Home MarketsGas IMCA takes action as countdown to deadline for submission on the Jones Act changes draws close – 6 days to go –

IMCA takes action as countdown to deadline for submission on the Jones Act changes draws close – 6 days to go –

by admin

Myth: Economic Investment

The International Marine Contractors Association (IMCA) is selecting a key fact a day on the countdown to the April 18, 2017 U.S. Customs and Border Protection (CBP) comment submission deadline, to highlight the potential risks if CBP revokes 40 years of precedent as reflected in its own rulings. Rulings that have brought decades of stability and billions of dollars in investment to the oil and gas industry in the Gulf of Mexico.

IMCA issued its vessel impact report* on April 4, 2017 and it is crammed with information and facts and figures showing that the U.S. coastwise qualified fleet is unable, on its own, to support activities in the U.S. offshore deepwater market.

  • Myth: The revocations will not impede offshore investment in exploration and development.

Fact: Investments will be adversely impacted or unrealized without the use of specialized offshore deepwater construction vessels.

The coastwise qualified fleet simply does not have the specialist assets or capacity to install the deepwater production facilities offshore.

American Petroleum Institute (API), the voice of the American oil and gas industry, published their economic impact study** on April 4, 2017, which unequivocally demonstrates the significant and far-reaching consequences resulting from the CBP Notice during the 2017-30 time period, including:

  • $75 billion of investments terminated by oil and gas companies
  • $90 billion of GDP contribution to the U.S. economy lost
  • $27 billion of U.S. Government Revenues lost

In short, upwards of $200 billion could be lost. The intended benefits of CBP’s proposed actions are dwarfed by the negative impact on investment, and contribution to the US economy, let alone local communities.

Further information on IMCA and its work on behalf of around 1,000 member companies in over 60 countries is available from www.imca-int.com and imca@imca-int.com. The association has LinkedIn and Facebook groups and its Twitter handle is @IMCAint

You may also like

Leave a Comment