Major oil companies aren’t the only ones taking a hit. Businesses at the Port of Iberia are seeing more barges dock for extended stays.
Craig Romero, Director of the Port of Iberia, says “The oil companies cannot make it because of return on their investment and as a result of the low price of oil in the mid to $40 range, they’re going to go ahead and park at them and wait for the prices to improve.”
He also explains companies along the port rent those barges to big oil companies once they establish a good location with profitable pay zones. “Then they’ll go ahead and went to these barges, bring them on location, are you all the related services that go with the drilling the barge and they will drill the well in an effort to complete the well and produce oil or natural gas, whatever the case may be.”
Most barges usually dock at Port Fouchon, which is the service point for barges contracted to the Gulf of Mexico. Romero says many of those canals, where they traditionally dock the barges, are all full right now. So, the Port of Iberia is overflowing from those that are idle and not working (unemployed, due to the cost of oil).
Romero says, “It’s not a good thing to see the slowdown, but it is what it is. We’re going to go through it. We’ve been there before and we’ll get through it.”
There is no specific timeline as to when these barges will go back out on the water. When the barges will be in service again all depends on the price per barrel.