House panel probes offshore drilling oversight

WASHINGTON (Reuters) - In the wake of the massive Gulf oil spill, a U.S. House of Representatives panel on Friday launched an investigation into possible oversight failures by the federal regulator of offshore drilling.

The House Oversight and Government Reform committee requested information from the Interior Department relating to its supervision of Transocean Ltd's Deepwater Horizon rig, which exploded and sank last month allowing thousands of barrels oil to flow unchecked into the Gulf of Mexico.

Transocean's rig was finishing a well for BP when the accident occurred. Both companies have faced considerable criticism since the explosion.

The committee said the oil leak raises serious questions about Interior's Mineral Management Service and its supervision of energy companies drilling off U.S. coasts.

"The inadequacy of BP's and Transocean's emergency response, and reports that BP may have failed to adopt adequate 'blowout' measures are deeply troubling and suggest problems with MMS's approach to offshore drilling," committee Chairman Edolphus Towns said in a statement.

MMS has come under fire in the past for scandals involving employees' drug use and sexual relations with representatives of oil companies they oversee.

Towns said it was time to look at whether the agency's policies ensure safe offshore drilling.

An Interior spokeswoman said the department "will work diligently to respond to the chairman's inquiries."

U.S. President Barack Obama on Friday said he directed Interior Secretary Ken Salazar to do a "top-to-bottom" review of the agency. The department said it was reviewing environmental permitting processes for offshore oil and gas development.

Salazar this week announced plans to separate oil royalty collection and safety inspection roles at MMS. Critics have said it was a conflict of interest to have the same workers carry out both responsibilities.

(Reporting by Ayesha Rascoe; Editing by David Gregorio)