Daily Archives: May 11, 2012

Law of the Sea Treaty: A Tool to Combat Iran, China, and Russia? or Redistribution of wealth

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Posted by Doug Bandow

Every few years, the Law of the Sea Treaty rears its head as a one-size-fits-all solution to a host of current maritime problems. This time, Secretary of Defense Leon Panetta and General Martin Dempsey, chairman of the Join Chiefs of Staff, are urging the Senate to ratify the treaty. The officials claim it will act as a tool to deal with aggressive actions by Iran, China, and Russia. But as I have long argued, no matter the current rationale for the treaty, it represents a bad deal for the United States.

Panetta and Dempsey rolled out three hot issues to make their case:

  • Iran is threatening the world economy in the Strait of Hormuz? The Law of the Sea Treaty (LOST) will help solve this.
  • China is threatening the Philippines in the South China Sea? LOST is a crucial tool to prevent war.
  • Russia is claiming land in the Arctic region to extract natural resources? LOST will put the screws to Moscow.

These international controversies will be magically resolved if only the Senate ratifies the convention.

If this sounds too good to be true, it is. It is not clear the treaty would do much at all to alleviate these flashpoints. Especially since the two most important potential antagonists, China and Russia, already have ratified LOST. And it is certainly not the best option policy-wise for the United States with each issue: Iran’s bluster in the Strait of Hormuz may prove its weakness. U.S. policy in the South China Sea suffers from a far more serious flaw: encouraging free-riding by allied states. Russia’s move into the Arctic has nothing to do with Washington’s absence from LOST.

The treaty itself, not substantially altered since 1994, is still plagued by the same problems that have halted its ratification for decades. Primarily, it will cede decisionmaking on seabed and maritime issues to a large, complex, unwieldy bureaucracy that will be funded heavily by—wait for it—the Untied States.

On national security, the U.S. Navy does not need such a treaty to operate freely. Its power relative to all other navies is the ultimate guarantee. Serious maritime challengers do not exist today. Russia’s navy is a rusted relic; China has yet to develop capabilities that come close to matching ours. Moreover, it is doubtful that the United States needs to defend countries such as the Philippines when flashpoints over islands in the region affect no vital American interests.

The average American knows very little about this treaty, and rightly so. It is an unnecessarily complicated and entangling concoction that accomplishes little that the longstanding body of customary international law on the high-seas or the dynamics of markets do not account for. My conclusion in testimony before the Senate Committee on Armed Services in 2004 still holds true:

All in all, the LOST remains captive to its collectivist and redistributionist origins. It is a bad agreement, one that cannot be fixed without abandoning its philosophical presupposition that the seabed is the common heritage of the world’s politicians and their agents, the Authority and Enterprise. The issue is not just abstract philosophical principle, but very real American interests, including national security. For these reasons, the Senate should reject the treaty.

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Texas: Helix Well Cap Arrival at Ingleside, Texas Shorebase

Helix Well Cap Arrival at Ingleside, Texas Shorebase

Designed for subsea oil spill containment the Helix Fast Response System (HFRS) Well Cap consists of an 18-3/4″ –10ksi H4 hydraulic wellhead connector and a 13-5/8″-10ksi dual ram block with an 18-3/4″-10ksi H-4 mandrel profile up. The connector can be changed out to any other type of connectors via the use of adapters. The cap has a 13-5/8″ bore and side outlets 4-1/16″-10K BX-155. All functions on the Well Cap will be ROV operable. Two 3-3/16″ vents relieve high pressure and/or flow rate.

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Uploaded on May 11, 2012

Helix Well Cap Being Loaded Out at Ingleside, Texas Shorebase

Anyone can see this photo All rights reserved
Uploaded on May 11, 2012

Helix Well Cap Being Loaded Out at Ingleside, Texas Shorebase (2)

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Uploaded on May 11, 2012

Helix Well Cap Being Loaded Out at Ingleside, Texas Shorebase (3)

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Uploaded on May 11, 2012

Flickr: Helix ESG’s Photostream.

USA: Stone Buys Anadarko’s Pompano Field Stake

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Stone Energy Corporation has acquired Anadarko’s 25% working interest in the five block deep water Pompano field in Mississippi Canyon, a 22% working interest in Mississippi Canyon Block 29, and a 10% working interest in portions of MC 72.

The purchase price under the agreement is $67 million in cash plus the assumption of asset retirement obligations, subject to customary closing adjustments. Current net production from the Pompano field attributable to this acquisition is approximately 1,000 barrels of oil per day and 3 million cubic feet of natural gas per day.

Stone’s estimate of proved reserves attributable to this acquisition is approximately 5.9 million barrels of oil equivalent at December 31, 2011.

In late December 2011, Stone Energy also bought BP’s 75% operated working interest in the Gulf of Mexico located field.

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