Published on 12 April 2017
Myth – Economic investment
The International Marine Contractors Association (IMCA) is selecting a key fact-a-day on the 7-day 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 fleet is unable, on its own, to support activities in the 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.