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    Report confirms potential damage to deepwater market from Jones Act changes

    News // April 5, 2017

    The International Marine Contractors Association (IMCA) has issued a report on the potential impact of the Jones Act proposals published by the US Customs and Border Protection agency (CBP) on 18 January. The report is available on IMCA’s website.

    https://www.imca-int.com/news/2017/04/04/imca-publishes-report-offshore-construction-vessel-capacity-us-gulf-mexico/

    IMCA has conducted a detailed analysis of the technical requirements of conducting various operations in deepwater (>1,000m or 3,280ft) cross-matched to the vessels active in the Gulf of Mexico in late 2016.

    The results confirm that the US coastwise fleet is unable, on its own, to support activities in the deepwater market. For instance: there are no coastwise qualified deepwater pipelay vessels, and there are no coastwise approved deepwater heavy lift vessels.

    The marine construction industry has relied upon long-standing CBP rulings which permit a small market for non-coastwise qualified (foreign flagged) vessels engaged in specific niche activities other than transport. The proposed revocations and modifications to the Jones Act could effectively stop deepwater developments because there would be no domestic capacity to install the facilities.

    The limited number but high investment deepwater developments have been the engine of growth in the Gulf of Mexico for many years. The potential implications for the oil and gas industry in effectively stopping these investments are huge. The resulting impact on businesses and jobs would be very significant both offshore and onshore.

    Reference should also be made to the economic impact report issued by the API (see elsewhere on this website).

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