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 Board of Elementary and Secondary Education has stalled action on a $3.5 billion annual school funding formula due to state lawmakers by March 15.
The New Orleans Saints have yet to make it official as of this writing, but popular wide receiver Lance Moore has reportedly been cut by the team to free up salary-cap space on the roster.
While two medical marijuana bills are slated for the upcoming legislative session, what some Louisianans might not know is that the plant was approved for therapeutic use by state lawmakers in 1991.
The agenda is shaping up to be lighter than in previous years. But Jindal is term-limited, with fewer than two years remaining in office, and he saw his last big initiative — a proposed rewrite of Louisiana tax law — collapse without getting a vote in 2013.
Sharper has been held without bail because of an arrest warrant issued by Louisiana authorities accusing him and another man of raping two women.
Here's your daily look at late-breaking national and international news, upcoming events and the stories that will be talked about Friday, March 07, 2014:
Two Lafayette men have been revealed by police as the infamous duo behind a caper that shook our fair city to its core.
The Lafayette Parish School Board has received a second letter of demand related to last year’s insurance debacle, this time from Key Benefit Administrators claiming it’s owed $93,000 from the school system.
The Louisiana coastline is vanishing faster than mappers can keep track.
A bill that would have overridden local ordinances prohibiting public and private employers from discriminating against lesbian, gay and transgender people has been pulled within less than a week of being filed.
The panel that selects nominees for a controversial New Orleans area flood control board — a board that is suing more than 90 oil, gas and pipeline companies — is set to discuss legislation affecting its independence.
State prison officials cannot keep secret the seller and manufacturer of the two drugs purchased for executions at the Louisiana State Penitentiary, a federal judge ruled Wednesday.
State lawmakers will not appeal a judge's ruling that it was improper to use $3.7 million from a probation and parole officers' retirement fund to balance the state's operating budget.
Conservatives have been losing their minds over this satirical bit on the Colbert Report.
The Lafayette Parish School Board leaves a lot to be desired, but is scrapping the election process in favor of an appointed board the answer?
The House approved legislation Tuesday night to roll back a recently enacted overhaul of the federal flood insurance program, after homeowners in flood-prone areas complained about sharp premium increases.
The NFL has formally designated New Orleans' Jimmy Graham as a tight end for the purposes of his franchise tag value, which is now set at $7.05 million next season unless Graham and the Saints subsequently agree on a long-term deal.
A federal appeals panel ruled Monday that businesses don't have to prove that they were directly harmed by BP's 2010 Gulf Of Mexico oil spill to collect settlement payments.
The Louisiana Department of Transportation and Development has closed Interstate 10 from I-49 in Lafayette to Seigen Lane in Baton Rouge.
Jim Bernhard, who engineered the sale of The Shaw Group for $3 billion, recently has told several people involved in Democratic politics that he intends to run for governor in 2015.
A New Orleans levee board wants to hold the oil and gas industry accountable for decades of damage to our state’s coastline, but the Legislature may be poised to put the kibosh on the suit.
New standards curb elective induction
CVS stops tobacco sales
If an Acadia Parish fiddler misses a note while swatting a fly, will a St. Martinville accordionist learn “Ma ‘Tite Fille”?
(It's good, it's bad and it's just crazy)