2nd Quarter 2012
Posted By at Sunday, July 29, 2012
As reported in API’s SmartBrief over the past quarter. Payments from BP’s fines and penalties could spark significant economic development along the gulf coast with as many as 57,000 jobs created and $1.5 billion spent per year on coastal restoration projects, for ten years. ATP Oil and Gas sues feds over impacts of moratorium. USDOI unveiled its proposed 5-year leasing program which includes the GOM, as “aggressive” and “smart”. Industry reactions were ho hum citing same old stuff and not bold enough. API urges Congress for a stronger program for offshore energy development. Meanwhile it’s the energy sector that is keeping the US economy out of another recession with the economic benefit reaching nearly $1 billion per day. The US, once an importer, now exports $67.9 million per day in finished petroleum products. Anadarko enters into a $556 million joint venture to develop the GOM Lucius oil and gas project 230 miles offshore in 7,000 feet of water. Chevron strikes 5-year deal with Pacific Drilling to use an ultra-deepwater drillship in the GOM. The Luxembourg firm said the value of the deal is estimated at $1.07 billion. Pacific’s drillship is capable of drilling wells up to 40,000 feet deep in 12,000 feet of water. Helix Energy Solutions discovered oil in the GOM Bushwood field, Danny II well and production with start in 4th quarter. Nobel’s Galapagos development, its second major development in 8 months is producing 13,000 boe/d but stops appraisal work at Deep Blue prospect.
Louisiana’s rig count continued to drop in July and stood at 115; down 58 from one year ago. The North American Rotary Rig Count continued its recovery in July at 20 new rigs over the past week and stood at 2249, but remained down 50 from one year ago. By contrast, North Dakota’s rig count was up 45 from one year ago, and Texas up 49. The Gulf of Mexico rotary rig count mid-July stood at 48, up 13 from one year ago.
The price of #11 Sugar has been on a steady increase, but Orange Rust fungus, recently found in South Louisiana, may cut into this year’s yields.
Regional employment, reported by LAWorks, showed the number of jobs held in May was up from the previous month, and up a substantial 4,950 from year ago. May’s regional employment stood at 131,224. The Region’s unemployment rate stood at 5.9; down 1.2% from one year ago. Louisiana’s unemployment rate in May was 7.1%, the U.S. rate was 7.9%. The Houma-Thibodaux MSA continues to lead the state with the lowest unemployment rate in May at 5.1%. Parish employment changes from May 2011 to May 2012: Assumption Parish up 239 jobs; Lafourche up 1,893; St. Mary up 942; and Terrebonne up 1,876.
In the U.S. economy, manufacturing output has slowed after a 34 month expansion run. Retailers eliminate 5,400 jobs in June as consumers slow spending. Of the smaller US monthly job growth, 25,000 were temporary positions, a practice being more broadly used by employers. The top US employment growth sectors from May to June were: administrative support services; local government, excluding education; food services and drinking places; specialty trade contractors; transportation equipment; personal and laundry services; durable goods; fabricated metal products; ambulatory health care services; and nursing and residential care.
Representatives of regional and local governments of the Bayou Region have been drumming up projects. SLEC and TEDA attended the Offshore Technology Show in Houston and the International Council of Shopping Centers in Las Vegas and have business leads to follow-up. Terrebonne gets a sister City in Weihai, China; and St. Mary officials visited China. Several projects are being discussed.
Fast Facts
Average Monthly Employment in the Bayou Region in May was 131,244, up 4,950 from one year ago.
The Houma-Thibodaux MSA had the lowest Unemployment Rate in the State in May at 5.1%.
Louisiana’s unemployment rate in May was 7.1%.
May U.S. unemployment was 7.9%
Louisiana’s Average Weekly Rotary Rig Count in mid-July was 115, down 5 from last month, down 58 from one year ago.
Gulf of Mexico Rotary Rig Count in mid-July was 48, up 13 from one year ago.
15 Buildings and 12 Sites Are Available for Sale or Lease in the Buildings and Sites Database.
Click here to view a PDF version with additional information.