Originally published: . Volume 11, No. 4. Source pages: 3.
A new survey conducted by the Louisiana Oil and Gas Association (LOGA) reveals the back-to-back knock out punches caused by COVID-19 and the oil glut generated by the Saudis and Russians could prove to be potentially fatal for many independent energy producers and service companies and the thousands of workers they employ across the state.
The survey shows that without some kind of emergency relief, energy producers may be forced to shut-in more than half of the wells they currently operate in Louisiana and potentially reduce their workforce by as much as 70 percent over the next 90 days.
According to the Department of Natural Resources, there are 33,650 oil and gas wells currently operating in the state. As many as 16,800 of those could be shut in according to survey respondents.
The operation of these wells directly employs approximately 33,900 workers. Based on survey projections, more than 23,000 jobs, which generate $2.2 billion dollars in earnings annually, are at immediate risk.
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