IMCA Reiterates CBP Proposal Opinion
IMCA stands behind its opinion that CBP implementation of its proposal will severely damage business in the US Gulf of Mexico.
Quote from Allen Leatt, CEO, The International Marine Contractors Association (IMCA) in response to report at marinelink.com (OMSA: CBP Revocation Notice Boosts U.S. Jobs‘): “IMCA published its report on April 4 on the impact of the proposed CBP modifications and revocations to the Jones Act. Changes that would eliminate 40 years of stability in the workings of the Act, that has enabled industry to invest billions of dollars offshore and in the Gulf Coast States.
“API, the voice of the oil and gas industry, published their economic impact study on April 4, which clearly demonstrates the huge unintended consequences of these changes in the period 2017-30:
- 125,000 jobs lost, overwhelmingly in the Gulf Coast States
- $75 billion of investment terminated by oil and gas companies
- $90 billion of GDP contribution to the US economy lost
- $27 billion of US Government Revenues lost
“In short, upwards of $200 billion could be lost, together with over 100,000 American jobs. It would be crazy to risk losing all these opportunities by proceeding with the revocations.
“The effect of the revocations could unfortunately stop deepwater developments in their tracks. Because the fact is the coastwise approved fleet is not invested in the specialist vessels for installing deepwater production facilities. The massive US fleet, the largest in the world, is almost entirely focused in the supply vessel, AHTS (Anchor Handling Tug Supply), and crew boat sectors. If they were active in the deepwater construction sectors today – they would be in the market and competing today with everyone else.
“The small number of specialist foreign flagged vessels occupy a very small niche, and have served America well by enabling deepwater production facilities to be developed, and generated countless thousands of American jobs offshore and onshore. The marine contractors owning and operating these vessels are in America, and have invested heavy both offshore and onshore in developing successful American businesses.
“It is in everyone’s collective best interest to grow and develop business in the Gulf of Mexico. This is not the time to experiment with wholesale regulatory changes which could damage the whole oil and gas industry.”
