Analysis
Final Thoughts
Written by Brett Linton
October 22, 2014
I spent a good portion of this week either in Louisiana or traveling to and from the state. I attended an energy conference at Louisiana State University (LSU) which I found to be fascinating. I found out how little I knew about the various drilling operations for oil and natural gas and how far the U.S. has come over the past 10 years in spite of what obstacles were placed by the government. There is still a lot of shale plays that have not been drilled and that includes a good portion of the Haynesville field located in Louisiana and Mississippi.
Senator David Vitter of Louisiana told the assembled group how we are living through an “energy revolution” and that this surge of oil and gas is a “historical game changer.” Senator Vitter said, “Its the biggest boom to the economy since the dot com movement and maybe even before that.”
Senator Vitter also told the group that the mid-term elections may force the president’s hand on the Keystone Pipeline approval. A bill has already passed the House of Representatives and if the Senate goes Republican there are enough Democrats to pass a bill in the Senate with the 60 votes needed.
So, as they say in the South – go to the polls and vote early and vote often… (my words not the Senator’s).
What is coming along with the energy revolution is an industrial renaissance. Denise Palmer Huggins with the Center for Energy Economics at the University of Texas pointed out 123 huge industrial projects which are on the drawing boards and most of them will ultimately be built if the price of natural gas remains reasonable and government red tape doesn’t become too onerous. She also pointed out that there will be a lot of natural gas exported to Mexico via pipeline.
Paul Lowrey has been doing some research on the size and scope of the energy markets and he has told me that energy is now the largest consuming segment of steel industry surpassing automotive and the current construction market. He has promised to write an article on the topic for Steel Market Update in the not too distant future.
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Brett Linton
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