On 16 July 2020, nine U.S. and international energy trade associations delivered a joint letter to U.S. Representatives Jim McGovern of Massachusetts and Tom Cole of Oklahoma to express a collectively strong opposition to Amendment 151 to House Report 6396; The National Defense Authorization Act for fiscal Year 2021.
The proposed amendment sought to extend current moratorium provisions in the Eastern sector of the U.S. Gulf of Mexico such that regulators would be precluded from consideration of pragmatic and responsible measures that could allow for expanding activities in the Eastern Sector. It also targeted an effort to reinstate 2016 well control regulations that were amended in 2019 to address safety concerns not adequately reflected in the 2016 edition of the well control provisions.
What is a Trade Association?
A trade association is a not-for-profit organization made up of a collection of companies and/or individuals with common commercial interests. Common synonyms for trade association:
- Industry trade group
- Business association
- Sector association
- Industry body
Purpose of a Trade Associations
The purpose of trade associations is to focus on collaboration between member companies and/or individuals. This usually means some type of consensus-based action. As a trade association’s strength is—by definition—created by its disparate membership, a trade associations activities can include many priorities:
- Networking events
- Committee initiatives
- Standards definition
- Regional chapters
- Educational conferences
- Industry-focused publications
- Technical innovations
- Best practices
- Training programs
Outside of the trade association activities, the constituent members will compete in the free market. When engaged on behalf of trade association activities, company members and individuals will collaborate on industry-driven initiatives that grow the industry’s presence, strengthen the industry’s position, or secure the industry’s future prospects.
Example of a Trade Association
IADC stands for “International Association of Drilling Contractors.” Our organization is an example of trade association that operates on behalf of the global drilling industry. In IADC’s mission-driven efforts, our organization is dedicated to promoting innovative technology and safe drilling practices that bring energy to the world’s consumers.