The Louisiana Independent Oil and Gas Association has created the "LIOGA Industry Relief Fund," which is intended to be used for housing, schools, roads and other immediate needs. More than $500,000 has been raised, and Don Briggs, LIOGA president, says it will increase substantially when a master plan is announced.
LIOGA's membership has a vested interest in getting locales like lower Plaquemines back up and running. "We have to get the area going again," Briggs says. "These are all our employees. If this shuts down, we're in big troubleâ?¦ Buras and Venice and some of those places down there were originally started by the oil industry."
And now it appears the industry may be the one to rebuild it as well. The companies that service oil activities along the eastern gulf shore of Louisiana in Plaquemines Parish, along with a group of gas gathering plants along the Mississippi River there, were either decimated or swamped by a storm surge when Hurricane Katrina made landfall in late August.
Where storage facilities once stood, nothing but concrete slabs remain. Storage tanks are completely submerged, save their domed tops. The levee system in southern Plaquemines is still lined for miles with debris ' chunks of wood, overturned boats, trailers, oil tanks.
It's a heart-wrenching sight for those who know the area well. Briggs recently joined state officials aboard an Air Force reconnaissance jet for a closer look at the devastation. "Oh my," Briggs said to himself, staring out of his window. "That's not good."
More than anything else, the trip strengthened his resolve to get the fund under way. The Venice area is a stronghold for oil and gas service companies, ranging from air transportation to general repairs. Until these businesses can get up and running, the return of the oil and gas industry will be daunting.
"Recovery will be a long and hard slope," Briggs says. "This base is so important to us."
Aside from commercial and recreational fishing, along with sporadic citrus farming, oil-related jobs keep Venice and the surrounding region along the mouth of the Mississippi River afloat, economists say.
Scott Angelle, secretary of the state Department of Natural Resources, says all eyes and ears are on this tiny community. More than 101 million barrels of gas originate from Plaquemines annually, resulting in a severance payoff of approximately $16.4 million for the state. "All of these services can be restaged, but we don't know how long it's going to take," Angelle says.
The price tag to rebuild is expected to be in hundreds of millions, and Briggs wants the LIOGA fund to help with everything from schools to homes, but the organization is still in the early stages of planning.
Briggs says a committee has been formed to oversee the process, and other organizational options are being explored. The Louisiana Association of Business and Industry, the state's largest corporate lobby that has the same nonprofit status as LIOGA, teamed with the Baton Rouge Area Foundation to oversee the fundraising and granting process for a similar fund the foundation is sponsoring.
Plans are also under way by LIOGA to fund infrastructure needs in the southwestern part of the state, indicating just how widespread the devastation has been for Louisiana.
As of last week, about 65 percent of daily oil production from the Gulf of Mexico was still closed off ' shrinking from 1.5 million barrels of oil daily to a little less than 1 million barrels. Additionally, more than 50 percent of gas production is down, the equivalent of more than 5 billion cubic feet per day.
While LIOGA is determined to do something about the communities impacted by these temporary shutdowns, there is nothing they can do about the high energy prices on the way.
"Your biggest reason for increased energy cost will be the simple fact that natural gas is shut in," Briggs says. "That's going to be major."
Briggs says several factors can also be pinpointed. He says a lack of alternative energy sources is not a problem in the face of increased heating bills, but rather a lack of alternative drilling sites. "We're being held up by not being able to drill in other areas, such as off the coast of California," he says. "If those bans were lifted, we could really make difference in this."
Another problem has been finding the appropriate equipment and compressors ' many of which have been in short supply ' to replace damaged units. Until these facilities can get back online, many in these little communities will be without jobs, Briggs says. "Right now, with the damage shared between gas processing plants and offshore structures, we're short about 100 compressors and it will take time to build all those compressors, and put them on," he adds. "But I expect they will come on in the same fashion as normal repairs will."
Repairs and damage are so widespread across coastal Louisiana that Briggs says it's hard to place a timeline on when all infrastructure will return to full capacity ' some segments may be fine in a matter of weeks, while other parts could take months or years.
"Different parts of it will be back up soon, while others will take longer," he says. "But our industry is one that will make it happen ' no matter what."
Jeremy Alford is a freelance journalist based in Baton Rouge. His work has appeared in The New York Times, Dallas Morning News and other publications. Reach him through his Web site at www.jeremyalford.com.
Local and state agents Thursday night raided The Keg, the popular college bar located in the area known as The Strip, leading to the (at least) temporary closure of the venue.
Here's your daily look at late-breaking national and international news, upcoming events and the stories that will be talked about Friday, April 18, 2014:
Friday's Blogs from the Bog!
Time and time again, the Lafayette Parish School Board shows an overwhelming tendency toward idiocy, but Wednesday night’s contentious discussion over Northside High School’s teen mother program tops the list of dumb discussions.
“The accomplishment of this goal within the next ten years is not only critical for the region to effectively compete with other regions for residents and businesses, but also to provide an amenity for everyone in Acadiana to enjoy.”
Education Superintendent John White says a continued push to try to keep Louisiana from using tests associated with the Common Core education standards are creating "a state of chaos" for public school teachers.
Gov. Bobby Jindal's plan to use $210 million in surplus and one-time money to help balance next year's budget received the backing Thursday of the State Bond Commission, support that was needed for the maneuver to work.
State wildlife and fisheries agents have arrested a 39-year-old man accused of stealing crawfish.
An East Feliciana Parish lawmaker has jettisoned his proposal to make it harder for a condemned prisoner to appeal a death sentence.
Senators advanced a proposal Wednesday that would let the governor remove New Orleans-area levee board members for violating what he considers to be public policy, despite concerns it would introduce political meddling into state flood protection.
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.
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.
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.
Acadian rep notifies would-be supporters that an April 25 fundraiser for the embattled U.S. rep won’t go on as planned.
While it isn’t all too unusual for public bodies to have hired security present during meetings, the LPSB’s push to do so is arguably a response to the antics of one board member.
“I’m running. Why would I be raising all this money? Just to have to return it to people?”
With incumbent U.S. Sen. Mary Landrieu watching from afar, and with a united Democratic Party in her corner, the fight to get the GOP officially behind Congressman Bill Cassidy is gaining just as much momentum as it is hushed controversy.
15th Judicial District Judge Durwood Conque has announced that he will not seek re-election after 27 years on the bench.
The controversial standardized tests are set to be used in third-grade through eighth-grade public school classrooms next year.
The Louisiana Senate has agreed to prohibit unmanned aircraft from flying over chemical plants, water treatment systems, telecommunications networks and other items considered "critical infrastructure" in Louisiana.
It didn’t take long for KATC TV 3 to jump all over the news of a dead body found in Girard Park, but in its rush to produce headlines, the local TV station got sloppy.
An unholy trinity of civil-society upheavalers whose first names are not Conner, Tanner or Logan are facing charges in Eunice.