BP defends deep water exploration

LONDON, June 23 (UPI) -- The world needs the vast oil reserves available in deep water reserves to meet growing demand, BP officials told an energy conference in London.

Steve Westwell, the chief of staff for British petroleum company BP, told delegates at the World National Oil Companies Congress in London that deep water reserves in the Gulf of Mexico resulted in a noted increase in U.S. oil production in 2009.

His comments come as BP faces a sweeping backlash for its actions in the Gulf of Mexico. Oil from the BP-operated Deepwater Horizon oil platform is spilling into the gulf more than two months after the rig caught fire and sank.

"The Gulf of Mexico incident has raised major questions about the risks that are faced at the industry's frontiers and specifically in deep water," said Westwell. "Restoring confidence won't be easy. But let's not forget how much is at stake."

U.S. oil production increased 7 percent, or 450,000 barrels per day, in 2009, he said in his published statements. Nearly 30 percent of that increase can be attributed to deep water reserves in the Gulf of Mexico.

"It's imperative to invest in creating a sustainable deep water business," he said. "We must change the way we operate, and no doubt the regulatory framework will radically change too."

His comments come as Washington considers reinstating a moratorium on offshore drilling after a federal judge in New Orleans overturned the ban.