Vessel operators supporting the offshore energy industry are awaiting Jones Act modifications from U.S. Customs and Border Protection, which will protect domestic maritime jobs.
Under the Jones Act, cargo can only be carried between two U.S. ports on vessels that are owned and crewed by Americans and built in American shipyards.
The contention has been the CBP’s approval of foreign-flagged vessels transporting and installing offshore oilfield equipment in U.S. waters. This summer, CBP said it planned to modify some 20 rulings to restore the original intent of the Jones Act as it applies to the offshore energy sector.
The agency said it recognized “allowing foreign-flagged vessels to transport merchandise from one U.S. point and install that merchandise at another point on the condition that it merely be accomplished on or from that vessel would be contrary to the legislative intent” of the Jones Act.
The modification will clarify that foreign vessels will still be able to install oilfield equipment, but only U.S. vessels can transport the equipment from domestic ports or land-side operation centers. CBP rulings previously allowed foreign vessels to carry cargo to offshore oil and gas locations as long as the same vessel installed it.
Foreign vessel operators, of course, oppose the modifications, claiming it would shutdown offshore projects.
“Those claims are simply not true,” said Ken Wells, president of New Orleans, La.-based Offshore Marine Service Association. “They have made some statements that are a little hysterical. Obviously this could cost them business. However, the fact is American vessels are ready to do this work and if anything, the CBP proposal will protect existing U.S. jobs by keeping foreign boats from flooding the market in the future.”
OMSA and other industry leaders are urging offshore oil and gas companies to support the CBP proposal, which is strongly supported by the individuals who have been lobbying Congress to open new areas for U.S. offshore exploration, which would help boost the economy, lessen our dependence on foreign energy and put Americans back to work.