Page 40 - FDI Alliance International Magazine, July 2019 Interactive Issue_Neat

St. Mary Parish, located in South Louisiana price war in 2014, that drove the price of oil to quickly. Worldwide demand is expected to increase
between New Orleans and Lafayette in the heart below $30/bbl from over $100/bbl in 2013. The for oil and natural gas for some time to come, but
of the oil field, drilling both on the continental region lost over 40,000 jobs in less than six (6) the implementation of the renewables cannot be
shelf and deepwater exploration generally offers a months and investment in new equipment was ignored. Faced with the prospect of a recovery that
contra-cyclical economy to the rest of the country. virtually shut down with over $1 trillion in new may not be as robust as in the past, WHERE IS THE
The region is rapidly expanding with increasing capital investment postponed. Since that time all PARISH GOING IN THE FUTURE?
prices for oil and natural gas. Each time oil prices oil producing countries suffered greatly. So the
peak and gasoline prices rise above $3.00 to $4.00/ OPEC countries placed quotas on supply in 2017 What are the strengths we have as a Parish and
gallon, happy days are here again. Exploration and and agreed to a continuation of quotas in 2018. region? What got us in the oil and gas business in
production investment is booming, high paying jobs The result was an improvement in the price into the first place? It was the demand for oil and natural
are plentiful and the unemployment dips below the $50/bbl. to $65/bbl. range as supplies were gas and the fact that Morgan City Louisiana was
4%. The region is home to some of the largest limited and international demand began to pick up. the home of the first offshore well. St. Mary Parish
deepwater exploration support companies including is located in the center of the Gulf of Mexico. St.
Cameron/Schlumberger, Transco Energy, Halliburton, It appears the deepwater oil production downturn Mary Parish has the largest capacity to transport
Oceaneering and Intermoor all supporting the has bottomed out and the region remains cautiously Natural Gas with more than 4 billion cu. ft. per day.
majors such as Shell, BP, and Chevron. St. Mary optimistic for a recovery. Fracking has continued as
Parish added more than 3,000 new jobs and $750 shale production in the US increases. Worldwide The parish has a multi-modal transportation
million in investment in its economy from 2003 demand is expected to increase over the next 20 infrastructure including a four lane interstate
through 2014. The shipyards were also booming years, and shale production will not keep up, opening quality highway US 90 (future I-49), two class
adding jobs including Bollinger/Chouest and Gulf opportunities for renewed drilling offshore. The one railroads that operate in the parish, the Gulf
Craft supplying service vessels to deliver supplies US is politically the safest of all locations in the
to the oil drilling and production platforms in the worldwide.
Gulf of Mexico. Over time, the boom/bust cycle
affected St. Mary Parish, as 25% of its economy The US Government has focused on America
is dedicated to this industry. becoming Energy Independent as lower taxes and
less regulations has created a positive environment
There were other shocks to this oil dominated for St. Mary Parish and other oil producing and
economy besides pricing and international supply support companies along the Gulf of Mexico. Yes
and demand issues. There were hurricanes Katrina, the industry will come back but to what extent?
Rita and Ike in the Gulf of Mexico that damaged That is the $64,000 dollar question.
many rigs. There was the BP Oil spill which impacted
regulation and clean-up issues. Technology is being implemented to expand the
production potential in offshore drilling and
Let’s not forget Shale production adding more than onshore fracking. This will ultimately lead to greater
7 million barrels per day of new supply between efficiencies, less employment and lower investments.
2008 and 2018 in the United States. OPEC was Less regulation will lead to the ability to implement Port of Morgan City
losing market share, and the Saudis triggered a these new technologies and production more

40 FDI ALLIANCE | JULY ISSUE 2019