BP and a team of engineers have lowered the containment cap on the blowout preventer.

Doug Suttles, BP chief operating officer, says the next step is to close the vents at the top of the cap, which should greatly reduce the amount of oil and gas escaping from the well. If the procedure is successful, the vast majority of the oil and gas will travel from the cap up through a new riser to a drill ship for processing.

Click on the image above for an animation that explains the entire process.

Observers from all over the Gulf Coast and the nation tonight are watching closely as BP and a team of engineers attempt to lower a containment cap on the Macondo well riser.

If the cap can be attached successfully, most of the oil and gas leaking from the damaged well will be channeled safely to a drillship, keeping it from spilling into the Gulf.

Earlier today Adm. Thad Allen told reporters that dispersant would be applied underwater on the oil and gas that are not contained by the cap, adding that the Environmental Protection Agency (EPA) has found no impact on wildlife from the dispersant to date. Nearly one million gallons of the chemicals have been used so far to break down the oil and help it degrade more rapidly.

Allen also reported that BP wi... more »

Yesterday in a post on the National Journal's Energy and Environment Blog, API President and CEO Jack Gerard said policymakers should avoid enacting new policies and regulations that could have a negative impact on the nation's energy security and economic future.

He cautioned that poor policy decisions could have the unintended consequences of destroying jobs and hurting the economy.

In this video, watch Jack talk about striking the right balance in energy legislation

As an example, Jack cited the congressional effort to change the Oil Spill Liability Trust Fund:

"Altering the liability cap on the Oil Spill Liability Trust Fund could force small and mid-sized energy companies out of the market, relegating offshore production only to large, self-insured companies and nationally-owned or o... more »

At a speech at Carnegie Mellon University yesterday, President Obama called the Gulf oil spill a "catastrophe" and pushed for a climate bill and higher taxes on oil companies to pay for "clean energy research and development." Mr. Obama added, "The next generation will not be held hostage to energy sources from the last century. We will not move back. America will move forward."

With all due respect, Mr. President, move forward to what? Let's look at the facts:

• The climate bill that passed the House of Representatives nearly a year ago was a giant tax bill. According to studies, it could destroy more than 2 million jobs nationwide, even after accounting for the creation of green jobs. One analysis projected it would reduce aggregate gross domestic product (GDP) by $9.4 trillion over the... more »

Coast Guard Adm. Thad Allen reported this morning that the diamond wire being used to make a second "clean cut" in the Deepwater Horizon riser is stuck.

Engineers are working to shake it loose so they can continue the process of installing the lower marine riser package (LMRP) designed to siphon most of the oil and gas from the well to the surface for processing. Late yesterday powerful shears, similar to garden shears, made the initial cut through the 21"-in-diameter riser.

BP reports that two additional containment strategies are planned. They include the:

• Q 4000 Direct Connect, which will use the manifold and hoses installed for the failed "top kill" procedure to take additional oil from the blowout preventer (BOP) to the surface through a second riser.
• Long-Term Containment Option, w... more »