The oil & gas industry began in Louisiana in the late 19th
century when gas was discovered in northern Louisiana. Not long
after that, in 1901, the state's first oil well was drilled in the
Jennings Field. The first successful offshore well was completed in
1947. Today, oil & gas is one of the state's leading industries
in terms of economic impact, tax revenue and employment.
Eighty-eight percent of U.S. offshore rigs are located on
Louisiana's Outer Continental Shelf and, counting offshore
production, the state is the No. 1 producer of crude oil and the
No. 2 producer of natural gas in the country.
In addition to a thriving oil & gas industry, Louisiana is
leading the nuclear renaissance currently underway around the
globe. In response to this growing global demand for nuclear
energy, a major new manufacturing facility making modular
components for nuclear reactors is under development by The Shaw
Group Inc. in Lake Charles, La. Forward-thinking businesses are
taking advantage of Louisiana's strong agriculture industry to
research and develop new biofuels. Louisiana scientists have found
ways to create viable alternative fuels in some unexpected ways,
including ethanol from sugarcane and jet fuel from chicken fat.
Louisiana has always been a pioneer in energy, and that's not about
to change.
Alternative Energy
Louisiana's agriculture and forestry industries produce numerous
products. But they also give the state a competitive advantage in
bioenergy compared to other U.S. states. From sugarcane-derived
ethanol to fuel produced from animal fats to wood harvested from
the forested areas of the northern part of the state, Louisiana is
a leader in the search for alternative energy.
Researchers at the LSU AgCenter's Audubon Sugar Institute are
combining their knowledge of sugarcane processing and chemical
engineering to develop a synergy between sugar production and
ethanol. Some of the same technology used for producing ethanol
from corn can be used to produce it from many other raw materials,
including sugarcane and similar plants.
Recently, Dynamic Fuels LLC, a joint venture between Tyson Foods
and Syntroleum Corp., chose to locate a first-of-its-kind facility
to produce high-quality, renewable diesel and jet fuels from animal
fats in Geismar, La. Unlike the ethanol and biodiesel industries,
which use food ingredients like corn and soybean oil to produce
fuel, the Dynamic Fuels project will primarily use nonfood grade
animal fats produced or procured by Tyson Foods, such as beef
tallow, pork lard, chicken fat and greases. Production is scheduled
to begin in 2010.
Louisiana is home to five Liquefied Natural Gas facilities
operational or under construction, and two more are proposed. The
state is also a player in such sustainable energy initiatives as
LPG, lignite, wind and greenfield refineries.
Nuclear
It has been roughly three decades since the construction of a
new nuclear reactor in the United States, but several new reactors
are planned for construction in the coming years. Louisiana will
play a major role in the new nuclear industry.
The growing global demand for nuclear energy has necessitated a
new approach to nuclear reactor manufacturing. The craft-based
approach, wherein each reactor is uniquely designed and built from
scratch, is giving way to standard manufacturing procedures. This
shift will involve a few key fabrication centers producing modular
components for shipment to nuclear plants around the world.
The Shaw Group facility in Lake Charles is one such center. The
Shaw Group, one of a limited number of U.S. companies with nuclear
capabilities, already provides engineering, procurement,
commissioning, information management and project management
services to four AP1000™ nuclear plants being built in China, and
recently won contracts for four nuclear reactors planned for the
east coast of the United States.
Oil & Gas
In Louisiana's energy industry, oil & gas is king. The No. 1
producer of crude oil and the No. 2 producer of natural gas in the
country, Louisiana has 19 active refineries, which account
for 17% of the total U.S. refining capacity. The state has
thousands of miles of pipelines safely carrying crude oil from the
Gulf of Mexico to refineries in Louisiana and other states, and
carrying natural gas to all parts of the country. There are also
pipelines carrying refined products such as gasoline from and
through Louisiana to other states.
Oil & gas deposits are found in abundance both onshore and
offshore in state-owned waters. In addition, vast crude oil and
natural gas reserves are found offshore from Louisiana in the
federally administered Outer Continental Shelf in the Gulf of
Mexico. The Gulf of Mexico Offshore Continental Shelf is the
largest U.S. oil-producing region and contains many of the nation's
largest oil fields. Louisiana crude oil reserves account for about
2% of total U.S. oil reserves, and Louisiana natural gas reserves
account for about 5% of the total U.S. natural gas reserves.
Louisiana's fossil fuel resources also include minor deposits of
lignite coal, located in the northeastern part of the state.
In addition, Haynesville Shale, a geologic formation
encompassing up to four million acres across 16 North Louisiana
parishes, is being called the fourth largest natural gas field in
the world. Estimates suggest that its reserves contain 160 trillion
cubic feet of recoverable natural gas -- almost seven times the
nation's annual consumption.
Louisiana plays an essential role in the movement of natural gas
from the U.S. Gulf Coast region to markets throughout the country.
Despite high demand from in-state consumers, Louisiana delivers
most of its natural gas to other states via a vast network of
interstate pipelines. Louisiana has 14 natural gas storage
facilities and its storage capacity is among the highest in the
nation. These storage facilities, located in depleted fields and
salt caverns, allow Louisiana to store natural gas during the
summer when national demand is typically lower, and quickly ramp up
delivery during the winter months when markets across the country
require greater volumes of natural gas to meet their home heating
needs.
The oil & gas industry provides an enormous number of jobs
for the growing Louisiana workforce. In 2005, the industry created
$70.2 billion in sales for Louisiana firms, supporting 320,280 jobs
and generating more than $12.7 billion in household earnings for
Louisianans.
Petrochemical
With 90 major chemical plants, Louisiana is a leading supplier
of basic organic and petrochemicals to the nation. The state is
also home to a total of 300 petrochemical manufacturers that
directly employ 27,000 skilled workers. Louisiana has the necessary
infrastructure for world-class manufacturing combined with the
service providers needed to succeed. More than 1,000 service
companies in Louisiana support the petrochemical industry.
In addition, Louisiana companies are also leaders in
environmental responsibility. In the past 10 years, Louisiana's
companies have reduced emissions by over 80%, compared to a
national average of 58%.
To ensure the industry will always have a qualified workforce,
the state has partnered with the industry to provide a dedicated
petrochemical operations curriculum through the Louisiana Community
& Technical College System. The two-year associate's degree in
Petroleum Technology, or PTEC, is offered at five LCTCS campuses.
The PTEC curriculum equips future workers with the skills needed in
the petrochemical industry. As an expanding part of the PTEC
program, the state recently opened three "glass labs" at campuses
in Lake Charles, Reserve and Baton Rouge that allow students to
experience actual chemical processes in a classroom setting. These
labs are complete with integrated process control systems and
control room environments to simulate the manufacturing
environment.
