Posts filed under Oil and Gas

Louisiana AG on What to Do to Lower Gas Prices

Photo source: KPEL

When you put this bit in the ground here in America, you reduce the cost of energy, you make us more secure, you build a bigger, stronger, better middle class, and you take the burden off of the poor. So, why don't you help us lower the gasoline prices and utilities by allowing Americans and Louisianians to use this tool more often.

Read More: AG Jeff Landry Points Out the One Item That Will Lower Gas Prices|

Posted on March 17, 2022 and filed under Oil and Gas.

HIGGINS: FIGHTING FOR AMERICAN ENERGY PRODUCTION

In an email sent to constituents today, Congressman Clay Higgins had the following to say regarding rising oil prices and need for domestic oil production.

Domestic energy costs have been steadily increasing since Biden took office in January 2021. This is a direct result of anti-American energy policies coming from the Biden White House. Rising energy and fuel costs are hurting American families. I and many of my colleagues on the House Energy Action Team (HEAT) have called on President Biden to end his war on America's oil and gas industry. We outlined a number of necessary actions including: approving the permit for Keystone XL, lifting the leasing moratorium on federal lands and waters, fast-tracking new LNG permits, and ending the regulatory assault on domestic oil and gas production. Read our letter here.

I also fully support an import ban on Russian energy products. Every purchase of Russian energy product provides financial support for Putin's barbaric war on Ukraine. The U.S. House of Representatives considered legislation this week on the issue. However, it was far too weak. The bill would allow Russian oil and gas imports to continue for another 45 days, and it doesn't include any provisions to support American energy production. We need swift, immediate action to hold Russia accountable and reestablish American energy independence. Read more about the vote here.


Posted on March 11, 2022 and filed under Clay Higgins, Louisiana, Oil and Gas.

9,000 Ways to Stop American Oil & Gas

Responding to the White House Blame Game

  • The White House is spinning hard to shift blame for high gasoline prices onto the industry

  • The repetition of 9,000 unused federal leases/permits is out of context

  • There are myriad obstacles the administration puts in the way of American producers that have served to favor Russia

  • Please let me know if you’re experiencing others.

On March 3rd, White House Press Secretary Jen Psaki, in response to a question about increasing domestic oil production, attempted to shift blame to oil companies by citing “9,000 approved oil leases that the oil companies are not tapping into currently.” In subsequent press conferences, she adjusted that to 9,000 permits and went on a Twitter storm to shift blame.

While we may not appreciate the cynical attempt to deny the effects of the president’s own “no federal oil” policies, we appreciate the White House is suddenly messaging to “encourage” us to produce. When my tweet was picked up by a Fox News White House correspondent, it garnered more attention than usual, leading environmental groups to jump in and pound on the 9,000 approved APDs outstanding.

As federal oil and natural gas is a highly complex system and with only 280 characters available in Twitter, I chose a longer format, our Source Rock blog, to provide some insight into the numbers and the “myriad other delays the administration puts in the way of American producers.” Thanks to the behind-the-scenes work of Aaron Johnson, our VP of Public Affairs, the Wall Street Journal editors caught wind of the information.

Here’s a look at the 9,000 numbers. I hope you find it useful for explaining the issue to friends and family who may ask. If I’m missing anything you’re seeing or I’ve misstated the issues, please let me know. These points are being circulated widely, so I want to get them correct.

By the Numbers

First the 9,000 leases. There are about 37,496 leases in effect. Assuming Jenn Psaki’s number on nonproducing leases is correct (FY 2021 data are not yet available from BLM), a 76% lease utilization rate would be a historic high. The FY 2020 number was 13,618 nonproducing leases or a very high 64% lease utilization rate. Given that no new leases were issued in 2021, the percentage is somewhere north of 64%, much higher than the normal 50% rate, as our industry continues to produce more on less federal land. Why aren’t we developing those “9,000 leases”?

  • Many leases are held up in litigation by environmental groups. Western Energy Alliance is in court defending over 2,200 leases, most of which cannot be developed while those cases wind their way through the courts.

  • Companies must put together a complete leasehold before moving forward, particularly with the long laterals that can cut across multiple leases. Sometimes a new lease is needed to combine with existing leases to make a full unit. Since the Biden leasing ban remains in effect with no onshore lease sales held since 2020, some leases are held up waiting for new leases or for the government to combine them into a formal unit.

  • Before allowing development on leases, the government conducts environmental analysis under NEPA (the National Environmental Policy Act), which often takes years to complete. Many leases can be hung up by NEPA or awaiting other government approvals.

  • Finally, not all leases will be developed because, after conducting exploratory work, companies may determine there are not sufficient quantities of oil and natural gas on them. The country still benefits from the leasing revenue paid on the leases.

Let’s talk permits. There are 4,621 permits to drill awaiting approval. The government could approve these permits now, enabling companies to forward with development. There are also about 9,173 outstanding approved permits, but there are factors that cause companies to wait to drill those wells.

  • Because of the uncertainty of operating on federal lands, companies must build up a sufficient inventory of permits before rigs can be contracted to ensure the permits stay ahead of the rigs. We drill wells in a matter of days and rigs are very expensive, so it’s a delicate balancing act.

  • A BLM APD is not the only government approval required. Rights of way (ROW) can take years to acquire before companies can access their leases and put in natural gas gathering systems. With the pressure not to flare from regulators and investors, most companies cannot drill before gathering lines are in place. Timely approvals of ROWs would enable companies to develop sooner.

  • The administration has worked with anti-oil-and-gas activists to slow pipeline infrastructure. Without pipelines to move the oil and natural gas produced, wells cannot be developed.

  • The Biden Administration has embarked on an agenda of regulatory overreach with extensive new regulations in the works. The uncertainty of all the new red tape puts a damper on new investment and development today, especially on federal lands where the burden is highest. Consequently, companies prioritize their nonfederal leases because there’s less regulatory risk.

These are just some of the political and bureaucratic obstacles this administration is engaging in to slow American production. Please let me know what I’m missing or getting wrong. I can’t represent industry without your feedback.

Kathleen Sgamma
President
Western Energy Alliance

Posted on March 10, 2022 and filed under Oil and Gas.

LOGA Responds to Biden Administration Ban on Russian Energy Imports

BATON ROUGE, LA (March 8, 2022) - Today, President Joe Biden is expected to ban Russian oil, natural gas and coal imports to the US.

In response, Louisiana Oil & Gas Association President Mike Moncla released the following statement:

“Today’s ban on Russian energy imports is an important step in applying pressure on Russia’s aggression in Ukraine.

It’s clear that the Biden Administration hasn’t had domestic energy’s best interest in mind thus far.

Let’s not forget – the price of oil had doubled and the price of a gallon of gas had tripled before Russia invaded Ukraine’s sovereign borders.

That being said, today’s action is a positive step that Republicans and Democrats alike in Congress made possible.

Fighting against Russian aggression shouldn’t be a partisan issue. This is something that we can all come together on."

Posted on March 8, 2022 and filed under Louisiana, Oil and Gas.

Grow Louisiana Coalition: Louisiana's Energy Industry is Vital to our Coastal Restoration Efforts

Photo source: Grow Louisiana Coalition

February 2 was World Wetlands Day and saving our coastline is of the utmost importance to Louisiana's energy industry. This month, the Louisiana Coastal Protection and Restoration Authority unveiled its draft 2023 annual plan, which announced more than $172.5 million in projects funded by the oil and gas industry through the Gulf of Mexico Energy Security Act (GOMESA).

Read more: Louisiana Commits Nearly $1.3B to Coastal Restoration, Protection Projects

Posted on February 7, 2022 and filed under Louisiana, Oil and Gas.

Rockefeller Wildlife Refuge Fosters Industry Partnerships

The Rockefeller Wildlife Refuge and Louisiana Department of Wildlife and Fisheries has partnered with the oil and gas industry to maintain and fortify watershed and levee systems, protect coastal populations and fortify wildlife habitats in Cameron Parish. Recently, Chevron partnered with the Refuge to develop and fortify a 20-mile levee system to protect Cameron Parish and act as a first line of defense against storms and rising tides.

Posted on February 7, 2022 and filed under Oil and Gas.

LOGA Responds to Federal Judge Cancelling 1.7 Million Acres of Drilling Leases

BATON ROUGE, LA (January 28, 2022) - Yesterday, U.S. District Court Judge Rudolph Contreras invalidated the largest offshore oil and gas lease sale in the nation’s history, cancelling 1.7 million acres of drilling leases.

One of President Biden’s first actions in office was to ban new oil and gas drilling on lands and waters owned by the federal government. But after a Louisiana judge struck down the moratorium last summer, administration officials said they were forced to go through with the sale in November.

In response to yesterday’s ruling, Louisiana Oil & Gas Association President Mike Moncla released the following statement:

“Judge Contreras’ decision to ‘throw out’ the last lease sale is disappointing for industry, but even a bigger blow to the American consumer.

This administration continues to make decisions that increase energy costs on Americans.

In just one year in office, President Biden’s energy policies (or lack thereof) have more than doubled oil, natural gas and gasoline prices.

LOGA will continue to fight for actual policy that puts Americans to work while also providing affordable, reliable, and abundant energy to our nation.”

Posted on January 28, 2022 and filed under Oil and Gas.

APPEALS COURT RULES IN FAVOR OF TERREBONNE PARISH GOVERNMENT IN COASTAL LAWSUIT

An appeals court has ruled in favor of Terrebonne Parish government in its lawsuit against District Attorney Joe Waitz Jr. in connection with a state agency’s investigation of possible environmental damage caused by oil companies.

Gov. John Bel Edwards, Attorney General Jeff Landry and several other parishes are engaged in lawsuits against energy companies that blame drilling for years of coastal erosion and wetland loss in Louisiana.

Read more: APPEALS COURT RULES IN FAVOR OF TERREBONNE PARISH GOVERNMENT IN COASTAL LAWSUIT

Posted on January 10, 2022 and filed under Oil and Gas.

LOGA Announces New Communications Director

Photo source: LOGA

BATON ROUGE, LA (Jan 3, 2022) — Today, the Louisiana Oil & Gas Association announced the hire of Tanner Watson to fill the role of Communications Director.

Tanner will be handling all communications and media relations, including LOGA’s daily news, weekly wrap, drilling reports, industry reports as well as all social media duties.

A native of Mandeville, Louisiana, Tanner cut his teeth in the oil and gas industry working as a roustabout on an offshore drilling platform at the age of 18. He went on to graduate with a degree in Communications from the University of Southern Mississippi in 2014. Before LOGA, Tanner worked in the office of U.S. Senator John Kennedy and also brings extensive campaign experience from a U.S. Senate race in Mississippi. Prior to that, he was a radio personality doing morning drive time from 6-10 in Laurel, Mississippi.

Tanner and his wife, Olivia live in Baton Rouge. He can be reached at (985) 630-5834 or at tanner@loga.la.

Posted on January 4, 2022 and filed under Louisiana, Oil and Gas.

Landry: Oil and Gas Lease Sale Could Deliver $100M to Louisiana

“Lease sales generate millions and millions of dollars dedicated to environmental protection projects,” Landry said in a news release.

Landry led a coalition of 13 states that sued the administration after President Joe Biden suspended new leases for oil-and-gas drilling and fracking on federal lands and waters upon taking office in January.

A federal judge sided with Landry in June, allowing lease sales to continue while the issue remains in litigation.

Read more: Landry: Oil and Gas Lease Sale Could Deliver $100M to Louisiana

Posted on November 22, 2021 and filed under Jeff Landry, Louisiana, Oil and Gas.

Louisiana Citizens for Job Creators: AG BEATS BIDEN: Landry WINS Big For Louisiana Jobs!

Jeff Landry is at it again!

After Biden illegally halted the sale of Oil & Gas leases in the Gulf of Mexico, our state's Attorney General swooped into action. He instantly sued the Biden Administration for their overreach and ABUSE of Presidential Power! After a hard fought battle in court, today a Federal Court ruled in favor of Landry and allowed the lease sale to go through!

This is a win for our state, our nation, and job creators across the country who work every day to provide goods and services.

“Despite Joe Biden’s aggressive, reckless abuse of Presidential power to ban domestic energy development – we have delivered a victory for American families suffering from the pain at the pump and the cost to power their homes,” - Attorney General Jeff Landry

Joe Biden may not understand the importance of the Oil & Gas industry to hardworking, everyday Americans, but it's good to see that Jeff Landry does!

Thank you to AG Jeff Landry for giving Louisiana another WIN!

Posted on November 17, 2021 and filed under Jeff Landry, Oil and Gas.

LOGA Responds to BOEM Lease Sale 257 This Wednesday

BATON ROUGE, LA (November 15, 2021) – On Wednesday, November 17th, the Bureau of Ocean Energy Management (BOEM) will hold Lease Sale 257, the first federal land leasing event of the year.

In the early days of his presidency, President Biden signed an executive order that banned new federal leasing permits for drilling. On June 15th, after months of legal battles led by Louisiana Attorney General Jeff Landry, U.S. District Judge Terry Doughty granted a preliminary injunction that temporarily reversed the moratorium while litigation remained in progress.

In response to the upcoming lease sale, Louisiana Oil & Gas Association President Mike Moncla released a statement earlier this afternoon:

"On behalf of the Louisiana Oil & Gas Association, I want to thank Attorney General Jeff Landry for his strong, capable leadership that helped make this lease sale possible.

While the oil and gas industry focuses on creating jobs and fostering economic investment in Louisiana, President Biden and the Democrats continue to promote harmful regulations that hurt American families.

This lease sale is an important victory, not only for the 250,000+ oil and gas workers in the state but for every American who is facing high energy costs as a result of our diminished oil and gas supply.

We look forward to working with Attorney General Landry as we continue our opposition to the Biden administration’s failed energy policies that undermine our nation's recovery from the COVID-19 pandemic.”

BOEM will begin publicly reading the lease bids at 9:00 AM at their office in New Orleans.

At the same time, Attorney General Landry will be holding a press conference outside of the BOEM building to discuss the lease sale and the ongoing litigation over the moratorium.

Posted on November 16, 2021 and filed under Louisiana, Oil and Gas.

LAFOURCHE PARISH DECLINES TO SIGN FREEPORT MCMORAN SETTLEMENT AGREEMENT

Photo source: Wikipedia

“As you probably know Lafourche Parish has been asked for the last two years to sign onto the Freeport Settlement Agreement,” Chaisson wrote to Gov. John Bel Edwards after a Tuesday evening council meeting. “The Lafourche Parish Council has held several Executive Sessions during their regular meetings to discuss the settlement and has twice placed a resolution on their agenda to approve the agreement. At both meetings the resolution did not garner enough support and was eventually removed from the Council’s agenda.

“At this point I am unsure if the item will ever get the required votes to be able to pass therefore Lafourche Parish will not be signing on to the Freeport Settlement,” Chaisson said.

Read more: LAFOURCHE PARISH DECLINES TO SIGN FREEPORT MCMORAN SETTLEMENT AGREEMENT

Posted on November 8, 2021 and filed under Louisiana, Oil and Gas.

Scott Angelle: Joe Biden's energy policy a twofer, raising prices and insulting energy workers

Former Lt. Gov. Scott A. Angelle was director of the U.S. Bureau of Safety and Environmental Enforcement in the Trump administration.

Just last month on Labor Day we observed the significant contributions of America’s labor force. Let us call on the nation’s energy policymakers to once again unleash the innovation, inspiration, perspiration and dedication of the American energy worker to help reduce gasoline prices, lower inflation and favor climate-advantaged production from the United States over often less climate-advanced production from foreign sources.

Building Back Better is only attainable with energy made possible by American energy workers.

Read more: Scott Angelle: Joe Biden's energy policy a twofer, raising prices and insulting energy workers

Posted on October 12, 2021 and filed under Scott Angelle, Oil and Gas.

LOGA Releases Statement on Lease Sale Announcement

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BATON ROUGE, LA (September 30th, 2021) – In compliance with the June 15th U.S. District Court ruling, the Bureau of Ocean Energy Management (BOEM) has announced they will hold Lease Sale 257 on Wednesday, November 17th, 2021. The Biden administration had previously banned new federal leasing for drilling early in his presidency and is currently engaged in legal proceedings to resume the moratorium.

In response to this announcement, Louisiana Oil & Gas President Mike Moncla released a statement earlier this afternoon:

"The Louisiana Oil & Gas Association supports the decision by the Department of the Interior to resume federal leasing for drilling. Gulf of Mexico energy production provides hundreds of thousands of jobs for Louisiana and other Gulf economies, not to mention millions of dollars of investment for coastal restoration.

Since Day One in office, the White House energy policy has hurt the American economy and has forced the nation at the mercy of OPEC+ and other foreign institutions, compromising both environmental sustainability and our national security.

While this lease sale announcement is a step in the right direction, we must acknowledge the damage President Biden and the rest of the Washington Democratic establishment is doing to the energy sector with its misguided policies that ultimately hurt the needs of the American people.

The oil and gas industry of Louisiana stands ready to meet the demands of a post-COVID society and provide an affordable, reliable, and abundant source of energy to fuel this nation's economic resurgence.

We call on President Biden and all public officials to work with the industry to bring the United States back to energy independence and create reasonable standards that do not comprise our country's prosperity."

Posted on October 1, 2021 and filed under Louisiana, Oil and Gas.

Iberia Parish Council passes resolution in support of resuming federal oil & gas leases

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“”In Iberia Parish, the oil and gas industry was the number one revenue generator. It has been for decades,” said M. Larry Richard, president of Iberia Parish. “It’s a big deal for the parish, and it still is, if we can get it back.”

Posted on September 23, 2021 and filed under Iberia Parish, Oil and Gas.