Groups Praise Revenue Sharing Bill, Call for More Access to US Acreage

The American Petroleum Institute (API) and National Ocean Industries Association welcomed an offshore revenue sharing bill proposed by Sen. Lisa Murkowski (R-Alaska) and Sen. Mary Landrieu (D-La.) Wednesday.

The senators this week introduced Fixing America's Inequality with Revenues (FAIR) Act, which is designed to ensure all energy-producing states receive a full share of the revenues they help produce while also encouraging investments in clean energy and conservation.

"The federal treasury benefits from the royalties and taxes on production in federally owned waters off Alaska's coast," said Murkowski in a statement Tuesday. "Providing a portion of that money to Alaska would help the state strengthen its emergency response capabilities and build critical infrastructure, such as airfields, deepwater ports, and docks that will help safely open the Arctic, which will further increase federal revenues."

The FAIR Act would provide up to 37.5 percent of all revenues from offshore development to coastal states, including revenues from oil and gas and the development of alternative and renewable energy resources.

Under the bill, states would automatically receive 27.5 percent of these revenues, 25 percent of which would go to the coastal communities most impacted by offshore development. States are eligible for an additional 10 percent if they establish funds to support projects relating to clean energy or conservation.

The bill also would expand revenue sharing onshore to include renewable energy production on federal lands at the same 50-percent share currently given for oil and gas production. The bulk of revenues from offshore development, 62.5 percent, would still flow to the federal government.

The legislation marks an important step towards an all-of-the-above energy policy for the United States, said API Director of Upstream & Industry Operations Erik Milito in a statement Wednesday.

"As today's successful lease sale in the Central Gulf of Mexico demonstrates, the industry is investing billions in American energy development but could do more if additional areas are opened for business," Milito commented. "Expanding access could create one million new jobs, generate $127 billion in government revenue in under a decade, and dramatically increase domestic energy production."

Allowing all U.S. coastal states to share in prospective future revenue from both traditional and renewable offshore energy activities is sound public policy, NOIA President Randall Luthi commented in a Wednesday statement. The group has long supported revenue sharing as fair and equitable treatment for coastal states supporting responsible offshore oil and gas exploration and development.

"However, steps must be taken to ensure that lease sales are actually conducted in new areas where they're currently prohibited or else the revenue is merely theoretical."

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Groups Praise Revenue Sharing Bill, Call for More Access to US Acreage

The American Petroleum Institute (API) and National Ocean Industries Association welcomed an offshore revenue sharing bill proposed by Sen. Lisa Murkowski (R-Alaska) and Sen. Mary Landrieu (D-La.) Wednesday.

The senators this week introduced Fixing America's Inequality with Revenues (FAIR) Act, which is designed to ensure all energy-producing states receive a full share of the revenues they help produce while also encouraging investments in clean energy and conservation.

"The federal treasury benefits from the royalties and taxes on production in federally owned waters off Alaska's coast," said Murkowski in a statement Tuesday. "Providing a portion of that money to Alaska would help the state strengthen its emergency response capabilities and build critical infrastructure, such as airfields, deepwater ports, and docks that will help safely open the Arctic, which will further increase federal revenues."

The FAIR Act would provide up to 37.5 percent of all revenues from offshore development to coastal states, including revenues from oil and gas and the development of alternative and renewable energy resources.

Under the bill, states would automatically receive 27.5 percent of these revenues, 25 percent of which would go to the coastal communities most impacted by offshore development. States are eligible for an additional 10 percent if they establish funds to support projects relating to clean energy or conservation.

The bill also would expand revenue sharing onshore to include renewable energy production on federal lands at the same 50-percent share currently given for oil and gas production. The bulk of revenues from offshore development, 62.5 percent, would still flow to the federal government.

The legislation marks an important step towards an all-of-the-above energy policy for the United States, said API Director of Upstream & Industry Operations Erik Milito in a statement Wednesday.

"As today's successful lease sale in the Central Gulf of Mexico demonstrates, the industry is investing billions in American energy development but could do more if additional areas are opened for business," Milito commented. "Expanding access could create one million new jobs, generate $127 billion in government revenue in under a decade, and dramatically increase domestic energy production."

Allowing all U.S. coastal states to share in prospective future revenue from both traditional and renewable offshore energy activities is sound public policy, NOIA President Randall Luthi commented in a Wednesday statement. The group has long supported revenue sharing as fair and equitable treatment for coastal states supporting responsible offshore oil and gas exploration and development.

"However, steps must be taken to ensure that lease sales are actually conducted in new areas where they're currently prohibited or else the revenue is merely theoretical."

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Groups Praise Revenue Sharing Bill, Call for More Access to US Acreage

The American Petroleum Institute (API) and National Ocean Industries Association welcomed an offshore revenue sharing bill proposed by Sen. Lisa Murkowski (R-Alaska) and Sen. Mary Landrieu (D-La.) Wednesday.

The senators this week introduced Fixing America's Inequality with Revenues (FAIR) Act, which is designed to ensure all energy-producing states receive a full share of the revenues they help produce while also encouraging investments in clean energy and conservation.

"The federal treasury benefits from the royalties and taxes on production in federally owned waters off Alaska's coast," said Murkowski in a statement Tuesday. "Providing a portion of that money to Alaska would help the state strengthen its emergency response capabilities and build critical infrastructure, such as airfields, deepwater ports, and docks that will help safely open the Arctic, which will further increase federal revenues."

The FAIR Act would provide up to 37.5 percent of all revenues from offshore development to coastal states, including revenues from oil and gas and the development of alternative and renewable energy resources.

Under the bill, states would automatically receive 27.5 percent of these revenues, 25 percent of which would go to the coastal communities most impacted by offshore development. States are eligible for an additional 10 percent if they establish funds to support projects relating to clean energy or conservation.

The bill also would expand revenue sharing onshore to include renewable energy production on federal lands at the same 50-percent share currently given for oil and gas production. The bulk of revenues from offshore development, 62.5 percent, would still flow to the federal government.

The legislation marks an important step towards an all-of-the-above energy policy for the United States, said API Director of Upstream & Industry Operations Erik Milito in a statement Wednesday.

"As today's successful lease sale in the Central Gulf of Mexico demonstrates, the industry is investing billions in American energy development but could do more if additional areas are opened for business," Milito commented. "Expanding access could create one million new jobs, generate $127 billion in government revenue in under a decade, and dramatically increase domestic energy production."

Allowing all U.S. coastal states to share in prospective future revenue from both traditional and renewable offshore energy activities is sound public policy, NOIA President Randall Luthi commented in a Wednesday statement. The group has long supported revenue sharing as fair and equitable treatment for coastal states supporting responsible offshore oil and gas exploration and development.

"However, steps must be taken to ensure that lease sales are actually conducted in new areas where they're currently prohibited or else the revenue is merely theoretical."

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Norway Considers Sharing Risk Intelligence with Businesses

OSLO - Norway will consider sharing national risk assessments with businesses operating in politically unstable regions after five Statoil ASA employees were killed in a terrorist attack in Algeria, the Minister of Trade and Industry said Thursday.

Trond Giske was meeting with business associations and unions to discuss security one day after the caskets of four deceased Statoil employees arrived in Norway, following the Jan. 16 terrorist attack and the kidnapping of hostages at the In Amenas gas plant in Algeria, operated by Statoil ASA, BP PLC and Algerian energy company Sonatrach.

"Of course, when such a dramatic incident occurs, it's a reminder of how important security is," said Mr. Giske. "Our international activity is growing, and this development will continue" he said, adding that "it's no alternative not to engage abroad."

The business associations wanted to combine the risk assessments of Norwegian government ministries and agencies, embassies and big companies, and to make them easily accessible to each other as well as to smaller companies.

"Unfortunately, sometimes it takes a serious incident to increase the focus on security," said Kristine Breitland, leader of NSR, a council set up by business associations in sectors like shipping, oil and gas and telecom to give security advice to companies.

Among the bigger Norwegian companies with global operations are telecom provider Telenor ASA, aluminum producer Norsk Hydro ASA and fertilizer producer Yara International ASA.

Even companies with solid emergency organizations had been reviewing their preparedness after the attack, Ms. Breitland said. But most Norwegian companies are small and medium-sized, and will need help from the government and big companies to gather intelligence, Ms. Breitland said.

"They need good tools and to know what risks they are facing," she said. "Statoil has been in front and said it will share what it finds in its investigation process [after the Algeria attack]. That's positive."

If Statoil couldn't guarantee the safety of its workers in any of its facilities abroad, Chief Executive Helge Lund said Wednesday, "we can't have employees in those areas."

Statoil has said it operates in politically, economically and socially unstable areas of the world, and has identified a range of potential threats such as wars, guerilla activity, nationalization of assets, political unrest, strikes and insurrections.

"The span of topics is so huge," said Petter Haas Brubakk, executive director of the Confederation of Norwegian Enterprise, who joined the calls for the government to improve information sharing. "Some countries you avoid because they are too dangerous. It may be health-related risk, traffic risk, abduction, crime, corruption--you have to analyze each country to be prepared."

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Norway Considers Sharing Risk Intelligence with Businesses

OSLO - Norway will consider sharing national risk assessments with businesses operating in politically unstable regions after five Statoil ASA employees were killed in a terrorist attack in Algeria, the Minister of Trade and Industry said Thursday.

Trond Giske was meeting with business associations and unions to discuss security one day after the caskets of four deceased Statoil employees arrived in Norway, following the Jan. 16 terrorist attack and the kidnapping of hostages at the In Amenas gas plant in Algeria, operated by Statoil ASA, BP PLC and Algerian energy company Sonatrach.

"Of course, when such a dramatic incident occurs, it's a reminder of how important security is," said Mr. Giske. "Our international activity is growing, and this development will continue" he said, adding that "it's no alternative not to engage abroad."

The business associations wanted to combine the risk assessments of Norwegian government ministries and agencies, embassies and big companies, and to make them easily accessible to each other as well as to smaller companies.

"Unfortunately, sometimes it takes a serious incident to increase the focus on security," said Kristine Breitland, leader of NSR, a council set up by business associations in sectors like shipping, oil and gas and telecom to give security advice to companies.

Among the bigger Norwegian companies with global operations are telecom provider Telenor ASA, aluminum producer Norsk Hydro ASA and fertilizer producer Yara International ASA.

Even companies with solid emergency organizations had been reviewing their preparedness after the attack, Ms. Breitland said. But most Norwegian companies are small and medium-sized, and will need help from the government and big companies to gather intelligence, Ms. Breitland said.

"They need good tools and to know what risks they are facing," she said. "Statoil has been in front and said it will share what it finds in its investigation process [after the Algeria attack]. That's positive."

If Statoil couldn't guarantee the safety of its workers in any of its facilities abroad, Chief Executive Helge Lund said Wednesday, "we can't have employees in those areas."

Statoil has said it operates in politically, economically and socially unstable areas of the world, and has identified a range of potential threats such as wars, guerilla activity, nationalization of assets, political unrest, strikes and insurrections.

"The span of topics is so huge," said Petter Haas Brubakk, executive director of the Confederation of Norwegian Enterprise, who joined the calls for the government to improve information sharing. "Some countries you avoid because they are too dangerous. It may be health-related risk, traffic risk, abduction, crime, corruption--you have to analyze each country to be prepared."

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here