UK Lawmakers Launch Inquiry Into UK Deep-Water Oil Drilling

LONDON (Dow Jones)--A U.K. parliamentary committee said Wednesday it is to launch an inquiry into the implications of the Gulf of Mexico oil spill on deep-water drilling in the U.K. The Energy and Climate Change Committee will question BP PLC (BP) and environmental and industry experts to evaluate whether the U.K. government has made the right decision in ruling out a moratorium on new deep-water drilling in the waters west of Shetland. "The Energy and Climate Committee believes serious questions do need to be asked about the safety of deep-water drilling off the coast of Scotland in light of the Gulf of Mexico oil spill," said committee chair Tim Yeo. "We will also want to question the industry about whether they consider that the political risk of exploration and investment in the U.S. needs to be reviewed in the light of the attitude of the Obama administration," Yeo added. The committee will also look at the extent to which existing U.K. safety and environmental regulatory regimes are fit for purpose, the hazards and risks of deep-water drilling to the west of Shetland and whether deep-water oil and gas production is necessary during the U.K.'s transition to a low-carbon economy. BP's oil well in the Gulf of Mexico has been shut since Thursday when the company began testing a new containment cap to stem the flow of crude oil released after the April 20 explosion on the Deepwater Horizon drilling rig. The resulting oil spill is one of the worst environmental disasters in the U.S. -By Selina Williams, Dow Jones Newswires +44 207 842 9262; selina.williams@dowjones.com (END) Dow Jones Newswires July 21, 2010 12:14 ET (16:14 GMT)