Cajun Conservatism
U.S. District Judge Terry Doughty's ruling came in a lawsuit filed in March by Louisiana Republican Attorney General Jeff Landry and officials in 12 other states. Doughty said his ruling applies nationwide. It grants a preliminary injunction — technically a halt to the suspension pending further arguments on the merits of the case.
Read more: Federal judge blocks Biden's pause on new oil, gas leases
As we’ve covered before on Cajun Conservatism, Biden’s Oil Ban has cost our state a lot more than just an oil rig here and there. It’s killed jobs of real life Louisianans!
Now in a new video by the You First Campaign, this fact is perfectly highlighted. The video follows a man named Joe from Delaware, Louisiana. He may not be the most famous Joe from Delaware, but he MATTERS! It highlights how Joe Biden lied about being on the side of working class people and uses his own words to show how out of touch the Democratic President is. At one point, our narrator (Average Joe) describes having his air conditioner go out, his truck needing new tires, and not being able to do anything about it because “I just got laid off.”
These are the real consequences of Biden’s Oil Ban. He claimed to be on the side of the middle class but in a matter of weeks he killed countless middle class jobs..
Joe Biden's policies have left behind hard-working Americans like Average Joe and You First is demanding that the President answer for them!
"Newly elected District Attorney Don Landry has publicly agreed to take action that aligns with the current Police Jury’s decision regarding the lawsuits," the release says.
That issue will be discussed at a jury meeting tonight at 6 p.m. in the Vermilion Parish Courthouse, where the police jury usually meets.
The following was posted on the Facebook page of Attorney General Jeff Landry this afternoon:
⚡ BREAKING ⚡ TODAY, I ANNOUNCED I AM LEADING AN EFFORT OF MULTIPLE STATES TO SUE JOE BIDEN AND HIS ADMINISTRATION FOR STOPPING OIL AND GAS LEASES IN THE GULF. (Video link at bottom.)
The Biden Ban against energy directly impacts tens of thousands of hard working Louisianans, middle class jobs, and takes food of the tables of Louisiana families. Biden's actions are driving up the price Americans pay at the pump. And the Biden Ban harms our national security.
In the video below you will see several Louisiana leaders supporting this effort including:
President of the Louisiana Oil and Gas Association Mike Moncla,
Lori LeBlanc who is Vice President of LMOGA (the Louisiana Mid-Continent Oil and Gas Association) and Executive Director for the Gulf Economic Survival Team (GEST),
and Representative Blake Miguez, the Republican Leader of the Louisiana House.
We were joined by my Louisiana Solicitor General Liz Murrill.
The following states have joined my lawsuit filed this morning in the United States District Court for the Western District of Louisiana: Alabama, Alaska, Arkansas, Georgia, Mississippi, Missouri, Montana, Nebraska, Oklahoma, Texas, Utah, and West Virginia.
My official office video of the news conference below:
If U.S. President Joe Biden’s pause on new oil and natural gas leases in offshore waters becomes permanent, the effect on the U.S. Gulf of Mexico workforce would be considerable.
That’s what’s shown by the National Ocean Industries Association’s (NOIA) latest projections, which were prepared by Energy & Industrial Advisory Partners. According to these figures, which assume that no new lease sales would be held from 2022, Gulf of Mexico offshore oil and natural gas supported employment would decline by almost 200,000 jobs over the next two decades, compared to a base case figure.
Read more: How Many US GOM Jobs Could Go Under Biden?
By: Mike Moncla
LOGA Interim President’s Column
The last two weeks have put on display the things we take for granted.
The permitting moratorium, the revocation of the Keystone Pipeline, then the outright leasing ban show that the Biden Administration does not fully grasp the critical, complex role oil and natural gas play in every moment of our day to day lives.
Let’s start with the most obvious facet of life these bans jeopardize: energy security. Our attitude in America has been that energy for our homes, cars, and businesses is a right and a given. All we have to do is pull up to the pump or turn on the light switch. But the ban means a nearly 50% drop in offshore Gulf of Mexico oil production, and a 68% drop in Gulf production of natural gas.
When America makes less of that product, but still has the same demand for that product, where will we have to go for it? We will have to import oil and natural gas from other nations. That’s why the ban was quickly dubbed an “import more oil policy.” Just under a year ago, another major player in the global energy market decided to turn on the spigot and over supply the market. If Saudi Arabia, or Russia, or Iran set their sights on tanking the American family, they can. All they have to do is decide not to sell to America - or sell at a premium and wring out the ole’ USA pocketbook, just so we can fill our cars up. This is the complicated topic of energy security - and a ban makes us less secure on the global stage.
And let’s not forget that these executive actions have been taken under the guise of protecting the environment. So I’ll remind our President that America has the most stringent environmental standards in the world, and in our state, revenues generated offshore go directly to Louisiana’s coast through the GOMESA (Gulf of Mexico Energy Security Act) program. In 2020, funds from offshore royalties came into Louisiana’s coffers to the tune of $155,718,470.00. Those coastal restoration dollars are now completely at risk. Let’s not forget either that the single most generous industry to coastal resilience and restoration is the oil and gas industry.
Finally, the complex, robust economy from oil and natural gas provides hundreds of thousands of jobs, support for critical community and public services, and the affordable, reliable products we rely on every moment in our day to day lives. By 2022, a ban could translate into then loss of nearly 48,000 jobs - in Louisiana alone! It’s clear to see that the loss of our industry means harm to our state’s families.
At the Louisiana Oil & Gas Association, I see that real impact every day just talking to my members. One pipe fabrication business recently told me “no new projects, no need for piping products.” Others have cited being immediately forced to do layoffs, and others simply have no demand for their services. We are watching the guillotine being readied for our already greatly battered economy.
I’m asking the Governor to stand up for our state, just as the governor in our Lone Star neighbor just did. Find every way to support our vital industry and stop these executive actions from harming our great state of Louisiana.
Mike Moncla
Louisiana Oil & Gas Association
Constitutional Amendment 2 would bring fairness, predictability to oil and gas well assessment process
BATON ROUGE, LA (October 5, 2020) — A ‘yes' on Constitutional Amendment 2 would bring fairness and accuracy to the assessment process for Louisiana’s oil and gas wells, assessor and industry representatives agree.
Although there are three ways to assess property, (those methods are the ‘cost,’ ‘market’ and ‘income’ methods) the state constitution only includes the use of two for oil and gas wells in Louisiana. CA-2 would include the income approach as the third methodology to value oil and gas wells for property assessment. The income approach values wells based on their ability to produce revenue.
Constitutional Amendment 2:
CA-2 received bipartisan, unanimous support in the legislature as HB 360.
CA-2 would result in more accurate assessments of oil and gas wells, while also allowing better predictability of tax revenue.
CA-2 is supported by assessors and the oil and natural gas industry.
CA-2 would make the income approach available to the Louisiana Tax Commission. It does not mandate its use.
CA-2 would only affect the valuation of oil and gas wells, and will not change the assessment of other types of property.
An amendment is necessary because of the restrictive language in the state constitution prohibiting the use of all three valuation methods for the assessment of oil and gas wells.
“Amendment No. 2 is the result of a joint effort of the Assessors and the oil and gas industry, and it is supported by both,” said Belinda Hazel, Plaquemines Parish Assessor and Louisiana Assessors Association Chair of the Oil and Gas Committee. “The passage of Amendment No. 2 is necessary to achieve our unified goal, which is the fair and accurate assessment of oil and gas wells.”
“This income approach is the same method used when wells are valued for sale on the open market,” said Daron Fredrickson, LOGA Tax Committee Chairman. “It’s common sense that this valuation method should be available for property assessment purposes as well.”
“The oil and natural gas industry is the backbone of Louisiana’s economy providing jobs and economic benefits throughout our state,” said Tyler Gray, Chair of the Louisiana Taxpayer Protection PAC. “Fair and competitive tax policies at the state level are critical to the economic health of our state.”
“This amendment brings a fairness to the assessment process for the oil and gas industry, 90% of which consists of small businesses,” said Mike Moncla, Interim President for the Louisiana Oil & Gas Association. “When independent operators can reliably predict their costs, they can allocate more to supporting and expanding their workforce. Fairness and predicability lead to more investment.”
“When this amendment was a bill, HB 360 breezed through the House committee, it breezed through the House floor, it breezed through the Senate committee, and it breezed through the Senate floor," Representative Mike Huval said. "It was just a matter of educating all my colleagues in the legislature that all parties affected, both in industry and at the assessors association, agreed that this was a fairer way going forward to assess the value of a producing oil and gas well."
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.
About the Louisiana Assessors Association
The Louisiana Assessors' Association is composed of sixty-four assessors, one from each parish. The office of assessor is an elected position as provided by the constitution of Louisiana. Each parish assessor is elected at the gubernatorial election for a four-year term of office.
Each assessor is mandated by Article VII, Section 18 of the Constitution of Louisiana to determine the fair market value of all property subject to taxation within his respective parish or district except those public service properties which are valued by the Louisiana Tax Commission. The correctness of assessments by the assessor is subject to review by each parish governing authority, then by the Louisiana Tax Commission, and finally by the respective courts.
About the Louisiana Taxpayer Protection PAC
The Louisiana Taxpayer Protection PAC supports fair, common sense tax policies that keep Louisiana’s economy competitive and protects thousands of good paying jobs.
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BATON ROUGE, LA (August 31, 2020) — The Louisiana Oil & Gas Association today announced that Gifford Briggs, who has been with the association since 2007, will depart on September 11. Mike Moncla has been named as Interim President. The Association will continue its advocacy efforts on behalf of Louisiana’s oil and gas industry uninterrupted.
Briggs, the Association’s President, is leaving to become the Gulf Coast Region Director for the American Petroleum Institute.
“Gifford has been instrumental in elevating LOGA to the level of recognition it receives today. We have benefitted from his skills, talents, and leadership abilities for the last thirteen years,” said Jim Justiss, LOGA’s Chairman. “Those same skills, talents, and abilities have not gone unrecognized by others in industry and government. We will miss our friend dearly, but congratulate him and his family on this wonderful opportunity.”
Briggs has been the voice and face of the Louisiana oil and gas industry, working on behalf of the Association’s members to advocate for legislation to bring the state’s legal, regulatory, and tax environment in line with other states.
Mike Moncla is the VP of Marketing at DrilTech, LLC and a partner at Moncla Workover & Drilling. “Mike is a leader in the oil and gas industry and the community,” said Justiss. “He has served on LOGA’s Board of Directors for over a decade and on the LOGA Executive Committee for the past three years. We appreciate the expanded leadership role he is taking on in addition to his current responsibilities in Lafayette and look forward to working closely with him while we determine the next steps for the Association.”
Kati Hyer, serving with LOGA since January of 2019, has been promoted to the Association’s Vice President of Communications.
“Kati has demonstrated that she is ready for an expanded role within the organization and we are looking forward to seeing all that she can do,” said Justiss. “She will be working closely with the Interim President and the Executive Committee to ensure that the voice of the independents is heard across Louisiana.”
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. Find out more information at http://www.loga.la
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In the past few months, like all of us, our state’s businesses have been forced to confront the uncertainties of a pandemic and a public health emergency, as well as an unprecedented economic crisis. It’s abundantly clear that we’re facing an enormous challenge, if you look at the data, you see that Louisiana’s unemployment is at the highest since the Great Depression, with massive retractions in the hospitality and oil & gas industries, two of the largest sectors of our state’s economy.
It is also clear that if we don’t also break down the persistent barriers to business growth, our state’s economy will not fully recover. We have to embrace new ideas and solutions to get Louisiana working again. We’ve heard talk from some politicians that all the Legislature needs to do is pass a budget and go home. They couldn’t be more wrong. Simply doing the bare minimum is not enough.
Read more: LOUISIANA NEEDS LEGAL REFORM
Two businesses near Lafayette, one in Houma and another in Kenner filed for bankruptcy, all of which appear to be oil and gas services companies. Dozens more Louisiana businesses are owed money by the companies filing for bankruptcy, records show.
In recent weeks, the Louisiana Oil and Gas Association has said about half its 460 member companies have told the organization that bankruptcy was on the table as an option to survive the economic downturn.
Read more: Several Louisiana oil and gas companies file for bankruptcy amid coronavirus, low crude oil prices
BATON ROUGE, LA (May 18, 2020) — Today, Monday May 18th, Senate Bill 359, which seeks to streamline the coastal lawsuits, was referred from the Senate Floor where it was pending final passage, back to the Senate Committee on Finance. Gifford Briggs, president of Louisiana Oil and Gas Association (LOGA) and Tyler Gray, president of Louisiana Mid-Continent Oil and Gas Association (LMOGA) made the following joint statement in response to the bill’s referral to Senate Finance:
“On more than one occasion, the Secretary or Department of Natural Resources has indicated he has all of the necessary resources to enforce the coastal program. Further, the Attorney General of Louisiana has indicated there is no anticipated fiscal impact to his department.”
“Nonetheless, the legislative fiscal office is referencing public testimony without consideration for current law providing for contingency and fee shifting arrangements as reason for the move. LMOGA and LOGA look forward to a swift hearing in Senate Finance, and a vote on the Senate floor to move this bill to the House this week.”
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About LMOGA
Louisiana Mid-Continent Oil and Gas Association, founded in 1923, is a trade association exclusively representing all sectors of the oil and gas industry operating in Louisiana and the Gulf of Mexico. LMOGA serves exploration and production, refining, transportation, marketing and mid-stream companies as well as other firms in the fields of law, engineering, environment, financing and government relations.
About LOGA
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. Find out more information at: http://www.loga.la
BATON ROUGE, LA (May 4, 2020) — The economic consequences of the global COVID-19 pandemic, the oil glut generated by the Saudis and Russians, and the lack of storage are being felt at a much quicker pace than previously projected, gravely threatening Louisiana’s energy sector.
The second in a series of “point-in-time” surveys shows that nearly a quarter of the state’s oil related workforce has potentially already been laid off, and four in every five Exploration and Production (E&P) companies has already begun shutting in wells.
“Our members have indicated they’ve already been forced to lay off 23% of their workforce and the large majority are now taking steps to shut-in production,” Louisiana Oil & Gas Association President Gifford Briggs said. “We feared these outcomes would take place by mid-to-late May, but the crushing weight of the crisis is taking hold much quicker than expected. Without a doubt, we need federal and state policymakers to take immediate action to help mitigate further losses from these extreme market conditions.”
Louisiana’s severance tax rate is the highest in the country at 12.5%, nearly four times the neighboring Texas 4.6% rate. “We’re worried about taxes and other costs that are not going down that we still have to pay as prices have cratered,” the head of one Louisiana energy company shared.
Oil prices closed most recently on the West Texas Intermediate at $18.84, a menacingly low amount. Louisiana’s independent producers require an average of $37.00 a barrel to break even.
Further, more than half of company leaders indicated that bankruptcy or closures are likely. “We have been forced to cut salaries between 6% and 20% for our employees,” one member shared. “I as the owner have cut my salary to zero.”
According to the Louisiana Workforce Commission and the Department of Natural Resources, the oil and gas industry employs approximately 33,900 workers operating around 33,650 oil and gas wells around the state.
Those tens of thousands of jobs bring Louisiana families $3.2 billion in wages. According to the survey results, 23% have already reportedly had to be laid off.
State tax revenue will also suffer drastically from the sharp decline in oil prices and staggering job losses across the state.
This survey from LOGA’s members, which comprises 450 exploration and production and service companies across Louisiana, is below.
LOGA Survey Results
Members have been forced to reduce 23% of their Louisiana workforce already
77.5% of operators have already begun taking steps to shut-in production
97% are moderately or extremely concerned about the future of the industry
51.35% said bankruptcy likely
34% applied for EIDL funds, of those only 25% received the funds they expected
Of those who received funds, 46.67 indicted they were not enough to help them stay in business
Of those who received funds, 72% indicated they were not enough to avoid layoffs
“We’re one of the largest employers in Louisiana with the highest average wages. Just imagine what shut-ins and company closures mean for individuals and communities. These are real dollars and their lack is going to be felt all across the state,” Briggs added.
“Of the things we can control, we must take bold action to enact immediate changes,” Briggs said. “We are looking forward to working with the legislature and the administration to figure out how to keep wells flowing and keep people employed as long as possible.”
Emergency Measures to Help the Louisiana Oil & Gas Industry Survive
Reduce state severance taxes for a period of one year while protecting resources for local governments via passing HB 506
Support the passage of SB 359 and take appropriate steps to address the government-led coastal lawsuits
Identify any opportunities at the federal and state level to expedite additional storage capacity
One member summed up the widespread feeling of dejection in the oil patch. “If we are truly an essential industry, we sure don't feel like it 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. Find out more information at: http://www.loga.la
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BATON ROUGE, LA (April 20, 2020) —
On Monday, West Texas Intermediate futures (WTI) traded below $11 a barrel for the first time since 1986, reaching as low as $10.63 early Monday morning, indicating a drop in price of over 80% since the beginning of the year. WTI has not traded in single digits since December of 1973. However, when adjusted for inflation, this is the lowest price that oil has traded in U.S. history. (https://www.macrotrends.net/1369/crude-oil-price-history-chart)
“The crisis facing the industry is impossible to overstate,” Louisiana Oil & Gas Association President Gifford Briggs said. “The global demand destruction of oil, caused by the worldwide shutdown of the economy, has sent prices to the lowest in history when adjusted for inflation. There is no magic pill that will save the thousands of jobs that will be lost, but we can immediately take steps to limit the losses.”
“President Donald Trump has outlined a clear plan to get the economy moving again. It is time that Louisiana, Texas and other states work with President Trump to implement his plan as soon as possible, and lean on countries around the world to do the same. Until demand rebounds, if industry is going to survive we will need severance tax relief, royalty relief, and an end to the government sponsored coastal lawsuits. State leaders must take comprehensive action immediately or we will lose an entire industry, and the jobs, wages, families and communities that are sustained by it.”
“Many of our members are being told they cannot deliver crude in May due to storage constraints, and as a result have begun planning to shut in 100% of their Louisiana production,” Briggs added. “It’s an absolute worst case scenario, a perfect storm.”
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. Find out more information at: http://www.loga.la
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BATON ROUGE, LA (April 13, 2020) — Louisiana Oil & Gas Association President Gifford Briggs issued the following statement today in response to the announcement of a new deal between members of the Organization of the Petroleum Exporting Countries and other major producers like Russia, known as OPEC+, to reduce global oil production by just under 10 million barrels a day beginning next month.
“The OPEC+ deal may eventually help move the needle in the right direction, but the cuts announced Sunday fall far short of the meaningful measures that Louisiana’s independent oil and gas producers need to survive,” Briggs said.
“Our industry is on the verge of collapsing. This is a time for bold, decisive action, not small steps in the right direction. With tens of thousands of jobs and millions of dollars in tax revenue at risk, it is essential for policymakers at all levels of government to implement aggressive and immediate solutions to offset the expectation of prolonged shut-in wells, a massively oversupplied world oil market and the global shutdown of our economy.”
“At the federal level, we urge members of Congress to support a temporary elimination of offshore royalties in the Gulf of Mexico to prevent thousands of leases from being shut in,” Briggs said.
“At the state level, we urge Louisiana lawmakers to provide immediate severance tax relief and support legislation to address the government sponsored coastal lawsuits. These important steps will let Louisiana energy companies stay in business, so they can keep people working and keep wells flowing.”
The plan by OPEC+ will slash 9.7 million barrels a day, or close to 10 percent of the world’s output, in May or June. The market responded to the news of a deal last Thursday with a drop in the futures price for West Texas Intermedia (WTI), signaling a belief that the cuts were not deep enough.
Global oil storage capacity is quickly becoming a threat, with many experts predicting that storage will dry up completely sometime in May. This threat has already become widespread reality in Louisiana where producers are being crippled by below-$10/bbl agreements and limited production sales for May crude deliveries.
“The futures market is not a true representation of what is happening on the ground here in Louisiana. Companies simply cannot survive when they cannot sell the oil they produce, and what they do sell at such a low price. We need help!”
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. Find out more information at http://www.loga.la
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BATON ROUGE, LA (April 7, 2020) — The global pandemic caused by COVID-19 and the oil glut generated by the Saudis and Russians have created a perfect storm, undermining any chance of a rapid recovery for the American energy sector. But a new survey conducted by the Louisiana Oil and Gas Association (LOGA) reveals the back-to-back knock out punches could prove to be potentially fatal for many independent energy producers and service companies and the thousands of workers they employ across the state.
In an effort to begin assessing and quantifying the severe economic impact, LOGA concluded the first in a series of “point-in-time” surveys of its membership last week, which comprises 450 companies across Louisiana. The results are sobering.
The survey shows that without some kind of emergency relief, energy producers may be forced to shut-in more than half of the wells they currently operate in Louisiana and potentially reduce their workforce by as much as 70 percent over the next 90 days.
Some company leaders indicated they are also contemplating bankruptcy. “We’re doing everything we can to keep the doors open,” the head of an independent producer shared. “If this persists without any assistance, we’re going to see massive amounts of job losses in our sector.”
According to the Department of Natural Resources, there are 33,650 oil and gas wells currently operating in the state. As many as 16,800 of those could be shut in according to survey respondents.
The operation of these wells directly employs approximately 33,900 workers according to the Louisiana Workforce Commission’s most recent quarterly report. Based on survey projections, more than 23,000 jobs, which generate $2.2 billion dollars in earnings annually, are at immediate risk.
“Our members are doing everything they can to keep their doors open and protect their workers, whose livelihoods are at risk,” Gifford Briggs, President of the Louisiana Oil & Gas Association said. “But if prices don’t recover above $40/bbl by June first, my members have told me it’s going to be devastating. We cannot do this alone."
State tax revenue will also suffer drastically from the sharp decline in oil prices and staggering job losses across the state.
Emergency Measures to Help the Louisiana Oil & Gas Industry Survive
Suspend state severance tax collections for a period of one year while protecting vital resources for local governments
Support the passage of SB 359 and take appropriate steps to bring an end to the government-led coastal lawsuits
Ease regulatory burdens at the Office of Conservation and lease requirements on state lands
Identify any opportunities at the federal and state level to expedite additional storage capacity
“Our industry is facing the same challenges that every business is in regards to COVID-19,” Briggs said. "However, we are also having to adjust to the complete collapse of the prices of the products we sell, full storage facilities and a geopolitical war being waged against us,” Briggs said. "Without bold and immediate action from the federal and state governments, many independent energy producers and service companies may not survive this crisis. We need Governor John Bel Edwards, our U.S. Congressional delegation and our state legislature to continue to take action to help protect our workers and the survival of our industry."
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. Find out more information at: http://www.loga.la
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BATON ROUGE, LA — Today, the U.S. Department of Energy announced a solicitation to immediately make storage space for 30 million barrels of crude available to struggling oil producers after Congress blocked funding a direct purchase into the SPR last weekend.
“Louisiana’s oil producers praise the President, his administration, and Louisiana’s federal delegation for taking swift, decisive action to help support the nation’s energy producers with the SPR’s exchange for storage,” Gifford Briggs, Louisiana Oil & Gas Association President said. “The oil and gas industry is the backbone of Louisiana’s economy and the foundation for many communities who have found themselves reeling in the wake of both COVID-19 and the Russian-Saudi oil price war. This market-based solution creates a win-win scenario by opening up badly needed storage for producers and filling up the SPR for citizens when American energy security is needed most."
The full Department of Energy release and RFP pdf can be found on LOGA’s website here:
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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 creating incentives for Louisiana’s oil & gas industry, 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
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
BATON ROUGE, LA (March 19, 2020) — For the first time in nearly two decades, oil is trading below $21 per barrel. While the country is dealing with the coronavirus pandemic, the oil and gas industry is facing the additional challenge of plummeting energy prices. West Texas Intermediate (WTI) traded as low as $20.80/BBL yesterday.
“The oil and gas industry is facing a perfect storm,” said Gifford Briggs, President of the Louisiana Oil & Gas Association. “While the COVID-19 pandemic has paralyzed the country and rapidly reduced the demand for energy, Russia and OPEC are ramping up production. This combination of unprecedented events has led many experts to predict that oil prices will remain below $35/BBL for the foreseeable future. These are serious times.”
“Our hearts and prayers are with all of the communities and businesses who are struggling to survive in the midst of this public health and economic crisis. The Louisiana Oil & Gas Association is working with local, state and federal leaders to do everything possible to support and protect the families and hardworking men and women in the oil and gas industry.”
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Gifford Briggs,
President, Louisiana Oil & Gas Association
February 24, 2020
The Roaring 20’s were a time of unprecedented economic prosperity in America. A century has since passed. Can Louisiana and its oil and gas industry experience roaring economic prosperity once more?
Let’s take a look. One hundred years later, our nation’s economy is booming. Unemployment is at record lows, the stock market is at record highs, and it seems that everywhere you look, President Trump’s business acumen has acted like a shot of adrenaline for America.
Energy producers are no exception. Reforms of rules and regulations that had previously hindered industry growth have expanded offshore drilling, streamlined the pipeline permitting process, and made the United States an oil and gas powerhouse once again.
Is that federal leadership enough to usher in a roaring 20’s decade for our state?
Considering our natural blessings, we are well-positioned for prosperity. Louisiana’s trifecta of oil and gas assets are a case in point. First is Louisiana’s natural gas giant: The Haynesville Shale. Recently Louisiana’s northwest formation had the second-highest new-well gas production per rig in the nation. Our abundant resources don’t stop there - we are also home to assets in the Gulf of Mexico and vast resources ready to be tapped in South Louisiana.
Secondly, the Bayou State has a strong and expansive pipeline infrastructure. Pipelines are the safest, most secure way to transport product across vast distances. New York is now facing pricing, employment, and development woes simply because they do not have the pipeline capacity or willingness to move resources.
Finally, our LNG export capacity is a strength unique to our state: instead of simply refining natural gas, we now liquefy and export it all over the globe. LSU’s Center for Energy Studies estimates that Louisiana’s LNG projects could total nearly $100 billion in capital investment, potentially ushering in 20,000 construction jobs and 1,500 full-time jobs at Louisiana terminals once completed.
These three key assets have positioned Louisiana to play a defining role in the United States’ move toward permanent energy independence in the global market, but considering our current realities more must be done on a state level by Louisiana leadership to enable our oil and gas industry to succeed.
South Louisiana energy activity continues to lag behind energy-producing regions all over the country. Our toxic legal environment and tax structure have crippled investment, taking Louisiana families away from the state in droves. It is time we bring them back.
But how?
We can learn from other oil and gas producing states. Our Lone Star neighbor has undertaken strategic, long term measures to fix its’ legal and regulatory framework, and they now boast a simpler tax environment. As a result, they have experienced steady investment both inside and outside of the oil and gas industry, and families all over the nation are becoming newly adopted Texans.
Perhaps we are learning from our prospering neighbors and will experience that decade of strong Louisiana growth. In the gall of 2019, Louisiana voters sent a strong message to the capitol that we want bold action for a better Louisiana. It’s time for change.
This newly elected body of legislators has the momentum and vision necessary to tackle substantive reforms. They have the potential to put an end to the rampant lawsuit abuse that has put a moratorium on oil and gas investment and turned Louisiana communities into ghost towns. They have the potential to transform our tax structure, making it fairer, more competitive, and attractive to outside businesses. They have the potential to get Louisiana’s oil and gas industry roaring again.
LOGA sees great opportunities arising and is optimistic about what is possible in the coming year. From the 4th floor to the House and Senate floors, we are looking forward to working with everyone to create the nation’s leading oil and gas industry and ushering in Louisiana’s very own roaring 2020s.
Grow Louisiana Coalition points out the contributions to Louisiana’s coast from the oil and gas industry
