Senators predict tighter offshore rules

WASHINGTON, May 16 (UPI) -- Sen. Charles Schumer, D-N.Y., said Sunday he expected Congress to pass legislation raising the cap on oil company liability for oil spills.

Schumer said on NBC's "Meet the Press" that increasing the current $75 million liability cap was likely to pass despite BP's assurances it would pick up the tab for damage caused by the sinking of its offshore drilling platform in the Gulf of Mexico.

"Somebody (also) has to look over the oil company's shoulders," said Schumer. "The president, to his credit said, that the federal watchdog wasn't a good enough watchdog."

Federal regulators were also dinged by Sen. Mitch McConnell, R-Ky., who said Congress had some questions about the level of oversight provided by the Minerals Management Service.

McConnell told "Meet the Press" that relying on a punitive increase of the spill liability cap into the billions-of-dollars range could have unintended consequences. The higher cap, he said, would squeeze out smaller drillers or cause a sharp downturn in overall offshore production.

"Look, we can't walk away -- and the president is not suggesting this either -- from offshore drilling," the minority leader said. "As horrible as this is, it's important to remember that we get 30 percent of our oil from the gulf, and if you shut that down, you'd have $14 gasoline."