Petroleum Group Anticipates Negative Impacts From CBP's Proposed Jones Act Ruling Modifications
Modifications that CBP proposed in January to how Jones Act vessels are allowed to transport and use specialized oil and natural gas equipment would likely “fundamentally impact” and change offshore oil and natural gas development projects on the U.S. Outer Continental Shelf (OCS), according to a report (here) released by the American Petroleum Institute (API). In a Jan. 18 Customs Bulletin, CBP proposed to amend Jones Act rulings on foreign-made vessel’s transportation of pipeline material from a U.S. point to other points within U.S. waters or those on the OCS that are coastwise points (see 1701200018). Such transportation would constitute a violation of the Jones Act under CBP’s proposal. Comments on CBP's proposal are due April 18 (see 1702030036).
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In a press release (here), API said the report shows the proposed modifications would bring the loss of up to 125,000 U.S. jobs by 2030, a domestic oil and gas production reduction of about 23 percent between 2017 and 2030, cumulative lost GDP of $91.5 billion in the same time frame, and a $1.9 billion annual diminishment in government revenue during that period. “These proposed changes to the rulings should be immediately withdrawn in order to protect U.S. energy security and allow for consumers and businesses to continue benefiting from America’s energy renaissance,” API Upstream and Industry Operations Group Director Erik Milito said.