How about a mental visual: Where there were once 17 rigs drilling in north Louisiana in 1997, there are now 60. Meanwhile in the swampy south, 81 rigs have become 53 over the past decade.
The flow of business is easy to track: Land rigs in the south are being relocated to the north, where prospects are bright, and Gulf outfits have been slowly closing up shop in the face of increased costs. "There has obviously been a significant shift of drilling resources in the state," says Mike French, DNR's technology assessment director. "We're seeing everything move out of the Gulf and further north. We also see a 67 percent increase, mostly from natural gas, in the northern part of the state, a region that is the oldest and most drilled up already."
"It's really another state boom up there," he adds.
French describes the scenario as unique to Louisiana, since most other states are "experiencing significant drilling everywhere." Largely, high prices are driving the explosion of activity in north Louisiana, he says, while a slow recovery from the 2005 hurricane season is plaguing coastal parishes.
Don Briggs, president of the Louisiana Oil and Gas Association, a trade and advocacy group, says Louisiana's newfound obsession with natural gas parallels national statistics. According to Baker Hughes, of the 1,781 rigs operating in the U.S., 1,483 are seeking gas over oil. "There's a whole new gas play in north Louisiana," Briggs says, "and while the region has a long history, it's not all drilled up. The drilling is going deeper than ever before: 8,000 to 12,000 feet. Because of high prices, it has become economical to do business up there. If prices stay up, this trend could continue."
As for the Gulf's drilling depression, Briggs argues it has very little to do with hurricanes. He said the number of Gulf rigs has been steadily decreasing because there are "greener pastures out there" and the gulf has become "the number one most expensive place to drill in the world." But it won't last forever. "You're going to see all of that change here before long," he says. "The independents and huge majors are finding deepwater drilling in other parts of the world to be unfriendly, as far as the geopolitics. The Gulf of Mexico is politically stable," as compared to the unpredictable nature of foreign locales like Venezuela, where oil fields were recently nationalized.
Additionally, Briggs predicts the eastern Gulf will soon be opening up and the drilling response could be unprecedented.
These are strange times for Louisiana's energy sector. During a time when state officials are asking for billions of dollars to implement coastal restoration, hurricane protection and flood control projects, the state fiscal numbers are looking better than ever. A money committee recently found another $1 billion surplus, and an increase in royalty sharing with the feds will soon start providing millions on an annual basis.
To add to the heap, the state Mineral Board recently reported that the state's income from oil and gas royalties was $522.5 million, an all-time high, and that the state's total income from bonus, leaseholder, and interest payments was $600.1 million, the highest since 1982. "These figures coupled with severance tax income (not yet completed), and increases in drilling activity, all suggest that times of growth and prosperity are upon us," says Department of Natural Resources Secretary Scott Angelle.
Not everyone is jumping for joy. Many, including Republican state Treasurer John Kennedy, believe Louisiana is partly enjoying a false economy, and the bubble will eventually burst. It's just a matter of time, as oil and gas prices won't stay in the air forever.
David Dismukes, a professor at the LSU Center for Energy Studies, says record royalty income has been driven not only by just high prices, but by increased production as well. The fact that lease sales are generating record income indicates that the industry views Louisiana in a more attractive light today for future energy investments. "These numbers certainly support the conclusion that Louisiana's proactive resource policies, which have streamlined permitting, eliminated waste, and reduced legal and regulatory uncertainty are paying big dividends," he says.
A source close to the team tells The IND QB Broadway will play in tonight's bowl game against Tulane.
Grads and gridiron fans gear up for game day and paint the town red
Jindal describes the privatization as a cost-cutting move to save the state more than $100 million this year, while improving services and medical training.
A Baton Rouge judge is reconsidering his decision to throw out Gov. Bobby Jindal's revamp of teacher tenure and salary laws.
Ambassador François Delattre will also receive an honorary doctorate of francophone studies at the commencement at the Cajundome.
During the past seven games, the Saints have forced two turnovers — a league low during that span. Now they're trying to figure out what has changed since their first seven games, when they forced 15 turnovers.
Choice cuts from Acadiana’s news media for Friday, Dec. 20, 2013:
For many fans, it was their third consecutive year participating in French Quarter parade.
Here's your daily look at late-breaking national and international news, upcoming events and the stories that will be talked about Friday, December 20, 2013:
Lafayette Parish School Board member Greg Awbrey deserves an attaboy for his unexpected vote during Wednesday’s meeting approving a mediation session between the board and Superintendent Pat Cooper.
The cable television network's suspension of Duck Dynasty patriarch Phil Robertson from the hit reality show has drawn criticism from the governor of Robertson's home state.
The State Bond Commission gave preliminary approval to the borrowing plan Thursday without objection.
The Pediatric Clinic is housed in the same location previously closed by state budget cuts in June 2012.
Three-term Louisiana senator facing tough re-election battle is next in line for Energy Committee chairmanship.
In a letter distributed during Wednesday night's meeting, Lafayette Parish School Board member Shelton Cobb, in his final meeting as board president, called on his fellow board members to start focusing on the children and stop battling Superintendent Pat Cooper.
Joshua Dore of Breaux Bridge was sentenced Tuesday to 1.5 years in prison for counterfeiting, according to a press release issued by U.S. Attorney Stephanie Finley’s office on Wednesday.
School super Pat Cooper alleges Lafayette Parish School Board member Mark Allen Babineaux, an attorney, publicly disclosed the details of a closed-door executive session.
Sun Belt commissioner presents title and practice gets under way in preparation for Saturday
Kerry Bertrand’s charge was upgraded Tuesday by an Acadia Parish grand jury from manslaughter to second-degree murder for his alleged role in the drowning death of his stepdaughter, Skylar Credeur.
Sean Payton announced Wednesday that veteran Shayne Graham was New Orleans' new kicker, and that rookie Terron Armstead would get his first start at left tackle.
Should new parents be required by law to attend special classes before being permitted to raise their child? It’s an idea state Rep. Regina Barrow, D-Baton Rouge, is seriously considering.
The agenda for Wednesday’s meeting of the Lafayette Parish School Board tells it all: The board has lost sight of its elected purpose.
A public Mass will be held Thursday in New Orleans for artist George Rodrigue, who died Saturday of cancer at age 69.
Eight former employees of The Times-Picayune have sued the newspaper and parent Advance Publications Inc., alleging their layoffs violated a longstanding "job security pledge" and age discrimination laws.
Gov. Bobby Jindal's administration hasn't done an independent performance review of its $363 million privatization contract for mental health and addictive disorder treatment services.