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.
Michael Sam focuses on making the team; Christians flee Mosul; Kerry at work in Middle East and more national and international news for Wednesdays, July 23, 2014.
Parents and teachers who support the Common Core education standards sued Gov. Bobby Jindal Tuesday over his actions against the multi-state standards, accusing him of illegally meddling in education policy.
An arrest was announced this morning in connection with last week’s bomb scare at UL Lafayette.
Attorneys, judges and others interviewed by LaPolitics expect 15 to 20 district judge races this year.
"I feel like I'm under siege," an attorney said recently over drinks at Galatoire's Bistro in Baton Rouge. "We all do. Every time I turn around somebody wants a check. District attorney races. The judges. They're killing us."
As a requirement for running for Congress in the 6th District, former Gov. Edwin Edwards has filed his financial disclosure statement with the U.S. House showing his income in 2013 totaling $242,787.
Unlike those swindled by Bernie Madoff, the victims of Texas businessman Robert Allen Stanford’s Ponzi scheme won’t be getting any relief from the Securities Investor Protection Corp.’s emergency fund after a recent appellate court ruling.
The legal challenge is part of a continuing struggle over Common Core, which has become controversial since the Board of Elementary and Secondary Education adopted the standards in 2010.
The lone Democrat to announce he's running for governor, state Rep. John Bel Edwards, criticized Republican Gov. Bobby Jindal's budgeting tactics as "running the state like a big Ponzi scheme."
State police have arrested a 42-year-old Kaplan man in the July 7 hit and run fatality crash that killed a bicyclist on Louisiana Highway 92 near Milton.
Republican U.S. Rep. Bill Cassidy has picked up support for his U.S. Senate campaign from a former GOP competitor.
Lisa Hargis Smith lived a mysterious life as seen with her death earlier this month and its impact on the community of those who knew her, whether as a star student in Lafayette High’s class of ‘69, or later as a woman struggling with homelessness and mental illness.
Attorney Valerie Gotch Garrett will announce on Tuesday that she plans to run for the Division E seat of the 15th Judicial District Court.
Back in 2012, three Baton Rouge attorneys came to the aid of several disgruntled police officers with a high-profile lawsuit against the Lafayette Police chief and a number of higher-ups in city-parish government, but in a federal courtroom Thursday, their claims of conspiracy coupled with a lack of evidence backfired and the case was dismissed.
Gov. Bobby Jindal's administration intends to rework how it pays the private managed care networks that provide health services to two-thirds of Louisiana's Medicaid patients.
Gov. Bobby Jindal's administration is raising health insurance rates and cutting benefits for state employees and retirees, to keep their insurance program solvent.
Local, state and federal law enforcement officials spent much of Thursday reviewing their reaction to this week’s bomb threat, which led to the closure and evacuation of UL Lafayette and Girard Park, and a massive search Wednesday for two alleged explosive devices.
"We're not in a better place from the policy perspective than we were two weeks ago," says Education Superintendent John White, commenting on Thursday's face-to-face meeting with Gov. Bobby Jindal to discuss their dispute over Common Core.
Gov. Bobby Jindal appears to remain unmoved by offers of a compromise on procuring testing materials tied to the Common Core based on a terse statement his office released following a meeting Thursday with Superintendent John White.
Wednesday's Senate vote on contraception legislation is the latest example of Democrats' win-by-losing strategy, which forces Republicans to vote on sensitive matters that might rile women this fall.
A benefit will be held tonight at Romacelli Bistro in Youngsville to raise money for the family of fallen cyclist Lon Lomas.
After weeks of public disagreement, Gov. Bobby Jindal and Education Superintendent John White are sitting down to talk about standardized testing for the upcoming school year.
Two members of the Lafayette Parish law enforcement community who also serve on the Lafayette Parish Communications District will not be allowed to apply for the paid position of director of the agency.
After determining that the two reported bomb-like devices at Girard Park and UL Lafayette this morning were non-explosive, authorities have lifted the barricades, and an investigation into who was responsible is now under way.
Anti-abortion advocates are getting “smarter” in their ongoing attack against Roe v. Wade, and in recent years have effectively been employing one of two new tactics, as witnessed in Louisiana during this year’s legislative session.