Photo source: LOGA Twitter
BATON ROUGE, LA — Senate Democratic Leader Chuck Schumer crowed victory against ‘Big Oil’ this morning after blocking funds that would have helped workers in Louisiana’s independent oil and gas industry and service sector. Including the funding for the Strategic Petroleum Reserve (SPR) in the coronavirus stimulus package would have created an additional $3 billion market for Louisiana producers to sell oil into. A previous draft of the bill contained $3 billion to refill the SPR. Current refinery demand is down and storage is shrinking, meaning the SPR purchases would have taken oil off the Gulf Coast system.
“Senator Schumer used these awful times to score a political victory by claiming to defeat a ‘$3 billion bailout for big oil,’” LOGA President Gifford Briggs said. “In reality, the independent producers and the thousands of small service companies that support their drilling operations are the workers and families Sen. Schumer truly defeated.
Louisiana oil producers are facing low prices, low demand and filling storages. Having the ability to store another 77 million barrels in the SPR was the lifeline that many needed to carry them forward over the next few months. The impact of this decision will be negatively felt in homes and communities across Louisiana.”
LOGA recently surveyed its membership and the revelations are dire. Should nothing change in the price markets, over the next 120 days 65% of Louisiana’s oil and gas workers could be laid off as independent businesses are forced to adjust to low energy prices.
President Trump based his directive to refill the SPR on the sound public policy of energy security at a bargain for taxpayers. “Based on the prices of oil, I’ve ... instructed the secretary of energy to purchase, at a very good price, large quantities of crude oil for storage in the U.S. Strategic Reserve. We’re going to fill it right up to the top.”
“The Louisiana Oil & Gas Association is grateful for Louisiana’s federal delegation for all the work they are doing to address the extraordinary headwinds the industry is facing,” said Briggs. “We remain hopeful that our delegation will be able to work with the President to purchase the oil necessary to ‘fill it right up to the top,’ and provide Louisiana’s independent oil and gas businesses and communities the support they so desperately need right now.”
About The Louisiana Oil & Gas Association
The Louisiana Oil & Gas Association was organized in 1992 to represent the Independent and service sectors of the oil and gas industry in Louisiana; this representation includes exploration, production and oilfield services. LOGA’s primary goal is to provide our industry with a working environment that will enhance the industry. LOGA services its membership by warding off tax increases, changing existing burdensome regulations, and educating the public and government of the importance of the oil and gas industry in the state of Louisiana. Find out more information at: http://www.loga.la
