Cajun Conservatism
A total transition away from fossil fuels would take between 50 and 100 years, two top oil executives said.
Oil company CEOs Charlie Goodson with Petroquest and Mark Miller with Merlin Oil & Gas spoke with Jan Swift of the Discover Lafayette podcast recently and discussed the state of the industry what its future looks like as more investments are being made into renewable energy.
Read more: Complete transition to renewable energy could take 50-100 years, CEOs say
Knowing of our shared concern regarding rising energy and fuel costs, I am providing an update on my efforts in the U.S. House of Representatives to restore American energy independence.
President Biden’s anti-American energy policies have greatly injured the oil and gas industry, killed American jobs, and caused energy prices to rise. President Biden's policies revoked the Keystone XL pipeline permits while lifting sanctions on Russia’s Nord Stream 2 pipeline. He enacted a drilling moratorium on federal lands and waters while calling on OPEC and Russia to boost their crude oil production. He enacted policies that rescinded Trump-era federal permitting improvements, increased regulatory burdens, threatened to increase federal royalty rates, and slowed federal approval of new energy projects and infrastructure. This administration’s energy policies have jeopardized our energy security and raised costs for American families.
To combat President Biden's disastrous energy policies, I have cosponsored numerous pieces of legislation that would protect Louisiana energy jobs and help reestablish American energy independence and American energy dominance. This includes:
H.R. 522, the Conservation Funding Protection Act, which would require annual lease sales in the Gulf of Mexico region of the outer Continental Shelf to protect offshore drilling activity and related conservation efforts.
H.R. 543, the Protecting our Wealth of Energy Resources (POWER) Act, which would prohibit the president or his secretaries of the Interior, Agriculture, and Energy departments from blocking energy or mineral leasing and permitting on federal lands and waters without congressional approval.
H.R. 684, the Keystone XL Pipeline Construction and Jobs Preservation Act, which would authorize the Keystone XL project and clarify that a presidential permit is not required for the construction, connection, operation, or maintenance of the outlined pipeline and border facilities.
H.R. 6947, the Freedom from Russian Energy Enterprise and Domestic Oil Maximization (FREEDOM) Act, which would ban imports of crude oil, petroleum products, and LNG from Russia, authorize the Keystone XL pipeline, and nullify President Biden's executive order that paused oil and gas leasing on public lands.
H.R. 7115, the Small Scale LNG Access Act, which would expedite application and approval processes for exports of natural gas.
H.Res. 940, which calls on President Biden to restore U.S. energy security and take necessary actions to increase domestic energy production.
Further, I am working closely with my colleagues on the House Energy Action Team (HEAT) to advance pro-American energy solutions. We recently delivered a HEAT letter to President Biden demanding he ends the ideological war on American energy producers and outlining several policy initiatives required to restore energy dominance and lower costs for American families.
The oil and gas industry employs roughly 6.8 million Americans and impacts every part of modern society. Congress must reverse the Biden administration’s disastrous economic and energy policies. This is especially true for Louisiana, which is one of the top oil & gas producers in the nation and. Nearly 250,000 Louisianans are employed by this industry. My office will use every legally available action to combat President Biden's injurious policies and support legislation to protect American workers and their livelihoods.
It is an honor to serve you in Congress. Please be assured my office will continue working to promote America first policies. Additionally, should you or your family ever need help with a federal agency, please contact my Lafayette office at 337-703-6105 or my Lake Charles office at 337-656-2833.
Respectfully,
Clay Higgins
Member of Congress
As geopolitical tensions rise and energy prices continue to climb higher, both in the U.S. and across Europe, the world is looking to America for energy leadership and stability. Instead, this administration continues to restrict access to America’s oil and natural gas resources, and legal and regulatory uncertainty is hindering increased energy production right here at home.
Just look at the current situation in Europe. It is an example of what can happen when nations depend on energy production from foreign sources that have agendas of their own.
However, unlike Europe, the U.S. has robust domestic production. Especially as concerned American families watch energy prices rise, they look to our nation’s leaders for help ensuring access to affordable, reliable energy. These same leaders have the power to support U.S. production and energy infrastructure – for example – which would send a clear message that America is open for energy investment.
So, how does this relate to energy operations in the Gulf of Mexico?
The next 5-year offshore leasing program, which must be in place by July 1, 2022, is well behind schedule and will not be finalized by the time the current one expires. Without a new 5-year program, no federal offshore lease sales can be held.
Energy operations in the Gulf of Mexico impacts new and existing jobs. In 2021, oil and natural gas production in the Gulf of Mexico supported more than 325,000 American jobs.
Progress towards carbon goals. U.S. oil and natural gas produced in the Gulf of Mexico is among the lowest carbon intensive barrels produced in the world, according to a U.S. Department of the Interior analysis that shows emissions from international substitutions are more carbon intensive.
Simply put: America needs an energy policy reset in order to continue offshore leasing and production, support American jobs, and maintain our energy security.
Will you stand with us for American-made energy? Sign up below to continue to receive information and learn how you can get involved.
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Read more: Why the Gulf of Mexico is Vital for U.S. Energy Security
The U.S. Energy Information Agency tracks prices and says back in 1994, we were paying $1.00 a gallon for gas. It went over $2 a gallon back in May of 2004. Prices climbed just above $3 a gallon in July of 2006. In July of 2008, prices went up about $4 a gallon for the first time in history. Prices then dropped to $1.84 in 2009.
Read More: Is President Biden to Blame for High Gas Prices in Louisiana??
Curious, I pulled over and asked the guy how long it took to charge- he said normally 30 min but these stations are running slow due to demand so it’s over an hour per car. Take a look at this line…. Each car is over an hour to charge. Hope those people have food and clothes - they may not make dinner.
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|
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.
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.
.@PressSec answers @JacquiHeinrich by blaming oil producers for not developing on 9,000 leases. We can't develop our leases if permits aren't approved (4,500 outstanding) & with myriad other delays the administration puts in the way of American producers. https://t.co/RxPvqCySKW
— Kathleen Sgamma (@KathleenSgamma) March 3, 2022
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.
Capital must be acquired. Activist investors, encouraged by an administration intent on expanding its financial regulatory powers, have worked to de-bank and de-capitalize the industry. Many companies, particularly the small independents who drill the majority of federal wells, are having difficulty acquiring the credit and capital necessary to develop. By calling off bureaucratic efforts to deny financing to the industry, the president would send a strong signal to the market that investments in oil and natural gas are safe and new production could move forward.
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
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."
WATCH: LOGA President Mike Moncla on @KLFY in Lafayette discussing the Biden Administration’s halting of new oil & gas leases pic.twitter.com/cyFSlVXd2L
— Louisiana Oil & Gas Association (@LaOilGasAssoc) February 24, 2022
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
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.
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.”
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
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.
“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
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!
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.
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
