Archives for January 2007
NOIA Criticizes House for Voting to Undercut American Energy Security
January 18, 2007
Contact:
Michael Kearns
National Ocean Industries Association
(202) 347-6900
NOIA Criticizes House for Voting to Undercut American Energy Security
WASHINGTON – The National Ocean Industries Association (NOIA) today criticized Members of the House of Representatives for passing H.R. 6, saying that the legislation will harm domestic energy production.
NOIA President Tom Fry explained that, “by passing H.R. 6, the House has taken a costly step backward. The tax provisions that were targeted for repeal by this legislation had been put in place specifically to keep our domestic market competitive with foreign countries that offer lower costs of doing business.”
Fry added that, “by voting to repeal those provisions through H.R. 6, the Congress is raising the cost of doing business here at home. This may have the effect of encouraging industry to move its investment to other countries, taking with it tens of billions of dollars in capital and hundreds of thousands of jobs.”
Addressing the specific question of royalty revenues, Fry commented that, “in addition, H.R.6 contains provisions that would penalize companies for the government’s failure to include optional price thresholds for royalty relief, even as many of those companies have already come to renegotiate those leases of their own volition. Such measures leave the impression that the United States government does not honor its contracts and simply changes the rules as it goes. Yesterday’s Washington Post editorial page summed up the situation accurately: ‘The main problem with the House bill is that hitting up oil companies is a poor substitute for a real energy policy.’”
NOIA encourages the Senate to correct the mistakes made by the House in passing H.R. 6.
###
NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of energy resources on the nation’s outer continental shelf. The NOIA membership comprises more than 300 companies engaged in business activities ranging from producing to drilling, engineering to marine and air transport, offshore construction to equipment manufacture and supply, telecommunications to finance and insurance.
NOIA to Congress: Vote No on H.R. 6
For Immediate Release
January 17, 2007
Contact:
Michael Kearns, National Ocean Industries Association, (202) 347-6900
NOIA to Congress: Vote No on H.R. 6
WASHINGTON – The National Ocean Industries Association (NOIA) today urged Members of Congress to vote against H.R. 6 in a letter sent to Speaker of the House Nancy Pelosi and Republican Leader John Boehner.
In the letter, NOIA President Tom Fry explained that, “last summer, Congress made history by recognizing that the future security and economic prosperity of the nation required rethinking the policies that have consistently placed over 80 percent of the Outer Continental Shelf (OCS) off-limits, despite a long record of safe and environmentally-responsible exploration and production. This was an important step toward allowing the United States to actively develop our own resources, rather than continuing our reliance on foreign sources of energy.”
“By enacting H.R. 6, however,” Fry continued, “the Congress is poised to take a costly step backward. The tax provisions that are targeted for repeal by this legislation were put in place specifically to keep our domestic market competitive. In the global marketplace, foreign countries which provide lower operating costs have a competitive advantage.”
Fry added that, “by repealing those provisions through H.R. 6, the Congress would be raising the cost of doing business here at home. This may have the effect of encouraging industry to move its investment to other countries, taking with it tens of billions of dollars in capital and hundreds of thousands of jobs.”
Addressing the specific question of royalty revenues, Fry commented that, “in addition, H.R.6 contains provisions that would penalize companies holding OCS leases issued in 1998 and 1999 for the government’s failure to include optional price thresholds for royalty relief, even as many of those companies have already come to renegotiate those leases of their own volition. Such measures leave the impression that the United States government does not honor its contracts and simply changes the rules as it goes. Today’s Washington Post editorial page sums up the situation accurately: ‘The main problem with the House bill is that hitting up oil companies is a poor substitute for a real energy policy.’”
NOIA encourages all members of the House to vote no on H.R. 6 and to support continued safe, reliable production of domestic resources for American consumers.
###
NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of energy resources on the nation’s outer continental shelf. The NOIA membership comprises more than 300 companies engaged in business activities ranging from producing to drilling, engineering to marine and air transport, offshore construction to equipment manufacture and supply, telecommunications to finance and insurance.
President Bush Lifts Moratoria on North Aleutian Basin and portions of the Central Gulf of Mexico
Office of the Secretary FOR IMMEDIATE RELEASE January 9, 2007 |
Contacts: Contact: Shane Wolfe, 202-208-6416 or Gary Strasburg, 202-208-3985 or Nicolette Nye, 703-787-1011 |
---|---|
Kempthorne May Offer Areas in North Aleutian Basin, Central Gulf of Mexico for Leasing; Increases Royalty Rate for Offshore Oil and Gas Leases |
|
WASHINGTON -- Interior Secretary Dirk Kempthorne today announced that President George W. Bush has modified the leasing status of two areas in the Outer Continental Shelf in response to Congressional action and the requests of state leaders. In addition, Kempthorne announced that he has increased the royalty rate for most new offshore deepwater federal oil and gas leases to 16.7 percent (1/6th). “Together, these actions will enhance America’s energy security by improving opportunities for domestic energy production, and will also increase the revenues that the federal government collects from oil and gas companies on behalf of American taxpayers,” Kempthorne said. The areas were withdrawn from consideration for leasing through 2012 by President Bill Clinton in 1998. By modifying that Presidential withdrawal to remove these two areas, President Bush’s action allows the Secretary of the Interior the option of offering these areas during the Minerals Management Service’s next five-year OCS oil and gas leasing program (2007-2012). “Both OCS areas – one in the North Aleutian Basin of Alaska, known as Bristol Bay, and the other in the Central Gulf of Mexico – would receive thorough environmental reviews,” Kempthorne said. “There will be significant opportunities for study and public comment before any oil and gas development could take place in these areas.” Congress had imposed moratoria on oil and gas activities in the North Aleutian Basin from FY 1990 through FY 2003, but discontinued the yearly moratorium in FY 2004. In 2006, then-Alaska Governor Frank H. Murkowski and other local government and Native Alaskan leaders expressed support for modifying the Presidential withdrawal in the North Aleutian Basin. Accordingly, the 2007-2012 OCS Oil and Gas Proposed Program, developed by Interior’s Minerals Management Service (MMS), includes options for one or two lease sales in a small portion of the North Aleutian Basin – an area of about 5.6 million acres that was previously offered during Lease Sale 92 in 1988. The area would be subject to environmental reviews, including public comment, before any lease sale proceeds. There are no existing leases in the North Aleutian Basin. The area in the Central Gulf of Mexico, referred to as the 181 South Area, comprises about 5.8 million acres in the Central Gulf of Mexico Planning Area, south of the181 Area and west of the Military Mission Line and more than 125 miles from the coast of Florida. The 181 South Area was included in the 2007-2012 OCS Oil and Gas Proposed Program. In December 2006, Congress passed and President Bush signed the Gulf of Mexico Energy Security Act, which requires leasing in that area. MMS must conduct a detailed environmental review of the area before any leasing can occur there. The 2007-2012 OCS Oil and Gas Proposed Final Program and Final Environmental Impact Statement are scheduled to be released in spring 2007. Royalty Rate Increase The royalty rate increase to 16.7 (1/6th from the present 1/8th) percent for new offshore (excluding Alaska) deepwater federal oil and gas leases will take effect with the first 2007 Gulf of Mexico lease sale scheduled for late August. Most federal oil and gas is leased at a 12.5 percent royalty rate both onshore and offshore. The Outer Continental Shelf Lands Act (OCSLA) grants the Secretary of the Interior discretion to establish a higher royalty rate. MMS estimates that the increased royalty rate of 16.7 percent for new deepwater offshore Gulf of Mexico leases will increase revenue from royalty payments by $4.5 billion over 20 years. MMS estimates that, by 2017, this increased revenue would offset any decline in bonus and rental revenues and any revenue losses from a decline in production. MMS estimates a decline of bonus and rental revenues at $820 million over 20 years and decline in production at 5 percent, or 110 million barrels of oil equivalent, over 20 years. More information, including a fact sheet, maps of the areas and the President’s memorandum is at http://www.mms.gov/ooc/press/2007/press01**.htm |
|
DOE Invites Nominations for Two Advisory Committees
DOE Invites Nominations for Two Advisory Committees
Washington, DC - The Department of Energy invites any interested person or organization to nominate qualified individuals to serve on one of two federal advisory committees established under the Energy Policy Act of 2005, Subtitle J, Section 999 - Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources.
The Secretary of Energy must carry out a program of research, development, demonstration, and commercial application of technologies for ultra-deepwater and unconventional natural gas and other petroleum resource exploration and production, including addressing the technology challenges for small producers, safe operations, and environmental mitigation (including reduction of greenhouse gas emissions and sequestration of carbon). The advisory committees will advise the Secretary on the development and implementation of this program and review and comment on the program's annual plan.
The Ultra-Deepwater Advisory Committee (UDAC) comprised of 15 to 20 members will advise the Secretary on development and implementation of programs related to ultra-deepwater natural gas and other petroleum resources.
The Unconventional Resources Technology Advisory Committee (URTAC) comprised of approximately 25 members will advise the Secretary on the development and implementation of activities related to onshore unconventional natural gas and other petroleum resources.
Nominations for either of these committees must be received by January 26, 2007.
For more information, contact: Bill Hochheiser or Elena Melchert, 202-586-5600.