LA 1 Coalition - Facts and Figures

LA 1 is the primary North-South corridor through Lafourche Parish and is the primary transportation route for trucks entering and exiting Port Fourchon, a primary service-support port for deepwater oil-and-gas activities in the Central Gulf. LA 1 is largely a rural, two-lane arterial road which passes through many of the principal cities and towns in Lafourche Parish.

An MMS-funded study states that, as a result of increased OCS oil and gas activity, the level of service provided by LA Highway 1 will decline significantly. The study also suggests that the deterioration of LA Highway 1 will be exacerbated with expanding oil and gas activities (Guo, Hughes, and Keithly, nd). Examination of recent rig locator reports indicates that coastal Sub-area LA-2 (which includes Port Fourchon) services at least two-thirds of deepwater activity in the Central Planning Area and one-third of deepwater activity in the Western Planning Area.

Deepwater activity has resulted in focused stresses to local infrastructure. OCS program activities will continue to have a significant impact on infrastructure in south Lafourche Parish due to increases in deepwater activity over the short term.

The cumulative impact is expected to result in the potential for increased educational strain, strain and deteriorating conditions of existing infrastructure, some deleterious impacts to comprehensive land use plans, and difficulties in delivering satisfactory of public services.

In 1993, the North American Free Trade Agreement was signed, creating the need for intermodal transportation terminals in the Delta Region. Louisiana is geographically located in an advantageous position for South American and hemispheric trade with Port Fourchon as Louisiana's only port on the coast.

In 1999, the US consumed 96.60 quadrillion BTUs units of energy. Of that total, 59.8 QBTUs were oil and natural gas, approximately 62% of the total.

22.53 QBTUs of petroleum was imported in 1999. LOOP received 15% of America's imported crude, approximately 3.4 QBTUs.

The total production of natural gas in the US in 1999 was 19.6 (trillion cubic feet). Of that total, the State of Louisiana provided 5.3tcf or 27.1%.

The total production of natural gas in Federal waters in the US in 1999 was 5.2 tcf. Of that total, the Federal waters off Louisiana's coast produced 3.8 tcf or 73% of OCS production in the US and 19% of the total US production in 1999.

In 1999 the total US natural gas consumption was 21.7 tcf.

Oil and natural gas provide almost 65 percent of the energy Americans use.

The U.S. Energy Information Agency (EIA) forecasts that by 2020 domestic petroleum demand will increase 33 percent and natural gas demand will increase 62 percent.

The Gulf of Mexico provides the U.S. with 25 percent of its domestic oil supply. US imports represent nearly 57% of US oil consumption, with the Persian Gulf region supplying 23% of US oil needs.

The Gulf of Mexico has the most extensive network of offshore oil and gas pipelines worldwide, stretching over 20,000 miles.

	Port Fourchon Deepwater Energy Production OCS Revenues Louisiana Offshore Oil Port , LOOP Louisiana Infrastructure U.S. Energy Production and Consumption		LA Highway 1 LA 1 is the only means of land access to Port Fourchon, which services 16 - 18 percent of our nation's domestic and imported oil and gas. LA 1 is the only means of land access to Louisiana Offshore Oil Port (LOOP), which handles 14% of U.S. imported crude oil and is now servicing the OCS. LOOP's pipelines are connected to 50% of U.S. refinery capacity. LA 1 is the only means of land access to Louisiana's only inhabited barrier island - Grand Isle. LA 1 is the only means of evacuation for thousands. Approximately 35,000 people, including 6,000 offshore shore workers, use LA1 for evacuation. LA 1 is the only means of land access for oil spill response for Port Fourchon and LOOP. LA 1 is the boundary between the nation's two most productive estuary basins - Barataria and Terrebonne. It is estimated that 70% of the state's total value for commercial landings is derived from the Barataria and Terrebonne systems. LA 1 is included as part of the National Highway System (NHS). These roads are considered the backbone of the U.S. transportation system. The NHS comprises only 4% of the country's total highways; however, they are estimated to service 90% of all businesses and industries in the country. They provide access to ports, rail stations, borders, airports and transit faculties. LA1 is included as part of the NHS because of its intermodal link to this nation's energy supply. Truck traffic along LA 1has increased in some years by as much as 24%. The national average is 2-5%. Between 1991- 1996, there were over 5,000 accidents. Studies indicate that LA 1 is twice as deadly as similar highways. Furthermore, studies indicate that LA1 will continue to deteriorate due to OCS activities. Tourism has increase by an average of 15% annually since 1988 in Lafourche Parish. It is estimated that shipbuilding is responsible for 35,000 jobs in the state. There are a number of shipyards in the region of LA 1, including Bollinger Shipyards and Edison Chouest, which provide vessels to the federal government. [ back to top ] PORT FOURCHON Located in southern Lafourche Parish, Port Fourchon is Louisiana's only port on the Gulf of Mexico, and has become the focal point of deep-water oil and gas activities in the Gulf due to its strategic Central Gulf location. It is the dominate intermodal facility in the U.S. servicing the energy industry. Port Fourchon is a supply base for oil rigs and production platforms in the central Gulf of Mexico. Supply boats and tugboats servicing these rigs and platforms operate out of Port Fourchon because it is closer to the facilities it serves than alternative ports. Port Fourchon's strategic location also makes it desirable for the maintenance and repair of mobile rigs. Port Fourchon currently services half of the drilling rigs operating in the Gulf of Mexico. (GOM) Port Fourchon currently services over 75% of the Gulf of Mexico deepwater oil production. It is projected Port Fourchon will service 44% of pending future deepwater plans and 58% of all offshore drilling in the Central Gulf over the next 30 years. Of the over 165 current and pending deepwater projects that have been identified to date, over 50% are using or plan to use Port Fourchon as its service base. In addition to its huge domestic hydrocarbon significance, Port Fourchon is land base for LOOP which handles 14% of nation's foreign oil and is connected to 50% of U.S. refining capacity. Port Fourchon plays a strategic role in furnishing this country with 15-18% of its entire oil supply. More than 200 large supply vessels traverse the port's channels each day. Approximately 20 million tons of cargo underwent intermodal transfer at Port Fourchon in 2004, a 10% increase above 2003. Recent truck traffic studies have shown that over 1,000 trucks per day travel in and out of Port Fourchon, along two-lane highway LA 1. 650 million barrels of crude oil are transported via pipelines through the port. [ back to top ] DEEPWATER ENERGY PRODUCTION The Gulf of Mexico provides U.S. with 30% of its domestic oil supply. From 1992-2002, deepwater oil production rose 840% and gas production rose 1600%. 60% of all Gulf of Mexico oil now comes from deepwater. Mineral Management Services (MMS) estimates deepwater has reserves of 71bb of oil, of which 56bb remains to be discovered. Shallow water has only 15bb remaining to be discovered. Deepwater production is not near its peak and ultra-deep waters hold promising geologic features as well. Only 16 deepwater projects were in production in 1997, while there were 51 by the end of 2001. Another 13 were added in 2002, and yet production is not near peak. The MMS believes that the OCS contains more than half of the nation's undiscovered oil and gas resources. For 50 years, oil and natural gas have been produced from the OCS underlying the Gulf of Mexico. This production represents more than 83 percent of total OCS oil production and more than 99 percent of all OCS natural gas production. The Louisiana OCS territory is the most extensively developed and matured OCS territory in the U.S. Louisiana OCS territory has produced 88.1% of the 12.8 billion barrels of crude oil and 82.9% of the 139 trillion cubic feet of natural gas extracted from all OCS territories from the beginning of time through the end of 2000. The Gulf of Mexico is among the top twenty geologic provinces in the world. [ back to top ] OCS REVENUES In 2001, the Minerals Management Service collected over $7.5 billion in oil and gas revenues from federal offshore leases. Of the $7.5 billion, $5 billion came from offshore Louisiana. 80% of oil and 87% of gas from this nation's offshore waters comes from offshore Louisiana. On federal lands within a state, the state shares 50% of the revenues. In 2005, Wyoming received over $878 million in revenues. Outside of 6 miles offshore, Louisiana receives no share of revenue. In 2005, Louisiana received only $32 million, less than of one percent of the federal revenues generated off of its coast. In 2005, the total revenue collected by MMS from OCS was $5,705,953,872. Offshore Louisiana provided 74.2% of that total. [ back to top ] LOUISIANA OFFSHORE OIL PORT Louisiana Offshore Oil Port (LOOP) is the only offshore oil terminal in the United States. It is located 18 miles off the coast of Louisiana in 115 feet of water in the Gulf of Mexico. It allows for the safe offloading of tankers too large for inland ports. From offshore platforms, crude oil is then transported to shore at Port Fourchon by a 48in. pipeline. The crude is then pumped inland 25 miles to underground salt caverns, which have a capacity of 40 million barrels. From storage, five connecting pipelines tie LOOP to over 50% of United States refining capacity. LOOP transports approximately one million barrels of foreign oil a day and approximately 300,000 barrels of domestic crude from Gulf of Mexico OCS. LOOP is estimated to take in 14% of the United States imported crude. [ back to top ] LOUISIANA INFRASTRUCTURE The onshore support infrastructure is in need of substantial improvement and modernization. LA 1 is the primary North-South corridor through Lafourche Parish and is the primary transportation route for trucks entering and exiting Port Fourchon, a primary service-support port for deepwater oil-and-gas activities in the Central Gulf. LA 1 is largely a rural, two-lane arterial road which passes through many of the principal cities and towns in Lafourche Parish. An MMS-funded study states that, as a result of increased OCS oil and gas activity, the level of service provided by LA Highway 1 will decline significantly. The study also suggests that the deterioration of LA Highway 1 will be exacerbated with expanding oil and gas activities (Guo, Hughes, and Keithly, nd). Examination of recent rig locator reports indicates that coastal Sub-area LA-2 (which includes Port Fourchon) services at least two-thirds of deepwater activity in the Central Planning Area and one-third of deepwater activity in the Western Planning Area. Deepwater activity has resulted in focused stresses to local infrastructure. OCS program activities will continue to have a significant impact on infrastructure in south Lafourche Parish due to increases in deepwater activity over the short term. The cumulative impact is expected to result in the potential for increased educational strain, strain and deteriorating conditions of existing infrastructure, some deleterious impacts to comprehensive land use plans, and difficulties in delivering satisfactory of public services. In 1993, the North American Free Trade Agreement was signed, creating the need for intermodal transportation terminals in the Delta Region. Louisiana is geographically located in an advantageous position for South American and hemispheric trade with Port Fourchon as Louisiana's only port on the coast. Ports are estimated to responsible for one of every eight jobs in the state. [ back to top ] U.S. ENERGY PRODUCTION AND CONSUMPTION In 1999, the US consumed 96.60 quadrillion BTUs units of energy. Of that total, 59.8 QBTUs were oil and natural gas, approximately 62% of the total. 22.53 QBTUs of petroleum was imported in 1999. LOOP received 15% of America's imported crude, approximately 3.4 QBTUs. The total production of natural gas in the US in 1999 was 19.6 (trillion cubic feet). Of that total, the State of Louisiana provided 5.3tcf or 27.1%. The total production of natural gas in Federal waters in the US in 1999 was 5.2 tcf. Of that total, the Federal waters off Louisiana's coast produced 3.8 tcf or 73% of OCS production in the US and 19% of the total US production in 1999. In 1999 the total US natural gas consumption was 21.7 tcf. Oil and natural gas provide almost 65 percent of the energy Americans use. The U.S. Energy Information Agency (EIA) forecasts that by 2020 domestic petroleum demand will increase 33 percent and natural gas demand will increase 62 percent. The Gulf of Mexico provides the U.S. with 25 percent of its domestic oil supply. US imports represent nearly 57% of US oil consumption, with the Persian Gulf region supplying 23% of US oil needs. The Gulf of Mexico has the most extensive network of offshore oil and gas pipelines worldwide, stretching over 20,000 miles. [ back to top ]

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