It’s fun coming back to work after a long weekend, right? Kind of like getting your teeth drilled without Novocain or a Percocet kicker to ease the journey. But isn’t it nice to know that at the end of the day, The Nightly is here to tuck you in? Granted, you’re an early sleeper if you’re in bed by 6 pm, but you get the point. And speaking of points, let’s get to the latest points in the world of oil & gas.
US Oil Production Turns Up Pressure On OPEC
This is the big time folks. Ali vs. Frazier, Curry vs. LeBron, Tom vs. Jerry, Pete vs. Repeat… The U.S. vs. OPEC.
Since OPEC, in conjunction with other oil producing countries, agreed to a production reduction of crude oil, the price has risen from $25 per barrel to around $52 per barrel. While these numbers are promising, the participants in the agreement still face one major threat: U.S. Energy Producers. (Insert the “dun-dun-dun” dramatic sound effect here.)
While OPEC & co. are reducing production, U.S. oil producers are expanding production. The Energy Information Administration predicted that U.S. shale oil production will increase by 80,000 barrels per day by March 2017. So who will blink first?? OPEC or The U.S.??
Wow. If this was in Vegas, I don’t know who the favorite would be… actually, of course, I do. You don’t tug on Superman’s cape, you don’t spit into the wind, and you don’t mess around with OPEC. #NodToJimCroce They’ve seen competitors, crisis, outrage and more come and go, but they always stay. It will be interesting to see how this plays out.
Texas’ Oil & Gas Industry Take From 2016 Plummets
The Texas Oil and Gas association announced Tuesday that taxes and royalties paid to state and local government fell sharply to $9.7 billion in the last fiscal year. That’s down almost 40% from a peak of $15.7 billion in 2014 and 30% from $13.8 billion in 2015. To put that in proper perspective, that’s out of $111.3 billion in total state revenues.
I guess every now and then you do “mess with Texas”. It’s still amusing to me that something can “fall” to $9.7 billion a year in revenue, but that’s what’s great about the oil and gas biz. Like the New England Patriots, they aim high and expect results accordingly and can win the Super Bowl next year if they get Gronk healthy and… sorry. It was such a great win and I still revel.
The good news for Texas is that the Comptroller’s office has forecast state oil and natural gas tax collections to shoot up over 32% in 2017 and 27% in 2018 as oil prices recover.
LAGCOE Expansion Reflecting Strategic Growth
In anticipation of Fat Tuesday next week, let’s take it down to the Bayou in Lafayette, Louisiana and see what’s going on with LAGCOE.
What the heck is LAGCOE (Louisiana Gulf Coast Oil Exposition)? I’m thinking it’s not something you pour maple syrup on, so let’s have their executive director, Angela Cring describe what they’re doing down ther:“LAGCOE’s mission is to cultivate
“LAGCOE’s mission is to cultivate economic growth of the energy industry by facilitating domestic and global business development and fostering the energy workforce pipeline… LAGCOE remains committed to promoting commerce, fostering education and connecting people within the energy industry. Our initiatives are centered on innovation, education, workforce development, volunteers and community. Both individual and corporate participation is available. We as an organization are proud of our growth throughout the last 62 years and we look forward to continuing to support the energy industry and its people.”
So there’s that. And now they’re expanding on it.
While the mainstay of LAGCOE’s aid to the energy industry is its biennial technical exposition and conference, executive director Cring believes that The Young Professionals LAGCOE (YPL) are the future:
“YPL is the future of the oil and gas industry and the next generation of LAGCOE. Their involvement and commitment to nurturing newcomers to this industry at all ages is crucial to establishing the next leaders of this organization and the industry.”
Leggo my Lagcoe!
Tuesday is in the books. Make sure to check out King Kong Kuegler and his Morning Surge when you rise and shine tomorrow. He’ll be waiting for you. Until then, here’s to hoping the upcoming hump day is everything you hoped it would be and more. Until then, and until I figure out a better way to wrap this one up… night night.