The number of rigs drilling in the US Gulf of Mexico hit a four-year high this week, according to data from Houston-based oilfield services giant Baker Hughes. read more
Opinion – Unlock energy potential for Virginia and nation, Randall Luthi
The bill targets policies blockading the economic expansion of offshore energy and demands transparency. The bill's lease sale for offshore Virginia reflects bipartisan support, including Republican Gov. Bob McDonnell, Democratic U.S. Sens. Mark Warner and Tim Kaine and the Virginia Beach NAACP.
All states with energy production offshore will share the resulting revenue - the same opportunity enjoyed by Gulf states.
This state revenue-sharing is not a hit on the U.S. Treasury. Under the Outer Continental Shelf Lands Act, billions of industry-generated dollars are sent to the Treasury annually.
Currently, more than 85 percent of our federal offshore waters are closed to leasing. There is no federal or state revenue generated from offshore oil and gas production from royalties, rent or bonus bids outside of the Gulf of Mexico and Alaska.
This bill changes that. More access means more revenue for states and the federal government.
To realize these national opportunities, we must allow industry to use modern seismic technology. The Interior Department is conducting an environmental review that will decide if these surveys in the Atlantic Ocean move forward.
Undertaken with extreme care to protect dolphins, whales and other marine life, seismic surveys use compressed air to create sound waves that reflect back to the surface. Seismic surveys are also necessary for siting of renewable offshore energy facilities.
Seismic surveys have been used around the world for more than 40 years without any documented harm to animals. We haven't surveyed the Atlantic in more than 30 years, so the existing data was gained in the era of the Walkman.
Thanks to an amendment from Rep. Scott Rigell of Virginia Beach, the Offshore Energy and Jobs Act calls for timely completion of Interior's review so Americans are no longer blindfolded from seeing the Atlantic's energy potential.
Alas, these lofty goals could be grounded before they ever take flight. The Obama administration's National Ocean Policy envisions ocean zoning, whereby prospective offshore energy resources could be locked away without congressional oversight.
The policy is redundant, since the Outer Continental Shelf Lands Act already provides a clear, publicly driven process for determining offshore oil and gas leasing, requiring extensive coordination among federal and state officials and considering multiple uses of the ocean.
To date, the administration has not provided Congress with an accounting of taxpayer dollars spent on implementing this ocean policy. Rep. Bill Flores amended the bill to ensure that the agencies regulating the offshore industry don't spend another dollar on these activities and abide by the same transparency called for in OCSLA.
By encouraging modern science-based estimates of our offshore energy potential, opening new areas to possible development and halting policies aimed at limiting America's energy potential, the Offshore Energy and Jobs Act capitalizes on the extraordinary opportunity facing America.
Technological breakthroughs allow us to harness energy more safely and with less impact to the places humans and marine life call home.
While renewable energy enters the U.S. grid, we will continue to rely on traditional energy sources for decades. The Energy Information Administration estimates that by 2040 oil, natural gas, coal and nuclear will still account for 87 percent of our energy.
The good news today is that jobs and revenues are up, and oil imports are down. But this growth is in spite of - not because of - federal policies, with 96 percent of the recent increase in domestic oil production occurring on state and private lands.
Opening the Outer Continental for production would sustain 1.2 million jobs and generate $1.3 trillion over the next 30 years.
True energy security is within our grasp, if we're only willing to reach for it.
Transocean sets new offshore water depth drilling record
Transocean Ltd. (NYSE: RIG) (SIX: RIGN) reports that the ultra-deepwater drillship Dhirubhai Deepwater KG1 has set a new world record for the deepest water depth by an offshore drilling rig. read more
NOIA Applauds House Passage of the Offshore Energy & Jobs Act
For Immediate Release: Friday, June 28, 2013
Contact: Nicolette Nye, (202) 465-8463, nnye@nullnoia.org
NOIA Applauds House Passage of the Offshore Energy and Jobs Act
Urges Senate to Pass Similar Legislation
Washington, D.C. – NOIA President Randall Luthi today issued the following statement applauding passage of the Offshore Energy and Jobs Act:
“The passage of the Offshore Energy and Jobs Act by the House of Representatives shows that promoting the safe development of home grown energy is an issue that can reach across party and state lines. The House and particularly Chairman Doc Hastings are to be congratulated on passing a measure that is a key part of our Nation’s ability to supply 'all of the above energy' and reduce our need for oil imports.
“Opening up more of our Outer Continental Shelf to energy exploration makes good sense and even better cents, adding thousands of domestic jobs and potentially billions of dollars in state and Federal revenues. In addition, government estimates show that these offshore areas could provide enough oil to power 65 million cars for 60 years and enough natural gas to heat 60 million homes for 160 years. Oil and natural gas, coupled with increased nontraditional offshore resources such as wind make the offshore region a vast energy frontier ready to be tapped for of the benefit of all.
“NOIA applauds the efforts of two amendments in particular. With adoption of the Rigell amendment on Atlantic seismic surveys, the bill encourages safe, science-based data collection on the size and location of potential offshore resources. With the Flores amendment curtailing implementation of ocean zoning, the bill eliminates unnecessary additional levels of bureaucratic oversight.
“As important as the passage of this bill is, America needs to continue to move forward in its quest for energy reliability and security. The Senate should take up and pass similar legislation this calendar year and give the President the opportunity to support a broad based energy policy that continues the trend away from reliance on foreign imports and towards more jobs, energy and economic security.”
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ABOUT NOIA
NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation’s outer continental shelf. NOIA’s mission is to secure reliable access and a fair regulatory and economic environment for the companies that develop the nation’s valuable offshore energy resources in an environmentally responsible manner. The NOIA membership comprises about 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, and renewable energy.
NOIA Hails Passage of OCS Transboundary Hydrocarbon Agreements Authorization Act
For Immediate Release: Thursday, June 27, 2013
Contact: Nicolette Nye, (202) 465-8463, nnye@nullnoia.org
NOIA Hails Passage of OCS Transboundary Hydrocarbon Agreements Authorization Act
Washington, D.C. – NOIA President Randall Luthi today issued the following statement hailing passage of the Outer Continental Shelf Transboundary Hydrocarbon Agreements Authorization Act:
“NOIA congratulates the House of Representatives for passing the Outer Continental Shelf Transboundary Hydrocarbon Agreements Authorization Act. This bill demonstrates the vision of many leaders, including Chairman Hastings and Congressman Duncan, toward working with our great energy partner, Mexico, in providing a path forward for cooperative and safe development of oil and natural gas in the deepwater Gulf of Mexico, as endorsed by the Obama administration. Working with Mexico, much like working with our Canadian neighbors to the north, establishes economic stability and growth, further strengthening ties with two of our largest trading partners. In the end, it means more energy security, more jobs and more economic benefit for both countries. We strongly urge the Senate to follow suit.”
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ABOUT NOIA
NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation’s outer continental shelf. NOIA’s mission is to secure reliable access and a fair regulatory and economic environment for the companies that develop the nation’s valuable offshore energy resources in an environmentally responsible manner. The NOIA membership comprises about 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, and renewable energy.
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