Upcoming:
Upcoming:
For Immediate Release: Contact: Nicolette Nye
Tuesday, August 17, 2010 (202) 347-6900
NOIA Comments on DOI’s Latest Move in the Gulf
WASHINGTON, DC – The Department of the Interior added to the growing uncertainty for the offshore industry yesterday when it announced it will restrict the use of categorical exclusions for offshore oil and gas development, review its National Environmental Protection Act (NEPA) process and the use of categorical exclusions, require Environmental Assessments (EA) in the place of these exclusions, and will conduct a supplemental Environmental Impact Statement (EIS) for the entire Gulf of Mexico.
“Our initial reaction is that in the short term this will cause more confusion and uncertainty for industry,” said Jeff Vorberger, Government Relations Director for the National Ocean Industries Association (NOIA). “That has certainly been the case for the current deep water moratorium and shallow water de facto moratorium.”
“The move to review the data regarding exploration in deep water should be done in a manner that does not cause a tailspin of jobs in the exploration and development field,” said Vorberger. “The Department must dedicate sufficient resources to organize and incorporate the existing data as soon as possible, otherwise this exercise could add months and perhaps even years to the review and approval process with little environmental benefit.”
The Department’s announcement that it will also conduct a supplemental EIS for the entire Gulf of Mexico portends even more uncertainty for the industry. “We are concerned that the current deep water drilling suspensions could continue longer than expected while the supplemental EIS is completed, or may result in a de facto moratorium should the suspensions be lifted while it is underway,” said Vorberger. “Either way, the end result could be less domestic energy, fewer domestic jobs and little environmental benefit.”
There are misconceptions about the use of categorical exclusions under NEPA. Categorical exclusions have been a part of the NEPA process for decades. However, the recent focus on a categorical exclusion used leading up to the lease sale that included the submerged land where BP drilled the Macondo well, may lead some to believe that such a tool is unique to the former Minerals Management Service (MMS). In fact, many Federal departments and agencies have processes for the use of categorical exclusions.
Also contrary to what some may believe, a categorical exclusion does not entirely bypass an environmental review. Categorical exclusions are usually granted once it is determined that a federal action, such as the approval of an exploration plan, does not need additional review. Before the Department makes a determination on whether to allow a categorical exclusion, it has usually already conducted other environmental reviews, such as one or more EISs or EAs.
For example, an EIS is conducted on the Five Year Plan itself and usually a second multi-sale EIS is conducted for a specific offshore region before lease sales are held. Department officials review the existing impact statements and determine if sufficient environment analysis has been conducted on the overall process to grant a categorical exclusion.
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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. The NOIA membership comprises more than 250 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 2010 Fall Meeting
October 28 - 30, 2010
The Phoenician
Scottsdale, AZ
Lt. Gov. Scott Angelle Letter to NOIA Membership
Presentations
General Session
Government Affairs Committee (GAC)
Industry Panel
Health, Safety, Security and Environment Committee (HSSE)
Board of Directors Meeting
Public Affairs and Education Committee (PAEC)
General Session
Technology Policy Committee (TPC)
Immediate Release: Contact: Nicolette Nye
Friday, July 30, 2010 (202) 347-6900
NOIA Response to Passage of CLEAR Act
Kills Jobs, Decreases Energy Security and Does Little to Improve Safety
WASHINGTON, DC – The House of Representatives today passed the CLEAR Act by a vote of 209 to 193.
Should this measure become law, the end result will be more dependence on foreign oil and more American jobs lost, not only in the Gulf of Mexico, but throughout the country by industries that supply materials and equipment used in the production and exploration of energy. The consequences would reach those who make clothing, boots, drill bits, safety equipment and supply materials such as steel.
”We remain opposed to this bill becoming law,” said Burt Adams, Chairman of the National Ocean Industries Association. “Fortunately, House Members now head home where they will get an earful from those whose jobs and lives will be adversely affected.”
”The House has christened a ship that -- should it reach its destination -- will drive up the costs of producing home-grown oil and gas and make it more difficult for independent energy producers to compete in the domestic market,” said Adams.
Unlimited liability, unsubstantiated standards of financial responsibility, a $2 per barrel tax on oil to fund unrelated programs, mandating a technical fix for blow out preventers before knowing the cause of the accident, and the addition of myriads of reviews and clearances -- all of these create an overall burden that may drive many independent producers out of the energy market. “It is truly death by a thousand cuts, “said Adams.
To give credit where some credit is due, however, the House did approve the concept that companies may pool their financial resources to demonstrate a level of financial capability. NOIA fully endorses this concept, but fears that by retaining unlimited liability, the bill may simply be rearranging the deck chairs.
NOIA is supportive of the concept of lifting the deepwater drilling moratorium, however while well intentioned, the language adopted by the House not only misses the mark, but the entire target. “The House has lost a golden opportunity to pass a clean lifting of the job killing moratorium,” said Adams.
“We fully support increased awareness and safety in the wake of the Gulf of Mexico accident. There are many safety and procedural safeguards that could, and should, be put in to immediate effect, and some are already underway,” said Adams. “Unfortunately the passage of CLEAR does little to increase actual safety and is a job killer.”
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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. The NOIA membership comprises more than 250 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.
For Immediate Release: Contact: Nicolette Nye
Wednesday, July 28, 2010 (202) 347-6900
New House and Senate Bills Create De Facto and Indefinite Moratorium
WASHINGTON, DC – NOIA Chairman Burt Adams issued the following statement in response to the House and Senate oil spill response bills introduced this week:
“The Gulf spill certainly demands that tough questions be asked and new policies and standards be considered, but the bills introduced in the Senate and House go well beyond a reasoned and responsible response to the spill. In fact, they clear the way for increased energy costs, more reliance on foreign energy sources, and the loss of more American jobs.
“Both bills’ provisions on unlimited economic liability alone and new financial capability provisions, taxes and fees could change the face of oil and gas production in the Gulf forever, by driving independent producers out of the area and even out of business completely. The role of independents in the Gulf of Mexico is huge. According to a recent IHS Global study, they provide half of the jobs, half of the economic value and half of the federal, state and local revenue generated by the industry in the Gulf.
”The study forecasts that by 2020 an exclusion of independents from the Gulf of Mexico would eliminate 300,000 jobs and result in a loss, over 10 years, of $147 billion in federal state and local taxes from the Gulf region. If independents are excluded just from the deepwater, we would lose 265,000 jobs and $106 billion in tax revenues by 2020.
“The increased taxes, fees and regulation on permitting, exploration and production in the House bill combined with replacing the current 30 day approval requirement for exploration plans with an open ended time frame create a de facto moratorium in the Gulf of Mexico. And the added layers of bureaucracy of regional planning councils in both bills will further erode certainty for the industry and create a planning nightmare.
“One is left asking whether these bills are seeking to address the spill, or are simply a political exercise aimed at punishing domestic energy creation. Furthermore, a drastic increase in the per barrel tax funding the Oil Spill Liability Trust Fund is used to offset the entirety of the Senate bill’s roughly $15 Billion cost, begging the question of whether the Trust Fund will be available to actually deal with oil spills or simply to pay for the bill’s other programs. The fact that these bills have been saved for the waning days before a recess only underscores that they are based upon politics not practical solutions.
“Thoughtful legislative responses to the Gulf spill must consider the economic impact of the oil and gas industry in the Gulf and on the national economy as a whole. This is an industry that provided nearly 400,000 jobs, $70 billion in economic value, and $20 billion in federal, state and local revenue in the Gulf region in 2009 alone. Energy production from the region provides 30 percent of our domestic oil and 10 percent of our domestic gas.
All Gulf of Mexico Senators and Representatives should be concerned about the intended and unintended consequences of these energy killing bills. A better approach is to let these bills sit before Congress and the American people and consider their fate in a non-rushed thoughtful manner when Congress returns in September.
“Now is the time for pragmatic, calm, rational debate on the best ways to prevent a similar tragedy from ever happening again, while continuing to allow offshore energy development to be a critical component of our national energy portfolio. These bills would stretch the current moratorium out indefinitely, paralyze the oil and gas industry in the gulf, and hobble our economy and energy security. “
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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. The NOIA membership comprises more than 250 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.