the bloc's diverging fortunes.

Germany has shown more resilience to the euro zone's troubles than many of its neighbors, helped by fiscal prudence, a competitive edge and good demand for its high quality goods.

France and Italy have struggled to keep up, facing questions about the sustainability of their own finances as Greece tries to agree a debt restructuring and Portugal comes under fresh scrutiny in financial markets.

The divergence complicates the task of EU leaders who are meeting in Brussels on Monday to try and sketch a path out of the economic slump.

The European Commission's economic sentiment indicator rose by 0.6 points in the euro zone to 93.4, the first improvement in sentiment since March last year as some confidence returned to services, consumers and construction.

"We're seeing a slight stabilization and we expect the recession the euro zone will end in the spring," said Christoph Weil, an economist at Commerzbank.

"But we can also see that the divergence in the euro zone is increasing and that is of great concern," he said.

The European Central Bank's decision in December to provide 3-year loans to banks averted a credit freeze, while the U.S. economy expanded strongly in the last quarter of 2011 and China has remained robust, maintaining demand for Europe's goods.

But budget austerity and political divisions over how to solve the two-year debt crisis continue to depress business in the euro zone and the wider European Union, with non-euro zone country Britain heading for a recession in early 2011.

The rising optimism is still tempered by EU leaders' inability to resolve the euro zone debt crisis and the sentiment indicator was slightly lower than forecast by economists polled by Reuters.

Following last week's surprisingly positive purchasing managers' indices, or PMIs, business climate rose for the second month in a row to -0.21, in line with economists' expectations.

But factory managers saw a deterioration in the view of their order books and although this was offset by a positive assessment of stocks, it confirmed the mixed economic picture.

Industrial confidence remained at the lowest level since April 2010 while confidence in services rebounded by 2 points in the euro zone and construction was up 0.6 points.

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For a graphic on the data: http://link.reuters.com/bas36s

For full multimedia coverage: http://r.reuters.com/xyt94s

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GERMAN RENEWAL, GREEK PAIN

The European Commission forecasts 2012 economic growth of just 0.5 percent for the 17 nations in the euro zone, which generates 16 percent of global economic output.

The International Monetary Fund is more pessimistic, forecasting a 0.5 percent contraction in 2012 that it says could drag the world into recession.

EU leaders face a tough task at Monday's summit as they try and bridge the divergence in economic performance among the 27-nation bloc's economies and reconcile austerity with growth.

Recent data suggests Germany will avoid a recession, while non-euro zone member Britain, as well as euro states Spain, Italy, Greece and Portugal, are likely to see their economies contract in 2012. Belgium and the Netherlands, also members of the single currency, will struggle to grow at all.

The Commission's data also supported that view, as economic sentiment improved in Germany by 2.3 points, the second consecutive monthly rise, but fell in France, Italy and the Netherlands.

While large economies such as France and the Netherlands will likely benefit from Germany's recovery, Italy and Greece must confront falling productivity and high debts to avoid years of stagnation.

"Weakened domestic economic activity, intensified fiscal tightening in many countries and still serious uncertainties and concerns over the euro zone sovereign debt crisis continue to limit an improvement in sentiment," said Howard Archer, chief European economist at IHS Global Insight.

(Reporting By Robin Emmott; editing by Rex Merrifield/Anna Willard)

Source: http://us.rd.yahoo.com/dailynews/rss/economy/*http%3A//news.yahoo.com/s/nm/20120130/bs_nm/us_eurozone_sentiment

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