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 revealed last month.
“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 Pres. Red Cavaney said.
He was particularly pleased that the administration of President George W. Bush 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 said.
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 Pres. 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 extend Outer Continental Shelf jurisdiction for the United States and, inherently, its oil and gas authority,” said Brian T. Petty, senior vice-president, government affairs, for the International Association of Drilling Contractors.
Petty said 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,” Petty said.
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 that are members of the European Union, according to Petty.
IADC is the only US oil and gas association that 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 said.
