Sea Tech Buyers Guide

2018

The Sea Technology Buyers Guide/Directory is the only complete directory serving the ocean/marine/offshore community. Updated technical articles and industry reports, listing of manufacturers, cross index of products and services available.

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www.sea-technology.com SECTION A • The Ocean/Marine Market • BG 2018 13 As we learn from the lessons of Hurricane Harvey, now is the time for federal policy makers to craft long-term solu- tions to providing diverse energy sources (both traditional and nontraditional) and energy delivery systems to ensure energy consumers are protected. This should include more pipelines and more refining capacity in more areas, increas- ing the areas open for energy exploration and protecting the Strategic Petroleum Reserve by establishing a method of re- placing those reserves in times of plenty. We have the know- how and technology to ensure weather-ready American en- ergy dominance; we just need the political will. ST Randall Luthi is president of the National Ocean Industries Association. to 25 percent of that production was temporarily curtailed as a result of Harvey. In addition, the flooding that followed Harvey forced the closure of refineries along the Texas coast, taking offline 25 percent of the nation's crude oil refining capacity. Less than two weeks after Harvey, gasoline prices, including those from pumps thousands of miles away from the Gulf of Mex- ico, reached their highest level in two years. Because hurricanes have the potential to strike the heart of the U.S. offshore energy industry and temporarily weaken our nation's energy security, the National Ocean Industries Association (NOIA) has long advocated for increased ac- cess to federal offshore areas outside of the Gulf of Mexico. However, due to shortsighted federal policy decisions, only 6 percent of the OCS is currently accessible to the offshore oil and gas industry; nearly 94 percent is off limits to oil and gas exploration and production. Oil and natural gas production from the U.S. Gulf of Mexico accounts for 18 percent of domestic oil production and 4 percent of domestic natural gas production, generates billions of dollars in revenue for state and local governments and the U.S. taxpayer, and supports hundreds of thousands of jobs. With the right government policies, particularly re- garding access to offshore areas, industry has the potential to unlock additional sources of energy, create tens of thou- sands of new jobs and bring in billions of dollars in new government revenue. The U.S. oil and natural gas industry has recently made the U.S. the world's leader in the production of oil and gas. However, Harvey revealed just how precarious that position is. The lack of new sources of oil and natural gas outside of the Gulf of Mexico, and infrastructure that is centralized along the Gulf Coast, led to temporary shutdowns in the en- ergy delivery system for major population areas of the U.S. and a rapid rise of gasoline prices at the pump. Wisdom of those before us provided a mechanism known as the Strategic Petroleum Reserve (SPR) to keep many refineries running, and President Donald Trump re- leased 500,000 barrels of oil from the reserve to ensure that there were no severe shortages—this time. Many of those adamantly opposed to oil and natural gas development, and who have championed the keep-it-in-the-ground move- ment, ironically saw the wisdom of the SPR and joined the calls to bring oil out of the ground to avoid severe supply shocks to the gas pumps and consumers. Simply put, we dodged a bullet. However, if we don't ensure the continued development and production of our energy resources, we may not be so lucky next time. Thankfully, the Trump Administration has reopened the discussion about how we manage the energy sources off our coasts and is in the early stages of developing a new national Five-Year OCS Oil and Gas Leasing Program to re- place the 2017 to 2022 program set forth by the Obama Ad- ministration, which took the entire Atlantic OCS and much of the Arctic OCS off the table. Opening and exploring new offshore areas off America's coasts would be a victory for American energy security, jobs and our economy. Decentralizing offshore energy sources will strengthen American energy and economic security by ensuring production of offshore oil and gas continues, even if hurricanes or other natural disasters cause temporary dis- ruptions from onshore and offshore energy-producing areas.

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