RSS Feed

BATON ROUGE – Today, Gov. John Bel Edwards and Louisiana Department of Natural Resources (DNR) Secretary Tom Harris announced that more than 100 orphaned well sites have been plugged in the first two months of work funded by the Bipartisan Infrastructure Law (BIL). Another 30-plus wells are anticipated to be plugged by the end of March.
“I am extremely proud that our state has moved quickly to take advantage of the Bipartisan Infrastructure Law and has already plugged more than 100 orphaned wells,” said Gov. Edwards. “I appreciate the hard work that Sec. Harris, his team and the selected contractors have put into ensuring that this crucial work got off to a fast start. Every well site removed is one less pathway for methane, oil, or saltwater contamination to reach the surface. Reducing methane emissions is a key goal of Louisiana’s Climate Action Plan. I would like to thank Representative Troy Carter, Senator Bill Cassidy, and President Biden for their support of the Bipartisan Infrastructure Law that makes this work possible.”
Thus far, crews have completed work on 103 orphaned well sites – 52 in the Shreveport area and 51 in the Monroe area. In the initial month of work, crews plugged 23 wells, and as work crews continue to be ramped up, the pace of well work has accelerated. The two primary contractors chosen by DNR had seven crews running in the first month of work and have expanded that to more than a dozen, with work expected to be continuous through October 2023
“Our contractors have worked quickly to get crews in the field so they could get ahead of the spring rains that often make many of these sites inaccessible,” Harris said. “They have set a strong pace early and we hope to see that momentum continue through the end of this Initial Grant funding, and hopefully make the case for increasing the amount Louisiana receives in later rounds of funding.”
The U.S. Department of the Interior (DOI) is providing the BIL funding, having awarded Louisiana a $25-million Initial Grant to address orphaned wells in the state. The BIL funding is being administered by the DOI as part of an overall $1.15 billion announced last January for states to plug and remediate orphaned wells. DOI has indicated states will receive additional phases of funding this year – though details have not yet been announced.
The Initial Grant is more than double the average annual amount of funding the regular state Oilfield Site Restoration, with which the state Office of Conservation plugs 120 to 200 wells a year, depending on weather and well locations/depth and the need to draw from the fund to respond to emergencies.
Typically, orphaned well sites in Louisiana are wells designated by the Office of Conservation as not having a responsive operator, either due to the operator going out of business or being unable or unwilling to maintain their sites in compliance with state regulations. Louisiana’s orphaned well count is at about 4,500 sites, accelerated by downturns in the prices of oil and gas in recent years that put financial strains on oil and gas companies and their ability to maintain their sites or their businesses.
DOI announced the funding being awarded to Louisiana in October 2022 and DNR chose its primary contractors in December 2022, with the first well plugged on January 17, 2023 in the Caddo Pine Island Field in Caddo Parish – home to some of the densest well populations in the state, orphaned or operating.
DNR is also using the BIL funding to meet other DOI requirements - including establishing protocols and programs for methane and water quality testing and monitoring; addressing disproportionate impacts to disadvantaged communities from orphaned wells; and creating jobs to restore oilfield sites.
Orphaned well sites the state plans to be addressed with these Initial Grant contracts are primarily located in north Louisiana, a region that has a greater concentration of orphaned wells. The Office of Conservation’s Shreveport and Monroe districts contain more than 3,100 of the state’s roughly 4,500 current orphaned well sites.
Contractors interested in future contracts, as well as the general public interested in progress of DNR’s BIL initiatives, can visit www.dnr.la.gov/fedprojects to get the latest updates and information on DOI guidance, DNR activity and BIL orphaned well projects in Louisiana. For more general information on BIL projects across Louisiana, including an interactive map with projects broken down by type and congressional district, the public should go to infrastructure.la.gov.

The Federal Reserve Board of Governors after its March 22 meeting once again hike the Federal Funds Rate, this time to a range of 4.75 percent to 5 percent, in a bid to calm consumer inflation that remains elevated at 6 percent, with at least one more interest rate hike expected at the next meeting from May 2 to May 3.
That is, assuming the wheels don’t fall off the U.S. economy in the meantime with the current seeming banking crisis after $230 billion of uninsured deposits were guaranteed in Silicon Valley Bank and Signature Bank, which were placed in FDIC receivership on March 12, where some mid-sized regional banks were caught overexposed with too many treasuries and mortgage securities purchased when interest rates were much lower.
All told banks are said to be sitting on some $620 billion of unrealized losses related to rising interest rates, but so far, the Federal Reserve does not appear to be concerned too much, even if markets were. Prior to the Fed meeting, just a week earlier, CME Group data showed as high as a 65 percent probability of there being no rate hike when traders were asked on March 15.
Powell hinted at the further rate hike when he said “the median participant projects that the appropriate level of the federal funds rate will be 5.1 percent at the end of this year…” Since the current Federal Funds Rate only comes up to 5 percent, that means most of the Board of Governors are expecting the rate to be above 5 percent by the end of the year, after which time it might stay there until inflation returns to much lower levels.
On the other hand, unless there is another inflation spike, there was a 1.2 percent monthly increase in inflation in March 2022, a 0.3 percent increase in April 2022, a 1.0 percent increase in May 2022 and a 1.3 percent increase in June 2022—and all those are about to fall off the 12-month inflation indicator. Any numbers significantly lower than that, say, it was half that, then by June 2023, inflation might be as low as 4.1 percent.
Meaning, the consumer inflation rate, barring another runup, could be about to fall below that of the Federal Funds Rate sooner rather than later. It might have already been there, but the Fed did not appear to wish to raise rates too quickly in the hopes of some sort of theoretical “soft” landing for the economy.
Now, to keep downward pressure on prices, the central bank appears committed to keeping rates high for as long as it takes. It might also fear that by not staying the course, prices could heat up again very quickly as credit loosens. Something to watch out for.
In the meantime, what it shows is that the central bank still has a lot of confidence in the banking system—or does it? While in his press conference following the Fed’s statement Federal Reserve Chairman Jerome Powell claimed that “all depositors’ savings and the banking system are safe,” on the other hand Treasury Secretary Janet Yellen told the Senate Appropriations Committee, “I have not considered or discussed anything having to do with blanket insurance or guarantees of all deposits.” Instead, Yellen reiterated that under federal law, banks will only be placed into receivership if the Treasury, Federal Reserve and FDIC say that the bank is systemically risky under Dodd-Frank.
There is also the psychological aspect, which is that the Fed certainly wants you to think that it has confidence and do not wish to spook more runs on banks by suddenly doing an about face on interest rates by cutting the rate right after they said they were still hiking rates.
After the last meeting, on Feb. 1, the Fed had said, “The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.”
Now that phraseology was adjusted in the March 22 statement, which read, “The Committee will closely monitor incoming information and assess the implications for monetary policy. The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.”
Meaning with inflation still at 6 percent, there’s still some ways to go to get back to 2 percent over the long haul. Much depends on how quickly the disinflation or perhaps deflation occurs, with a looming recession intervening, since that’s usually the thing that ultimately brings the inflation down anyway. By 2024, the Fed expects unemployment will be up to 4.6 percent. That implies about 2 million job losses from the current level.
But the Fed seems okay with that. In his press conference following the statement, Federal Reserve Chairman Jerome Powell explained that more firming would mean: “our decision was to move ahead with a 25-basis-point hike and to change our guidance, as I mentioned, from ongoing hikes to some additional hikes may be—some policy firming may be appropriate.”
When asked “Does firming imply a rate increase per se, or could policy firm without you increasing rates?” Powell clarified he is referring to the Federal Funds Rate, “No, I think it’s meant to refer to our policy rate.”
The financial journalists in the room were clearly concerned that the Fed’s hiking of interest rates was responsible for the banking system issues, with another question directly posed, “Do you have concerns that the recent—that the hike you did today could further exacerbate the problem in the banks?”
To which, Powell replied, “No, I mean, we’re—with our monetary policy, we’re really focused on macroeconomic outcomes.” By that he means, the inflation rate and the unemployment rate. In his opening statement, Powell restated the central bank’s statutory mandate is maintain stable rates of inflation and maximum employment for as long as possible, “The Fed’s monetary policy actions are guided by our mandate to promote maximum employment and stable prices for the American people. My colleagues and I are acutely aware that high inflation imposes significant hardship as it erodes purchasing power, especially for those least able to meet the higher costs of essentials like food, housing, and transportation. We are highly attentive to the risks that high inflation poses to both sides of our mandate, and we are strongly committed to returning inflation to our 2 percent objective.”
Now, this part may be a slight exaggeration. The Fed did not seem at all concerned with inflation all throughout 2021, even after it popped above 5 percent in June 2021 after more than $6 trillion was spent, borrowed and printed in response to the economic lockdowns, production halts and the temporary spike in unemployment as 25 million Americans temporarily lost their jobs.
The M2 money supply increased dramatically from $15.3 trillion in Feb. 2020 to a peak of $22 trillion by April 2022, a massive 43.7 percent, leading to the inflation spike.
In fact, by the time Russia invaded Ukraine in Feb. 2022—further worsening global supply issues—and critically, before the Fed had even begun hiking interest rates, consumer inflation was already north of 7.5 percent. Consumer inflation ultimately reached 9.1 percent in June 2022, where it appears to have peaked for this business cycle.
In other words, the Fed was caught off guard by how quickly consumer demand recovered, and yet, after more than $6 trillion was printed to boost demand during Covid, plus the fact that production was halted via economic lockdowns and people were paid not to work, it was literally too much money chasing too few goods. Shouldn’t they have anticipated the inflation?
And now, the central bank might be behind the curve on how in danger banks truly are with higher interest rates, with the New York Times’ Jeanna Smialek questioning the Fed’s credibility, asking, “how can the American people have confidence that there aren’t other weaknesses out there in the banking system given that this one got missed, as you noted?”
Good question, but Powell held firm in his belief that banks that had hedged against the Fed’s widely broadcast interest rate hikes should be fine, even with the higher rates. The ultimate answer might come when we find out whether depositors and critically stockholders of banks agree.

As the Louisiana Cattle Festival & Fair Association begins initiating community involvement opportunities in conjunction with festival promotion, a primary focus will be on engaging and supporting the youth of Vermilion Parish.
The Louisiana Cattle Festival would like to invite parish youth to create artwork showcasing Louisiana's cattle industry for an opportunity to be honored as the 2023 Festival’s "Featured Artist.” The winning artwork will appear on all promotional and marketing materials including the 73rd Louisiana Cattle Festival's official poster and T-shirt.
In addition to being named the “Featured Artist,” the contest winner will also receive a $100 cash scholarship prize basket and artwork exposure on local and state levels during festival promotion, as well as during Louisiana Association of Fairs and Festivals state convention.
All contest applicants must read the official rules and guidelines, and complete an entry form to be submitted with the artwork by 11:59 p.m. on Monday, April 10, 2023.
For all entry forms, official rules and guidelines and for more information, visit the Louisiana Cattle Festival webpage (www.louisianacattlefestival.org/cattle-art-contest-1), by emailing louisianacattlefestival@gmail.com, or by scanning the QR code on the cattle art contest flyer.
So, grab your pen and paper...or crayons, markers, paints, whatever medium you prefer, and enter for your chance to be 73rd Louisiana Cattle Festival’s "Featured Artist”!

You have probably heard that you shouldn’t burn your bridges behind you. This is true in some situations, but not all. When you burn your bridges, you limit your options. What situations warrant this action and which ones do not?
In your relationships with others, you don’t want to burn your bridges. Life takes many unexpected and unpredictable twists and turns. You never know whom you will need to interact with in the future.
Although there are some individuals you want nothing to do with, hopefully they are few and far between. For the others, it’s not in your best interest to permanently sever a relationship. Although you may not like someone or you may have different philosophical beliefs, you can still maintain a cordial relationship that doesn’t cause any bitterness.
You can be pleasant, polite, and congenial. You do not have to give someone a piece of your mind. Your paths could cross again at any time. A person from your past could wind up as a neighbor, coworker, boss, employee, or friend of a friend. People may forget a lot of events but a distasteful experience tends to be burned into one’s mind.
Since you never know who you will run into in the future, or in what capacity, it behooves you to leave off with people on good terms. Always be courteous and speak with a smile. A mean and insulting attitude never works in your favor.
When should you limit your options by burning your bridges? For an example, consider the story of a general and his army, who some hundreds of years ago, arrived by ship at the coast of the enemy.
Once his men had all come ashore, he had their empty vessels burned. With the fleet engulfed in flames, he told his men that if they wanted to return home they would have to be victorious because retreat was no longer an option.
To attain goals, you have to limit your lines of retreat. People who succeed incorporate a mindset that giving up and turning back is not acceptable. Forward is the only direction offering possibilities. You can change course if something doesn’t work as planned, but always want to move towards your objective.
When someone says they will give something a try, the implication is that they can always turn back. Success requires laser like focus. A goal is reached because the bridges of retreat have been eliminated.
Determination shouldn’t be confused with recklessness. People who are reckless will act on a whim without thought or planning. They demolish bridges because of carelessness, not as part of an intentional strategy. They will abandon a journey at the first obstacle. They are flippant and quick to blame others for their failures.
Giving something your all is more than an all or nothing attitude. A person, who gambles his or her life savings at a casino, hoping for a big win, is behaving destructively. If all of the money is lost, there isn’t much room to adjust investment strategy and move forward.
When you burn a bridge, it must be for motivation, to help propel you toward a positive goal. It can be destroyed only after a lot of thought and as part of an intentional design. Burn a bridge that is a pathway to defeat. Don’t burn a bridge that will provide you with options going forward.
Identify your bridges carefully. Separate those you want to preserve from those you should burn. Don’t burn any bridges that may be needed in the future. Get rid of bridges that will serve as an excuse to abandon your dreams.