Page 42: of Marine News Magazine (November 2010)

41 43

42 MN November 2010 “Congress and the Administration can issue edicts and don't have to make plans,” Tibbs said. “In boat building, as in the oil and gas industry, we have to plan, design, engineer and construct projects many months and years ahead.” Federal regulations can change at any time, with- out regard to the realities of the industries involved, he said. Tibbs continued, saying “the moratorium has ended, but the oil and gas industry has been sent a set of new reg- ulations that are very confusing and very costly.

Washington is regulating this country out of business and making us become more and more dependent on foreign sources.” He added “this is bad policy!”

After the moratorium jolted companies along the Gulf in May, the Interior Dept. rocked the boat again by issu- ing new rig and drilling safety regulations in late

September, industry members said. New standards were set for well design, cementing, blowout preventers and responding to spills. By the agency's own estimates, the latest rules will increase deep water well-drilling costs by anywhere from $170,000 to $1.4 million per well, and will raise shallow water drilling costs an average $90,000 per well. New, higher costs for safety are offset by the ben- efits of avoiding another major spill that could cost bil- lions of dollars, according to the U.S. Dept. of the

Interior.

Smaller exploration companies that don't have deep pockets will feel the sting from new regulations. Joel

Broussard, president of Gulf Offshore Logistics, Inc. in

Mathews, La., said “the Obama Administration has suc- ceeded in making big oil bigger with its knee jerk reac- tion” of imposing the moratorium and then issuing costly rules. His company provides vessels and logistics to the oil and gas industry.

Rigs & Workers Head Overseas

The current administration's policies will make the U.S. more dependent on foreign oil and will send more jobs overseas to Brazil and Africa, Broussard said.

Some of the rigs idled by the moratorium lost nearly $1 million a day, and couldn't afford to remain in the Gulf.

Five rigs moved to Egypt, Nigeria and the Congo, and won't be back anytime soon, marine industry members predicted. Workers were laid off or transferred, and others found new jobs overseas on their own.

A Semco Built MODU (rear of barge, left side of photo) being transported to Venezuela, along with a TDI build cantilever drilling barge (on barge, right side of photo). Vessel was built for Sedco Forex (Schlumberger) and is in service in Lake Maracaibo for workover of existing wells. This was one of three identical vessels built under the contract with Sedco Forex. (Photo courtesy Semco LLC)