"BRITISH-U.S. TENSIONS RISE OVER BP"

Top of the Agenda: British-U.S. Tensions Rise over BP Oil giant BP's shares plunged (BBC) in U.S. and British markets, as investors fear the United States will impose huge penalties on the company for the Gulf of Mexico oil spill. BP's share price has nearly halved since the April 20 spill, hitting British pension funds, which are heavily invested in the firm. London mayor Boris Johnson expressed concern the oil spill was damaging the image of Britain in the United States. Former British ambassador to the U.S. Sir Christopher Meyer said U.S. President Barack Obama and British Prime Minister David Cameron should discuss the issue in a scheduled conversation this weekend. BP has taken the heat for the oil rig explosion, but other companies, including Transocean, Halliburton, Weatherford International, and M-I SWACO were also working (CSM) on the rig when it exploded. Analysis: In the Daily Telegraph, Will Heaven says if BP--the biggest supplier of oil and gas to the U.S. military--loses U.S. government contracts, it could trigger a backlash in America against British companies, with long-term implications for the British economy. A Wall Street Journal editorial says, "Americans don't blame Mr. Obama for the oil spill, but they are beginning to doubt the competence of a president whose decisions suggest political panic more than careful policy." Backgrounder: The Gulf of Mexico oil spill spotlights the growth of deepwater drilling and the challenges of balancing strong environmental regulation with efforts to expand U.S. domestic oil production.