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Obama tries to lift economy, spirits on his return to Gulf

Mixing boosterism with compassionate outreach, the president sought to increase his profile in the oil spill crisis.

June 15, 2010 at 3:51AM
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THEODORE, ALA. - Kicking off a week of high-stakes maneuvering around an oil slick threatening to bog down his first term, President Obama returned to the Gulf region Monday, touring the oil-stained waters by boat and warning of hard times to come, but touting the region's continued viability for tourists.

"There's still a lot of opportunity for visitors to come down here; a lot of beaches that are not yet affected or will not be affected," Obama told reporters after a meeting with Republican Govs. Haley Barbour of Mississippi and Bobby Jindal of Louisiana in Gulfport, Miss. "And we just want to make sure that people who have travel plans down to the Gulf area remain mindful of that ... one of the best ways to help is to come down here."

That balancing of boosterism and acknowledged tragedy is not the only delicate calibration facing Obama this week, as he plans a first address to the nation about the disaster from the Oval Office on Tuesday and prepares to meet face-to-face with the leaders of oil company BP on Wednesday.

Many Americans may want Obama to be harder on BP, but many others are alert to any hint of antibusiness sentiment amid lingering high unemployment. Some Americans will simply want to hear his plans for plugging the well, while others expect Obama to seize the opportunity to boldly reimagine the nation's energy future.

And then there is the question of BP, which the administration must pressure to repair lives, business and wetlands -- but not so hard as to put it out of business, leaving behind a whopping cleanup and compensation bill. "You don't want this horse to collapse in the middle of the race," said Fadel Gheit, an energy analyst at Oppenheimer & Co. "You want a healthy BP, not a crippled one."

The president's visit, the fourth since the April 20 Deepwater Horizon rig explosion, comes amid mounting calls, even among allies, that Obama appear more in command. It also comes amid mounting pressure on BP, from both the administration and Congress, to do more to fix the well and compensate the victims of the catastrophe.

The administration has taken a more aggressive stance toward the company of late, announcing Sunday that it hopes force BP to create an independently administered escrow account to fund compensation claims.

In remarks Monday, however, Obama refrained from chastising BP. Instead, he said he has already had "constructive" talks with the company, and hoped the two sides could arrive at some kind of structured plan at their White House meeting.

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A more fiery reception may await BP CEO Tony Hayward on Thursday, when he appears before a House panel that has been investigating the company's actions.

BP directors met Monday in London to explore a number of options, including the possibility of deferring the company's $10.5 billion dividend to shareholders. As of late Monday, no decision had been reached, and BP was unwilling to discuss the matter.

So far, at least one attempt to ratchet up the pressure on BP appears to have paid off: In a letter released Monday, BP acceded to a recent Coast Guard demand to move faster in deploying its oil-containment strategy.

In a letter to Coast Guard Rear Adm. James Watson, BP Chief Operating Officer Doug Suttles said the company had revised its oil-capture plans to allow it to collect more than 50,000 barrels of oil a day by the end of June -- about two weeks earlier than the company had originally planned.

BP said the maximum capacity of its current system is 18,000 barrels per day. An additional plan set to go live Tuesday will siphon as much as 10,000 barrels a day more, using equipment from BP's failed "top kill" plan.

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PETER NICHOLAS, RICHARD SIMON and RICHARD FAUSSET Tribune Washington Bureau

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