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Ben Broussard, LOGA - State of the Industry

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Breakdown of the state of the oil & gas industry in Louisiana, recent events in Louisiana's political scene and how industry will be affected

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Ben Broussard, LOGA - State of the Industry

  1. 1. State of the IndustryBen Broussard Director of Marketing Louisiana Oil & Gas Association
  2. 2. Global Market Industry in Louisiana State Government
  3. 3. 1.1 1.1 3.3 9.3 0 3 5 8 10 Million Barrels What Makes Up U.S. Supply?
  4. 4. 19 11 15 7 42 0 12.5 25 37.5 50 MillionBarrels/DayWorld Demand 94 Million Barrels Per Day
  5. 5. Breakeven Price for OPEC & Russia $60 $70 $95 $98 $98 $120 $112 $116 $124 $124 $121 $140 $104 $0 $35 $70 $105 $140 $175
  6. 6. OPEC Production 38 Million bpd $31 barrel $1.2 Billion/d OPEC Production 36 Million bpd $70 barrel $2.5 Billion/d Cut 2 Million bpd Saudis Economics Doesn’t Make Sense
  7. 7. $0 $40 $80 $120 $160 We Have Been Here Before Crude Oil Annual Average Price 1970-2015 (Adjusted for Inflation) Oil Embargo Iranian Revolution Crash of 86 Iraq Invaded Kuwait Southeast Asia Economic Downturn Invasion of Iraq Peak Oil Mania Saudis War for Market Share
  8. 8. 27 23 23 28 38 50 58 64 147 54 70 98 99 96 82 35 38 4 4 3 5 6 9 7 6 13 4 4 3 3 3 4 1.91.71 2000 2002 2004 2006 2008 2010 2012 2014 Current Oil & Gas Prices No Longer Dependent on Each Other Oil Natural Gas
  9. 9. 1949 1953 1957 1961 1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 489 1862 1980 964 Annual U.S. Average Rig Count 1949 - 2015
  10. 10. Louisiana Average Rigs 1968 - 2016 0 125 250 375 500 625 68 72 76 80 84 88 92 96 00 04 08 12 Feb 487 126 88 192 46 Lowest month ever recorded 9/1992 76 rigs
  11. 11. Louisiana Rig Count Sept 1992 (Lowest Recorded Week) Current North La 10 17 South La Land 22 5 Inland Water 9 2 Offshore 35 22 TOTAL 76 46 Baker Hughes
  12. 12. Monthly Louisiana Permits 2007 - 2014 High 402 Record Low 30 Jan 2016 Average 142
  13. 13. Job Losses are REAL • 2500 jobs lost in Acadiana alone in 2015 •Estimated that another 4,000 will be lost in 2016 • 10,000 jobs lost in Louisiana • 60,000 jobs lost in Texas • 250,000 jobs lost in U.S.
  14. 14. Governor John Bel Edwards
  15. 15. Richard Ieyoub Commissioner of Conservation Thomas Harris Sec. Department of Natural Resources
  16. 16. Taylor Barras House Speaker John Alario Senate President
  17. 17. State Budget in Turmoil FY 2016 July 1, 2015 - June 30, 2016 FY 2017 July 1, 2016 - June 30, 2017 $940 Million $2.0 Billion*
  18. 18. SPECIAL SESSION: FINAL RESULTS HB 62: Adds one clean penny to the existing 4 cent state sales tax -No exemptions apply to that new penny -Lasts until 2018; LOGA fought for sunset *Cant be renewed; Legis would require new legislation HB 61: Cleans exemptions from the four existing pennies •Until June 30th, 2016: Exemptions gone. •After June 30th: .02 exemptions apply until 2018
  19. 19. Legal Climate Continues to Plague Industry • Cameron Parish Files 11 Suites against 113 Companies and 195 defendants • Jefferson Parish suits remain • Nearly 400 plus Legacy Lawsuits
  20. 20. It hasn't been all bad Plaquemines Parish Coastal lawsuits tossed out Supreme Court victory in the Hayes Fund Case Ban of oil exports lifted by Congress
  21. 21. Don Briggs The Price of Oil Will Go UP
  22. 22. www.loga.la facebook.com/LouisianaOilGasAssoc @LaOilGasAssoc Oil & Gas News and Events on your iOS device videos.loga.la

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