LAFAYETTE, La. (KLFY) – A Chevron top executive was in Acadiana today to address the state of the oil and gas industry.
For more than a century, the oil and gas industry has been an important aspect of Lafayette’s economy, bringing many jobs into the city.
Lafayette is known as the ‘Hub City’ because it’s the hub of all the service companies that drill and help our companies drill in the United States.
But the oil and gas industry has struggled for the past few years, for many reasons, including worldwide supply and demand.
“There’s optism in what he said, but I think it’s just saying that the landscape has changed,” said Ben Broussard with the Louisiana Oil and Gas Association.
At Wednesday’s business luncheon, David Payne with Chevron, offered ways service companies throughout the region can be more productive and organized in their day-to-day operations.
“We have to get more efficient at what we do, we have to make structural changes that we can retain regardless at what happpens with comodity prices, so being able to drill wells faster, reducing cylce time, that sort of thing, not just chasing first cost on service pricing,” said David Payne, Vice President Global Drilling and Completion for Chevron.
Ben Broussard says the increased supply and demand is a main reason the industry is struggling locally.
“The world needs 95 million barrels of oil in a day, and we are supplying 97. And so we are over-producing, and so when you have not enough demand and too much supply, price goes down, and so the prices have been down for 2 years now,” said Broussard.
He says the industry is currently in a slump. But because the fossil fuel industry is still vital to aspects like our national security, there is some optimism in the next few years, that the industry will adapt to more modern ways to improve efficiency.
“The model we have right now is still the model moving forward. It’s still going to be important, and that’s why we have to make sure that we have a robust industry here, taking care of our service companies and making sure that they’re able to do business in an environment that supports them,” said Broussard.
Broussard says the oil and gas industry needs more demand on a worldwide scale. For that to happen, he says it’s going to take the technology and ingenuity of companies like those right here in South Louisiana, which will contribute to the optmism moving forward.