The American Petroleum Institute hailed the decision by U.S. Customs and Border Protection to withdraw an Obama-era proposal to withdraw Jones Act exemptions, but the Offshore Marine Service Association says it will hurt workboat operators and shipyards.
U.S. Customs and Border Protection (CBP) is withdrawing proposals made by the Obama administration to strengthen enforcement of the Jones Act by revoking waivers that have been granted in the past to oil and gas companies, the agency said Wednesday.
The Jones Act requires goods moving between two points in the U.S. to be moved on vessels that are U.S. built, U.S. owned, and have U.S. crews.
CBP’s decision was praised by the American Petroleum Institute, but the Offshore Marine Service Association (OMSA), which represents U.S. companies that operate offshore service vessels, warned the move could hurt U.S. workers and shipyards.
“Withdrawing the proposed changes protects U.S. energy security and allows for consumers and businesses to continue benefitting from America’s energy renaissance,” said API Upstream Director Erik Milito. “A recent report projected that this proposal could have resulted in the loss of thousands of American jobs, reduced U.S. oil and natural gas production, and diminished revenues for federal and state government.
“By rescinding the proposal, CBP has decided not to impose potentially serious limitations to the industry’s ability to safely, effectively, and economically operate,” he added. “The responsible development of America’s abundant oil and natural gas resources is a critical part of a forward-looking energy policy that will secure our energy future and help meet our nation’s energy needs.”
“This decision hurts American workers, vessel owners, and U.S. shipbuilders and prevents the creation of 3,200 new American jobs,” OMSA said in a statement. “Obliging to foreign interests, the Office of Management and Budget (OMB) recommended a regulatory review process that will significantly delay the lawful and correct enforcement of the Jones Act.”
“The offshore service industry is deeply disappointed in the Administration’s decision to delay the revocation of letter rulings that would correctly enforce the Jones Act and put American mariners first,” said Aaron Smith, president and CEO of OMSA.
“This decision to move to a regulatory review process is deeply damaging to the American crews, shipyards, and companies who have waited more than eight years while the administration studied taking corrective action,” he added. “Additionally, during this time our industry has invested more than $2 billion to ensure offshore production and exploration would not be disrupted, while foreign interests lobbied the U.S.government to promote their own economic interests through their promotion of false statements and scare tactics.
“We call on President Trump to take immediate action and correct these damaging rulings that have continued to put foreign companies first and American companies and workers last.”
CBP will not revoke oil industry Jones Act waivers
