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.
The feds converge on your office, seizing records on several employees as part of a pay-for-plea investigation. WWYD? If you’re Mike Harson, you give yourself a $12k raise.
It’s football season and after back-to-back winless weekends for the Saints and the Cajuns many citizens are finding it difficult to be civil much less happy. Well, chew on this.
Considering his repeated stays in the local penal system, David Narcisse Jr. should have known that having a semiautomatic shotgun, even one given to him by a friend, wasn’t the brightest of ideas.
A state district judge on Tuesday threw out a last-minute retirement hike lawmakers gave to the state police superintendent, ending a political firestorm over a pension boost passed without public scrutiny on the last day of the legislative session.
The House has passed a bill to increase oversight of veterans' hospitals under construction, following a report that some medical centers take three years longer to complete than estimated and cost an extra $366 million per project.
Wednesday's Blogs from the Bog!
Ads promote moderation; Obama says Ebola security threat; Peterson on exempt list and more national and international news for Wednesday, September 17, 2014.
An obvious follow-up question for any Republican politician who accuses Democrats of being science deniers is one about science, to which Jindal bobbed and weaved like a welterweight champ.
The Lafayette City-Parish Council is expected to decide tonight (Tuesday) whether to go along with a proposal City-Parish President Joey Durel made in February’s State of the Parish Address and consolidate taxes for mosquito control and the parish health units into a broader tax program that would also cover animal control.
U.S. District Judge Richard Haik has dismissed Greg Davis’ lawsuit against the LPSB, yet in his ruling, the federal judge doesn’t bite his tongue in pointing out the "threat" being posed by certain board members.
Of all the political offices being contested throughout Lafayette Parish, the race for Broussard’s top police post has literally become one of the most heated.
A state district judge is deciding whether to issue an injunction against the enforcement of a last-minute retirement hike that lawmakers gave to the state police superintendent.
A new website is up for Louisiana's state government employees and retirees to choose their health insurance plans for next year, a choice they must make by October.
That fact that New Orleans led both games in the final 10 seconds of regulation, and lost each by a field goal or less, is of little solace.
The superintendent will make another go at getting a budget passed for the already commenced fiscal year as the LPSB is slated to meet tonight on the eve of the state’s budget adoption deadline.
A person familiar with the situation says New Orleans Saints running back Mark Ingram has a broken hand.
It seeks an investigation into a $100,000 fund transfer from Vitter's federal campaign account to an independent PAC supporting Vitter's 2015 candidacy for governor.
Landrieu has acknowledged that she improperly billed her Senate office for nearly $43,000 in charter costs that should have been paid from her campaign account.
House District 45 Rep. Joel Robideaux is term-limited and running for city-parish president next year, leaving his seat up for grabs come 2015 and at least three likely contenders so far, including ...
When the Browns explained their plans to Brian Hoyer about bringing rookie Johnny Manziel into the game, Cleveland's starting quarterback bit his lip and devised one of his own.
National debate over solitary confinement puts spotlight on Angola inmate’s 35 years in ‘the hole’
If you didn’t know Alison, Sheriff Mike Neustrom’s 42-year-old daughter who died Wednesday after battling cancer for a year, you missed out on something really special.
Asserting that the LPSB's taxpayer-funded report on the results of the superintendent investigation is a public record, TDA's executive editor takes the gloves off.
Tyson Dupuis accumulated three OWI arrests in less than 10 years, with his most recent resulting in the death of an 18-year-old Crowley woman in 2011, yet his punishment would only amount to a year in prison.
Hugh Freeze has firsthand knowledge of the Sun Belt Conference, having coached at Arkansas State in 2011 before moving on to Mississippi.