Friday, January 6, 2023

Regional energy forecast for '23

The LSU Center for Energy Studies released its 2023 edition of the Gulf Coast Energy Outlook (GCEO) forecast and overview of the region’s energy industry. The 2023 GCEO addresses numerous the potential: 

* By 2Q, Louisiana is expected to gain about 3,500 jobs. Texas is forecasted to gain about 12,200. The model does not anticipate employment in either state to reach pre-COVID levels. 

* Drilling activity will increase somewhat. Oil production is expected to reach pre-pandemic levels.

* Both O&G prices will likely fall. Oil prices are anticipated to converge back to pre-Russia invasion levels. Natural gas will likely settle at average levels but higher than over the last decade. 

* Regional oil and natural gas production is anticipated to experience a decade of growth but expected to decline by the end of the year. 

* Long-run energy demand will lead to increased U.S. energy exports but a global recession would reduce demand. 

• The Russian war will force supply adjustments. Crude oil prices will gradually attenuate over the next few years. Gulf Coast natural gas prices will likely remain elevated (post-2008 trends) due to LNG export pressures. 

* Decarbonization policies will challenge Gulf Coast energy manufacturing but will likely create opportunities to take the lead in developing low- and net-zero emissions products. GCEO sees decarbonization creating considerable regional capital investment opportunities. 

* Solar capacity will see significant growth but will only be a small share of total electricity generated for the near future. 

* As much as $175.4B in new energy manufacturing investment activity will occur through 2030.

* Production in the refining industry has rebounded and is anticipated to continue although downward revisions may be needed if a serious global economic contraction arises in the upcoming year. (Work Boat 01/05/23) Louisiana, Texas to see increase in oil and gas industry job opportunities | WorkBoat

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