Updated Louisiana Greenhouse Gas Inventory and Emissions Analysis for the Governor's
Office on Coastal Activities
David E. Dismukes, Principal Investigator
Louisiana Office of the Governor
Description of Helicopter Operations and Utilization in the U.S. Gulf of Mexico
Gregory B. Upton, Principal Investigator. Cody S. Nehiba, Co-Principal Investigator.
Bureau of Ocean Energy Management. Project funding: $ 159,247.
Economic Impact Analysis for TransCanada
David E. Dismukes and Greg B. Upton, Principal Investigators.
TransCanada. Project funding: $40,798.
Economic Impact Analysis for Enable Midstream Partners, L.P.
David Dismukes and Greg B. Upton, Principal Investigators.
Enable Pipeline. Project funding: $40,789.
Electricity Market Restructuring in the United States
Greg B. Upton and Brittany L. Tarufelli, Principal Investigators.
Public Sector Consultants, Inc. Project funding: $52,000
Empirical Analysis of the OCS Pipeline Network in the Gulf of Mexico
Mark Kaiser, Principal Investigator.
Bureau of Ocean Energy Management. Project funding: $219,678.
Integrating Storage into Rooftop Solar: An Economics and Engineering Approach
Greg Upton, Principal Investigator.
Louisiana Board of Regents Support Fund: Industrial Ties Research Subprogram. Project funding: $239,726.
Offshore Oil and Gas Activity Impacts on Ecosystem Services in the Gulf of Mexico
David Dismukes, Principal Investigator.
Bureau of Ocean Energy Management, Louisiana Coastal Marine Institute. Project funding: $240,982.
Southeast Regional Carbon Storage Partnership: Offshore Gulf of Mexico
David Dismukes, Co-Principal Investigator.
Southern States Energy Board and U.S. Department of Energy. Project funding: $251,803.00
Update to BOEM GOM Factbook
David E. Dismukes, Greg B. Upton, and Mallory Vachon.
U.S. Department of the Interior, Bureau of Ocean Energy Management (BOEM). Project funding: $128,431.
Assessment of Opportunities for Alternative Uses of Hydrocarbon Infrastructure in the Gulf of Mexico
Mark Kaiser and Allan Pulsipher. Funded by the U.S. Department of the Interior, Minerals Management Service, and the LSU Coastal Marine Institute. Project Funding: $185,527.
This project is to examine four (4) alternative uses of offshore structures in the Gulf of Mexico Region: artificial reefs, wind power, mariculture, and geologic sequestration/enhanced recovery. It will also consolidate, review, and synthesize the economic, environmental, political, technical, socioeconomic, and regulatory issues that frame each alternative. More specifically, the study will include the following tasks: (1) the legal framework governing the development and regulation of alternative OCS projects will be reviewed, (2) the Louisiana and Texas Artificial Reef Programs will be reviewed, (3) a literature review of offshore wind, mariculture, and geologic sequestration will be conducted and synthesized, (4) the challenges, opportunities, and risks of deployment of each alternative will be described and evaluated, and (5) business and general cost-benefit models will be developed for each alternative to illustrate the decision and economic processes involved.
Basin Analysis and Petroleum System Characterization and Modeling, Interior Salt Basins, Central and Eastern Gulf of Mexico
Don Goddard and Ron Zimmerman in conjunction with Ernest A. Mancini and the University of Alabama. Funded by the U.S. Department of Energy. Project funding: $1,359,053. (Five Years).
Three years of this five year project have been completed. To date, employing state-of-the-art computing facilities, researchers have modeled and characterized the petroleum-rich formations in two of the most important provinces in North America for oil and gas accumulations: the North Louisiana Salt Basin (which covers portions of Louisiana, Arkansas and Texas) and the Mississippi Interior Salt Basin in the northeastern Gulf of Mexico region. Information from the research has provided an advanced approach for targeting geologic "traps" where oil and natural gas may have collected. The models will be directed at aiding future exploration efforts for petroleum buried below 15,000 feet, well below the depth of most ongoing operations today. During the next two years, research will concentrate on Jurassic and Lower Cretaceous source rocks and reservoirs.
Integrated Carbon Capture and Storage in the Louisiana Chemical Corridor
About the Project
In 2017, LSU researchers received a $1.4 million grant from the National Energy Technology Laboratory, or NETL, a part of the U.S. Department of Energy, to study the feasibility of industrial carbon capture and storage, or CCS, along the Louisiana Chemical Corridor. The award is part of NETL’s Carbon Storage Assurance Enterprise, or CarbonSAFE, program, which seeks to develop an integrated CCS storage complex constructed and permitted for operation in the 2025 timeframe in several phases.
The Louisiana Chemical Corridor runs along the Mississippi River between Baton Rouge and New Orleans and is home to several large refineries and petrochemical facilities. These industrial facilities emit large amounts of carbon dioxide, a greenhouse gas; however, their emissions are often in a concentrated, high pressure exhaust gas. This makes capturing those carbon dioxide emissions more cost effective. In addition, South Louisiana is home to a large number of underground reservoirs that are suitable for safe, long-term storage.
The team is made up of a diverse group of economists, environmental scientists, petroleum engineers, lawyers and geologists who seek to determine the economic, technical and logistical feasibility of a system that captures, transports and stores carbon dioxide, all in South Louisiana. The team also plans to build stakeholder support with the eventual goal of creating a viable carbon market in South Louisiana.
PI: David E. Dismukes, executive director & professor, LSU Center for Energy Studies,
and professor, Department of Environmental Sciences, LSU College of the Coast & Environment;
Co-PI: Brian Snyder, assistant professor, Department of Environmental Sciences, LSU College of the Coast & Environment;
Co-PI: Richard Hughes, professional-in-residence, LSU Department of Petroleum Engineering;
Co-PI: Mehdi Zeidouni, assistant professor, LSU Department of Petroleum Engineering;
Co-PI: Keith Hall, director, Mineral Law Institute, LSU Law;
Chacko John, associate director & professor, Louisiana Geological Survey;
Brian Harder, research analyst, Louisiana Geological Survey;
Juan Lorenzo, associate professor, LSU Department of Geology & Geophysics.
U.S. Department of Energy National Energy Technology Laboratory (NETL)
Presentations, Publications & Reports
“Integrated carbon capture, utilization and storage in the Louisiana chemical corridor.” David E. Dismukes, Ph.D. National Energy Technology Labs, CarbonSAFE kick-off meeting,
Pittsburgh, PA. 14 March 2017.
“Integrated carbon capture, utilization and storage in the Louisiana chemical corridor.” David E. Dismukes, Ph.D. Energy Bar Association Meeting: New Orleans Chapter. 10 May 2017.
Dismukes, D.E. and M. Layne (with M. Zeidouni, M. Zulqarnain, R.G. Hughes, K.B. Hall, B.F. Snyder, J.M. Lorenzo, C.John, and B. Harder). Integrated carbon capture and storage in the Louisiana chemical corridor. Report prepared for U.S. Department of Energy National Energy Technology Laboratory. 185 p. Click here to view or download complete publication.
David E. Dismukes at firstname.lastname@example.org
Greater Baton Rouge Clean Cities Coalition Program Support
David Dismukes and Mike McDaniel. Funded by the Louisiana Department of Natural Resources. Project Funding: $49,978.
The objective is to support the U.S. Department of Energy Clean Cities Program by reducing petroleum consumption and improving air quality in the five-parish non-attainment area (Ascension, East Baton Rouge, Iberville, Livingston, and West Baton Rouge Parishes).
Success with 2009 International Energy Conservation Code (IECC) for Louisiana
About the Project
The Southeast Energy Efficiency Alliance, or SEEA, is the Southeastern Regional Energy Efficiency Organization, or REEO, a not-for-profit organization that serves Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia.
SEEA’s Building Energy Codes Program helps states by providing resources and assistance. SEEA will be collaborating with the Louisiana State Energy Office at the Louisiana Department of Natural Resources through the creation and distribution of the “Success with 2009 IECC for Louisiana” program.
SEEA will provide the training resources - development of the "Success" manual, training materials and presentation technical review, development and feedback process. Center for Energy Studies researchers will coordinate training via four regional workshops.
PI: David E. Dismukes, executive director & professor, LSU Center for Energy Studies,
and professor, Department of Environmental Sciences, LSU College of the Coast & Environment.
Co-PI: Brian Snyder, assistant professor, Department of Environmental Sciences, LSU College of the Coast & Environment.
Southeast Energy Efficiency Alliance
Goals & Objectives
- The code training program will focus on training home builders and designers on how to comply with the Energy Conservation portion of the 2009 International Energy Conservation Code (IECC).
- The training manual and an online/on-demand video of the training will be accessible during training and for six months after the training is complete.
- Workshops and education sessions will be held for 20 to 80 attendees.
Brian Snyder at email@example.com
A Collaborative Investigation of Baseline and Scenario Information for Environmental Impact Statements
David E. Dismukes and Michelle Barnett. Funded by the U.S. Department of the Interior, Minerals Management Service. Project Funding: $600,000. (Three Years).
This three year project will assist the MMS in developing baseline and scenario information that is regularly used in the development of Environmental Impact Statements as required under the National Environmental Protection Act (NEPA). CES researchers will develop collaborative groups that will link industry, academic, and government representatives to collect and solicit information and input on pending and developing oil and gas drilling and production trends in the Gulf of Mexico OCS.
Combined Heat and Power in Louisiana: Opportunities for Improving Resiliency, Emissions Compliance Requirements and Efficiency
David Dismukes. Funded by Louisiana Department of Natural Resources. Project Funding: $90,000.
The objectives of this study are to update prior work assessing the current state of the CHP industry and its technical/cost-effectiveness potential with particular emphasis on changes that have arisen over the past 24 months with the actual industrial/petrochemical expansion.
This research will incorporate two additional new research topics. The first will examine the degree to which CHP can assist in facilitating electric power system resiliency and reliability. The second topic will examine the degree to which CHP could be used as a compliance option for meeting any future potential clean climate regulatory requirements, like those envisioned in the Environmental Protection Agency's recently-promulgated Clean power Plan.
The results from this research can be used to facilitate improvements in Louisiana's energy efficiency, energy security, reliability, and emergency response capabilities.
A Comprehensive History of the Offshore Oil and Gas Industry in Louisiana and its Consequences
Allan Pulsipher. Funded by the U.S. Department of the Interior, Minerals Management Service. Project funding: $900,000. (Three Years).
The focus of this project is on Louisiana's petroleum industry from the coastal zone into the Gulf of Mexico and into ever-deeper waters. The objectives of the project are to study, collect, and analyze oral histories and existing literature on the development of Louisiana's offshore petroleum industry, and the effects that the offshore industry has had on the people and institutions of the coastal economy. Researchers from the Universities of Arizona, Houston, and Louisiana at Lafayette are partners in the project. Interviews, papers, and other materials collected will be archived and made available to the public. An interim report has been issued and is available as a CD. The project and its final report were discussed at the annual Meeting of the Association for Environmental History in Baton Rouge, February 27-March 3 2007 and at a symposium held on Friday March 2, 2007 at the Center for Energy Studies at LSU.
Volume I - Papers on the Evolving offshore industry
Volume II - Bayou Lafourche
Volume III - Morgan City
Volume IV - Terrebonne Parish
Volume V - Guide to the interviews
Volume VI - A Collection of Photographs
Determining the Economic Value of Coastal Preservation and Restoration on Critical Energy Infrastructure
David Dismukes and Michelle Barnett. Funded by Save America's Estuaries.
The purpose of this research is twofold: (1) to examine the state of the literature estimating the impacts of coastal restoration on energy infrastructure and (2) to scope the issue and offer suggestions on how the literature could be improved, or new, more effective methods for evaluating this issue could be determined. This research examines any potential synergies that may exist between the coastal environment and energy infrastructure, rather than assessing the causes of coastal erosion or examining the role that energy production, development or maintenance of energy infrastructure plays in coastal erosion. These synergies, in turn, may lead to good indicators of value for the impact that coastal restoration has on energy infrastructure.
The leading question in this review is: to what extent do coastal restoration activities benefit energy infrastructure and is there any way to value this potential benefit?
Diversifying Energy Supply Investments in Post Katrina in the Gulf of Mexico
Mark Kaiser and Allan Pulsipher. Funded by the U.S. Department of the Interior, Minerals Management Service and the LSU Coastal Marine Institute. Project Funding: $167,110.
Marginal production is an important source of onshore domestic supply in the U.S. One of every six barrels of crude oil produced in the country, and about eight percent of its gas production, is delivered from marginal (stripper) wells. The Gulf of Mexico (GOM) is a mature producing province and throughout its shallow waters oil and gas production is in steady, but slow, decline. Thus, marginal production is an important economic and environmental issue for the MMS and will play an increasingly important role in the years ahead.
The purpose of this study is to provide an empirical assessment of marginal and lost production in the GOM and to inform policy makers of the role of marginal production through a comprehensive economic, environmental, and regulatory analysis.
Diversifying Energy Industry Risk in the Gulf of Mexico
David Dismukes. Funded by the U.S. Department of the Interior, Minerals Management Service and the LSU Coastal Marine Institute. Project Funding: $165,302.
This project proposes to investigate how the energy industry diversifies its risk exposure in general in the GOM, with a particular emphasis on insurance-related issues. Risk mitigation is secured through the use of various strategies, including but not limited to the following: the private insurance market, energy supply portfolio management, alternative energy development, and non-traditional markets such as hedge funds.
The purpose of this study is to examine the main issues associated with the energy industry's risk diversification strategies, with a particular focus on the implications that these strategies will have not only on major oil and gas companies, but also smaller independents and Gulf Coast communities.
Shell’s Potential Gas-to-Liquids Project
David Dismukes. Funded by Shell Exploration & Production Co., Project Funding: $76,708.
The purpose of this study is to provide an economic impact analysis associated with the potential development of a Gas-to-Liquids (GTL) plant in Louisiana. The analysis will not be limited to simply traditional economic impact measures but highlight the broader economic contributions made by the project that includes leveraging existing in-state and regional natural gas production and supporting energy infrastructure. The study examines and highlights the contribution the potential project makes to U.S. energy production (refined product) and technological development. The study also examines the strategic benefits to local communities in terms of employment and local/state tax revenues.
Empirical Analysis of the OCS Pipeline Network in the Gulf of Mexico
Mark Kaiser. Funded by BOEM. Project Funding: $219,678
Offshore pipelines serve a critical role in linking offshore oil and gas production with onshore demand centers. The pipeline network in the Outer Continental Shelf (OCS) Gulf of Mexico (GOM) is the largest and most complex offshore pipeline system in the world. Despite the importance of the pipeline network to oil and gas activity in the GOM, there are no comprehensive public reports on OCS pipeline statistics, few analyses on activity data and trends, and no models that quantify and improve our understanding of OCS pipeline landfalls and the usable life of the system. The result is a network that is poorly documented with major information gaps.
The proposed study seeks to address these information gaps by providing empirical analysis of activity data of OCS pipeline infrastructure, developing mechanistic models of pipeline requirements in offshore development and their coastal transition points, examining the usable life of the system, and analyzing the cost of construction and OCS pipeline tariffs.
Examination of the Development of Liquefied Natural Gas Facilities in the Gulf of Mexico
David Dismukes and Michelle Barnett. Funded by the U.S. Department of the Interior, Minerals Management Service, and the LSU Coastal Marine Institute. Project Funding: $66,385.
Project examined the nature of LNG facility development in the Gulf of Mexico region and the impact that these facilities could have on the regional economy of the Gulf. Investments in LNG facilities were considered as well as collateral infrastructure investments like pipeline and gas storage facilities. Examination of other safety, environmental and other regulatory requirements being conducted. GIS-based conflict analysis on facilities are also being developed for the project.
Update to BOEM GOM Fact Book Data and Analysis
David Dismukes. Funded by BOEM. Project Funding: $128,432.
This project will provide updated information that is important and critical to BOEM’s mission. This study builds on two previous GOM Infrastructure Fact Books completed in 2004 and 2011, and will address a number of significant industry changes that have occurred since the last publication. It will expand the set of infrastructure categories examined to include: LNG export facilities; emerging crude export facilities that include terminals and crude oil/refined project pipelines; and multi-nodal transportation infrastructure.
Factors Affecting Global Petroleum Exploration and Development and Impacts on the Attractiveness and Prospectivity of the U.S. Gulf of Mexico Deepwater.
Wumi Iledare. Funded by the U.S. Department of the Interior, Minerals Management Service, and the LSU Coastal Marine Institute. Project Funding: $264,332.
The attractiveness of a region (country/basin/lease) for E&P investment depends upon the perception of its prospectivity, which broadly speaking, refers to the technical attributes (source rock, reservoir, cap rock, etc.) as well as legal and fiscal arrangements for the commercial exploitation of the petroleum resources. The technical prospectivity of the region is important, since if the potential of an area for supporting hydrocarbon discovery is considered low, the region will hold little interest to E&P companies. The determinants of a commercial discovery depend in part on the results of the exploration program (the size and location of the field, the complexity of the reservoir structure, the quality and type of hydrocarbons, etc.), existing infrastructure in the region, and the fiscal conditions that govern revenue sharing. Other conditions such as the rule of law and geopolitical factors also play important roles in assessing a region's prospectivity.
This study examines resource growth, technical discovery success, and exploration efficiency to assess the attractiveness and prospectivity of the U.S. Gulf of Mexico deepwater and the deep shelf. The research will also assess the effectiveness of regulatory programs, fiscal incentives, and technology progress on OCS deepwater investment attractiveness or investment climate using measures such as effort adjusted reserve addition trends, drilling costs, and finding and development cost per barrel of crude oil and per Mcf of natural gas. In an overall sense the study shall attempt to perform econometric analysis of past deepwater activities to explain the extent to which changes in deep offshore activities in the GOM and its attractiveness can be attributed to shallow water resource depletion, technology progress, and economic and fiscal incentives. The study will complement and expand the cost-extension project Capital Investment Decision Making (1435-01-01-30951) in a broader framework and consider the factors that influence exploration investment decisions in offshore basins around the world.
Forecasting Service Vessel and Helicopter Trips Related to OCS Development
Mark Kaiser, David Dismukes, and Allan Pulsipher. Funded by the U.S. Department of the Interior, Minerals Management Service and the LSU Coastal Marine Institute. Project Funding: $144,085.
The purpose of this proposal is to expand and update the current MMS descriptions related to service vessel and helicopter trips and to develop methodologies (and usable equations) to forecast the trips required to support a given level of oil and gas activity as represented by MMS exploration and development (E&D) scenarios.
The level of diversity and the magnitude of offshore activity in the GOM requires a reasonably precise description of the operational requirements associated with various activity classes to preserve the general nature of the approach and the level of decomposition necessitated by EIS studies.
Geographic Units for Socioeconomic Impact Analysis in the Gulf of Mexico Region
Allan Pulsipher and Kathy Perry. Funded by the U.S. Department of the Interior, Minerals Management Service. Project Funding: $439,876.00.
This study will use industrial cluster analysis, regional input/output analysis and modeling, and geographic information systems in an interdisciplinary effort to identify geographic areas where significant socioeconomic impacts, either negative or positive, are likely to occur. The study is designed as an interactive and iterative exercise involving an interdisciplinary research team from LSU and MMS staff. The objective is to delineate Economic Impact Areas (EIAs) in the Gulf of Mexico (GOM) states that are based on a clear, explicit, empirical rationale, reflective of the onshore effects of the offshore industry, and able to more clearly guide and support social impact assessments of industry operations and activities. This will facilitate better compliance with the goals of the National Environmental Policy Act (NEPA).
Industry Development and Capital Investment Issues and Energy Savings Benefits Created by Unconventional Oil and Gas Development
David Dismukes. Funded by America's Natural Gas Alliance. Project Funding: $96,359.
This study examines the broad positive economic impacts that are created in the Louisiana economy when natural gas supplies are diverse and more abundant; leading to natural gas prices that are affordably priced and less volatile. The study focuses primarily on the benefits created to specific Louisiana industries; and to a lesser extent, the broader impacts on Gulf coast industry outside of the state; it draws inferences and cites additional benefits created across the U.S. in terms of the industrial development benefits being generated by unconventional natural gas resources.
The study attempts to capture, if not quantitatively, then qualitatively, the additional benefits that unconventional natural gas has on feedstock use, steam and heat use, and power generation use.
An Intra-University Workshop on Characterizing Cumulative Socioeconomic Effects of Offshore Oil and Gas Development
Allan Pulsipher, Craig Colten (Department of Geography), William Bankston (Department of Sociology), and Joachim Singelmann (Department of Sociology). Funded by the U.S. Department of the Interior, Minerals Management Service, and the LSU Coastal Marine Institute. Project Funding: $95,507.
An organized interchange of experience and ideas among the researchers and students who are participating or have participated in socioeconomic research projects will provide both LSU researchers and Minerals Management Service a more comprehensive, consistent, integrated, and useful understanding of the dimensions of socioeconomic effects of offshore oil and gas development. Both a "top-down," or theoretical approach and a "bottoms-up" or "scoping" approach are used in the workshop.
A principal initial focus of the workshop was the adequacy of the "classic" socioeconomic impact model and the identification, evaluation, and demonstration of more useful and appropriate alternative models and methodologies. The focus of the study is now the effects of offshore development on the recreation and tourism sectors of coastal regions and communities.
Louisiana and Mississippi Green Jobs Research
Milton Terrell and Michael McDaniel. Funded by the Louisiana Workforce Commission. Project Funding: $814,222.
This project provides support for the Louisiana Workforce Commission's (LWC) Occupational Forecasting project. The project will identify key employers, industry groups, and trade associations that are focused on developing green industries and increasing the number of green jobs. Interviews and surveys will be used to gather information. The results will be analyzed to identify green jobs in the region and their skill requirements, estimate current employment and wages, estimate the number of open positions and estimate the skill deficits of the workforce currently filling green jobs. Employment projections and skill requirements will be developed to assess training and educational needs implied by the anticipated growth of green jobs in Louisiana and Mississippi.
OCS Studies Review
Mark Kaiser, David Dismukes, and Allan Pulsipher. Funded by the U.S. Department of the Interior, Minerals Management Service. Project Funding: $377,917.
Louisiana and Texas are the highest energy consuming and producing states in the nation, and historically have played a major role in supplying the U.S. with oil and gas, either through conventional production, imported oil, or imported LNG. The OCS of Louisiana and Texas remains a major supplier of domestic oil and gas, and it holds the potential for new supplies of energy, through imported LNG, wind and ocean energy, and natural gas hydrates.
The purpose of this proposal is to research three topics of interest to the MMS in a timely and comprehensive manner. We will review the historical development of oil and gas activity in Louisiana and Texas, and the regulations, incentives, drilling activity, production statistics, pipeline infrastructure, planning boundaries, and other activities related to the exploration, development, production and transportation of oil and gas.
The Offshore Drilling Industry and Rig Construction Market in the Gulf of Mexico
Mark Kaiser, David Dismukes, and Allan Pulsipher. Funded by the U.S. Department of the Interior, Minerals Management Service. Project Funding: $268,282.
Drilling contractors and speculators have on order 140 mobile offshore drilling units (MODUs) worldwide valued at over $36 billion to be delivered through 2011. New yards are being built and old yards expanded or reopened around the world to handle the latest construction boom, the sixth cycle the industry has seen since its inception. Most of the rigs are being built in Asia, but the U.S. Gulf Coast has 10 jackups and 3 inland barges in construction estimated at $2 billion.
The purpose of this proposal is to examine the offshore drilling industry and rig construction markets, and to investigate targeted issues relevant to the Gulf of Mexico (GOM). We will develop empirical models over specific segments of the industry, prepare aggregate statistics for rig construction by class and geographic region, quantify labor and materials requirements for rig construction in the GOM, and investigate trends that are currently playing out and that are expected to impact the industry in the future. The economics of rig supply and demand in the GOM, and the factors that influence the competitiveness of the domestic rig construction industry, is of particular interest.
Offshore Oil and Gas Activity Impacts on Ecosystem Services in the Gulf of Mexico
David Dismukes. Funded by Bureau of Ocean Energy Management, Louisiana Coastal Marine Institute. Project Funding: $240,982.
The project will estimate the impacts of the offshore oil and gas industry on three critical ecosystem services: commercial fishing, recreation, and storm surge. A series of literature reviews will be conducted of the ecosystem services valuation literature relevant to storm surge mitigation, commercial fishing, and recreation and tourism. A database of these studies will be produced.
The project will use existing modeling tools to forecast the future impacts of the offshore energy industry given alternative policy scenarios. These policy scenarios will be informed by BOEM five-year planning Environmental Impact Statements, especially related to predicted oil spill frequencies and quantities, predicted platform installation and decommissioning, and predicted anthropogenic noise impacts.
The project will include a review of the academic and grey literature for case studies of areas in which an ecosystem services approach to management has been implemented and discuss potential challenges.
The Benefits of Continued and Expanded Investments in the Port of Venice
The project evaluates the impact of investment in the Port of Venice on Louisiana's offshore oil and gas industry.
The Port of Venice is a multi-purpose facility that services the offshore oil and gas industry in both federal and state waters. The Port is also home to a large number of commercial and recreational fishing vessels.
Post Hurricane Assessment of OCS-Related Infrastructure and Communities in the Gulf of Mexico Region
David Dismukes, Allan Pulsipher, and Michelle Barnett. Funded by the U.S. Department of the Interior, Minerals Management Service and the LSU Coastal Marine Institute. Project Funding: $224,837.
An earlier study sponsored by MMS surveyed a wide range of existing onshore infrastructure supporting offshore activities. This investigation resulted in several products including: (1) a GOM "Infrastructure Factbook;" (2) a database of locational and facility attributes of this supporting onshore infrastructure; and (3) a GIS product that maps onshore infrastructure locations across the Gulf.
This project will update the information from the earlier study, so that the most current, up-to-date information about OCS-related infrastructure in the region will be available for Federal and State decision-makers.
Petroleum Technology Transfer Council (PTTC) Louisiana sector of the Gulf Coast Region
Continued activities by the PTTC/Gulf Coast Region's Louisiana sector will be supported by a yearly DOE/AAPG budget of approximately $39,000.The Center for Energy Studies (CES) at LSU will continue to serve as the Regional Lead Organization (RLO) for Louisiana and the PI will be Wumi Iledare, the Director of the project. The duration of this new program will be until September 30, 2008 and will include the following core tasks:
- Identify opportunities for co-sponsored events and stand alone workshops (6) through extensive interaction with oil and gas associations, professional societies, state agencies, oil and gas operators and the service sector
- Prioritize topics for events (speakers for lunch and learn events, half- and full-day workshops, conferences, etc.)
- Implement selected special projects as directed by the Producer Advisory Group (PAG)
- Implement selected special projects as directed by the Producer Advisory Group (PAG)
- Provide a one-page technical article for national newsletter (three times per year)
- Provide regional knowledge and supporting information for HQ to maintain the regional webpage in the centralized website
Preparing Louisiana for the Possible Federal Regulation of Greenhouse Gases
Mike McDaniel. Funded by the Louisiana Department of Economic Development. Project Funding: $98,543.
The purpose of this project is to help prepare Louisiana for the possible federal regulation of greenhouse gases (GHG) and to assure that the state's economic competitiveness is not compromised and that economic development opportunities are recognized. First, a comprehensive state-wide GHG inventory will be developed. The second element of the project will be a thorough review of measures being taken or contemplated by other states to accommodate expected federal GHG regulation or climate change concerns. The third project element will be a high-level assessment of the impacts of the most likely federal GHG regulatory schemes on Louisiana's economy. The fourth will be a list of potential state and industry strategies for responding to requirements and opportunities brought by federal GHG regulation.
Removing Big Wind’s “Training Wheels”: The Case for Ending the Federal Production Tax Credit
David Dismukes. Funded by American Energy Alliance. Project Funding: $20,000.
The federal wind Production Tax Credit (PTC), first enacted in 1992 to "jump start" a nascent, but promising industry, provides wind producers with a subsidy of $22 per megawatt hour of electricity generated. The PTC has been extended seven times, but is scheduled to expire under current law on December 31, 2012. Extension of the federal wind PTC has become the "stalking horse" in the debate on government's role in picking energy "winners and losers."Although wind advocates proffer several internally inconsistent rationales for continuing the federal wind PTC, a closer examination of compelling facts and data indicates these purported justifications are not about wind's continued viability without the PTC. Rather, the wind industry's arguments supporting a continuation of the federal wind PTC simply represent a classic case of "rent seeking" by an established industry seeking to maintain profits through a generous tax subsidy.
The study documents the explosive growth of wind generation as well as the favorable outlook for future wind generation development as a result of Renewable Portfolio Standards (RPS) - not the PTC. The study finds that wind generation now comprises 50,000 megawatts (MW) of electricity capacity in the United States - a five-fold increase since 2006 - and will continue to grow even without the renewal of the PTC. The PTC therefore only serves to tip the scale in favor of a well-established industry, giving wind a politically-determined advantage over other types of generation.
Integrating Storage into Rooftop Solar: An Economics and Engineering Approach
Greg Upton. Funded by Louisiana Board of Regents Support Fund: Industrial Ties Research Subprogram. Project Funding: $239,726.
This project has two major components: an engineering component and an economics component. The engineering component will (1) model the impact of solar PV growth on the grid, (2) model optimal capacity of battery storage and dispatch algorithms, and (3) model solar PV growth with incorporated battery storage. The economic component will take the outputs from the engineering modeling to (1) calculate capacity benefits that the battery storage provides to the grid and (2) calculate individual customers’ proforma if the battery storage were to be incorporated.
State and Local-Level Fiscal Effects of the Offshore Petroleum Industry
David Dismukes Funded by the U.S. Department of the Interior, Minerals Management Service. Project Funding: $241,216.
The fiscal consequences of the OCS program are the most direct and significant way in which the program affects states and communities. These effects are largely shaped by the interaction of federal law and each state's revenue and allocation mechanisms. There are also a number of indirect fiscal impacts on local communities that are shaped by their economic composition and position in supporting oil and gas activities along the Gulf of Mexico (GOM). Currently, Minerals Management Service (MMS) lacks a systematic understanding and analysis of the direct and indirect fiscal effects at state and local levels. This study will strengthen Agency assessments by addressing this oversight, support our continued improvements to the projections of the indirect effects of the program, and provide information to the State of Louisiana, local communities, and other stakeholders concerning the cumulative effects of the program.
The evaluation of fiscal effects is an important aspect of socioeconomic assessment. The tax receipts and other revenues generated by OCS-related activities are a major program benefit to counties/parishes, states, and the nation. Likewise, public expenditures which are required to accommodate OCS-related demands on public infrastructure and services are also a program burden to counties/parishes and to states. The net effect of these two processes (revenues less expenditures) provides, at least from a public finance perspective, the net overall benefits associated with OCS-related activity.
Equally important are the trends and changing nature of the overall fiscal effects on state and local communities. OCS activity, for instance, can be cyclical and commonly follows the price of crude oil and natural gas produced in the region. The growth and contraction of this activity can have impacts on the distribution of the industry's onshore activities, which in turn can impact the fiscal position of state and local government. The speed at which these changes occur can also create short run structural problems which also need to be recognized.
The primary purpose of this study is to provide a detailed description of the various fiscal effects, while the secondary goal is to actually estimate the magnitude of these effects.
Structural Shifts and Concentration of Regional Economic Activity Supporting GOM Offshore Oil and Gas Activities
David Dismukes and Allan Pulsipher. Funded by the U.S. Department of the Interior, Minerals Management Service and the LSU Coastal Marine Institute. Project Funding: $74,644.
The effects of consolidation, and their impacts on local communities is complicated. After a sustained period of consolidation and contraction in the industry, higher prices over the past six years has resulted in a resurgence of oil and gas related activity. The employment benefits of this activity, however, have been uneven. Texas, New Mexico and the Rocky Mountain region have seen considerable increases in drilling rig activity, and employment, over the past several years, while the offshore Gulf of Mexico ("GOM") and mid-continent region have lost out.
The purpose of this research will be to conduct a comprehensive examination of the concentration and industry-related changes in oil and gas related employment in Louisiana with a special emphasis in the relative regional changes between various Louisiana municipal areas.
A Review and Update of Supplemental Bonding Requirements in the Gulf of Mexico
Mark Kaiser and Allan Pulsipher. Funded by the U.S. Department of the Interior, Minerals
The Minerals Management Service (MMS) requires a lessee to submit a supplemental bond when the MMS estimate of cumulative potential end-of-lease liability is greater than 25% of the lessee's net worth. The MMS computes the end-of-lease liability by estimating the cost to plug and abandon all boreholes, dismantle and remove all structures, and clear a lease.
The MMS approach to computing end-of-lease liability is well defined, easy to understand and implement, and has worked successfully in the past, but because the bonding formula was developed in the early 1990s and based upon a limited data set, it is suggested that the algorithm be reviewed and updated. As part of the review of the supplemental bond requirements, it is proposed that the bonding formula be updated using a more recent and comprehensive data set, that the bonding formula be refined to include structure types in the removal and site clearance categories, and that a risk-adjusted assessment be considered in setting bonding levels.
The purpose of this study is to update and refine the MMS bonding algorithm; describe the purpose, requirements, constraints and limitations of bonding mechanisms; and to develop alternative risk-adjusted bonding formulas for MMS review.
A Survey of State Sponsored Oil Spill Research Relevant to the Regulation of Offshore Oil and Gas Development
Allan Pulsipher. Funded by BOEM. Project Funding $102,046.
The project is intended to organize the grants and studies produced by the oil spill programs administered by the states of Louisiana and Texas in a computer-based, user-friendly, cross-tabulated database; use this database to analyze the publications and work experience of those researchers who have been supported by these programs; describe any involvement these researchers may have had in the aftermath of the Macondo blowout and spill in the Gulf of Mexico; and to document and compare the procedures used by these programs to set priorities, evaluate proposals and track performance.
Ultra Deepwater Road Mapping Process
David Dismukes. Funded by the State of Texas-Subcontract with Texas A&M. Project Funding: $15,000.
Coordination of deepwater oil and gas exploration activities of LSU for pending proposal with Texas A&M University and other RPSEA partners. Coordination of unconventional oil and gas exploration activities also conducted. Assistance in the preparation of proposal with RPSEA research partners.
Understanding Current and Projected Gulf OCS Labor and Port Infrastructure Needs
David Dismukes and Allan Pulsipher. Funded by the U.S. Department of the Interior, Minerals Management Service and the LSU Coastal Marine Institute. Project Funding:$159,738.
This project is comprised of two parts: a labor needs analysis and ports infrastructure needs analysis. The primary component of analysis for both of these sub-projects will be a workshop series to explore, scope, and seek input and conclusions on numerous important issues facing the offshore industry in both its labor and port infrastructure needs and requirements.
The labor needs portion of this analysis will be structured to lay an important framework for examining these issues, among others, relative to the labor needs in the GOM region that support offshore activities. As will be discussed in the methods section of this proposal, the labor needs analysis of this project is composed of two different components: (1) an analysis component which will compile existing and publicly available information on recent labor and employment trends; and (2) a workshop process to bring together various different stakeholder groups to discuss their concerns, impressions, and challenges in meeting labor requirements to support offshore activities.
The port infrastructure needs analysis will explore the real challenges facing ports and supply bases along the GOM from a comprehensive and interactive basis. The research being proposed will combined traditional research with a series of workshops that will bring together several port representatives and port customer to discuss their perceptions of challenges and opportunities over the past several years, and over the next several years.