Friday, July 19, 2013
Deepwater production in the Gulf of Mexico is poised for sustainable growth, as the news I consistently hear from clients and other industry pundits is very positive, and if you read any business news, it seems that significant announcements are released weekly: Exxon/Mobil, BP, Shell, ConocoPhillips, Chevron, Freeport-McMoRan Oil and Gas (formerly Plains Exploration & Production or PXP) and others have new significant deepwater activity.
Deepwater drilling is very expensive, involves more risk and takes much longer than drilling on “the shelf.” The Macondo disaster is a lingering reminder of the risk, but as unfortunate as the incident was, some very positive developments have resulted. New tools and technologies are being developed that make exploration and production much safer, and much of that technology is developed and supported here in Acadiana. I believe that we will see substantial job growth in the service sectors and in the technology companies that service and support the energy industry. With that job growth, we will see continued expansion in all commercial real estate sectors, particularly industrial/warehouse.
The energy industry has a solid track record of innovation and entrepreneurialism, and a significant amount of that innovation has occurred in South Louisiana. There are many exciting new technology-based trends that are having substantial impacts on the Gulf — and in turn our economy.
Ever heard of a FPSO? It stands for floating production, storage and off-loading vessel, and it appears to be the wave of the future for deepwater drilling. These vessels offer flexibility and safety features that traditional fixed platforms do not. During severe wind and rains, the vessel can be rafted into wind and waves to reduce stress on stem connections and even disconnected from sub sea wellheads during more severe weather.
How about SureTec? It is a new leak and pressure monitoring solution that is revolutionizing deepwater downhole monitoring and troubleshooting by providing more accurate data much faster. Had this technology existed when Macondo was in production, the disaster might have been averted. Another new technology called the SHARC, developed by Chet Morrison Contractors, is an acronym for Subsea Hydraulic Abrasive Rotating Cutter. This device reduces diver time underwater, eliminates hand jetting and reduces job time by more than 50 percent. Technological developments like these are important to safe production in the Gulf and sustained growth in our market.
I believe that all sectors of the commercial real estate market will grow, but industrial will likely see more dramatic expansion than office and retail. Consider the following string of projects. Freeport-McMoRan Oil and Gas has partially moved into its new deepwater service facility in Broussard. GE Oil and Gas has a major expansion under way on Hwy. 90 across from Le Triomphe and just across the street, Baker has new space under construction on its campus.
In the SMEDA business/industrial park on the western edge of St. Martin Parish, Forum Energy is building a new facility on 20 acres and has additional expansion land for future growth. In Iberia Parish, Halliburton is under construction on Phase 1 of its new 105-acre site.
IPT Global, the Houston-based company that owns the aforementioned SureTec technology, just purchased 15 acres in Broussard with plans to build a new field support facility. Expro, Weatherford and Schlumberger all have facility expansion plans as well. This list represents only a few of the significant projects being constructed or in the pipeline.
Also significant is the level of speculative land development that is beginning to occur. Believe it or not, our market does not have many shovel-ready sites, so industrial parks with infrastructure in place are needed. Pride’s Crossing on Verot School Road is under construction and will open this year. Garber Industrial Park off Hwy. 90 has sold out Phase 1, and the second phase should start this year. Schaefer Industrial Park jump-started with the Forum Energy project. There will be one or more new parks coming to Broussard as well.
While the site development is significant, it is important to note that there still is not a lot being built on a speculative basis.
I believe that we will see local companies continue to thrive and create jobs. While I am bullish on the industrial sector of the market, what’s most promising is that local real estate as a whole stands to benefit from the energy industry.
Monty Warren is vice president and partner of Beau Box Commercial Real Estate, which has offices in Baton Rouge, Lafayette and New Orleans. Warren, based in the Lafayette office, has two decades of commercial real estate experience.
Here's your daily look at late-breaking national and international news, upcoming events and the stories that will be talked about Thursday, April 17, 2014:
Thursday's Blogs from the Bog!
The must have pieces this season
Dave Perkins, LCG Comp Plan honored along with local architects and designers at the 2014 INDesign Awards
Greg Manuel’s Lafayette-based residential development company is taking advantage of exponential industrial growth in Lake Charles.
Longtime Lafayette retailer ventures online.
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Regional bank bids farewell to Downtown May 30
ABiz takes a look back at the most noteworthy moments for the local banking industry over the last year.
Most experts say short-term interest rates will be unchanged through 2014, but long-term rates are inching up.
Largest recruitment event in Acadiana returns May 21 to the Cajundome Convention Center
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Thanks to the inaugural 2012 INNOV8, a design for lifting heavy objects was brought to market.
The annual juried competition recognizes excellence in architecture, interior design and historic preservation in Lafayette and the five surrounding parishes.
Cypress Bayou GM hosts open house Cypress Bayou Casino General Manager and CEO Anthony Patrone hosted an open house at his and wife Roe’s home in Le Triomphe after a long day of golf Saturday, March 29, during the Chitimacha Louisiana Open. Guests mingled and listened to the guitar tunes of Sean Trcalek while dining on bites catered by Cypress Bayou Casino Hotel. Members of the Chitimacha tribe, including chairman John Paul Darden, were in attendance as well as staff and friends of Cypress Bayou Casino Hotel to celebrate a successful day of golf for the annual fundraiser. 1. Megan and Matt Breaux, and Rin and Cecelia Hemelt2. Gabe Lewis and Ray Bourque3. Roe and Anthony Patrone4. O’Neill and Tessa Dardenne, and Roxanne and George Graham5. Richard Picard, Nancy Herrington, Anthoney Patrone, John Paul Darden, Ashley and Montey Spivey, and Jack Darden6. Joyce and Glenn Brou7. Anthony Patrone, Dawna Waterbury, Nancy Herrington and John Paul Darden8. Sean Trcalek9. Kathy...
New hires, promotions, transfers in Acadiana business
The scion of a landmark Four Corners restaurant climbs back into Lafayette’s culinary scene as franchisee for a popular burger chain.
The Lafayette City-Parish Council on Tuesday will vote on a resolution that if approved would clear the way for a December ballot proposition asking voters to approve a 1-cent sales tax parishwide to help fund the construction of a new terminal at Lafayette Regional Airport.
His company bankrupt and being liquidated, the Lafayette businessman’s financial troubles are mounting.
Jefferson Street Pub continues its generous tradition with its 4th Annual Festival Preview Party this Thursday featuring Big Sam’s Funky Nation.
Just days before the fourth anniversary of the 2010 Deepwater Horizon disaster and oil spill, the Coast Guard has moved cleanup of Louisiana's coast to a new phase, allowing BP to end its "active" efforts in the area.
Legislators still must leave their guns at the door of the Louisiana Capitol.
Acadiana's nightlife guide.
Sen. Fred Mills may have an "R" behind his name, but his actions in the Louisiana Legislature transcend the established boundaries of his party.
The Louisiana House overwhelmingly rejected a repeal of the state's unconstitutional anti-sodomy law Tuesday.
The Louisiana Senate sided with Gov. Bobby Jindal and the oil industry Tuesday, agreeing to void a lawsuit that a south Louisiana flood board filed against more than 90 oil and gas companies for coastal damage.
Pop-up dinner of chef Justin Girouard’s creations reflect farming traditions
newsy bits for the fam