American Oil and Gas Reporter - January 2016 - 126

The Presidential Papers
LOUISIANA OIL & GAS
ASSOCIATION
BRYAN J. HANKS
PRESIDENT
AND CHIEF EXECUTIVE OFFICER
BETA LAND SERVICES LLC
LAFAYETTE, LA.

FROM THE CHAIRMAN
The year 2015 has come and gone
with much fanfare. Crude oil prices
dropped to historic lows, natural gas
prices took a predictable dive, and more
than 200,000 oil and gas jobs vanished
around the globe. The downturn forced
stable, family-driven companies to close
their doors. Homes were foreclosed and
banks repossessed equipment. Unfortunately, this is not the first time the oil
and gas industry has been in this position.
However, 2016 is a new day, even if a
new day does not always mean a brighter
future. The oil and gas industry's main
focus now is maintaining perspective.
Louisiana's rig count and permitting are
low, but not as low as what some other
states are enduring. Louisiana's industry

has shed around 9,000 jobs, but this is not
nearly as many as numerous other states.
When the industry takes a downturn,
the grand question is always how long it
will last. This time, however, we are
asking if this is the "new normal" for oil
and gas. Is the global super-power, the
Organization of Petroleum Exporting
Countries, having such a great and terrible
impact on our natural resource prices
that this situation could last? The answer
is simply not apparent at this time.
However, some factors are concrete.
We have a newly elected governor, a new
attorney general, dozens of new legislators
and parish level officials. We have crude
oil selling for about $40 a barrel and
natural gas going for around $2 an Mcf.

NEW MEXICO
OIL & GAS ASSOCIATION
D. PAUL SPARKS
SENIOR VICE PRESIDENT, RESOURCE
DEVELOPMENT AND TECHNOLOGY
ENERGEN CORP.
BIRMINGHAM, AL.

FROM THE CHAIRMAN
During my career in the oil and gas
industry, I have had the good fortune to
both witness and participate in the last
20 years of productive activity in New
Mexico. During this time, I have seen
employees, families, companies, communities and the state overcome numerous
challenges. Along the way, jobs have
been created, companies and communities

have prospered, and the state has benefitted
from the production of the oil and natural
gas that fuel the economy and our future.
New Mexico's expansiveness, natural
beauty, cultural diversity, and richness
of its natural resources make it a very
special place in which to operate. There
are also factors that make operations in
the state complicated and difficult. Its

126 THE AMERICAN OIL & GAS REPORTER

To state things in a colloquial manner,
we can only go up from here.
Again, this is not the oil and gas industry's first downturn. With downturns, companies have the opportunity to remake
themselves into tighter, more well-oiled
machines-no pun intended. Companies
around Louisiana and across the globe
have been forced to tighten their fiscal
belts. Good can come from bad. But in the
moment, it is often hard to see the good.
Louisiana already is feeling a ripple
effect of low commodity prices. Car dealers, hotels, restaurants and shopping centers will feel the pinch from how many
men and women come home from the
"patch" with no paycheck.
But, here is the good news for
Louisiana: Although the oil and gas industry has taken a hit on the nose, our
people are the most resilient in the workforce. These men and women are used to
rain, sleet, snow and lightening. The job
must go on for them. So when rain, sleet,
snow and lightening hit their lives, they
are mentally prepared.
No matter the future of our natural resource prices or the direction our state's
new elected officials choose, the oil and
gas industry will remain strong. We have
been drilling wells in this state since the
early 1900s. We will not be stopping
anytime soon.❒
map is a checkerboard pattern of federal,
tribal, state and private lands. In addition,
the surface and mineral estates are split
in numerous areas. Few projects of any
scale can be completed without interacting with numerous landowners and
managers.
The oil and gas industry plays a vital
role in New Mexico. The producing regions-primarily the northwest and southeast-are the source of many jobs that are
crucially important to their local communities and the broader economy. The
state benefits from the taxes, royalties
and other revenues our industry pays. In
fact, for many years, funds from our industry consistently have accounted for at
least 30 percent of the state's general
fund revenues.
Truly, the industry's reach extends far
and wide to aid the state in providing the
basic needs for a quality life, including
public education and programs for communities and people in need.

American Oil and Gas Reporter - January 2016

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