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Louisiana Energy Companies Increase Production Amid Market Upheaval

Aug 2, 2022

The global increase in demand for energy may present new challenges for the industry, but the workforce of South Louisiana is proving equal to the task.

There has never been a shortage of challenges in the global energy industry, and the current state of the market is certainly no exception. Global conflicts, economic uncertainty, and growing regulatory pressure make it hard for many businesses to get their strategic footing. Fortunately, things are a little different for operators in South Louisiana.

Stable Growth in a Chaotic Market

Stability and predictability aren’t the most exciting concepts, but they are crucial for businesses that want to grow at a healthy and consistent rate. Consistency is exactly what has turned the spotlight on South Louisiana in recent months, as it was identified as one of the only regions that could boast consistent growth in the rate of oil production. While other regions saw dwindling growth and production numbers, Cajun Country flourished.

The state brought up about 103,000 barrels of oil every day in April 2022, which was a 4.3% increase from March numbers. This increase was the second highest among all states, second only to Ohio’s 21.4% increase. The entire Gulf of Mexico averaged about 1.76 million barrels a day in April, which is a significant part of the 11.63 million barrels per day extracted throughout the entire United States.

What Makes the Gulf Great?

Energy companies considering a new base of operations need to understand why our region stands head and shoulders above the rest. There are many factors that influence productivity and profitability, but personnel is perhaps the most significant, and is one of the main reasons why South Louisiana is a strong choice for relocation. The area’s long-standing, friendly relationship with the industry has fostered a growing labor pool that has the training and experience to do the work both safely and efficiently. Furthermore, the workforce pipeline that has been so painstakingly created and maintained has ensured that the labor force in Louisiana is ready to do efficient, quality work from the moment they step into their respective industries. 

Existing infrastructure for the industry is another advantage, but so is the diversity and availability of supporting services. Companies can find plenty of industry-specific suppliers, service providers, and other essential business partners in the immediate area. Simply put, there are countless opportunities for energy operators of all shapes and sizes, whether they focus on fossil fuels, renewable sources, or both.

Active Energy Development

When growth stops, life stops. This simple fact of nature is equally true in business, and exactly why we tend to look for new growth when attempting to gauge the economic health and potential of an area. By this measure, life is only just beginning for the energy industry in South Louisiana. Bagwell Energy Services’ recent expansion is just one example of growth and development in the region’s energy sector.

Bagwell announced their $2.5 million capital investment at the Port of Delcambre facility in Iberia Parish in 2019. The expansion project is expected to create over 100 new jobs over a period of about 5 years and retain about 50 current jobs. Incentive opportunities and access to LED’s FastStart program were cited as influencing factors in the decision.

Embrace the Energy of Louisiana

In terms of both culture and business potential, there are few areas as rich as South Louisiana. It’s full of life, vibrant communities, and possibility. Those fortunate enough to live and work in South Louisiana can attest to what a powerful and unique place it is, and visitors are unlikely to forget their experiences in a hurry. Few places in the country can boast the same level of professional and personal promise as our little corner of the Gulf Coast, and the rapid and sustainable growth of the region is the perfect fuel for endless opportunity. 

Our dedicated team of professionals is on hand to answer any questions regarding what South Louisiana can do in terms of energizing your business, and can even help you plan a trip to the region so you can see exactly what we mean. 

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