Foreign vessels loophole their way around Jones Act in Gulf of Mexico, Part 1

In 2005, Hurricane Katrina unleashed a storm surge which overpowered the levees of Lake Pontchartrain.

It also opened up the floodgates for foreign operators to gain a toehold in the offshore oil and gas sector.

Both the Jones Act and the Outer Continental Shelf Lands Act (OCSLA) were enacted to protect the American maritime industry by requiring goods being moved between U.S. ports and offshore sites to be shipped on American built and flagged vessels.

However, both laws allow for waivers or exemptions to be granted in case of national emergency or necessity.

After Hurricane Katrina damaged the Gulf of Mexico's refineries and movement of oil, then Homeland Security Michael Chertoff granted a 19 day waiver to allow foreign vessels to transport oil and gas.

But those 19 days have essentially turned into four years as the presence of foreign vessels has continued-and even increased-to the present day.

1  2

Read the story here.