After ending year at $60 a barrel, Louisiana’s oil industry feeling ‘very restrained optimism’

A year into an OPEC-led push to rein in a global oil glut and buoy prices, U.S. crude oil ended 2017 at $60 a barrel, the highest year-end price since 2013.

“Anytime that they are going to be having the opportunities for drilling that may lead to new investments, that’s generally a good thing for Louisiana because we’ve got so many service companies that are specialized in offshore, and that are based here and service really globally,” said Gifford Briggs, vice president of the Louisiana Oil and Gas Association.

But, Briggs acknowledged, that’s still a big if: Prices have to climb and stabilize for new deep-water projects to be feasible.

“That’s the key. It’s great that we have more opportunity. The question is: Are the companies going to be making those investments in the Gulf of Mexico and stop this trend of moving offshore assets and investment dollars onshore?” he said…

 

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