State has lost 23% of its oil and gas jobs in less than two years - GoHaynesvilleShale.com2024-03-28T15:21:14Zhttps://gohaynesvilleshale.com/forum/topics/home-to-4-605-orphan-oil-and-gas-wells-louisiana-seeks-federal?commentId=2117179%3AComment%3A4009643&feed=yes&xn_auth=noLOL! Yes George, we resemble…tag:gohaynesvilleshale.com,2022-01-14:2117179:Comment:40095482022-01-14T17:55:50.349ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>LOL! Yes George, we resemble that remark. In this case, I would hope that acknowledging the fact that we are fast running out of oil would lead to looking at how to sustain the state natural gas production. The future of LA O&G is natural gas, not oil.</p>
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<p>LOL! Yes George, we resemble that remark. In this case, I would hope that acknowledging the fact that we are fast running out of oil would lead to looking at how to sustain the state natural gas production. The future of LA O&G is natural gas, not oil.</p>
<p></p> Thanks Skip. Historically, L…tag:gohaynesvilleshale.com,2022-01-14:2117179:Comment:40096432022-01-14T17:48:06.086ZGeorge Willeyhttps://gohaynesvilleshale.com/profile/GeorgeWilley
<p>Thanks Skip. Historically, Louisiana has been slow to adjust.</p>
<p>Thanks Skip. Historically, Louisiana has been slow to adjust.</p> I’ve changed the title of thi…tag:gohaynesvilleshale.com,2022-01-14:2117179:Comment:40096302022-01-14T01:02:49.968ZSkip Peel - Mineral Consultanthttps://gohaynesvilleshale.com/profile/ilandman
<p>I’ve changed the title of this discussion owing to my desire to accentuate the loss of state O&G jobs. State oil production, not federal Gulf of Mexico production, has been in decline for twenty-five years. At the current annualized rate of decline, Louisiana onshore and shallow water state Gulf of Mexico production will reach theoretical zero in nine years.</p>
<p>The twenty-five years of declining production is associated with the decline in companies reporting oil production volumes…</p>
<p>I’ve changed the title of this discussion owing to my desire to accentuate the loss of state O&G jobs. State oil production, not federal Gulf of Mexico production, has been in decline for twenty-five years. At the current annualized rate of decline, Louisiana onshore and shallow water state Gulf of Mexico production will reach theoretical zero in nine years.</p>
<p>The twenty-five years of declining production is associated with the decline in companies reporting oil production volumes to the state. In 2020 872 companies reported oil volumes to the state, down from 1713 in 1995. However, a closer look at the reports of those companies reveals something that is critical but flies under the radar of public perception and goes unacknowledged by politicians and unreported by the media.</p>
<p>Of those 872 companies reporting 2020 oil production to the state, 14 reported negative volumes. 178 reported a volume of zero. 175 reported annual production of less than 1000 barrels. And 292 reported production of less than 10,000 barrels. That leaves 228 companies with reported production greater than 10,000 barrels or about $500,000 or greater in net revenue for 2020. This is the reason for declining Louisiana O&G jobs, not the price of a barrel of crude or regulations. Without a surprise discovery of an economic unconventional oil play of significant size, geology is destiny and the oil portion of Louisiana’s O&G industry will effectively be history by the next decade.</p>
<p>Not only should our elected leaders be planning how to ease the end of Louisiana oil and the associated jobs that will be lost, they should be actively engaged in discussions on how to protect and incentivize the state natural gas portion of the industry which, managed with rational regulatory measures, should be economic for another forty years.</p>