BP dissapointed private investors as the share price slid even though a
Massive 136 percent jump in profits were recorded for the last quarter.
This was already expected and comments from Lord Browne saying falls in oil expected have brought also helped the stock down.
He says can stand oil price even below $16 pb
The hostage situation in Nigeria getting bad maybe BP putting on some weight today?
Locals want enviroment cleaned up and profits shared.
Any chance?

BP Alaska Fields Still On Table As Asset Sales Continue-Sources

Today : Wednesday 21 July 2010
Some of Bp PLC's (BP) oil production assets in Alaska remain up for sale, despite not being included in a $7 billion package of assets sold to U.S. energy company Apache Corp. (APA) Tuesday, said people familiar with the matter Wednesday.

BP is also proceeding quickly with talks with a number of parties about other asset sales that are part of a push to raise $10 billion to help cover the cost of the Gulf of Mexico oil spill, one of the people said.

BP said Tuesday it will sell its natural gas assets in Pakistan and Vietnam. And the company has already had contacts with potential buyers for these assets, that person said.

BP has also reportedly had talks with China National Offshore Oil Company (CEO) over the sale of its 60% stake in Pan American Energy, which operates primarily in Argentina, and has considered selling assets in the U.K. North Sea.

So Tony Hayward is about to be given the Order of the Boot...only the Company is in discussion as to his severance package...
Seems to be the discussion should be whether he gets a No10 US-Jackboot - or - a more European No9 duffers slipper.
Reminds me of the Alan Partridge Pool-Attendant scent (was it?),
In the first year there were no accidents.
In the second year there were no accidents
.......................
In the ...th year there was

Tony Hayward was doing well all the time there was no crisis, then as soon as one appears - it seems he was rather unfeeling and the US citizens wanted "their-life back" . . . . but that wasn't going to happen soon. . . . . . . . no wonder they were unhappy.

Do the decent thing and go quietly, leave the car keys and the money, switch off the office lights and close the door gently.
But please Go!

UPDATE ON GULF OF MEXICO OIL SPILL

BP today provided an update on developments in the response to the MC252 oil
well incident in the Gulf of Mexico.

Subsea Source Control and Containment

On July 23, with the guidance and approval of the National Incident Commander
(NIC) and the leadership and direction of the federal government, relief well
activities at the MC252 well site were temporarily suspended because of
potentially adverse weather associated with Tropical Storm Bonnie. Following the
passing of the weather system, the DDIII drilling rig returned to the relief
well site on July 24 and is taking steps necessary to reconnect with the well
and resume drilling operations. These steps are expected to take a number of
days.

The DDII drilling rig is moving back into position, and will take steps
necessary to reconnect to the second relief well. However, work on the second
relief well has been suspended so as not to interfere with the first.

The MC252 well has been successfully shut-in for integrity testing since July
15.

BP continues to closely monitor the MC252 well and well-capping structure, under
the guidance of the Unified Command.

Conclusion of Morgan Stanley broker note:
"Good operational progress in Macondo: Despite the adverse weather conditions, the integrity of the well with containment system remains robust. Last night, the National Incident Commander indicated no anomalies detected, while the pressure in well is now at c. 6900psi. The 'static kill' of the well should happen in the 1st week of August although it appears the process could begin towards end of this week.
Valuation: The shares trading at 5.3x 2012 consensus PEs and trading on a 20-25% discount to Total and Shell we maintain our Overweight rating and argue that the relative call will be made between 450-500p/share."

Half yearly Report.

Following the explosion and subsequent sinking of the Transocean Holdings LLC operated Deepwater Horizon drilling rig in the Gulf of Mexico in April 2010, BP and US Government authorities have been conducting unprecedented oil spill response activities. These ongoing efforts have sought to halt the flow of hydrocarbons from the well, capture and contain oil that has been leaking, protect the shores and clean up oil that has reached the shores. BP's own investigation, as well as several independent investigations, into the cause of the accident are ongoing.

BP's second quarter replacement cost loss was $16,973 million, compared with a profit of $3,140 million a year ago. For the half year, replacement cost loss was $11,375 million compared with a profit of $5,527 million a year ago.

The group income statement for the second quarter reflects a pre-tax charge of $32.2 billion related to the Gulf of Mexico oil spill. This includes $2.9 billion which has been charged for costs incurred to 30 June 2010. All charges relating to the incident have been treated as non-operating items. For further information on the Gulf of Mexico oil spill and its consequences see pages 2 - 5, Note 2 on pages 25 - 28, Principal risks and uncertainties on pages 33 -39 and Legal proceedings on pages 40 - 43. Further information on BP's second quarter results is provided below.

Non-operating items and fair value accounting effects for the second quarter, on a post-tax basis, had a net unfavourable impact of $21,953 million compared with a net favourable impact of $202 million in the second quarter of 2009. For the half year, the respective amounts were $22,002 million unfavourable and $8 million favourable. See pages 6, 21 and 22 for further details.

Finance costs and net finance income or expense relating to pensions and other post-retirement benefits were $214 million for the second quarter, compared with $321 million for the same period last year. For the half year, the respective amounts were $442 million and $689 million.

The effective tax rate on replacement cost profit or loss for the second quarter and half year was 30% and 27% respectively, compared with 35% and 36% a year ago. Excluding the impact of the Gulf of Mexico oil spill, the effective tax rate for the second quarter was 35% and for the half year was 34%.

Net cash provided by operating activities for the quarter and half year was $6.8 billion and $14.4 billion, including a $2.1-billion cash outflow relating to the Gulf of Mexico oil spill response, compared with $6.8 billion and $12.3 billion respectively a year ago.

Total capital expenditure for the second quarter and half year was $6.2 billion and $10.9 billion respectively. Organic capital expenditure(c) in the second quarter and half year was $4.4 billion and $8.2 billion respectively. Organic capital expenditure for 2010 and 2011 is expected to be around $18 billion a year. Disposal proceeds were $0.7 billion for the quarter and $0.8 billion for the half year. The group plans to dispose of assets with a value of up to $30 billion over the next 18 months, including $7 billion from the recently announced disposals to Apache Corporation.

Net debt at the end of the quarter was $23.2 billion, compared with $27.1 billion a year ago. The ratio of net debt to net debt plus equity was 21% compared with 22% a year ago. The net debt ratio at the end of the second quarter 2010 was impacted by the reduction in equity arising from the liabilities we have recognized in relation to the Gulf of Mexico oil spill. The group intends to reduce net debt to $10-15 billion within the next 18 months.

Cash costs(d) for the second quarter and half year were slightly lower than a year ago. Cash costs do not include amounts relating to the Gulf of Mexico oil spill.

BP SETS OUT GoM COSTS, ASSETS SALES, PERFORMANCE

RNS Number : 9699P
July 27, 2010


BP SETS OUT GULF OF MEXICO COSTS, FURTHER ASSET SALES AND STRONG OPERATING
PERFORMANCE


BP announced today that it has taken a pre-tax charge of $32.2 billion for the
Gulf of Mexico oil spill, including the $20 billion escrow compensation fund
previously announced.

The company will also tell analysts later today that it plans to sell assets for
up to $30 billion over the next 18 months, primarily in the upstream business,
and selected on the basis that they are worth more to other companies than to
BP. This portfolio high grading will leave the company with a smaller but higher
quality Exploration & Production business.

Meanwhile BP continues to access new business opportunities, with new agreements
in Azerbaijan, Egypt, China and Indonesia announced since the end of the first
quarter.

The company said it was taking a prudent approach to managing the balance sheet
and its financial liquidity, in order to ensure that BP has the flexibility to
meet all of its future financial obligations. As a result it plans to reduce its
net debt level down to a range of $10-$15 billion within the next 18 months,
compared to net debt of $23 billion at the end of June. Group capital spending
for 2010 and 2011 will be about $18 billion a year, in line with previous
forecasts.

"With the leak now capped we have reached a significant milestone," said Tony
Hayward, group chief executive. "This provides a firm basis for moving forward
to reshape the company. By disposing of assets worth more to others than to BP
we can better align our strategic footprint with our global strengths."

In reporting second quarter results, BP revealed that it is taking a charge of
$32.2 billion to reflect the impact of the Gulf of Mexico oil spill, including
costs to date of $2.9 billion for the response and a charge of $29.3 billion for
future costs, including the funding of the $20 billion escrow fund.

"We expect we will pay the substantial majority of the remaining direct spill
response costs by the end of the year. Other costs are likely to be spread over
a number of years, including any fines and penalties, longer-term remediation,
compensation and litigation costs," Hayward said.

The company revealed the charge as it announced a headline replacement cost loss
for the quarter of $17 billion. After adjusting for all non-operating items and
fair value accounting effects, second-quarter underlying replacement cost profit
was $5 billion compared to $2.9 billion in the second quarter of 2009.

"The costs and charges involved in meeting our commitments in responding to the
Gulf of Mexico oil spill are very significant and this $17 billion reported loss
reflects that. However outside the Gulf it is very encouraging that BP's global
business has delivered another strong underlying performance, which means that
the company is in robust shape to meet its responsibilities in dealing with the
human tragedy and oil spill in the Gulf of Mexico," Hayward said.

Higher prices for oil and gas made up for slightly lower output and a loss in
gas marketing and trading in Exploration & Production, while Refining &
Marketing reported increased profits as a result of strong performance in the
fuels value chains and the lubricants and petrochemicals businesses.

In Refining & Marketing the company continues to expect an annualised pre-tax
performance improvement of over $2 billion, to be achieved over the next two to
three years. BP's underlying second quarter downstream result was the strongest
since Q2 2006, when refining margins were more than double current levels, with
the US business returning to profitability for the first time in over a year.

The company also gave more details of the strong financial position in which it
faces its responsibilities. Second-quarter operating cash flow, excluding Gulf
of Mexico oil spill costs, was $8.9 billion, up 31 per cent compared with the
same quarter last year.

This higher operating cash flow enabled the group to reduce its net debt by $2.9
billion in the first half, despite payments being made in respect of the Gulf of
Mexico oil spill. In addition, the company has lined up substantial additional
bank borrowing facilities, all of which remain undrawn, has reduced cash outflow
in 2010 by reducing capex and by cancelling the payment of further dividends
this year, as previously announced.

"We remain confident in our ability to meet our obligations to those on the Gulf
Coast of the United States, other impacted parties and all our stakeholders,"
said BP Chairman Carl-Henric Svanberg. "Our shareholders have not received any
dividends since the spill occurred. As we said last month, the Board remains
strongly committed to the payment of future dividends and delivering long term
value to shareholders. The Board will consider its position on future dividend
payments at the time of issuance of the fourth quarter 2010 results in February
2011."

BP's Prioritizes Restoration Of US Reputation With New CEO

Today : Tuesday 27 July 2010
BP PLC (Bp) said Tuesday that Robert Dudley, the executive director who heads the company's oil spill response effort in the Gulf of Mexico, will lead the entire company from October 1 when the embattled Chief Executive Tony Hayward steps down.

"It will be a different company going forward, requiring fresh leadership supported by robust governance and a very engaged board," Chairman Carl-Henric Svanberg said in a statement.

In sacrificing Hayward and choosing Dudley, BP's board of directors has made it clear that restoring the company's reputation in the U.S. is its top priority, said analysts.

"This is nothing to do with (Hayward's) business judgment, it's what is politically convenient," said Oppenheimer analyst Fadel Gheit.

"The Gulf of Mexico explosion was a terrible tragedy for which--as the Man in charge of BP when it happened--I will always feel a deep responsibility, regardless of where blame is ultimately found to lie," said Hayward.

Svanberg added: "We are highly fortunate to have a successor of the calibre of Bob Dudley who has spent his working life in the oil industry both in the US and overseas."

?

A few hours old.....

BP Asks US Lawmakers To Soften Offshore Drilling Legislation

Today : Thursday 29 July 2010
BP PLC (Bp, BP.LN) on Wednesday appealed to House leaders to soften legislation that responds to the company's oil spill in the Gulf of Mexico, citing concern about the "drastic impact" the legislation could have for the economy and jobs in the region.

The company acknowledged its part in the April 20 disaster, which killed 11 people and sent oil gushing from a broken BP well into the ocean in the worst offshore oil spill in U.S history.

But BP, which describes itself as the largest developer in the Gulf of Mexico, also said that its operations "contribute significantly to domestic oil production" and warned that "limiting production" would have "adverse effects on consumers and businesses."

The House is set to vote Friday on legislation that would overhaul the U.S. system of offshore drilling, including by exposing companies to unlimited claims for damages beyond cleanup costs. Companies with poor safety records would also be banned from obtaining new drilling leases.

The letter was dated July 28 and signed by David Nagel, the executive vice president of BP America. It was sent to House Speaker Nancy Pelosi (D, Calif.) and House Minority Leader John Boehner (R, Ohio).

Clubby long BP

http://321energy.com/editorials/hunter/hunter072910.html

BP will begin the process to permanently plug the oil leak in the Gulf of Mexico as soon as this evening, as the US backlash against the company continues.

The operation, known as a "static kill" and which involves the pumping of mud into the well, will force the oil back into the reservoir.

BP will then complete drilling the relief well to pump mud and cement into the Macondo to permanently plug the spill source. The well has been temporarily capped since 15 July, but the danger still lurks that it will start leaking again before completion of the relief well. However. the so-called static kill will potentially shut off the well two weeks before the relief well could.

The company had hoped to have completed plugging the leak by the middle of last month, but was hampered by tropical storm Barnie.

Away from the Gulf, spill there are continuing problems for BP, with calls for its American petrol stations to be re-branded amid falling sales. The distributors who control most of BP's US forecourts say sales have dipped by as much as 40% since the Deepwater Horizon explosion on 20 April.

John Kleine, executive director of the BP Amoco Marketers Association, wants to see BP stations revert to Amoco, the name the firm abandoned in 1998 when it took over the US oil giant.

Some petrol station owners hope the name change will not only help ailing sales but put a halt to the instances of vandalism that have occurred since the disastrous oil spill. However, BP has ruled out a brand change in the immediate future.

BP suffered a further blow on Friday as the House of Representatives passed an amendment containing rigorous oil safety standards that could, if they became law, prevent the company from undertaking further offshore drilling. The proposal is not, however, under Senate consideration.

BP: Hydraulic Leak Delays Injection Test At US Gulf Well

Today : Tuesday 3 August 2010
The preliminary steps of Bp PLC's (BP, BP.LN) effort to kill a damaged deepwater well in the U.S. Gulf of Mexico by flooding it with thousands of barrels of drilling mud were delayed until Tuesday, as the company discovered a hydraulic leak in the control mechanism of a cap that's keeping the well shut.

BP said in a statement late Monday that the initial phase of the so-called "static kill" operation, consisting of a test to push crude down the well and into the reservoir by injecting refined oil, would commence after the company repairs the leak. The test was originally scheduled for Monday.

The core part of the static kill operation, which involves pumping large quantities of heavy drilling fluid down into the well, would possibly occur on Tuesday too, the company said.

It would take between 33 and 61 hours to flood the broken well with mud, said retired Coast Guard admiral Thad Allen, who heads the federal oil spill response effort.

In an earlier conference, BP senior vice president Kent Wells said flooding the well could take 2,000 barrels of mud. But Allen mentioned that the amount required would depend on whether oil has been flowing through the drill pipe or whether it also escaped through the gap between the pipe and the rock formation surrounding the well. Responders won't know what the situation of the well is until they start pumping mud, Allen said.

Successfully completing this operation would permanently stop one of the worst environmental disasters in the Gulf Coast region. The gusher that began when Transocean Ltd.'s (RIG) Deepwater Horizon rig blew up and sank in April spewed millions of barrels of oil into the Gulf, a spill much larger than the Exxon Valdez in 1989. The rig was drilling the well for BP.

Optimism that the spill can be controlled has increased since BP capped the well with a new containment system more than two weeks ago, and shut in the flow of oil. Crude on the surface of the Gulf is getting harder to find, but it's still affecting some onshore areas, including Louisiana's environmentally fragile marshes.

Wells said if the static kill operation succeeds, responders will have to decide whether to cement the well from the top, through the same lines used to pump the drilling mud, or from the bottom, through a relief well that's scheduled to intercept it by mid-August. Wells added BP has finished inserting pipe into the relief well. Now it only has to drill a short distance to intersect the damaged well.

Allen said the well will not be considered permanently dead "until the relief well is done." If the effort fails, however, and oil pushes back into the ocean, Allen said another vessel, the Discoverer Enterprise, is on stand-by with a back-up containment cap. The replacement, however, may not be done immediately and oil could leak back into the ocean in the interim. There are 22 "very large" ocean skimming vessels waiting on the surface in the case there's a discharge, he said.

Oil spill respondents received criticism from U.S. representative Ed Markey (D., Mass.) during the weekend for allegedly applying more dispersant than was authorized by the Environmental Protection Agency. Allen said the amounts varied daily, and the decision to apply them was made "tactically," when there was no other way to stop the oil from reaching fragile coastline. "To the extent that there's an issue about it, I'm the national incident commander and I'm accountable," he said.

Mitsui & Co: Have Received Payment Request To Cover Costs From BP Spill

Today : Tuesday 3 August 2010
Mitsui & Co. (8031.TO) said Tuesday that MOEX Offshore 2007 LLC has received a payment request totaling $480 million from Bp Exploration and Production Inc. to cover costs for the massive Gulf of Mexico oil spill.

The Japanese firm also said MOEX Offshore, which is wholly owned by a U.S. unit of Mitsui's 69.91%-held Mitsui Oil Exploration Co., may receive more requests from BP Exploration in the future.

However, MOEX Offshore will hold off making a decision on whether to pay for the costs, as it is examining the request while it continues talks with BP Exploration, Mitsui said.

Mitsui & Co. said it booked a loss of Y2.1 billion on the revaluation of fixed assets in the April-June quarter partly due to an appraisal loss related to the mining rights in the affected well.

UPDATE:BP Sells $1.9 Billion Colombian Assets To Ecopetrol,Talisman

Today : Tuesday 3 August 2010
BP PLC (Bp) said Tuesday it has agreed to sell its Colombian oil and gas exploration and production business to Ecopetrol SA (ECOPETROL.BO) and Talisman Energy Inc. (TLM.T) for $1.9 billion.

BP is looking to divest about $30 billion in assets over the next 18 months to raise money to cover the cost of the Gulf of Mexico oil spill. BP has already struck a $7 billion deal to sell assets in North America and Egypt to Apache Corp. (APA).

"I am delighted with the price we have achieved for these assets," said BP Chief Executive Tony Hayward, who will step down on Oct. 1. "BP has been involved in Colombia for more than 20 years...but it now makes sense for the assets to go to owners more willing than BP to invest in their future development."

BP has got a "very, very good" price for the assets, said NCB Stockbrokers analyst Peter Hutton.

The value of the deal is a surprising $32 a barrel for the resources involved, although, "this implied price will be inflated by inclusion of Cusiana gas processing facility and pipelines which needs to be stripped out," he said. This compares with $19.44 per barrel of proved reserves for BP's Apache deal, he said.

This deal bodes well for BP's reported plans to sell its Argentine unit Pan American Energy, said Hutton. "Neither of these are distressed asset sales," he added.

BP is in talks with Argentina's Bridas Corp. to sell its 60% stake in Pan American for around $9 billion, a person familiar with the talks told Dow Jones Newswires last month.

Ecopetrol, Colombia's national oil company, will buy 51% of the business and Talisman 49%. They will pay BP a cash deposit of $1.25 billion and the balance when the deal passes regulatory approvals, expected by the end of this year.

"I am really pleased with this deal," said Ecopetrol's Chief Executive Javier Gutierrez. "It fits into our strategic plan perfectly, bringing new reserves, production and potential areas for our exploratory portfolio," he said.

"These are tremendous assets that our team knows well. They are attractively priced, with excellent running room and we are partnering with the preeminent oil and gas company in Colombia," said Talisman President and Chief Executive John Manzoni. Talisman is already partnered with Ecopetrol in several oil licenses in Colombia and Peru.

BP's Colombia business has interests in five producing fields, four separate pipelines and two offshore exploration blocks, the company said. Net proved reserves total some 60 million barrels of oil equivalent and net production of approximately 25,000 boe a day.

Most of the producing assets are mature. BP discovered the oil and gas reserves in the Casanare province in the early 1990s. Output there peaked in 1999, when it averaged 434,000 barrels a day. BP licenses in the eastern Casanare province are scheduled to expire between 2016 and 2020.

The deal is expensive, but, "there is a lot of upside in the probable reserves, exploration projects," said Rupert Stebbings, a stock analyst at the Colombian unit of Celfin brokerage.

BP Says Gulf Of Mexico Well "Static Kill" Achieved

Today : Wednesday 4 August 2010
BP PLC (Bp) Wednesday said its Macondo well in the Gulf of Mexico appears to have reached a "static condition" after the oil major stopped pumping heavy drilling fluid into it.

"The well pressure is now being controlled by the hydrostatic pressure of the drilling mud, which is the desired outcome of the static kill procedure carried out yesterday (Tuesday)," BP said in a statement.

The initial phase of the effort--called "static kill" by the company--started Tuesday, with engineers injecting low levels of refined oils into the well from the top. This was done to determine if they could stop the crude from flowing upward and push it down into the reservoir 13,000 feet below the sea floor.

After finding this was possible, BP began pumping more than 2,000 barrels of heavy drilling fluid, called "mud," into the well.

BP stopped pumping the fluids into the well after eight hours, the company said, sooner than initially expected.

BP successfully installed a cap on the well in mid-July, three months after the Deepwater Horizon oil rig exploded and sank, killing 11 people and sending 4.9 million barrels of oil into the Gulf. That has halted the uncontrolled flow of oil, but the well still needs to be rendered dead.

"BP will continue to work with the National Incident Commander and other government officials to determine the next course of action, which involves assessing whether to inject cement in the well via the same route," BP said. "A relief well remains the ultimate solution to kill and permanently cement the well."

BP Authorized To Start Cementing Procedure On MC252 Well Thursday

Today : Thursday 5 August 2010
Oil major Bp PLC (BP) said Thursday it has received authorization from the National Incident Commander, or NIC, to conduct cementing operations on the MC252 well as part of the static kill procedure, adding that pumping operations are expected to begin Thursday.

MAIN FACTS:

-The aim of the procedure is to assist with the strategy to kill and isolate the well, and will complement the upcoming relief well operation.

-Shares closed Wednesday at 421.65 pence valuing the company at GBP79.23 billion.

Back to 500 soon IMHO

BP COMMENCES CEMENTING PROCEDURE ON MC252 WELL

HOUSTON - BP today started pumping cement into the MC252 well at 09:15 CDT
(15:15 BST) as part of the static kill procedure. All operations are being
carried out with the guidance and approval of the National Incident Commander
and other government officials.
The aim of the procedure is to assist with the strategy to kill and isolate the
well. This procedure will complement the ongoing relief well operation.

Delay On Senate's Spill Bill Spurs Lobbyists Into Action

Today : Thursday 5 August 2010
Energy and environmental lobbyists will jump back into action in coming weeks as they attempt once again to shape the contents of an oil-spill bill in the U.S. Senate.

After Senate Democrats decided to postpone a vote on a spill bill, saying they'd revive the issue when lawmakers returned from a summer recess in September, stakeholders now say they will redouble their efforts to change the legislation.

For groups representing the energy industry, that means pressing lawmakers to reconsider caps on liability for Bp PLC (BP, BP.LN) and other companies that cause oil spills.

For environmental groups, meanwhile, that means asking Senate members to support a cap on carbon dioxide emissions and to impose renewable electricity standards.

The success of their efforts depends largely on Senate Majority Leader Harry Reid (D., Nev.) and the handful of Democrats who are steering the oil-spill bill through the Senate. Among them are Sens. John Kerry (D., Mass.), Barbara Boxer (D., Calif.), Jeff Bingaman (D, N.M.) and Robert Menendez (D, N.J.).

These Democrats are likely to make at least some changes to the bill they unveiled in July, in large part because they don't have the necessary 60 votes to push it through the chamber in its current form. But it's unclear just how much of the legislation they'd be willing to amend.

"Clearly, the votes weren't there for the proposals that were on the table," said American Petroleum Institute President Jack Gerard. "So there will have to be some adjustments to pass the bill."

The energy industry is going to ask lawmakers to amend current proposals on liability caps. The Democrats' bill eliminates the caps altogether, but Republicans and some Democrats have said that the move would make it prohibitively expensive for small to mid-sized producers to do business.

The debate over liability caps proved to be one of the thorniest issue in the Senate bill, and Reid might have to look at alternative proposals being developed by Sens. Mary Landrieu (D, La.) and Mark Begich (D., Alaska) if he wants to recruit more support.

Energy lobbyists will also ask lawmakers to remove existing proposals that require natural gas companies to disclose the chemicals they use in a drilling process called hydraulic fracturing, Gerard said.

Environmental groups, meanwhile, want lawmakers to reconsider a cap and trade program for carbon dioxide, even if it applies to just one segment of the industries that emit carbon dioxide.

And renewable energy advocates wants Congress to impose renewable electricity standards, which would force power companies to generate a certain portion of their electricity from renewable sources, like wind and solar.

Neither proposals made it into the Democrats' current bill, but they both have supporters on Capitol Hill.

"If the stars align over the next few weeks, there's a chance we could get that enacted this year," said Tony Kriendler, a spokesman for Environmental Defense Fund. "The energy bill is still the natural vehicle."

Given the time constraints facing Senate lawmakers in the fall, Reid might have to scale back the current bill even further to attract enough support to move it through the Senate.

But if Democrats lose interest in passing the measure, or believe its success is unlikely, they could incorporate carbon caps and renewable electricity standards to please environmental groups and other members of their liberal base.