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    NOIA responds to passage of CLEAR Act

    News // August 3, 2010

    The National Ocean Industries Association (NOIA) in the US has issued a response to the pasing by the US House of Representatives of the CLEAR Act by a vote of 209 to 193.

    “The House has lost a golden opportunity to pass a clean lifting of the job killing moratorium,” said the NOIA.

    "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 Mr Adams.

    Unlimited liability, unsubstantiated standards of financial responsibility, a US$2 per barrel tax on oil to fund unrelated programmes, 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," said NOIA, "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."


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