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What will 2017 look like for the oil industry in Louisiana?

On Behalf of | Jan 9, 2017 | Oil and Gas Law

Many parties are involved in or connected to the oil industry here in Louisiana. This not only includes large oil companies, but smaller operators and property owners who enter into contracts to allow their land to be used for oil drilling and exploration. For small operators and property owners, many things can impact how their involvement/connection to the oil industry ends up going for them, financially and otherwise.

One is how tricky legal issues that come up in relation to the oil-related contracts they form are dealt with. So, when entering into such contracts or when disputes arise regarding such contracts, a small operator or property owner may want to promptly contact an attorney skilled in legal matters regarding oil contracts.

Also, just as is the case for large oil companies, small operators and property owners here in Louisiana can be affected by overall trends in the state’s oil industry. What the conditions of the oil industry in the state are can shift from year to year.

What will 2017 hold for the state’s oil industry? There have already been some cautious predictions on this front.

Thus far, experts have been expressing some mild optimism regarding 2017’s prospects for the oil industry, with some noting that 2017 is likely to be a better year for the industry than last year was.

Things that have been pointed to as sources of such optimism include the potential for regulation rollbacks and potential oil price increases. Oil prices have been climbing up a little since OPEC reached a production reduction agreement late last year. According to experts, if the deal ends up holding up, price increases may continue.

Experts caution though that, even with modest price increases, meaningful increases in drilling in Louisiana may remain unlikely.

Of course, as is the case at the start of any year, there is still a lot up in the air regarding what sort of things the state’s oil industry will end up experiencing over the course of 2017. It will be interesting to see what kind of year 2017 proves to be for the industry and what impacts this has on small operators and property owners in the state.

Source: Greater Baton Rouge Business Report, “What’s in store for Louisiana’s oil industry in 2017,” Sam Karlin, Jan. 5, 2017