Page 36: of Marine News Magazine (May 2017)

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OFFSHORE TRENDS

Ground Zero for the Jones Act:

Credit: OMSA

The Battle for the U.S. Gulf of Mexico

A vastly modernized U.S. of shore support f eet awaits the opportunity to per- form Jones Act work in the U.S. Gulf of Mexico. Foreign operators, already here, predict disaster if a cabotage rule change takes ef ect.

By Joseph Keefe change proposed by the US Customs and Border nage given the dif? culties in the PSV market today, but the

Protection (CBP) in its Customs Bulletin & Deci- deep-water construction market represents a very different sion newsletter promises reversal of a 40-year prac- sector with very different vessels and technologies. It is a A tice that, until now, allowed the use of non-coastwise-quali- truly international market, as no single domestic market ? ed vessels in the transportation of pipeline repair material; can support the heavy investments of these assets. Con- anodes; pipeline connectors; wellhead equipment; valves and sequently, there is a real risk to damaging the whole Gulf valve guards; damaged pipelines; platform repair material; of Mexico market as the unintended consequences do not and similar cargo from one domestic point to another. The seem to have been thought through.” proposed change gave all interested parties until April 18th to IMCA grimly predicts the collapse of the Gulf of Mexico oil make comment, a deadline which has now come and gone. and gas sector if the CBP proposal is allowed to become law.

The CBP action has roiled the muddy Gulf of Mexico OMSA naturally disagrees. “… since CBP signaled in 2009 waters, pitting the International Marine Contractors Asso- that this ruling would be forthcoming, the U.S. offshore ma- ciation (IMCA), an international association representing rine sector has invested more than $2 billion to ensure that offshore, marine and underwater engineering companies offshore oil and gas exploration and production would not be against its domestic counterpart, the Offshore Marine Ser- affected. The 31 vessels constructed and retro? tted to meet vice Association (OMSA). OMSA describes itself as the this need are U.S. built, owned and crewed, and are subject voice for the offshore marine transportation service industry to some of the most stringent safety standards in the world,” in the United States. The stakes are high as thousands of jobs insists Aaron Smith, OMSA President and CEO.

and work for dozens of high tech vessels hang in the balance. As MarineNews went to press, the fate of CBP order was

And, the most important Jones Act discussion in recent his- still unknown, but moving forward. OMSA’s Smith summed tory comes at a time when the domestic offshore support in- up the situation in Washington, explaining, “Statutorily, dustry is on life support, awaiting the uptick of oil prices that Congress has already done their part. They passed into law would spark the renewal of offshore exploration and drilling. 19 USC 1625, the process they directed Customs to use to

IMCA’s Chief Executive, Allen Leatt said in a prepared revoke letter rulings. Thus, CBP is the ? nal arbiter if the statement, “We understand the drive to protect US ton- Jones Act is enforced as written. That said; we have garnered

May 2017

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