(PRWEB) April 14, 2014
As the process of hydraulic fracturing turns 65 years old, many have taken the time to take a step back and examine its impact on the oil and gas industry in various parts of the country and world. States like North Dakota and Texas have received major booms in the industry in recent years, but they aren't the only regions of the United States that have experienced tremendous success of late. Producers in Louisiana should be just as hopeful that hydraulic fracturing will help them stay competitive in the growing market.
According to an article in the Times-Picayune, the mindset regarding Louisiana's position in the market has to change, and the state will have to invest in innovative technologies as a means to maintain its commitment to the industry that has been so crucial to its economy. Louisiana is responsible for roughly 30 percent of domestic energy production, but impressive growth in places like North Dakota, Texas, West Virginia, Pennsylvania, New York, Arkansas and Mississippi, among others, are threatening Louisiana's economic position.
"The days of, 'it's just Louisiana and we have great resources and people are going to come here to drill,' that's not a reality anymore," said Gifford Briggs, vice president of the Louisiana Oil and Gas Association, in an interview with the news source.
Chris John, president of the Louisiana Mid-Continent Oil and Gas Association, says there is an attitude shared by many in the state that oil and gas producers aren't going to leave the state for other opportunities, and while that may have been the case at one time, it is no longer true.
If Louisiana doesn't make changes to stay competitive in the industry, it could miss out on tremendous opportunities in the near future. According to Mark Finley, BP's General Manager of global energy markets and U.S. economics, shale gas production will make the U.S. a top exporter of natural gas in 2018. He told the news source that exports will grow to 10.6 billion cubic feet per day by 2035, an average of 4.3 percent annual growth over a 23-year-span. Missing out on reaping the rewards of this massive growth could be damaging to a state that relies so heavily on the industry.
Action has been taken to overcome potential challenges, including the formation of a pro-oil-and-gas industry alliance, a group that was designed to conduct a series of talks across the state. This is an attempt to both combat messages from anti-oil and gas industry groups as well as promote a new way of thinking about the market in the state.
Briggs has stressed the importance of identifying the state's resources and capitalizing on them, which should give Louisiana a competitive industry advantage. While there is certainly truth to this, the purpose ultimately is to work with state and industry officials to develop strategies that improve operational efficiency, reduce unnecessary spending, facilitate growth and maintain compliance with increasingly strict regulatory measures.
Chem Rock Technologies can help in this regard. Our innovative fracturing chemicals can improve formation fracturing and production performance in the state, which will ultimately help producers in Louisiana meet their goals and overcome the challenges linked to increased competition.