In This Issue
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Quick Links
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Job postings deal for
VMA members!
50% off all job postings on the www.advancedtechnologyjobs.com job board through October 31, 2009. This translates to online job postings each for $100 or less for VMA member companies.
To take advantage of this opportunity to both post jobs to a website specifically targeting applicants interested in advanced technology jobs, like manufacturing, as well as for access to a pool of highly qualified individuals, use the following promotional code when checking out: Fall50.
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Business Services Directory
The VMA has launched a new Business Services Directory in a "yellow pages" format to make locating associate members and other reputable companies who can help your business more convenient.
Whether your company needs financial or legal advice, security, staffing, office equipment, laboratory analysis, environmental or engineering consultations and much more, you can find a helpful listing in our directory.
Click here to access the new Business Services Directory or find the link on the VMA website homepage.
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Atlantic Design-2-Part Show
September 30 - October 1
Fredericksburg Expo Center
Fredericksburg, VA
The Atlantic Design-2-Part Show is the region's largest event for buyers of custom parts, components, services and design. Come and meet local and national job shops and contract manufacturers face-to-face to find new suppliers, learn new technologies, compare processes, and reduce manufacturing costs.
Find solutions in over 300 categories for the metal, plastic, rubber, and electronics industries including:
Machining/Cutting/Grinding, Fabricating, Finishing, Electronic Assemblies /Components, Forming, Castings, Rubber and Plastics Composites, Design/ Prototyping/CAD-CAM, Tools/Dies/Molds/Patterns/Fixtures, and much more.
For more information and to register for free admission, visit www.D2P.com.
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VOLUME 2.0 | SPECIAL EDITION | SEPT 2009
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| Update on Outer Continental Shelf (OCS) Development | | |
What is the Five-Year Outer Continental Shelf Leasing Program?
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The Department of the Interior's U.S. Minerals Management Service (MMS) is the federal agency responsible for offshore oil and gas leasing in the United States. Every five years, MMS develops a Five-Year Outer Continental Shelf (OCS) leasing program that helps schedule offshore oil and gas lease sales. As directed by the Outer Continental Shelf Leasing Act, an area must be included in the five-year plan in order for MMS to conduct a lease sale in that area. The Five-Year Plan serves as a basis for the leasing program and assists MMS in its efforts to meet its resource management and environmental responsibility.
Resources to Make a Difference:
According to conservative estimates from MMS, there are about 288 trillion cubic feet of natural gas and 52 billion barrels of oil in the OCS off the lower 48 states:
· This is enough oil to maintain current oil production for 105 years and current natural gas production for 71 years;
· That is enough oil to produce gasoline for 132 million cars and heating oil for 54 million homes for 15 years; and
· That is enough natural gas to heat 72 million homes for 60 years, OR to supply current industrial and commercial needs for 28 years OR to supply current electricity generating needs for 53 years.
Further, MMS reports that the waters off Alaska's coasts hold about 27 billion barrels of oil and 132 trillion cubic feet of natural gas.
· This is more than all the current total proven U.S. oil resources (i.e. approximately 21 billion barrels).
· This would be the 8th largest oil resource in the world - ahead of Nigeria, Libya, Russia and Norway.
Additional Energy Needed to Meet Demand:
Over the next 20 years, U.S. demand for energy is expected to grow at an annual rate of 1.4 percent. Despite a continuing emphasis on conservation and expanding renewable sources of energy, petroleum products and natural gas are projected to account for almost 65 percent of domestic energy consumption in 2025. U.S. petroleum demand is expected to grow from 20 million barrels per day in 2003 to 27.9 million barrels per day in 2025. U.S. natural gas consumption is expected to grow from 22 trillion cubic feet in 2003 to almost 31 trillion cubic feet in 2025. Unless supply can be increased, prices are likely to rise again.
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How Much Revenue Will OCS Create for Virginia? |
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An estimated $387 million annually &
$5 Billion in Royalties
Dr. James Koch, President Emeritus of ODU, conducted an analysis in 2005 in which he deduced that:
"A conservative assumption of 350 billion cubic feet (Bcf) per year from natural gas formations off the Atlantic coast near Virginia indicates that offshore natural gas production would, over a 10-year period,
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likely create employment of at least 25,778 person years (approximately 2,578 full-time equivalent positions on an annual basis)
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induce capital investment of $7.84 billion
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yield $644 million in direct and indirect payroll
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and result in $271 million in state and local taxes (income and sales taxes only; personal and real property taxes have been excluded due to the difficulty of projecting them)."
In April 2009, the Southeast Energy Alliance estimated that royalties for Virginia could exceed $5 billion over 30 years - see the following for more detail: http://www.vamanufacturers.com/newsreleases/2009/SEARelease.pdf |
OCS Legislative, Judicial & Executive History. |
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* 2008/2009 - The Presidential and Congressional moratoria are lifted.
* 2008 - Senators J. Warner, supported by Senator Jim Webb introduced Virginia-specific OCS development legislation.
* April 2009, the DC Circuit Court of Appeals vacated the current Five Year Plan covering 2007-2012 after finding that the Department of Interior failed to conduct adequate environmental sensitivity analyses for two different areas in Alaska. It is relatively quick and easy for the Department of Interior to correct this data and put the nation back on track toward having a sensible oil & natural gas program. For more information, to to http://consumerenergyalliance.org/calls-to-action/support-development-of-alaskas-offshore-oil-gas-resources/.
* 2007 - MMS holds public hearings and includes Virginia in 5 Year Plan.
* 2006 - Virginia Governor Mark Warner rejected the General Assembly's vote to develop OCS natural gas.
- 3/8/06 House voted 74-Y, 21-N
- 3/9/06 Senate voted 36-Y, 1-N, 1-A
Note: Virginia is now the only Eastern Coastal State part of the MMS Five-Year OCS Leasing Plan. |
How Should We Invest Royalty Revenue? |
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Create the § 67-301. State Offshore Energy Revenue Fund.
VMA has called for the creation of the State Offshore Energy Revenue Fund and dedicate all royalties to seven dedicated public investments.
a. Dedicate 40% of future OCS development royalties to the Transportation Trust Fund and Public-Private Transportation Act (PPTA) Matching Fund Projects (e.g., Route 460).
b. Dedicate 25% to local government for economic development. Replacement revenue for elimination of machinery and tools tax.
c. Dedicate 10% to Regional Workforce Training Centers established pursuant to § 2.2-2671.
d. Dedicate 10% to Water Quality Improvement Fund.
e. Dedicate 5% to Renewable Electricity Production Grant Fund established pursuant to § 67-1102.
f. Dedicate 5% to Clean Coal Technology Research Fund established pursuant to § 67-403.
g. Dedicate 5% to Virginia Coastal Energy Research Consortium established pursuant to § 67-700.
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What Are Virginia Leaders Saying? |
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On September 14, 2009, VMA President and CEO, Brett Vassey, stated that "OCS development and revenue will not only create a vitally important new industry in Virginia, but it is the only new source of State revenue available to replace the regressive machinery and tools tax." "Virginia must eliminate the machinery and tools tax on manufacturers to remain competitive and OCS revenue and royalties will make it possible," Vassey commented.
On August 25, 2009, Virginia Speaker Bill Howell wrote a letter to U.S. Secretary Ken Salazar stating, in part, "Developing these resources would create thousands of new jobs in our Commonwealth, arriving at the right time to assist in lifting our workers, families and communities out of this economic recession. Currently, Virginia has a competitive advantage over neighboring Mid-Atlantic Planning Area states due to our proactive changes made in previous years by the General Assembly to position Virginia positively in the current OCS Leasing Program. Any change to delay the scheduled 2011 lease of Sale 220 would only serve to hamper our Commonwealth's economic recovery, competitiveness and job creation, as well as squander our ability to safely develop new and needed domestic energy production."
On July 30, 2009, Virginia Representatives Cantor, Wittman, Goodlatte and 95 other U.S. Congressmen wrote a letter to U.S. Secretary Ken Salazar stating, in part, "As your Department collects opinions from Americans about the draft offshore plan, we write to register our strong support for expanded offshore development as part of an 'all of the above' approach to increased U.S. energy independence."
On March 4, 2009, Bob McDonnell (former Attorney General) wrote , "Like every other state, Virginia is currently dealing with a tough economy and rising unemployment. We need new jobs, and we need secure sources of energy that do not require leaving Virginians at the mercy of foreign governments adverse to our best interests. Developing our offshore energy resources is an important part of the solution to these needs. The opportunity to begin the process of finding and extracting oil and natural gas not far off our coast, yet out of sight from our beaches, is timely and advantageous. The Gulf of Mexico states have long shown it can be done in an environmentally friendly manner. It is an opportunity that Virginia cannot afford to delay or squander."
On March 3, 2009, Lt. Governor Bill Bolling wrote in a letter to U.S. Secretary Ken Salazar, "While I respect Governor Kaine's prerogative to request this delay, I did not want you to be under the impression that he speaks for all statewide elected officials in the Commonwealth. He does not."
On February 19, 2009, Governor Tim Kaine wrote, "I am writing to ask that you postpone the Outer Continental Shelf (OCS) Special Lease Sale 220 that is proposed for Virginia's coast. This Lease Sale is the only one currently proposed anywhere along the Atlantic seaboard."
On June 18, 2008, it was reported that Senator Jim Webb supported then Senator John Warner's OCS Development Bill by saying:
So, in my view, my strong view, the senior senator has put forward legislation that is responsible. He is a friend of the environment, is careful in terms of different aspects of government involvement, and I am pleased to support him. |
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Both public sector comment filing process' and popular polls show overwhelming support for environmentally responsible exploration and development of Virginia's OCS.
The US Minerals Management Service conducted multiple hearings around Virginia and the Eastern Coastal & Gulf States regarding including Virginia in the Five-Year Plan for an OCS Special Interest Sale in 2011. MMS received over 73,400 comments from the public.
75% supported a 5-year plan that offers increased acreage for offshore oil and gas development.
The US Minerals Management Service issued a Final Environmental Impact Statement (FEIS) for 2007-2012 OCS Oil and Gas Leasing Program, prepared in accordance with the National Environmental Policy Act (NEPA), in 2006. In developing the FEIS, the MMS held 17 public hearings in 6 states, including Virginia. MMS received 9,000 comments and the majority were in favor of proceeding with the lease.
On June 2005, 600 Registered Virginia Voters were polled regarding OCS development.
71 - 73% support oil and gas development in the OCS.
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Take Action! Tell the Federal Government You Support Offshore Development!
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The Minerals Management Service (MMS) is responsible for conducting all leasing and resource management functions on the OCS. Visit their website for more information at www.mms.gov.
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