Page 32: of Marine News Magazine (August 2011)

32MNAugust 2011Drilling in the U.S. Gulf has picked up, but hasn't fully recovered from last year's federal ban, speakers at Louisiana Energy Day said in New Orleans this week. Plans to build the Louisiana International Gulf Transfer Terminal and enhance the Venice Port Complex are nev- ertheless on track. Green initiatives, particularly at U.S. military bases, have gathered steam. The conference, held at Tulane University on July 18, was sponsored by the Energy Leadership Forum. DRILLING: GOODNEWS & BADNEWS FORTHESERVICESECTOR Don Briggs, president of the Louisiana Oil and Gas Association, said government drilling permits are slowly being issued in the Gulf. Thirty-three deep and shallow water rigs are drilling in the GOM today, versus 61 before the drill ban.? He continued, saying we never should have had the moratorium. It's a sad day now, and next year production will still be down a half million barrels per day compared to before the moratorium.? On a brighter note, Briggs pointed to Exxon's announcement this spring of giant, deepwater discoveries off the Louisiana coast; Shell's decision to drill ten, deep- water wells off Alabama; and McMoRan's ultra-deep, gas plays off Louisiana. McMoRan's Davy Jones project ten miles south of Louisiana could be one of the biggest onthe Gulf shelf in decades, he said. The discovery is over 28,000 feet deep, with wells drilled in 20 feet of water. Independent companies account for 46% of deepwater production in the Gulf, and majors provide the rest,? Briggs said. Both pay high insurance rates because of hur- ricanes. And with burdensome, new BOEMRE regula- tions and general uncertainty, independents won't be rein- vesting much in Continental Shelf exploration,? he added. Instead, they'll invest in plays onshore, where it's economically better for them.? BOEMRE is the Dept of Interior's Bureau of Ocean Energy Management, Regulation and Enforcement. Briggs said it costs McMoRan $100 million to drill an ultra-deep, gas well in the offshore Gulf today. We'll need to pass incentives in the state to encourage development of these deep gas plays.? At the federal level, Briggs said oil- and-gas companies don't get subsidies from Washington, rather they receive investment incentives for the risk of oil exploration, and these must continue.? Turning to Florida, he said the state has substantial oil reserves off its coast. Real estate values are down, the economy is suffer- ing and Florida needs new sources of income,? he added. I predict that drilling will eventually happen off of its Focus on Drilling, Transfer Terminal And Venice Port Louisiana Energy Day By Susan Buchanan The largest ships can't get into the mouth of theMississippi River, which can currently only handleships with about 8,200 TEU containers.? La. State Senator A.G. Crowe, R-Slidell