Congressman Higgins says Fed has Helped the Oil and Gas Industry, Now It’s Louisiana’s Turn
Federal
agencies are making changes to bring more oil and gas jobs to the Louisiana
coast, but U.S. Representative for Louisiana’s 3rd District Clay Higgins said
the Bayou State could miss out unless Baton Rouge takes action as well.
The
Bureau of Safety and Environmental Enforcement (BSEE) and The Bureau of Ocean
Energy Management released a report indicating the Gulf of Mexico will now be
treated as two separate provinces: shallow water and deep water.
To
increase drilling, those investing in shallow water reservoirs will get a
higher return on investments and their applications will be considered on a
per-project basis.
In
2018, 97 platforms abandoned the continental shelf while zero new ones were
constructed, but with federal reform and new tech which can locate previously
untapped resources, Congressman Higgins said there is potential to reverse the
trend.
“There’s
a tremendous opportunity,” U.S. Representative Higgins told News 10. “We have
done everything possible at the federal level to create this opportunity, and
we need a little help from Baton Rouge.”
Congressman
Clay Higgins said he is confident BSEE’s plan to make drilling in the Gulf of
Mexico more profitable will work, “The prospect of new projects coming to the
gulf in Louisiana is much greater now then it was two weeks ago.”
While
offshore drilling is breaking production records, drilling less than 200 meters
deep has declined for years. Higgins said reservoirs once thought dried up are
getting another chance, “The shallow water fields that have been over the
course of the decades abandoned have proven they can be productive again but
with 21st-century technology.”
However,
Higgins said there are still hurdles keeping investors from our state, “You’d
rather go to Louisiana, but you’re almost guaranteed to get sued.”
He
claimed states like Texas are taking investors and their jobs from Louisiana
because they discourage lawsuits, “In order for it to work, we need an
executive branch that’s at least willing to work with us on finding ways
forward to restrict some of these unnecessary and frivolous lawsuits against
the oil and gas industry.”
We
reached out to oil and gas groups inside Louisiana. They supported the BSEE
reducing royalty rates.
“The
shallow waters of the Gulf of Mexico are vital to the success of Louisiana and
especially the independent oil and gas producers and service companies.
Reducing the cost of exploration and production will open the gulf to new
investment and potentially new opportunities for coastal Louisiana. We applaud
President Trump, BSEE Director Angelle, and our federal delegation and will
continue to collaborate to create a robust oil and gas sector in Louisiana.”
-GIFFORD BRIGGS, LOUISIANA OIL AND GAS
ASSOCIATION.
“Reducing
royalty rates in the federal OCS is critical to encouraging industry investment
in drilling new wells, creating much needed Louisiana jobs and once again
revitalizing our local economies. Production may be up, but jobs are down,
vessels are tied up, and our nation needs to stimulate offshore activity now
more than ever.”
-TYLER GRAY, LOUISIANA MID-CONTINENT OIL AND
GAS ASSOCIATION.
While
the royalty discounts will make cheaper drilling projects even cheaper, Higgins
wants to see Louisiana be the first choice in the Gulf of Mexico and not the
last.
“We
should be leading the resurgence of the oil and gas industry, not trailing it,”
Higgins said
These
last couple of pieces were important to Higgins. He said his office has been
working on getting this reform during his full tenure in office, but it isn’t
the end of his fight.
He mentioned eliminating more burdensome federal regulations and making tax codes more flexible as some of his immediate focuses.