E2 Round-up: Lobbying battle over drilling limits heats up, BP admits it wasn’t prepared for deepwater spill, offshore insurance costs rise, and speculation about BP CEO’s future abounds

Oil spill is raising insurance costs for offshore projects

“Reinsures have bumped up prices for offshore energy-related insurance premiums by 50 percent following insurance industry losses of up to $3.5 billion from the BP plc (BP.L) oil spill in the Gulf of Mexicoo, Moody’s Investor Service said in a report on Thursday,” Reuters reports.

“Total insured losses from the worst oil spill in U.S. history are expected to be between $1.4 billion and $3.5 billion, although losses would be significantly higher if BP had purchased liability insurance instead of self-insuring its risks through its captive insurance programme, said Moody’s.”

BP CEO Tony Hayward admits company was not fully prepared for a deepwater leak

From the Financial Times: “BP did not have all the equipment needed to stop the leak from its Macondo well in the Gulf of Mexico in the aftermath of the explosion on an oil rig six weeks ago, the UK company’s chief executive admitted.

“Speaking to the Financial Times in Houston as engineers worked on their latest bid to trap the escaping oil, Tony Hayward said BP was looking for new ways to manage ‘low-probability, high-impact’ risks such as the Deepwater Horizon oil rig accident,” the story continues.

Speculation mounting over Hayward’s future

The Wall Street Journal reports that “BP PLC’s plunging share price and pressure from Washington as the company’s well spews oil into the Gulf of Mexico have some investors speculating on just how long Chief Executive Tony Hayward will keep his job.”

“The oil company’s board says it is behind Mr. Hayward and he appears to have the support of BP management,” the story continues, but adds: “In the long term, however, some investors say Mr. Hayward’s prospects look hazy.”

Bloomberg looks at the same issue, noting that Hayward will address investors Friday “as his handling of the worst oil spill in U.S. history prompts speculation he may be forced to leave the company.”

Their piece also notes that “Criticism of Hayward has mounted this week after BP’s failure to stem the flow from the damaged well caused the biggest share price drop in 18 years and raised the risk the London-based company could become a takeover target.”