Charting the Course: Navigating Offshore Energy
Since 1938, when the first offshore well was drilled in the Gulf of Mexico, Jones Walker has been at the forefront of offshore exploration and production issues where state, federal and maritime interests co-exist. Now, more than 80 years later, we represent companies associated with the offshore energy industry across multiple segments, including traditional oil & gas, power generation, and renewables, on all three coasts of the United States and internationally. Jones Walker’s “Charting the Course: Navigating Offshore Energy” series leverages our decades-long experience and highlights the latest commercial, regulatory, and tax frameworks important to companies operating offshore today.
Developing Regulatory Framework for Offshore CCS Projects
Carbon capture storage (CCS) projects aim to capture carbon dioxide from the atmosphere or directly from point sources (e.g., industrial processes) and store it permanently in deep underground geologic formations. As the push for CCS continues to gain momentum, regulators and industry alike are developing an interest in offshore options for it.
Watch Sarah Dicharry to learn more about carbon capture storage in state and federal waters.
Jones Act and OCSLA Manning Requirements in the Context of Offshore Energy Projects
The Jones Act and other coastwise trade laws must be carefully considered in any offshore energy project. The Jones Act dictates the types of vessels that may be used in the development, construction, and operation of Outer Continental Shelf (OCS) installations. It also may operate to limit noncitizen participation and may impact how transactions are to be structured. These laws embody key policies of the US Congress and raise maritime regulatory issues in the context of offshore operations.
Watch Will Baldwin to learn more about these key policies regulating offshore energy operations.
Gulf States Challenge BOEM Rule
The Department of Interior (DOI), acting through the Bureau of Energy Management (BOEM), issued a new final rule titled Risk Management and Financial Assurance for OCS Lease and Grant Obligations, which became effective June 29, 2024, requiring oil and gas companies operating on the Outer Continental Shelf (OCS) that are without an investment-grade credit rating to provide supplemental financial assurance to cover the cost of potential decommissioning liabilities, which would equal $6.9 billion in the aggregate.
