Cajun Conservatism
Expanding “Buy America” rules for prescription drugs and medical supplies would reduce patient access to drugs and further damage the economy, finds a new issue brief released today by the Center for Medical Economics and Innovation at the Pacific Research Institute.
Click here to download the brief
Read more: New Brief: Expanding “Buy America” Rules Would Hurt U.S. Patients and Economy, Hinder Development of Coronavirus Vaccine
“Welcome First Step in the Right Direction”
BATON ROUGE, LA (April 22, 2020) —
“We are grateful that Governor Edwards has recognized the severe crisis that is facing the industry and has heard our calls for severance tax relief,” Louisiana Oil & Gas Association (LOGA) President Gifford Briggs said. “The decision to delay severance tax payments and provide temporary relief to the industry is a welcome first step. We look forward to continuing to work with the administration and the Louisiana Legislature on additional measures to help small and independent producers, service companies and the thousands of hard working men and women that make up the industry. We need bold, decisive action in order to survive. We fully support efforts to re-open the economy as safely and quickly as possible as outlined by President Trump and the Centers for Disease Control. We need to expand severance tax relief to include a suspension of severance taxes and bring an end to the government sponsored-coastal lawsuits. Companies can ill afford to be spending resources paying lawyers instead of making payroll.”
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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It has been over a month since states across the country have closed their doors, imposed Stay at Home orders, and essentially brought the US Economy to a grinding halt. Main Street can now be called Pain Street as so many businesses are being financially gutted and their very existence slowly being bled dry.
Even with $2.2 Trillion being infused into the economy, the unemployment rate is at record highs and the economic moral of America is at record lows.
If the coronavirus has taught us anything it is how vulnerable our country is and how dependent we are on China and foreign supply chains. This must stop.
In an effort to address this desperate need for change, The Empowerment Alliance has produced thought provoking ideas and solutions to help address the daunting task of getting our country back up and running through energy independence and free market solutions; setting forth a foundation for long term economic growth and stability through self reliance and being "American Made."
Learn more about their initiatives HERE.
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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Let us take a lesson from German pastor Martin Niemoller and the Holocaust: “First they came for the socialist, and I did not speak out — because I was not a socialist. Then they came for the trade unionists, and I did not speak out — because I was not a trade unionist. Then they came for the Jews, and I did not speak out — because I was not a Jew. Then they came for me — and there was no one left to speak for me.”
Read more: Letters: To fight the virus, are we sacrificing God-given rights?
Cajun Conservatism has reported in the past about Louisiana officials trying to do business with a Chinese state-owned chemical company that has a questionable safety record. This chemical company has been trying to build a plant in the state for years, with little success. Last year, Wanhua pulled plans to build a massive plant in St. James after local opposition mounted and just this year, the Westwego City Council pulled the rug out from under them. Well, they’re back in the news touting their efforts to help Louisiana cope with coronavirus:
To help pandemic response, businesses are encouraged to donate urgently needed PPE equipment. Several companies including Krunchy Kripsy Chicken, ExxonMobil and Wanhua Chemical have donated various supplies in the wake of the national shortage of PPE.
Ironic that a Chinese state-owned entity would try to help Louisiana recover from a virus that came from China. What comes around goes around. Now, The Washington Post reports today that the United States has been concerned for years about coronavirus research being done at facilities in Wuhan. Wanhua and Wuhan … if they can’t control their health labs, what makes you think they can control their chemical plants? Or maybe it’s, if they can’t control their chemical plants, what makes you think they could have controlled their health labs?
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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Reps. Clay Higgins and Ralph Abraham of Louisiana want Vice President Mike Pence to provide state-of-the-art COVID-19 testing kits for oil and gas workers in the Gulf of Mexico.
In the letter to Pence, the congressmen said the close quarters the workers live in and the dangerous nature of the work put these workers at enhanced risk.
Read more: Louisiana Coronavirus: Reps. Clay Higgins, Ralph Abraham want oil workers tested
Today, according to eyewitnesses, state officials entered Delta Clinic in Baton Rouge and Hope Medical Group for Women in Shreveport, two abortion facilities in Louisiana that have remained open in defiance of Louisiana Department of Health orders to postpone all medical and surgical procedures (except emergencies) during the COVID-19 pandemic that has left more than 650 of the state’s residents dead and healthcare workers facing an extreme shortage of personal protective equipment.
Representatives at the Attorney General’s office confirmed that members of AG Jeff Landry’s COVID19 Task Force visited the two sites today.
Read more: STATE INVESTIGATORS VISIT 2 ABORTION FACILITIES THAT CONTINUE DEFYING STATE MEDICAL ORDER
The Friday letter was signed by Reps. Dan Crenshaw (R-Texas), Randy K. Weber (R-Texas), Clay Higgins (R-La.), Mike Johnson (R-La.), Bill Flores (R-Texas), Chip Roy (R-Texas), Bruce Westerman (R-Ark.), Ralph Abraham (R-La.), Kevin Hern (R-Okla.), Jeff Duncan (R-S.C.), Brian Babin (R-Texas), Michael C. Burgess (R-Texas), Michael Cloud (R-Texas) and Lizzie Fletcher (D-Texas).
"This call for royalty relief on offshore oil and gas will help ensure that the cost of production isn't more than the price of the commodities. This is especially important for America's smaller producers - many of whom are based in Texas - who feel the burden of these royalties the most," Crenshaw's office said a statement about the letter.
Read more: Lawmakers ask Trump administration to help Gulf oil and gas producers
Louisiana Attorney General, Jeff Landry, posted the information below regarding a recent appearance on Fox News concerning the efforts to combat COVID-19 in Louisiana:
ON FOX NEWS LAST NIGHT I SPOKE ABOUT OUR EFFORTS TO FIGHT CORONAVIRUS AND MY MAJOR ANNOUNCEMENT YESTERDAY OF NEW MEDICATIONS FOR LOUISIANA. As you may have seen, at a press conference yesterday I spoke of the new medications I have secured including 8,000 packs of Azithromycin (Z Paks) and an additional 75,000 tablets of hydroxychloroquine from Teva pharmaceuticals. This is in addition to the 400,000 donations of hydroxycloroquine I secured from Amneal last week. This medication helps increase the supply in Louisiana for those patients already taking these medications for other reasons, for doctors who may use them for COVID-19 Coronavirus treatments and for the LSU Medical School which is conducting clinical trials for virus treatments. I will continue to do all I can to fight for Louisiana so we can beat this Coronavirus. Together we will win!
Interview from last night on @FoxNews #lagov #lalege pic.twitter.com/QMFPceg4Pi
— Jeff Landry (@JeffLandry) April 7, 2020
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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Louisiana Sen. John Kennedy has called for abortion clinics in the state to be closed during this time of the coronavirus pandemic.
“Doctors and nurses are in the trenches fighting the coronavirus, and we’re in a zero-sum reality when it comes to life-saving medical supplies,” he said.
“Abortions are elective, deadly and wrong—especially when they siphon masks, gloves and cleaning supplies away from the front lines of a pandemic,” Kennedy added. “I urge elected officials everywhere to recognize that abortions are in no way an essential service.”
Read more: Louisiana senator calls for abortion clinics to close amid coronavirus crisis
“Preventing federal agencies from sourcing medical equipment and pharmaceutical ingredients from abroad ... would only exacerbate the supply shortages racking the United States,” said a letter from the groups, which was also addressed to Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer.
Read more: U.S. business groups warn 'Buy America' order would harm pandemic response
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: Medscape
BATON ROUGE, LA - Louisiana Attorney General Jeff Landry, working with the assistance of State Senate Health and Welfare Chairman Fred Mills, is announcing a major donation by Amneal Pharmaceuticals to help respond to the COVID-19 health emergency. Amneal is donating 400,000 hydroxychloroquine sulfate tablets to the State of Louisiana.
"On behalf of Louisiana, I want to thank Amneal for this generous donation," said General Landry. "It is important we all work together to help solve the COVID-19 Coronavirus crisis. We must come together as Louisianans and as Americans. This donation from Amneal demonstrates their strong effort to be a good corporate citizen in our Nation."
The “Mayor” of New Orleans, LaToya Cantrell, shows how totally ill-equipped she is in handling the COVID-19 virus in an interview with CNN. She actually goes so far as to blame her irresponsibility on none other than President Trump.
New Orleans Mayor LaToya Cantrell blames Trump for her not canceling Mardi Gras: "When it’s not taken seriously at the federal level. It’s very difficult to transcend down to the local level in making these decisions." pic.twitter.com/JF1VgNsJHB
— Tom Elliott (@tomselliott) March 26, 2020
Kirk Edwards is an Odessa based Independent Oil & Gas Producer
Our Permian Basin producers and workers here in the Midland-Odessa area of West Texas are proud people. We don’t want government handouts. We do want government to stand up for us when our oil and gas industry is being undermined by the Saudis dumping oil into the United States at below market prices in an effort to ruin our domestic economy. Our government doesn’t allow China to dump steel, they would not allow China or any other country to dump excess corn or beef at below market prices to kill an industry, so why are they not stepping in today?
Read more: EDWARDS: An open letter to President Trump
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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