Page 34: of Marine News Magazine (May 2016)

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COLUMN OP/ED

The Offshore Industry Remains a

Safe Part of Our Energy Future

By Randall Luthi

Who would have thought six years in energy production with the U.S. sitting on the sidelines. ago, during the aftermath of the Ma- Likewise, the 2017-2022 OCS Leasing Proposed Program condo well accident, that the United speci? cally asks for comments on “environmentally impor-

States was on its way to becoming the tant areas” in Alaska, potentially foreshadowing a repeat of global leader in oil and natural gas pro- 2015, when the administration cancelled two lease sales duction? The last six years have not been offshore Alaska. Once again countries such as Canada, a smooth ride to the top though. In Greenland, Russia and Norway are taking steps to explore fact, had I told you six years ago about or develop offshore Arctic oil and gas resources. the severe market downturn and regu- On the regulatory front, the administration is ? nding

Luthi latory ? at currently facing the oil and another way to pile onto the already economically chal- gas industry; you’d probably say that the lenged industry. While there are discussions in the UK odds of the U.S. being the global energy leader today were to lower some taxes on offshore oil and gas companies to incredibly slim. Yet, here we stand today as the global en- encourage continued development in the North Sea, you ergy leader; our success made possible through the tireless won’t see a similar proposal for U.S. producers from this dedication and innovative minds of those in our industry. administration. Instead, the administration’s last budget

Unfortunately, continued industry innovation and request requested tax increases for much of the oil and nat- successes are also being threatened by forces beyond the ural gas industry and a $10 per barrel oil fee. There is an market downturn, and tremendous economic and energy all-out effort by the administration to ? nish many offshore security bene? ts for our nation are at risk. After the cancel- regulations before the end of 2016, including efforts to lation of the Keystone Pipeline project and the remaining further regulate well control activities, increase regulatory offshore Arctic lease sales in the current ? ve year offshore hurdles in the Arctic, increase bonding and surety levels, leasing program, President Obama made it clear that this prematurely add restrictions on air emissions from oil and ? nal year of his presidency will be shaped by the fear of gas activities and a leasing regulation that further compli- climate change and the curtailment of fossil fuel develop- cates what has been the standard of liability established by ment. Emboldened by the Administration’s actions, ex- operators and contractors through most of the offshore treme environmental groups successfully ? ew and drove history. Taken alone these are very complex and costly to southeast coastal areas and created hysteria among a mi- regulations. Taken as a whole, and compounded with low nority of residents, prompting some communities to pass commodity prices, these regulations place nearly prohibi- resolutions against seismic surveys and offshore oil and tive costs on the offshore industry. gas leasing. As a result, the Atlantic lease sale was dropped Through both the 2017-2022 offshore leasing proposal from the 2017-2022 OCS Leasing Proposed Program, and and its regulatory agenda, the Obama Administration has lease sales in the Alaskan Arctic are also threatened. been able to progress their ideology by capitalizing on the

The removal of Atlantic Lease Sale 260 (offshore Virgin- fears of climate change and another Macondo-like accident. ia, North Carolina, South Carolina and Georgia) may have By deliberately attaching an “unsafe” label to the offshore a long-term impact on U.S. energy security. Unless Con- industry, the administration has circumvented rational pol- gress steps in to mandate sale 260, the next opportunity icy based on science in favor of politically driven decisions for an Atlantic sale won’t come until sometime after 2022. that acquiesce to an ill-informed, but vocal, minority.

And, due to the longer timeframes required for offshore The “unsafe” label could not be further from the truth. projects, this means our country is ignoring a signi? cant According to the Bureau of Labor Statistics, in 2014 the oil source of energy and economic security for at least the next and gas industry held one of the strongest safety records in decade. Countries like Canada, Cuba, Mexico, Greenland, the nation, with only 0.8 incidents of injury or illness per

Brazil and Ghana are moving ahead developing offshore 100 oil and gas workers. This is down from 2.3 incidents energy in the Atlantic and may gain a signi? cant advantage per 100 workers in 2011. By comparison, the entire pri-

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