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Houston, TX: Oceaneering Reports Record Second Quarter Results (USA)

Oceaneering International, Inc. today reported record second quarter earnings for the period ended June 30, 2012. On revenue of $673 million, Oceaneering generated net income of $72.6 million, or $0.67 per share. During the corresponding period in 2011, Oceaneering reported revenue of $546 million and net income of $56.7 million, or $0.52 per share.

Subsea World News – Oceaneering Reports Record Second Quarter Results (USA).

Offshore Drilling: Sneaky Sneaky Administration

Offshore Areas Open for Drilling when President Obama Took Office

Offshore Areas Blocked for Drilling under President Obama’s Final 2012-2017 Plan

By Ashlee Smith on July 13, 2012

The Obama administration is continuing its war on affordable energy for the American public. This time the effects of the administration’s policy decisions will come through the reduction of offshore drilling sites in the 2012-2017 offshore lease plan.  The administration isn’t jumping up and down to bring attention to this issue, probably because there are no positives to be excited about. Further proof of this is the fact the Obama administration released the final plan the day of the Supreme Court’s ObamaCare decision. This distraction diverted most attention away from the drilling plan. Thankfully, the Obama administration doesn’t get the final word in this instance. Offshore drilling plans go through a process of public comment and Congressional review.

The Outer Continental Shelf Lands Act (OCSLA) requires a five-year plan for the production and sale of oil and gas needed to meet American energy needs. The Obama lease plan for the next five years will close 85 percent of the American offshore drilling areas from production. The “new” five-year plan essentially reinstates the 30-year moratorium for offshore energy production. Obama under his “all-the-above” energy plan has been working to restrict offshore drilling access. The uncertainty of the oil and gas drilling industry is causing companies to look to other countries to allow them to do offshore drilling. President Obama is causing unnecessary increases in energy costs and hampering  job creation in various parts of the country, which have millions or even billions of barrels of untouched oil and natural gas. I thought the president said he was going to create jobs and help restore our economy? He has the perfect opportunity to do just that by opening up our Continental Shelf, but he’d rather push unaffordable, unattainable, and unreliable ‘green’ energy companies.

President Obama can’t run from the facts of the situation. His energy policy record is anything but promising for our future. In the last three years of President Obama’s term, offshore lease sale revenue is down over 250 times of what it was prior to him taking office, we went from collecting $9.48 billion to only $36 million in revenue. Even land oil production is down 13 percent from last year.  The new plan Obama is supporting will only exacerbate the problem. The whole Atlantic and Pacific coasts, along with a majority of the Alaskan OCS areas off limits as well. Leases will become shorter, fewer in number, and increasingly costly. Yet Obama continues to stick by his statement that he’s increasing production and reducing oil imports.

Energy Research’s Vice President Dan Kish:

“Millions of Americans are still looking for jobs. The Gulf Coast economy has yet to recover from President Obama’s moratorium on offshore drilling. President Obama has signaled today that he has no regard for our energy future, nor the jobs that a sensible, long-term plan for offshore development would create.”

House Energy Committee Chairman, Fred Upton had this comment to make on the issue:

“While we have seen some respite from rising gasoline prices, Americans are still paying almost double at the pump what they were when President Obama was inaugurated, and we are still just one natural disaster or foreign crisis away from a major supply disruption that could send prices soaring. To stabilize prices, we need a visionary, long-term supply solution. Earlier this month, the House passed a proposal with bipartisan support to remove the president’s barriers to American energy production and job creation. Today’s announcement underscores the urgent need for these commonsense reforms.”

The House Committee on Natural Resources has come up with a replacement plan to Obama administration. This congressional plan would allow for additional oil and natural gas leases, create jobs, encourage offshore energy development, and increase domestic energy production to give America more energy security.

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Runaway Spending, Not Inadequate Tax Revenue, Is Responsible for Future Deficits

The main driver behind long-term deficits is government spending, not low revenue. While revenue will surpass its historical average of 18.1 percent of GDP by 2018, spending remains above its historical average of 20.2 percent, reaching 22.1 percent by 2022, even after $2.1 trillion in spending cuts in the Budget Control Act.

Runaway Spending, Not Inadequate Tax Revenue, Is Responsible for Future Deficits.

USA: CB&I Q1 Net Income Climbs

CB&I today reported net income of $59.5 million for the first quarter of 2012, compared with $50.5 million in the first quarter of 2011.

Revenue for the quarter was $1.2 billion compared with first quarter 2011 revenue of $954.3 million. New awards totaled $1.7 billion compared with $1.0 billion in the first quarter 2011, increasing the Company’s backlog to $9.6 billion. Included in these new awards were several Oil Sands opportunities, a FEED study for a U.S. LNG export project, and a U.S. Petrochemical expansion project.

CB&I returned $109.6 million to shareholders, which included $104.7 million of stock repurchases and $4.9 million through quarterly cash dividends. Cash and cash equivalents as of March 31, 2012 were $639.8 million. Consistent with previous years, the first quarter included a disproportionate share of the Company’s annual stock-based compensation expense (63% of the full-year expense).

“As our new awards demonstrate, the markets we’ve positioned ourselves in are developing as expected,” said Philip K. Asherman, President and CEO. “We had another very positive quarter by all metrics including our safety performance, earnings, cash generation, and backlog growth.

USA: CB&I Q1 Net Income Climbs>> LNG World News.

USA: Higher Oil, Gas Taxes Would Hurt Jobs and Revenue, API Says

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API’s Chief Economist John Felmy told reporters yesterday that when America’s oil and natural gas industry reports solid earnings it means jobs are being created and more revenue is being delivered to government.

He said raising taxes on the industry would hurt both jobs and revenue: “If first quarter earnings are solid, it will be a positive sign for American workers, for American retirees, and, in particular, for Uncle Sam, which is desperately in need of the massive revenue our industry has been providing.

“In 2011, the three companies paying the largest share of incomes taxes in the United States were oil and natural gas companies. They paid almost $55 billion – and paid at higher effective rates than all other companies. They also paid at substantially higher rates than the U.S. federal statutory rate.

“Unfortunately, calls for higher taxes on the industry often accompany the release of earnings reports. Higher taxes are a bad idea, not only because they would be discriminatory and punitive – but also because they would hurt investment, hurt jobs, hurt future financial performance and, after a few years, decrease the revenue our industry delivers to the government.

“Instead of raising taxes, if we committed to a strong program of domestic development, we could in 2030 create as many as 1.4 million jobs, generate $800 billion in additional revenue, and substantially boost U.S. oil and natural gas production, according to a study last year by Wood Mackenzie. In just seven years, as many as one million jobs could be created.

“Our industry is successful, and our nation shares in and benefits from that success. We need to remember that when earnings are released.”

API represents more than 500 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.

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