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Rep. Dennis Kucinich

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Why Did the Administration Waive U.S. Law 46 Times to Help Foreign-Owned Shippers at the Expense of U.S. Maritime Workers?

Posted: 08/27/11 11:04 AM ET

News outlets recently reported that the Obama Administration waived the Jones Act no less than 46 times following its decision to release oil from the Strategic Petroleum Reserve in late June.

The Jones Act, a section of the Merchant Marine Act of 1920, requires that only American-built, owned, and crewed vessels can operate when shipping cargo between two U.S. ports.

In order to get around the law, the Administration declared that the cutoff of oil supplies as a result of the conflict in Libya created a national emergency, allowing for waivers of the law to be issued.

The news reports stated that oil companies seeking to move tens of millions of barrels of domestic crude oil from the Strategic Reserve storage sites in the Gulf Region to refineries on the East Coast sought and received at least 46 waivers allowing them to hire foreign-owned tankers, staffed by foreign crew, to transport the oil.

American maritime workers are wondering: How could the Administration give foreign shippers and foreign crews advantage over U.S. shippers and U.S. crews traveling on U.S. waters to carry oil to U.S. facilities? I presume the reason is to save the oil corporations money on their shipping costs. These are the same corporations which have wreaked environmental catastrophe and reported record profits at the same time that high gas prices have further dragged down the struggling economy.

The Obama Administration has claimed that the reason for the large numbers of waivers of U.S. law is that U.S.-owned fleets only had small barges available to transport the oil, which would have slowed the process of getting the oil to market to lower the price of gasoline.

However, this claim has been disputed by representatives of domestic ship and barge operators. They point out that the oil shipments could easily have been broken into smaller amounts and that there were plenty of domestic ships and American crew capable of transporting the oil. U.S. maritime industry representatives have also pointed out that 10 million of the 30 million barrels of oil have not yet been transported, despite the large number of waivers issued.

In March, I sent a letter to the President, asking him to approve a release of crude oil from the Reserve to protect the fragile economic recovery. According to news reports, since the President's decision to release crude oil from the Strategic Petroleum Reserve, oil has been shipped within U.S. borders on barges and tankers registered in countries like Panama and the Marshall Islands, employing foreign crews.

There are many unemployed American mariners who need work. Oil company executives are not standing in the unemployment line. The Administration's short-sightedness has meant that oil companies -- which hired foreign-flagged barges that do not employ American workers, do not pay U.S. taxes, and do not follow U.S. environmental rules -- benefited, while American mariners continue to try to weather this terrible economic storm.

 

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SitandStay
Lorenzo&BushH8ter
10:41 AM on 08/30/2011
I'll have a Rep. Dennis Kucinich straight up on the rocks.
Obama has sent me beyond the tipping point. I'm outta here.
Are you running Dennis? Can you get Bernie to run with you?
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HUFFPOST SUPER USER
300millionblindmice
05:43 PM on 08/29/2011
Only 10 million of 30 has been released yet the admin claims the waivers were necessary because domestic ships were to small to handle the loads. For many weeks after the oil spill, I recall that this law was one of the reasons the admin stated that the offer of foreign ships to help was declined. Ummm something smells fishy.
iridium53
Semper Fi
11:00 AM on 08/29/2011
Uh, because they were paid to do so by lobbyists?

Because the administration told them to do so - because lobbyists paid them to?

Because the 537 corrupt elected federal officials in Washington will do anything they can to help multi-national corporations?

You tell us why.

What we do know is that the Administration and U.S. Governance (Congress) is working just as hard as it can against the interests of the average American and for the interests of the very rich and multi-national corporations.
09:09 AM on 08/29/2011
Dennis,
This is just another thing in the long list of what we are getting with President Obama. It took 30 years to tear up this country, and its going to take longer getting it back the way it was. President Clinton singed NAFTA. After that, church was out on the American workers in this country. Its now a race to the bottom of the economic scale for American labor. The Republicans wanted a debtor nation, and a two tier society. And when they get rid of all the social programs and safety nets. That is what we will have. Unfortunately the Dems are not putting anyone up that has the guts to get the job done to reverse this. Thats my 2 cents.
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mountainweb
Conservative Commonsense
08:59 AM on 08/29/2011
Bottom line, Obama is still nothing but a Chicago street activist with the title of president. He is a dedicated socialist, surrounded himself with anti-American czars, and has DONE NOTHING to increase JOBS in this country. Even part of the bail out to Wall Street went DIRECTLY to foreign banks. He either has NO CLUE what he is doing or, he is by design working against the American taxpayers to harm this country.
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IPredictARiot
11:37 PM on 08/29/2011
You mean besides the 2.4 million jobs the stimulus created or saved? 2.4 million is a bit more than "NOTHING".

And that Wall Street Bailout? That was signed by GW Bush.

Also, are you aware that the US military is the largest socialist entity in the western hemisphere? You might want to understand what socialism is before you go using it like its a four letter word. Our own Constitution mandates socialism in some cases (military, roads).
10:51 PM on 08/28/2011
Rep. Kucinich:

Rather than get upset that the Administration waved this clearly protectionist law that gets in the way of the free flow of commerce, the voters should get upset that this regressive law, that is really a progressive tax on all those who use oil, even exists and demand that it be rescinded.

Another example of one industry getting protection to the detriment of ALL Americans.

Kai
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themodernleader
09:18 PM on 08/28/2011
When corporate profit supercedes national considerations, the nation loses technology, manufacturing and the knowledge and skill of its workers. We are also learning that these same corporations pay little or not taxes to sustain our Republic. Only debt and indebtedness is our hallmark to the present and futile future.
Our government is no longer under the control of the many. It is under the control of corporate, financial, wall street interests. It is no longer a democracy; it is a plutocracy, oligarchy, aristocracy or what other name you wish to provide that means rule of the few for the few.
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mrclark
I search for the America I believed in as a boy.
07:24 PM on 08/28/2011
They waived the rules because they like most members in congress are bought off through a system that allows corporations through donations to buy our public representatives. America was to be the guiding light to the world and we abdicated our responsibilities which was to show that everyone deserved a chance. This was done by a system which took away the peoples right through a system that was bought off by donations. We are all casualties whether we realize it or not in lost opportunity to what we could have been due to the designs of a few people who would take everything out of a system to further their own goals. We as a people are at a crossroads which will be determined by whether we accept what is given to us by people who will steal our childrens future in their quest for personal gain or whether we will realize that some costs are really to great in the bigger picture of things.
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03:56 PM on 08/28/2011
How could this regime give preference to foreign ships and crews over US ships and crews? It's
very, very simple. Obama doesn't give a hot damn about american jobs. His supposed concern
about US jobs, and US workers is simply rhetoric. But, this is hardly news, we've known Obama
for a corporate shill, a cold blooded stealth neo con for awhile now. Just look at the nafta like
trade deals he's trying to broker in Asia. Jobs are a campaign issue, talked about when the cameras are rolling, to bamboozle the public into thinking they care. Because at the heart of the matter, both
democrats and republicans reward outsourcing.
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SitandStay
Lorenzo&BushH8ter
10:38 AM on 08/30/2011
Too bad 43 didn't get to turn over the 20 ports to Arab Emirates without a bid like he wanted to.
Gives a whole new meaning to "outsourcing" being it would have been on our own shores with government contracts.
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ronkw
Wake up and smell the whiskey
02:54 PM on 08/28/2011
I'm an out of work mariner, since this Admin shut down the Gulf of Mexico. Many thousands have lost jobs as a result of their actions.

This Admin has very little regard for our laws and the role of Congress. Executive Orders rule the day.
Last week they decided to change immigration law and impose what is essentially the Dream Act.
They decided not to enforce DOMA. defense of marriage act
they decided to shut down the Gulf mexico.
they scre wed the secured creditiors (bondholders) during the GM fiasco.
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IPredictARiot
12:49 AM on 08/29/2011
First off, we have been issuing drilling permits in the Gulf since FEBRUARY. If you're not working, it's because you're not very good at your job, and not because there isn't anyone drilling. Production from the gulf is UP compared to 2008.

Second, your problem might be that you're a mariner that appears to think they are a drilling engineer. There has not been even a minor hiccup in shipping calls to Gulf ports - you can look at the shipping data from MORAD and confirm. Obama has not changed anything that would affect a "mariner". Yes, we had a brief shutdown (6 mo) of oil exploration while we figured out what the hell went wrong, but that doesn't employ mariners - it employs engineers and rig operators. You apparently don't know the difference. Perhaps a different line of work would suit you better.
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ronkw
Wake up and smell the whiskey
03:46 PM on 08/29/2011
You write well, you just have no knowledge of the subject.
Your blind loyalty to obama clouds your vision.
The industry, from Pensacola,FL to Aransas Pass, TX, has become a ghost town since this Admin began dictating.

The number of permits issued by the Department of Interior for offshore drilling in the Gulf of Mexico fell precipitously after the BP oil spill of April 2010 and has not recovered significantly.
The blue line represents deepwater permits.
The purple line represents shallow water permits.

http://www.realclearenergy.org/charticles/2011/07/30/offshore_drilling_permits_issued_since_bp_oil_spill.html
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macrocosm
We are sorry your micro-bio did not meet our guide
02:40 PM on 08/28/2011
It sure looks bad no matter what way you look at it.... well except for those foreign companies that profited off it. What a wasted opportunity for home grown economic stimulus.
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Peter Combs
Amused by the illogical..no, NOT a Republican
01:55 PM on 08/28/2011
I thought Mr. Obama was the job Creator...? I guess he is, just for other countries...his deal with SOuth Korea a while back was a lot worse than this...its just a trend for good ole' Mr. Hope and CHange...
12:57 PM on 08/28/2011
Could they pass a law which says any shipper to any American port must meet minimum standards for health, safety and environmental concerns? That would eliminate all the hazards arriveing daily.
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noaxe397
11:56 AM on 08/28/2011
Obama Democrats: This is the diffeence between a progressive and a liberal today.
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sam green 31605
fireobama2012 dotcom
10:52 AM on 08/28/2011
Mr Kucinich thanks for sticking up for the American worker and not dirty dealing and blaming others like so many pols do... with that said, me thinks that somebody did a backdoor deal to line their pockets (or their re-election campaign).