Industry looking up, but threats remain
Industry looking up, but threats remain
January 10, 2010
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Twitter As we close the door on 2009, the new year is looking brighter for Louisiana's oil and gas community. After a year plagued with uncertainty and price instability, 2010 may prove to be a more promising year.
Here's the good and the bad. Oil and natural gas prices are steadily improving, climbing from the record declines of 2009. Oil at $35 and natural gas at $2.80 certainly does not work for the industry. With oil prices near $80 and natural gas climbing to $6, the industry's near future is looking more encouraging.
Drilling activity in South Louisiana crashed to record lows in 2009. However, with the recovery of oil and natural gas prices, the industry is gearing up for what looks like a significantly more productive year. In 2009, only five inland water drilling rigs were in operation in South Louisiana. Today, that number has more than doubled to 11. Additionally, South Louisiana land rigs were at a record low of nine in 2009. Today, that number stands at 12. The Gulf of Mexico rig count was down to a record low of 25, and today remains at 39. And of course, the "diamond in the rough" has been the sustained growth and activity of the Haynesville Shale in North Louisiana. Currently, rigs in operation in the Haynesville have reached a staggering 126. That's the good.
As we look toward 2010, there are three major obstacles that will make it more difficult for oil and gas companies to explore in the U.S.
First, Interior Secretary of Ken Salazar last week announced his new reform program for federal oil and gas leasing requiring more detailed environmental review, more public input and less use of streamlined leasing.
Secondly, on Dec. 7, President Barack Obama unveiled to the world that the U.S. Environmental Protection Agency will regulate greenhouse gases.
Finally, the Interstate Natural Gas Association of America estimates that nearly 300,000 natural gas wells will be drilled and completed using the technology of hydraulic fracturing by 2030. The oil and gas industry has utilized this technology for nearly 50 years without a single environmental incident. A liberal Democratic majority in Congress and an anti-oil-and-gas administration are pushing for the EPA to regulate hydraulic fracturing.
It's my hope that 2010 will be a brighter year. As prices become more stabilized, oil and gas companies in Louisiana are gearing up.
However, with the incessant tampering with private industry by the Obama administration and bureaucrats in Washington, our potentially brighter year could quickly darken.
Don Briggs is president of the Louisiana Oil and Gas Association and lives in Lafayette. He can be reached at don@loga.la.
Buck
January 10, 2010
Comments(0)Recommend
Print this page E-mail this article Share Del.icio.us Facebook Digg Reddit Newsvine Buzz up!
Twitter As we close the door on 2009, the new year is looking brighter for Louisiana's oil and gas community. After a year plagued with uncertainty and price instability, 2010 may prove to be a more promising year.
Here's the good and the bad. Oil and natural gas prices are steadily improving, climbing from the record declines of 2009. Oil at $35 and natural gas at $2.80 certainly does not work for the industry. With oil prices near $80 and natural gas climbing to $6, the industry's near future is looking more encouraging.
Drilling activity in South Louisiana crashed to record lows in 2009. However, with the recovery of oil and natural gas prices, the industry is gearing up for what looks like a significantly more productive year. In 2009, only five inland water drilling rigs were in operation in South Louisiana. Today, that number has more than doubled to 11. Additionally, South Louisiana land rigs were at a record low of nine in 2009. Today, that number stands at 12. The Gulf of Mexico rig count was down to a record low of 25, and today remains at 39. And of course, the "diamond in the rough" has been the sustained growth and activity of the Haynesville Shale in North Louisiana. Currently, rigs in operation in the Haynesville have reached a staggering 126. That's the good.
As we look toward 2010, there are three major obstacles that will make it more difficult for oil and gas companies to explore in the U.S.
First, Interior Secretary of Ken Salazar last week announced his new reform program for federal oil and gas leasing requiring more detailed environmental review, more public input and less use of streamlined leasing.
Secondly, on Dec. 7, President Barack Obama unveiled to the world that the U.S. Environmental Protection Agency will regulate greenhouse gases.
Finally, the Interstate Natural Gas Association of America estimates that nearly 300,000 natural gas wells will be drilled and completed using the technology of hydraulic fracturing by 2030. The oil and gas industry has utilized this technology for nearly 50 years without a single environmental incident. A liberal Democratic majority in Congress and an anti-oil-and-gas administration are pushing for the EPA to regulate hydraulic fracturing.
It's my hope that 2010 will be a brighter year. As prices become more stabilized, oil and gas companies in Louisiana are gearing up.
However, with the incessant tampering with private industry by the Obama administration and bureaucrats in Washington, our potentially brighter year could quickly darken.
Don Briggs is president of the Louisiana Oil and Gas Association and lives in Lafayette. He can be reached at don@loga.la.
Buck
Views: 38
Replies to This Discussion
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Permalink Reply by P.G. on -
Sounds like Obama and friends are looking for some payoffs (or part of the take) like they did with the drug companies. Maybe they should start calling those policies "Pay for Play" rules, huh?
Say, Didn't Al Capone (in Chicago) operate similarly? But of course that was illegal when he sent out his goons to collect, right?
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Permalink Reply by essay on
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/butts in
that whole Offut AFB threat thing was overblown in and of itself, but it was imminently believable due to the unfortunate use of strong-arm tactics that this administration is becoming so well known for.
/butts out
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Permalink Reply by candywoman1 on
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you must think bush and cheney are still in office.
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Permalink Reply by sesport on
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Whoa, PG, you're making me dizzy here. Back in the Pol group, you're advocating that this administration enact every safeguard possible to protect Americans from terrorists. Now, it seems, you DON'T want this administration to check to see if they should enact safeguards to protect Americans when it comes to drilling.
flip-flop, PG, flip-flop 80)
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Permalink Reply by P.G. on
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So there are no safeguards already unless Obama's gang gets some kind of cut?
Obama should be watching terrorists as much as he thinks he needs to watch private business. We probably WOULD be safer then, huh?
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Permalink Reply by sesport on
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You tell me, you're holding the torch to their feet for responsibility. 80)
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Permalink Reply by sesport on
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First, lethal, would you mind giving us a link to a reliable source, preferably primary, that details the threat made to Nelson? Last I knew, the BRAC decision was finalized in 2005, didn't think it could be changed.
That said, this was put out by IPAMS today, bipartisan efforts to communicate with Salazar re. his view on drilling. Of course, I'm sure PG will chime in that these politicians have been paid off to write these letters. And lethal can call it blackmail, extortion and high treason that the politicians tell someone their opinion in order to sway decisions.
http://ipams.org/wp-content/uploads/2009/05/News-Release-Bipartisan...
"The Independent Petroleum Association of Mountain States (IPAMS) today thanked several Western leaders for supporting American energy development and opposing the drastic and misguided changes announced by Interior Secretary Ken Salazar last week, and called on other western governors and members of Congress to follow suit. Political leaders from both parties have released statements criticizing Secretary Salazar’s announcement and standing in support of the jobs and economic activity generated by the responsible development of natural gas and oil on federal lands."
Primary sources in the form of the letters sent by the politicians are provided at the bottom of the IPAMS linked page.
80)
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Permalink Reply by essay on
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officially protested. this is exactly the kind of rhetoric i joined the site to counter.
if i had a guantlet, i would throw it. en garde, sir.
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Permalink Reply by essay on
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oh ok so for the purposes this discussion we're having rhetoric means whatever you want it to mean? i suggest you look it up and educate yourself.
the fact that this probably belongs in the political forum in no way excuses your language, but by all means keep responding.
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Permalink Reply by Scott on
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"I think it's time for a little regulation and so do most people with a brain" hahaha now thats funny.
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