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Jack-Up Rig Diverted to Vancouver Because of Old Federal LawThere's something happening here, but many people don't know what it is.Related Content
U.S. Senator Lisa Murkowski says she's not interested in repealing the nearly century-old maritime law known as the Jones Act, even though it is delaying the arrival of a jack-up rig to drill for oil and gas in Cook Inlet. But Murkowski says she's fighting hard on a daily basis to mitigate the consequences for Escopeta Oil when it does violate the Jones Act.
There's something happening here, but many people don't know what it is.
It's called the Jones Act.
It was passed by Congress in 1920 to provide security for American shipbuilders and the crews of American vessels.
It prohibits a foreign-flagged vessel from transporting goods between two U.S. ports, and has been applied to the cruise industry as well.
Due to the lack of a waiver from the Jones Act, Escopeta's Spartan 151 jack-up rig, en route from the Gulf of Mexico, has been diverted to Vancouver.
Apparently no American vessels are capable of providing the transport.
A decision is pending by the Department of Homeland Security on the amount of a fine that will be assessed when the equipment is delivered to Cook Inlet by a Chinese vessel that's hauling the rig.
The Alaska congressional delegation has been fighting in vain for renewal of a waiver from the Jones Act for Escopeta Oil, which has planned to use the first jack-up rig in Cook Inlet in more than a decade.
So far the Department of Homeland Security has refused to budge, although assurances have been given that the rig won't be confiscated and that any fine would be levied only against Escopeta, and not the Chinese firm hauling the rig.
Senator Murkowski says that despite the unsettling prospect of a potential multi-million dollar fine, she stands behind the broader purpose of the Jones Act.
"I think when we look at the specific situation that Escopeta is facing right now in getting this jack-up rig up here, there are ways you can get around the Jones Act, if in fact there is nothing else that's available and that was why the entire delegation, I think, came together to get a waiver of the Jones Act for Escopeta. Because there really was no other alternative."
Stephen Haycox, a history professor at the University of Alaska Anchorage, said of the Jones Act: “It protects the shippers out of San Francisco and Seattle and Los Angeles, and Alaska has always been disadvantaged by it -- at least people think it's a disadvantage because they reason that if Canadian shippers could get into the freight business between Seattle-Tacoma and Anchorage, that might lower freight rates. And maybe it would. But I don't think anybody really would know that until somebody tried it."
Haycox says he sees no prospect for repealing the Jones Act.
He says that Alaska's congressional delegation wouldn't be interested because American carriers Horizon and Totem, who bring most goods into the Port of Anchorage, would not like the prospect of foreign competition.
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Kevin said on Thursday, Jun 2 at 7:04 PM
Ok. Once it's berthed in Vancouver it has gone from an American port to a Canadian port. Now it can go from a Canadian port to an American port. Problem solved
68185247Russ said on Thursday, Jun 2 at 8:50 PM
after some thought, I have to ask, Why is Escopeta outsourcing American jobs right from the beginning. Why did'nt they just hire an American Flaged transport, instead they have outsourced to chineese to ship and this has now cost Alaskan Jobs as the work will be done in Canada, . Shame on Escopeda Oil, how's the shipping savings working for you? is the savings worth the ofset of cost increase from the canada diversion?
68189416John said on Thursday, Jun 2 at 9:04 PM
We do not have a heavy lift ship flagged out of america to move the rig. Just another way for the US Goverment to cheat us out of high paying jobs. I live down on the kenai, and we have been waiting for this rig in hopes that it can breath new life into old fields.
68189799RichardIf we couldn't keepI said on Thursday, Jun 2 at 9:29 PM
If we couldn't keep the state ferry Wickersham (the best ferry the state ever had) because of the Jones Act, why would we be surprised about Washington DC obstacles to oil/gas exploration within Alaska's state waters?
68190616Anonymous said on Friday, Jun 3 at 7:42 AM
Big sister at work. Of course Murkowski doesn't care about repealing the Jones Act. When they have to start rationing natural gas in two years here in Anchorage, she'll get hers....Or she'll call daddy.
68213572disgusted! said on Friday, Jun 3 at 8:06 AM
what a way to spur development in the US...make it difficult! shell and the jack up rig will turn around and go home....then what....what is going on!
68215406Cheating said on Friday, Jun 10 at 5:26 PM
I wonder how many of these folks losing money are now beginning to wonder if they should have protested when the Alaska Supreme Court decided not to challenge the questioned ballots?
68781329RECALL! said on Friday, Jun 10 at 5:30 PM
Democracy is bleeding right now. The first blow was not questioning a questionable family. The second was when she voted for a $9,000,000,000.00 handout to Banks accross the world (doubling 2 centuries of debt in just one night)! Now she is hurting the Alaska economy. Welcome to the bed you made Alaska!
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