The BP oil spill in the Gulf Coast adds an unexpected wrinkle to the climate bill drama. Senators weigh in on next steps while Schwarzenegger withdraws offshore drilling support.

The broad energy and climate bill that Sens. John Kerry (D-MA), Joe Lieberman (I-CT) and Lindsey Graham (R-SC) have crafted contains measures to promote wider offshore drilling. Offshore drilling incentives are considered critical by many to win enough votes to pass such legislation in the U.S. Senate by garnering enough support from senators such as Mary Landrieu (D-LA).

While environmentalists and some coastal state Democrats are mounting new attacks on offshore drilling in the wake of the Gulf accident, the jury is out whether the climate bill will move forward. (more…)

BP, the global oil giant responsible for the fast-spreading spill in the Gulf of Mexico that will soon make landfall, is no stranger to major accidents.

In fact, the company has found itself at the center of several of the nation’s worst oil and gas–related disasters in the last five years.

In March 2005, a massive explosion ripped through a tower at BP’s refinery in Texas City, Texas, killing 15 workers and injuring 170 others. Investigators later determined that the company had ignored its own protocols on operating the tower, which was filled with gasoline, and that a warning system had been disabled. (more…)

A group of Colombian farmers has filed a lawsuit against the oil company BP, claiming that construction of a 450-mile pipeline in the mid-1990s has caused landslides, permanently damaging soil and crops and harming livestock.

In the suit filed in a London court, 95 farmers claim that BP Exploration Company ignored evidence that the pipeline would damage the land, and never informed the property owners, many of them illiterate, of the risks.

The pipeline, which delivers as much as 620,000 barrels of crude oil to an export terminal daily, crosses 192 rural villages. Farmers say that during construction, natural vegetation that protected their soil from the elements was removed, leading to significant erosion. (more…)

Does that headline grab you? If not, these numbers should:

If that has not grabbed your attention yet, consider that in January of this year, Continental Airlines completed a test flight using a biofuel mixture, which included fuel derived from algae. The test flight yielded a 1.1 percent increase in fuel efficiency compared to a jet engine using traditional jet fuel.

That isn’t exactly a great leap forward, but achieving incremental increases in fuel efficiency coupled with the latest engine technology, as well as use of new materials in aircraft production, such as the Boeing 787, could signal a dynamic shift for the airline industry. (more…)

A couple of days ago, US energy behemoth Chevron announced it will commit $20 million over five years to a partnership with the Qatar Science and Technology Park in Doha. Lip service and green washing, you might shout.

“Chevron believes that energy efficiency and conservation are the most immediate and cost-effective sources of new energy, and we are proud to work in partnership with Qatar,” Chevron Vice Chairman Peter Robertson said.

Guess what… they really “drink the kool aid.” With oil at $45/bbl, traditional perspectives change: “The crude oil price is around half the level required to attract adequate investment in the industry,” UAE’s oil minister Mohammed al-Hamli said last week. It doesn’t make financial sense to invest in oil exploration, so if you were an energy company in 2009 where would you invest?

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In the last few weeks both Shell and BP have pulled out of developing off-shore wind developments in the UK due to better incentives and support from the US government in the form of tax breaks and incentives.

The same is true for Spain where in the last few years the country has been unprecedented growth in wind farms along the majority of the eastern part of the country. Then just as the country was seeing clean and green as a way forward – they remove the tax break for further development. Almost overnight the work stops, new planned sites are abandoned and people are laid off.

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