White House 'Strongly Supports' House Drilling Bill

By Siobhan Hughes Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--The Obama administration Thursday said it "strongly supports" an offshore drilling bill that is up for a vote Friday in the U.S. House of Representatives, including a controversial measure to discard the limit on damages that companies must pay for spills like the one in the Gulf of Mexico. Eliminating the cap on damage claims that companies must pay for offshore oil spills is viewed by oil and gas producers as the most onerous part of the legislation. Without a limit to liability, insurers have indicated that they will stop offering insurance, leaving offshore drilling only to the major oil companies that are able to self-insure against disasters. "The Administration strongly supports the repeal of the limit on economic damages liability for offshore drilling, which has served as an implicit subsidy for the oil and gas industry for two decades," according to a statement that laid out the administration's position. "Removing the arbitrary limit on liability for damages caused by offshore drilling will create the incentive for the oil and gas industry to comply with new standards and seek out and implement best practices for safety." The White House said it had concerns with one provision relating to "the exclusive economic zone" with respect to U.S. obligations under international trade and investment agreements. The White House said that it "looks forward to working with Congress to improve the bill as it proceeds through the legislative process." -By Siobhan Hughes, Dow Jones Newswires; 202-862-6654; siobhan.hughes@dowjones.com (END) Dow Jones Newswires July 29, 2010 15:55 ET (19:55 GMT)