oil industry

Oil and gas jobs in Louisiana have dropped to the lowest level in almost 10 years, according to the Louisiana Workforce Commission.

Eric Smith, Associate Director of the Tulane Energy Institute, says these jobs are some of the best in the state.

"It's a disproportionate effect," says Smith. "When you lose a job offshore, it's like losing two or three jobs onshore in manufacturing."

Thousands of oil and gas industry operators are filing through the Shreveport Convention Center for a trade show that is focused on serving the oil patch.

The Ark-La-Tex Oilfield Expo has 364 exhibitors packed into a 95,000 square-foot exhibit hall. The expo relocated from Longview this year due to growing demand.

The expo is put on by Longview-based Texas Classic Productions. Creative director Amy Double says the environment is ripe for business deals, especially at a time when operators are cutting costs.

Should Louisiana repeal its 20-year-old severance tax exemption for horizontal wells? LSU economist Jim Richardson believes the time for that particular economic incentive has passed.

“In 1994, nobody knew how to do horizontal drilling. Today, everybody knows how to do horizontal drilling,” Richardson says of the tax break implemented to encourage what was then a new technology.

Louisiana Mid-Continent Oil and Gas Association president Chris John says the severance tax exemption for fracking wells keeps Louisiana in the shale production game.

Jacinta Quesada/FEMA / Wikimedia Commons

This weekend, Louisiana workers joined the largest national oil refinery strike in over 30 years. 1,350 employees from the Motiva refineries in Convent and Norco, Louisiana, joined fellow members of the United Steelworkers union in asking the industry to change the current safety requirements. 

“Prices at the pump don’t seem to have a bottom yet.” Legislative Fiscal Analyst Greg Albrecht says while that’s good for consumers, it’s very bad for the state budget.

Louisiana’s budget gap for the fiscal year that starts July 1, 2015 has widened by $400-million due to declining oil royalties and severance taxes — directly attributable to the fall in oil prices.


Oil Companies Told To Stay United

Jan 30, 2015

The Louisiana Mid-Continent Oil and Gas Association has been told that oil companies need to stick together to survive.

Gregory Hill is president and chief operating officer of the Hess Corporation. He told the association’s annual meeting in New Orleans that there is now uncertainty in the short-term cycle.

The New Orleans Advocate reports Hill says the Obama Administration’s plan to possibly offer areas on the Atlantic Coast for drilling doesn’t go far enough.

Hill outlined a glut in the world oil market that’s driven prices down 60 percent in six months.

Copyright 2015 WWNO-FM. To see more, visit http://www.wwno.org.

Cheryl DalPozzal / It's New Orleans

Everybody likes to think they're important, but here in Louisiana we really are. Two sectors of our local economy are major components of the national, and global, economy: oil and gas, and renewable energy.

Outside of the oil companies who physically drill for oil, there is a huge industry of companies who do everything else — from building oil rigs to delivering groceries to the men and women who work on them.

One of the biggest offshore support companies in the world is headquartered here in New Orleans. Tidewater.

The continuing drop in the price of oil likely will require state government to change its spending plan for a second time to balance this year’s budget.

The New Orleans Advocate reports that for next year’s budget, which is being drafted now, the collapsing oil prices are adding to problems caused by a big shortfall in revenues.

Commissioner of Administration Kristy Nichols is warning that tough choices are pending.

The administration is chipping away at the size of next year’s budget hole, and decisions are still weeks away.

U.S. Coast Guard

Four people were airlifted to regional hospitals by the Coast Guard this morning after a supply ship fire, according to a statement released by Coast Guard Sector New Orleans.

The Coast Guard says they received a report of a vessel fire from the offshore supply ship Dustin Santos at approximately 7 a.m. Monday morning.

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