The House of Representatives last night passed the CLEAR Act by a vote
of 209 to 193.
Should this measure become law, the end result will be more dependence
on foreign oil and more American jobs lost, not only in the Gulf of
Mexico, but throughout the country by industries that supply materials
and equipment used in the production and exploration of energy. The
consequences would reach those who make clothing, boots, drill bits,
safety equipment and supply materials such as steel.
”We remain opposed to this bill becoming law,” said Burt Adams, Chairman
of the National Ocean Industries Association. “Fortunately, House
Members now head home where they will get an earful from those whose
jobs and lives will be adversely affected.”
”The House has christened a ship that -- should it reach its destination
-- will drive up the costs of producing home-grown oil and gas and make
it more difficult for independent energy producers to compete in the
domestic market,” said Adams.
Unlimited liability, unsubstantiated standards of financial
responsibility, a $2 per barrel tax on oil to fund unrelated programs,
mandating a technical fix for blow out preventers before knowing the
cause of the accident, and the addition of myriads of reviews and
clearances -- all of these create an overall burden that may drive many
independent producers out of the energy market. “It is truly death by a
thousand cuts,” said Adams.
To give credit where some credit is due, however, the House did approve
the concept that companies may pool their financial resources to
demonstrate a level of financial capability. NOIA fully endorses this
concept, but fears that by retaining unlimited liability, the bill may
simply be rearranging the deck chairs.
NOIA is supportive of the concept of lifting the deepwater drilling
moratorium, however while well intentioned, the language adopted by the
House not only misses the mark, but the entire target. “The House has
lost a golden opportunity to pass a clean lifting of the job killing
moratorium,” said Adams.
“We fully support increased awareness and safety in the wake of the Gulf
of Mexico accident. There are many safety and procedural safeguards that
could, and should, be put in to immediate effect, and some are already
underway,” said Adams. “Unfortunately the passage of CLEAR does little
to increase actual safety and is a job killer.”
NOIA is the only national trade association representing all segments
of the offshore industry with an interest in the exploration and
production of both traditional and renewable energy resources on the
nation’s outer continental shelf. The NOIA membership comprises
more than 250 companies engaged in business activities ranging from
producing to drilling, engineering to marine and air transport, offshore
construction to equipment manufacture and supply, telecommunications to
finance and insurance.
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