GoM output up; rig, spending dips

Capital spending by oil producers has been lower in the Gulf of Mexico and the world through 2016, says Loren Scott, Louisiana State University emeritus economics professor. The count in the GoM fell to 14 offshore rigs in early 2016 down from 56 in 2014. Drill ships are not working. Yet, oil production will continue to rise in 2017 because of deep water projects from 10 years ago, Scott said. The Energy Information Administration anticipates GoM oil output averaging 1.79 million barrels per day in 2017; and reach a record 1.91 million bpd in late 2017. The decline in working rigs has taken a toll on employment. The Lafayette area should lose 9,000 jobs maybe 5,000 next year. Houma could be down 5,400 jobs this year and 4,000 next. Louisiana as a whole should lose over 17,000 jobs in 2016. GoM shipyards have shed workers. Edison Chouest Offshore of Cut Off has laid off more than 1,000. (Marine Link 11/22/16)