US industry groups are expanding their international reach

Jan. 25, 2008
US oil and gas trade associations may seem to have their hands full with domestic issues. But they're still expanding their reach overseas, several of their Washington executives told me in December.

US oil and gas trade associations may seem to have their hands full with domestic issues. But they're still expanding their reach overseas, several of their Washington executives told me in December.

"At our members' direction, we deal with only a piece of the overall pie. We work with the federal government to increase opportunities to show the flag in parts of the world where resources are an important issue," American Petroleum Institute President Red Cavaney said.

He was particularly pleased that the Bush administration had appointed an assistant secretary of state with a background in energy. API regularly participates in background briefings there, and works with other oil and gas groups to promote transparency and oppose unilateral sanctions, Cavaney said.

"We also see increasing interest globally in the manpower issue. It transcends borders," he added.

API had just opened its first international office when I spoke to Cavaney. Beyond advocacy, the Beijing office's focus is to develop standards and other special programs, he said. "We now have more certification customers in China than in the United States," Cavaney noted.

Law of the Sea treaty

Other associations would like to see the Senate ratify US participation in the Law of the Sea Treaty. "We're a long-time supporter. Nearly everyone seems to like it, although one group has objected because of sovereignty issues it sees," said National Ocean Industries Association President Tom Fry.

"It's been reported out of committee four times now, but there's a virulent right-wing machine that opposes it. We support it because it would significantly extent Outer Continental Shelf jurisdiction for the United States and, inherently, its oil and gas authority," said Brian T. Petty, senior vice president for government affairs at the International Association of Drilling Contractors.

He told me that he did not expect a bill to reach the Senate floor until after February's presidential primaries, but added that time could be of the essence.

"Other countries which have acceded to the treaty already are staking their claims. We're not even at the table. It's all about oil and gas. Some of the first decisions are going to be made in mid-2009," he explained.

Other overseas issues

IADC also is pushing for a worldwide offshore regulatory model and adoption of uniform standards and practices. Its members, as well as producers they work for, have encountered access and regulatory problems overseas similar to what they have experienced domestically, particularly in countries which are members of the European Union, according to Petty.

The drilling contractors' group is the only domestic oil and gas association which has observer status on the International Seabed Authority, which was created by the United Nations' Law of the Sea convention.

"It's because we're an international association, and it puts us ahead of the US Government," Petty observed.

Contact Nick Snow at [email protected].