Proceedings Of The Marine

FALL 2015

Proceedings magazine is a communication tool for the Coast Guard's Marine Safety & Security Council. Each quarterly magazine focuses on a specific theme of interest to the marine industry.

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Page 6 of 94

Technological advances in energy extraction, such as hydraulic fracturing and directional drilling, have unlocked new production from shale and other unconventional reserves, creating dramatic growth in oil and natural gas production in the U.S. after decades of decline. This dramatic growth, known as America's Energy Renaissance, is being fueled by oil and gas f nds in Texas, North and South Dakota, and Pennsylvania, and is predicted to produce enough oil and gas to supply the nation as well as some aspects of the global market for decades to come. As more f nds are discovered and recovery rates improve, the total quantity of U.S. reserves will only increase. The U.S. is already the world's largest producer of oil and natural gas combined, having surpassed Russia to become the world's top natural gas producer in 2009, and is expected to become the world's top oil producer by 2020. This increased production is not only supply-driven; the U.S. Energy Renaissance is meeting the nation's demand for energy dependence, reducing trade imbalances, and, in some cases, providing more environmen- tally sound energy sources. This presents the need to grow the nation's infrastructure to accommodate this new production. As such, the Energy Renaissance is reshaping America's marine transportation system (MTS) with an inf ux of new vessels, new products, new routes, new fuels, and new opera- tions required to transport oil and gas from the inland reserves to coastal facilities and to market. With more than 30 proposed liquef ed natural gas (LNG) export facilities, a drastic increase in crude oil transport on our inland rivers, new LNG-fueled vessels and associated bunkering operations, and responses to unconventional petroleum products, these are exciting times with tremendous opportunity. But there are real challenges here, as well. The most signif cant challenges speak to the capacity of our ports, waters, shipyards, locks, and terminals, which are stretched, to be sure, as is our capacity to provide qualif ed, properly experienced, and well-rested mariners. There are challenges in our capacity to respond to incidents, particularly in areas where oil spill response organizations and the rest of the response community may be limited because crude oil was not previously present. Finally, there are challenges in our capacity to provide maritime governance in terms of developing timely, relevant standards as well as people who understand and can help ensure compliance with such standards. This issue of Proceedings provides an in-depth understanding of these new products, their impact on the MTS, and how the U.S. Coast Guard and other government agencies are preparing to address these challenges posed by the U.S. Energy Renaissance. 4 Proceedings Fall 2015 Admiral Paul F. Zukunft Commandant U.S. Coast Guard The Marine Safety & Security Council of the United States Coast Guard Rear Admiral Steven D. Poulin Judge Advocate General Chairman Mr. Jeffrey G. Lantz Director of Commercial Regulations and Standards Member Rear Admiral Peter J. Brown Assistant Commandant for Response Policy Member Rear Admiral Paul F. Thomas Assistant Commandant for Prevention Policy Member Rear Admiral Todd A. Sokalzuk Assistant Commandant for Resources, Chief Financial Off cer Member Ms. Ellen Engleman Conners (Acting) Director for Governmental and Public Affairs Member Captain Verne B. Gifford Director of Inspections and Compliance Member Mr. William R. Grawe Director of National Pollution Funds Center Member Mr. Gary C. Rasicot Director of Marine Transportation Systems Management Member Captain Anthony Popiel (Acting) Director of Incident Management and Preparedness Policy Member Mr. Michael W. Mumbach Executive Secretary Assistant Commandant's Perspective by rEAr AdMirAl PAul F. thoMAs Assistant Commandant for Prevention Policy U.S. Coast Guard

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