A Louisiana Oil and Gas Association survey projects more than 23-thousand jobs in the industry are at immediate risk. LOGA President Gifford Briggs says the coronavirus pandemic and an oil glut has dropped the price of oil 66% since January 1st.
“In any industry when you are losing 66% of the value of the product that you are able to sell it for than that sends shockwaves through the industry,” said Briggs.
Briggs says there are over 33,000 oil and gas wells operating in the state and half of those could be shut-in. He says prices need to recover about $40 a barrel for oil by June first, or we will see massive job losses.
“We are going to need recovery as quick as the fall, which is a tall order in a global economy,” said Briggs.
What can be done to help the oil and gas industry? Briggs calls for the suspension of state severance tax collections for one year, oil and gas storage capacity expanded and legislation to end government-led coastal lawsuits.
“Companies are having to spend thousands of dollars every month defending, instead of spending on payroll or investment,” said Briggs.
“We need Governor John Bel Edwards, our U.S. Congressional delegation and our state legislature to continue to take action to help protect our workers and the survival of our industry,” said Briggs.
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