Revise restrictions to ensure safe oil drilling

Posted on Saturday, 05.03.14

Revise restrictions to ensure safe oil drilling
MCT LAYNE SMITH / MCT
BY WILLIAM K. REILLY AND BOB GRAHAM

After an unsuccessful round of drilling in 2012 and 2013, Cuba's oil and
gas industry is poised for further deepwater exploration in the Gulf as
soon as 2015. As Cuba explores and eventually drills for oil, Florida
and neighboring states have a paramount interest in ensuring that Cuba's
drilling operators employ the highest safety standards and the best
available technology. From our experience with the BP tragedy, failure
to meet these standards would seriously threaten Florida's economy and
environment.

A half-century of trade and travel restrictions separates the United
States and Cuba. And yet the island's northern boundary floats just 50
miles from southern Florida. For communities in southern Florida whose
commerce, especially tourism, depends on a healthy marine system, an oil
spill would be disastrous. Coral reefs and mangroves, such as those
found in the Everglades, Biscayne National Park and the Florida Keys,
serve as protective barriers from hurricanes. They also provide critical
nurseries for species that support commercial and recreational fisheries
on the east coast.

Earlier this year in Havana, we met with top energy and environmental
officials in Cuba to assess the country's preparation to mitigate an oil
spill in Cuba's Gulf waters. After successive meetings, we left with a
new realization of Cuba's imminent intention to explore for oil. Seismic
studies indicate the potential for commercial-scale oil and gas
deposits, and the instability of Venezuela, Cuba's main oil provider, is
further incentive.

We are confident that Cuba is adopting standards in line with the
recommendations developed by President Obama's National Commission on
the BP Oil Spill and the Future of Offshore Drilling, which we
co-chaired. The test will be the capacity to achieve these standards.

Given Cuba's limited human and material resources and lack of
substantial experience regulating deepwater oil and gas exploration, the
United States should revise embargo-related restrictions to foster the
highest standards of safe drilling. It is beyond our intentions to
advocate for a total lifting of the embargo; rather, we urge for
modifications to specific provisions to achieve maximum protection from
a BP-type accident. One such restriction in need of modification is the
U.S. sanction that prevents Cuba and its contractors from acquiring
advanced technology with more than 10 percent U.S. content. Only one
drilling rig in the world qualifies under this criterion.

U.S. travel and export restrictions further limit spill response in the
Gulf of Mexico as they prohibit U.S. oil spill mitigation companies from
traveling readily to Cuba. This potential danger became a reality during
the BP explosion where the delay in capping the surging oil
substantially increased the damage. In the aftermath of BP, the U.S. oil
and gas industry established two response teams in the Gulf. But under
current U.S. embargo restrictions, these response capabilities would not
be available in the event of a similar accident in Cuban waters. We
therefore urge the president to issue appropriate industry-wide
"general" licenses for travel and export so that companies in the oil
service and spill response industry can position proper equipment in
advance.

The BP oil spill underscored that the Gulf of Mexico waters transcend
national boundaries, making all countries sharing the Gulf vulnerable to
consequences of a major spill. Within a year of the BP spill, commission
representatives and affected U.S. agencies met with Mexican counterparts
to coordinate Gulf drilling safety and response. Culminating at the
Clean Gulf 2013 conference in Tampa, this dialogue now includes the
Bahamas, Jamaica, and Cuba. The result was the establishment of the
Multi-Lateral Technical Operating Procedure (MTOP) to institute safety
protocols in the event of a cross-border spill. While this was a
substantial start, more needs to be done. Appropriate agencies in the
U.S. government should brief oil companies on safety procedures in the
agreement. To strengthen their oversight of drilling in the Gulf, these
agencies would likewise benefit from creating channels for the exchange
of expertise and training between Cuban and U.S. personnel.

Given Cuba's serious pursuit of offshore drilling and the potential risk
of an oil spill, the slow pace of U.S. preparedness greatly concerns us.
To avoid environmental and economic damages reminiscent of the 2010
Deepwater Horizon oil spill, the United States must relax equipment
restrictions. It must take comprehensive actions to facilitate
cross-border exchange of best practices, mitigation training and
response strategies. Until such steps are in place, we cannot be
satisfied that every possible measure has been taken to preserve the
economic and ecological wellbeing of the Gulf of Mexico.

William K. Reilly, former administrator of the Environmental Protection
Agency, and Bob Graham, former governor and senator from Florida,
co-chaired the National Commission on the BP Deepwater Horizon Oil Spill
and Offshore Drilling.

Source: Revise restrictions to ensure safe oil drilling - Other Views -
MiamiHerald.com -
http://www.miamiherald.com/2014/05/03/4094534/revise-restrictions-to-ensure.html