US court blocks offshore drilling ban

The US federal judge denied a motion filed by the Obama administration to allow the ban to stay in place during the appeal process. The judge also denied a motion by plaintiffs to enforce his own injunction. This means that the US government can file an emergency motion with the appeals court asking it to keep in place the drilling moratorium until the legal fight over the injunction is resolved. The Obama administration plans to declare a new moratorium on deepwater drilling, Interior Secretary Ken Salazar said on June 22. Salazar's announcement came hours after US District Judge Martin Feldman overturned the administration's first six-month moratorium on exploration in deep waters. "We see clear evidence every day, as oil spills from BP's well, of the need for a pause on deepwater drilling," Salazar was quoted as saying. The new moratorium would contain more specific justification for the drilling ban, Salazar said.

BP stock hit a 14-year low on Friday and its credit weakened sharply on talk it needs extra cash to fund the clean-up and compensation bill for the worst oil spill in US history. Total share losses for the embattled oil major since the ecological disaster began on April 20 stand at around US$100bn, more than halving its pre-spill market value. BP said a relief well had successfully detected the MC252 well and would continue to a target intercept depth of 18,000 feet, when "kill" operations would begin. BP said 37,000 people, 4,500 vessels and 100 aircraft were currently helping the response effort.