Obama and BP Set Up $20 Billion Fund for Oil Spill Victims

Oil, dead marine life and birds continue to wash up on the coastlines of Louisiana, Alabama, Mississippi and Florida. BP has installed a cap on the leaking well that is capturing 10,000 gallons a day -- about half of what is spewing out -- but most experts agree that the Gulf of Mexico and perhaps parts of the Atlantic Ocean will suffer effects from the catastrophe for decades to come.

Speech highlights energy policy

	President Obama addressed the nation from the Oval Office for the first time and called for a new approach to energy production.

In a speech from the Oval Office -- the first of his presidency --President Obama said “BP will pay” for the damage, and additional National Guard troops will be deployed to address the spill that is "assaulting our shores and our citizens."

He also encouraged Americans to "seize the moment" and embrace the climate change bill that the House of Representatives passed last year. In order for the bill to become law, it must also pass the Senate, where there is opposition.

Critics of the legislation say it will increase energy costs for many Americans. President Obama acknowledged their concern but added that the country "can’t afford not to change how we produce and use energy – because the long-term costs to our economy, our national security, and our environment are far greater."

President visits Mississippi, Alabama and Florida

	The president met with lawmakers from the Gulf region, including Mississippi Governor Haley Barbour, pictured here.

President Obama visited the Gulf region and spoke with lawmakers and leaders in Mississippi, Alabama and Florida about how to address the continued fallout from the spill. Officials in the Gulf region have been critical of the government's response so far and say much more needs to be done.

John Young, the chairman of the Jefferson Parish Council in Louisiana, told the NewsHour that the response has been "unsatisfactory" and that many more resources are needed to address the spill. He added that state and local governments have been more effective at cleanup than the federal government, since they have taken the initiative to build land bridges to keep the oil from reaching shore. Young also said the federal government needs to "not suggest, not request, but direct and order" BP to clean up the spill effectively.

Oil executives testify before Congress

	Representatives from five major oil companies, including BP America, defended their oil spill cleanup plans before Congress.

Meanwhile, during hearings on Capitol Hill, members of Congress questioned executives from several oil companies about their plans for cleaning up spills. Representatives from Chevron*, Exxon Mobil, ConocoPhillips, Shell and BP America defended their cleanup plans while calling for additional oil exploration and drilling.

The executives also said BP had not followed necessary design standards when constructing the rig and asserted the spill was "preventable." They said their companies wouldn't have continued to drill the well in the same situation, since there was too much pressure mounting inside that led to the blowout.

But Rep. Henry Waxman (D-Calif.) pointed out that all of the companies' cleanup plans were prepared by an outside firm, are almost identical and list a wildlife expert who has been dead for five years. He called the cleanup plans "paper exercises" and said the other oil companies would "do no better" than BP if they had to handle a real spill.

‘Pay czar’ would oversee oil spill fund

	Kenneth Feinberg has been put in charge of running the newly created $20 billion Gulf oil spill fund. He is a specialist in mediation and dispute resolution.

President Obama has reportedly asked Kenneth Feinberg, the mediator who oversaw the 9/11 victims compensation fund, to run the $20 billion Gulf oil spill fund.

Feinberg is currently in charge of overseeing how much chief executives of the nation’s biggest financial institutions are paid as part of the public outcry to big bank bonuses awarded after the 2008 and 2009 financial bailouts.

A specialist in mediation and dispute resolution, Feinberg previously helped in cases involving compensation for victims of Agent Orange chemical poisoning from the Vietnam War and asbestos-related injuries.

*For the record, Chevron is an underwriter of the NewsHour.