Asia-Pacific

BP will pay for its 'recklessness'

(Agencies)
Updated: 2010-06-16 09:00

WASHINGTON - President Barack Obama vowed on Tuesday to compel BP Plc to pay damages for its "recklessness" in the Gulf of Mexico oil spill and sought to harness public outrage over the disaster into support for his bid to cut U.S. dependence on fossil fuels.

U.S. President Barack Obama speaks after addressing the nation about the BP oil spill from the Oval Office of the White House in Washington June 15, 2010. Obama vowed on Tuesday to compel BP Plc to pay damages for its "recklessness" in the Gulf of Mexico oil spill and sought to harness public outrage over the disaster into support for his bid to cut US dependence on fossil fuels.  [Photo/Agencies]

"We will fight this spill with everything we've got for as long it takes. We will make BP pay for the damage their company has caused," Obama said in a televised address aimed at restoring Americans' confidence in his handling of the crisis before it further tarnishes his presidency.

Obama's stern message for BP, delivered in a somber tone, was a centerpiece of his high-stakes speech on the oil spill, which threatens to distract from his domestic agenda of reducing nearly double-digit U.S. unemployment and reforming Wall Street.

Investors were looking for signs that Obama would try to jumpstart his push climate change legislation and alternative energy initiatives, like solar, wind and geothermal, that are now stalled in Congress.

Obama has made clear he supports a comprehensive energy bill that would reduce greenhouse gas emissions, and a senior administration official said the president still " believes that putting a price on carbon pollution is essential.

But Obama stopped short of talking specifically about the climate change component in his speech, perhaps mindful of the political obstacles.

Protestors trail BP America President and Chairman Lamar McKay (L) as he is escorted out after testimony on the BP Deepwater Horizon oil spill in the Gulf of Mexico during a House Energy and Commerce hearing on Capitol Hill in Washington, June 15, 2010. [Agencies]

He said he was open to ideas from Democrats and Republicans alike for reducing America's addiction to oil, but insisted, "The one approach I will not accept is inaction."

Another crucial question is whether Obama, making his first address from the solemn setting of the Oval Office, can placate angry voters in a congressional election year when his Democratic party's grip on legislative power is at risk.

Seeking to counter criticism that he has not shown enough leadership in the nearly two-month-old crisis, Obama took a hard line with BP

"Tomorrow, I will meet with the chairman of BP and inform him that he is to set aside whatever resources are required to compensate the workers and business owners who have been harmed as a result of his company's recklessness," he said.

"And this fund will not be controlled by BP.  In order to ensure that all legitimate claims are paid out in a fair and timely manner, the account must and will be administered by an independent, third party."