Marine Industrial May 2017

MARINE INDUSTRIAL C1 WEDNESDAY MAY 31, 2017

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WEDNESDAY, MAY 31, 2017

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‘BIG OIL’ DECISIONS LOOM ‘TWO LOUISIANAS’ FIGURE INTO STATE’S RECOVERY

CASEY GISCLAIR | THE TIMES

A fleet of boats sits tied up in the water in Lafourche Parish – a sign of how slow work is throughout Louisiana. Industry experts said it’s possible for a recovery, but several factors are in play.

BY JOHN DESANTIS

john@rushing-media.com For nearly four years the Bayou Region has suffered from falling jobs, failing businesses and dismal predictions, largely attributed to low oil global prices.

But close examination reveals that what was once described as a global oil glut is only part of the picture. Other factors – including the boom in upland extraction of oil and gas from shale – have played major roles in the region’s decline but may also aid a new rise in fortunes.

Local industry voices recognize the signs of what’s gone wrong, but express hope in what is yet to come.

“Our marine industry is still in flux,” said Jane Arnette, executive director of the South Central Industrial Association,

a leading regional business organization.

“We are at a critical point where every local, state and federal issue must be taken seriously. What happens all over the world has repercussions for the industry.

We are a resilient group and will survive.

It will be a slow process to recovery.”

Marine transportation and other oilfield services – tool rental, personnel management to name just a few – are the lifeblood of local economies. Locally, they have developed product lines, workforces with specific skills sets, and rolodexes tuned for responses best married up with the traditional deep-water oilfield. But while the economies in some communities slide, those of others not so far away boom further upward.

Pat Gordon is planning director for South Central Planning and Development, which aids businesses throughout

the Bayou Region, of necessity keeps track of such things.

“We do see the entire economy of our region and we see those parishes dependent on oil and gas, St. Mary, Terrebonne and Lafourche, with sales taxes going down and the economy not nearly as good as 10 years ago. But the parishes along the Mississippi River, St. James, St. Charles, those with petrochemical plant, with the low price of natural gas all their industry runs are doing extremely well. Right now St. Charles is blowing and going.”

The news is not all bad from Terrebonne, Lafourche and St. Mary, however.

There are signs that things are picking up, though not in the way people might have thought.

“In Terrebonne the sales tax is stabilizing compared to last year,” Gordon said, noting that sales tax and associated retail

businesses are a marker for the good fortune other parishes are having. “They are not seeing the sales tax collections beginning to plummet.”

Terrebonne Parish records bear that out.

Four months of sales tax collections ending at April in 2014 measured $47,728,775.20. A year later for the same period, sales taxes had dropped to $43,046.562.97, then in 2016 to $41,099.830.02.

This year, however, gross sales tax collections fell to $40,290,736.77. That means the gap, from a fall of nearly $5 million two years ago, had fallen by a comparatively mild $2 million the following year, and finally by just a million the year after that.

SEE OVERVIEW, PAGE C4

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OVERVIEW: Sales tax numbers show the impact of the lengthened slump in oil, marine FROM PAGE C3 One reason for the break-fall, Gordon opines, is the continued surge of jobs in surrounding areas.

Consumers working in St. Charles are traveling to Houma for their shopping in some instances, rather than New Orleans or Jefferson Parish. While the observations of planners and growth experts might not appear on target to local workers who have lost jobs or hours due to the economic slowdown, Gordon said the hard times need to be kept in perspective.

“I remember the 1980s with 25 percent unemployment,” Gordon said. “More welders become crabbers than ever before. Everyone had to find some job to pay their bills. We are currently looking at 7.2 percent unemployment.”

The region, he said, has been cushioned this time around by diversity.

“The medical industry has developed much greater than in the 1980s,” Gordon said. “Highway 90 is completed and more people living in Assumption and St. Mary come to Terrebonne to shop. “ A lot of the oilfield jobs lost in Terrebonne and Lafourche, Gordon noted, were held by people who were not residents of Lafourche or Terrebonne, which also lessens the economic impact to a degree.

A study done by the Terrebonne Economic Development Authority around 2010 showed that 45 percent of people employed in key oilfield service sectors were not from Terrebonne Parish, even though they worked there.

The difference in how fortunes are recorded in energy is upstream vs. downstream. Upstream – locating and sending oil or gas into the market from this area – is what has been doing poorly. Downstream – becoming a recipient of oil and gas and then processing it from points north – is what is doing well.

Making change from one to the other isn’t always easy.

“We have companies that are reaching out into that downstream sector,” said Katherine Gilbert, the Terrebonne Economic Development Authority’s director of business retention and expansion.

“There are some with varying degrees of success. Our people here can build anything. It’s more about being able to make those connections. Plants have existing

relationships and companies they work with routinely. It’s a challenge to become one of those go-to places or calls.”

In essence, Gilbert and others agree, a big part of the challenged is about the Rola-Dex, getting new companies into your own and getting yourself into those of the companies who might buy what you sell, but maybe never have before.

From Gilbert’s perspective the news is not bad, at this point, or not as bad as it has been.

“I do see, and even the labor department numbers show, some companies have begun picking up a few employees at a time,” Gilbert said. “I don’t want to call it growth. It’s more a reconstitution and it depends on what sector that company works in or can work in. Maintaining pipelines, the work is steadier because there is going to be some degree of maintenance . Upstream it’s a little slower. If you can work on the downstream, the refining side, there is certainly growth occurring there. It depends on what portion of the market you serve and when it will come back to your sector. There are more jobs. People are looking for experience, though not in great numbers. But yes the stream is starting to flow a little better.”

What Gilbert and others have been seeing at ground level has been a great area of study for LSU Center for Energy Studies Director Gregory Upton. His vantage-point is global.

“We have seen a fundamental transfer of both the oil and energy market over the last decade,” Upton said. “What we had was since the 1970s are decreases in crude production. We offset that with imports that came into our refineries. With shale that has completely reversed. We had increasing imports when shale came along. Our refineries have had to adapt and it has changed the infrastructure.

Now we are getting the crude traveling down to here. The infrastructure for that wasn’t here. We have been put in a unique position to become this trading center or hub for oil.”

The Gulf coast market has the potential, Upton said, to increase domestic handling of oil that comes from shale, rather than from the ocean.

The deepwater production he said, was never truly affected to a great degree by global oil prices, since such exploration is done over such a long period of time.

COURTESY | THE TIMES

Workers work on an oil platform in the Gulf of Mexico. At press-time, deepwater drilling remained down, though many are hopeful of a rebound in the very near future.

“Going back in time everyone was looking at the GOM, what were the biggest discoveries there,” he said. “The growth at the Gulf of Mexico has historically been stable. Deepwater offshore has a long time horizon on investment. With shale it is different. I can decide tomorrow I am going to build a well, thinking in months and not years.

With the price continuing to be low for a couple of years, now the companies are adjusting, he explained.

“Decreasing drilling operations in the Gulf and moving into production at shale areas will be detrimental for Louisiana’s work force,” Dr. Upton said. “It is a tale of two states. Upstream is having a hard time, Lafayette, Houma, Thiboaux hit really hard,” Upton said. So long as the

oil companies continue to value the longterm potential of the Gulf of Mexico, he maintains, the picture will brighten locally.

“Those labor markets will stabilize and be fine,” Upton said, noting that there is another potential. “If the big players decide to leave the Gulf of Mexico entirely and we see a fundamental shift, we could see a long-term fundamental change and right now nobody knows.”

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LOCALS LOSING PATIENCE AREA WORKERS UNSURE IF OIL WILL EVER COME BACK UP

COURTESY | THE TIMES

A welder works on a ship at a yard in Louisiana. Thousands of workers in the marine industry have been laid off in the economic downturn. Many are leaving the area to find steadier work.

BY CASEY GISCLAIR

casey@rushing-media.com Houma native Roderick Collins hears all of the time that it’s soon to get better.

But after close to a half a year’s worth of waiting, he’s at a point where he’ll believe it when he sees it.

Collins has worked various jobs tied to the price of oil since graduating high school in 2011 – including some with local shipbuilding companies.

But he was laid off about six months ago after a round of cuts hit the company he was working for – an employer he asked us not to name because Collins said he left the business on good terms.

His bosses told Collins that he was a good worker – one of the best young hands in the company.

But there was a problem.

There simply wasn’t any work to be done.

Collins is one of several locals out of work and gasping for relief as the price of oil and gas hovers around $50 – far less than the $80, $90 and even $100 per barrel prices the area enjoyed for the early part of this decade.

Without work, Collins said he’s cut grass and done side jobs – anything to hang on and pay the bills. But he added that he can’t hang on forever, and something will have to change for the better for him to stay in the area long term.

“I have a lease and I have people here that I love and don’t want to leave,” he said. “But I can’t do it much longer, you know? It’s a struggle, and I’m a young guy now, but guess what? You have to make money when you’re young so you can rest when you’re old. I have to either see something pick up here or I will have to go find some hustle somewhere else. I literally have no other choice.”

Collins is one of literally hundreds of people fighting that same struggle.

And after being told for months that a comeback was imminent, some locals are beginning to lose patience.

It’s no secret that the area is heavily tied to the oil and gas industry’s success – almost to a fault.

Just about every industry locally is related to oil and gas – either directly or indirectly.

Direct impacts, of course, are obvious, as drilling companies, service companies, marine companies and several other oil-related businesses make up literally tens of thousands of jobs in the local workforce – jobs which were abundant, but now are scarce as work has slowed.

But what many don’t fully grasp are the indirect effects that the industry has on literally every other realm of the economy.

For example, when oil and gas is good, people have more money, which benefits restaurants, grocery stores, retail stores, automobile dealerships and just about ev-

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‘A lot of my co-workers are gone. Some went to Texas. Others went wherever. They just picked up and left. Louisiana and Terrrebonne Parish are awesome, man. But if you can’t fend for yourself here, then sometimes changes have to be made and right now, all the work is shaky because companies are hanging on. I got burnt once. I don’t think I can do it again.’

erything else.

As dollars are spent in those places, sales taxes are collected, which allow projects to be funded in the area.

Media companies like this publication feel it, too.

Our business thrives based on ad sales to companies, and obviously, the more profits businesses are making, the more they’ll be willing to set aside some cash for an advertising budget. This, of course, directly impacts our budget and profits margins, as well.

“It is the engine that drives everything in our local economy,” Port Fourchon Executive Director Chett Chiasson said earlier this year. “When it’s good, a lot of people are happy. When it’s not, a lot of people are very, very uneasy. Right now, I think we’re in one of those uneasy times.”

The current economic dip started in the middle of 2014 when oil prices tanked – dropping from $100/barrel to around $50/barrel in just a couple months.

In late 2015 and early into 2016, the bottom fell out again and prices hovered near $30/barrel – the lowest they’d been in decades.

Since that time, the market has stabilized and has slowly worked upward. Oil has been around $50/barrel for the better part of six months. It sits just north of that amount at press-time. s The saving grace locals have been rclinging to during the dip is history and the idea that we’ve been here before, but ,have always battled back.

- The price of oil has slumped several -times throughout history, but has always -seemed to climb back up – most times lhigher than ever before. , And experts in the field have said for months that the same thing will happen eagain in this dip, citing the billion-dollar ncommitments oil tycoons are still mak-ing in the Gulf of Mexico for future deepwater drilling. , “By every indication that we’ve been sgiven, it’s going to come back,” Chiasson ,said earlier this year. “Money is still be-ing invested in the Gulf, and every indi-

cation is that we’re going to see things get back to comfortable levels in the future.”

But those prognostications are beginning to fall on deaf ears – especially among locals who need work right now.

Collins said he, too, has heard that the price of oil would shoot back up. He said he believed it at first but is starting to lose hope.

The same can be said for fellow Houma native Joe Romero, who is thinking about going back to school after being laid off.

Romero said he considered going to Nicholls or Fletcher to get oil-related training to use when the economy picks itself back up off the canvas.

But after thinking about it and watching the situation unfold with friends and family, he’s decided to go into a whole new career field altogether.

“I just can’t keep waiting,” Romero said. “I don’t know if it’s ever going to come back.”

That’s not the answer locals want to hear, but it’s a reality Collins, Romero and others have to face as every day passes by without normalcy having returned to the industry.

Collins said he believes in his heart the industry will return, and he’s hoping it’ll be in the next six or so months.

If not, he might have to miss out, and he said he has a lot of friends who’ve pulled the plug already and have left town.

“A lot of my old co-workers are gone,” Collins said. “Some went to Texas. Others went wherever. They just picked up and left. Louisiana and Terrebonne Parish is awesome, man. But if you can’t fend for yourself here, then sometimes changes have to be made, and right now, all the work is shaky because companies are hanging on. I got burnt once. I don’t think I can do that again.”

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Oil prices slowly trudging upward

STAFF REPORT

editor@rushing-media.com The price of oil isn’t as good as it once was, certainly.

But recent indications are that things may finally be heading back in the right direction.

Thanks to a deal made by OPEC, which saw members agree to cut output in the global supply, oil prices have gradually increased in the past few weeks, currently sitting just north of $50 per barrel at press-time on Friday.

That slow increase is heavily dependent on that deal being extended, which many world leaders expect will happen.

A proposal is currently on the table which would extend the output cuts for the next nine months. Iran backs the proposal, which was created by representatives from Saudi Arabia and Russia.

As the prices increased, so too has the work in the Gulf of Mexico.

According to rig count numbers provided by Baker Hughes, United States oil rig numbers have increased from 877 active rigs to 901 rigs from May 5 to May 19, marking the first active increases in rig count over the past several weeks.

Locally, the numbers have increased, as well – although slightly.

In North Louisiana land production, active rigs have increased from 36 to 38 in the past two weeks.

Louisiana’s offshore rig count has also jumped from 17 on May 5 to 22 on May 19 – a good sign for those in the industry.

Experts said similar increases are likely if the OPEC deal gets signed and is followed for the next nine months, which could slowly ease some of the economic struggles in the Houma-Thibodaux area.

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RESTORE OR RETREAT COASTAL RESTORATION BRINGING OPPORTUNITIES TO REGION COURTESY | THE TIMES

Cranes and bulldozers move dirt from a waterway to lay atop a levee in Lafourche Parish. With coastal restoration dollars set to come into the area, many expect that industry to be a new, upstart economic engine for the community in upcoming years. Experts estimate hundreds, if not thousands, of jobs to come from the budding industry.

BY KARL GOMMEL

karl@rushing-media.com The Bayou Region’s most pressing existential crisis also presents a litany of opportunities for local workers and businesses.

As local, state and federal dollars pour in to help protect and restore Louisiana’s quickly disappearing coast, companies could be in line to pick up valuable work in those projects. Local coastal and business advocates say the burgeoning water management sector will provide a godsend of economic activity for a region

reeling from the current oil and gas slowdown.

Louisiana is in line to collect hundreds of millions, and possibly billions, of federal dollars to be spent on coastal restoration projects. The RESTORE Act, which allocates penalty money related to the Deepwater Horizon oil spill to Gulf Coast states, promises $1.86 billion to be directly given to five Gulf states for restoration, meaning Louisiana is due $372 million, or one-fifth of the total, from that component alone. The act has also earmarked another $3.2 billion in projects related to restoration and spill impact spending. Terrebonne and Lafourche

Parishes, some of the areas most affected by the oil spill, could be in line to receive projects from that additional largesse.

The Gulf of Mexico Energy Security Act (GOMESA) ensures the federal government will share some of its revenues from offshore oil and gas leasing with four Gulf states, including Louisiana.

Simone Maloz, executive director of local coastal advocacy nonprofit Restore or Retreat, said the incoming federal dollars for projects is great news for those fighting for and living on Louisiana’s coast.

While the projects being done at all is great news, there are also opportunities for the work to be done by local compa-

nies.

“With all of this coastal restoration and protection work coming online, there’s a potential there for another sector to be created,” Maloz said.

ROR held workshops in May of last year for local businesses in the construction and oil and gas industries to inform them about the upcoming restoration opportunities. Maloz said the goal of the workshops is to build and enhance a network of small and large local businesses interested in the water management sector, with the goal of having a thriving netSEE RESTORE, PAGE C11

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CONTINUED LEGACY BOLLINGER MAKES CHANGES, BUT RESULTS STILL STEADY

COURTESY | THE TIMES

A Coast Guard Cutter made by Bollinger Shipyards in Lockport is lowered into Bayou Lafourche so that it can serve the military. The cutters have saved lives, according to military officials and administrators with Bollinger, who said the company is proud to produce them. In total, Bollinger has made more than 20 of the cutters with many more to come.

BY CASEY GISCLAIR

casey@rushing-media.com The leadership structure at Bollinger Shipyards isn’t the same today as it was in the past.

But the company’s commitment to excellence and safety hasn’t budged. In fact, it may be stronger than ever.

Bollinger changed the local marine landscape more than two years ago when the company sold its ownership to a group headed by businessmen who own Edison Chouest Offshore.

The new company shield is guided by CEO Ben Bordelon – the grandson of Donald G. Bollinger – the patriarch of the long-standing local company, which has been in business since 1946.

Since taking over, Bordelon has led the company to continued success in all realms.

This past week, Bollinger had one of their proudest moments yet, earning the 2016 Award for Excellence in Safety, as given by the Shipbuilders Council of America.

It’s the 12th-straight year the Lockport-based company earns the award – something Bordelon said he’s most proud of.

“This recognition of exceptional safety performance by the shipbuilding and repair industry is realized only through the continued efforts of Bollinger employees who have made safety a priority,” Bordelon said. “Bollinger remains committed to attaining the highest level of safety and supports future safety innovations in the

maritime industry.”

Bordelon talked about the “commitment” the company has to safety, innovations and keeping employees safe and happy.

Those are all fundamental, company-wide philosophies his grandfather used to start the company now more than 70 years ago.

Donald G. Bollinger started the company in 1946 as a small-town, family-run shipyard in Lockport – a business that no one ever dreamed would become anywhere near as big as it now is today.

Donald Bollinger was an optimist by nature, according to a company-written bio on Bollinger’s website.

He had to be. He was raised in the Great Depression.

Together with his brothers, who were

servicemen, the company boomed as the oilfield did locally after World War II, blossoming further into the 1970s and 1980s.

Through all the growth, the business had some leadership and executive shuffles along the way while always remaining family-owned.

That changed when the Chouest purchase took place, though with Bordelon at the helm, a man with Bollinger blood is still at the helm of day-to-day operations.

Competition and business savvy are also in his blood, too.

A former LSU football player who had a short run in the NFL, Bordelon took over as president and CEO of Bollinger with loads of expertise in how the company is SEE BOLLINGER, PAGE C12

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RESTORE: Experts say new jobs will require similar skills to work done in marine and oilfield FROM PAGE C9 work by the time the federal dollars and projects hit the area.

Maloz said aside from cultivating interest as federal dollars come down, building networks also helps plan for the moment when those projects come up for grabs.

She said she wants local governments, businesses and stakeholders to be ready for some money coming down over more than 15 years, some coming immediately and some being grant-reimbursable.

“It’s trying to put all those pieces together, and that’s some of the things we’re trying to think through as a group so that we can use our own network and connect them with the opportunity,” Maloz said.

The South Louisiana Economic Council has been making its own similar efforts to build a local network. SLEC President Vic Lafont said the council is in the process of setting up a website with Louisiana Economic Development which will serve as a database for local companies who want to participate in water management. He envisions the site working as a database for primary companies handling projects, letting the larger companies pre-vet local firms for subcontracts.

LaFont said the website should be online in the near future.

According to analysis by the Restore the Mississippi River Delta Coalition, Louisiana’s water management sector jobs grew by about 9,500 from 2010 - 2015.

That rate was considerably higher than any other sector it measured, with tourism the next closest at about 6,000. Oil and gas and petrochemical industries, both affected by the downturn that started in 2014, only saw a combined net gain of a little less than 1,200 over the same time frame.

Lafont said he has seen projections of 3,000 new water management jobs coming to the Bayou Region over the next 10 years. Of those, about 50 percent will be middle-skilled jobs that require some kind of trade certification beyond a high school diploma. The RMRDC analysis pegged the average wage in water management at $70,000 per year, a figure Lafont said helps when pitching to high school students and young people about the upcoming opportunities in the sector.

“When they see how much money you can make as a middle manager, all the game changes for these kids,” Lafont said.

According to Lafont, the region is going

CASEY GISCLAIR | THE TIMES

South Lafourche Levee District General Manager Windell Curole talks to a crowd at an open house hosted by Restore or Retreat – one of many seminars they’ve hosted to show businesses the new jobs coming to the area in the next several years as funding flows through the state.

to have to prepare to meet the labor demands of the water management sector.

On one hand, many oil and gas workers will see large skill overlaps in the new restoration jobs coming, so those currently laid off could find a new avenue to utilize their training. However, the energy sector was already facing a labor shortage due to many students choosing a four-year degree over earning a certification to work in industry. LaFont said re-tooling local high schools and technical colleges, and better selling the opportunities in industry, will be key to having enough students join the workforce.

“Even though you graduated from high school, yeah, you didn’t quite get to college, that middle sector right there is

where the emphasis is going to be,” Lafont said.

Lafont said the skill overlap between energy and water management is great news for local workers, as it will put them in even higher demand, driving up wages.

“Both those industries are going to be competing for the same type of worker, which means that’s going to be good for the worker. They can command a little bit more; there’ll be some competition there,” Lafont said.

Lafont said the region, which already needed to rebuild the workforce in the wake of the energy downturn, needs to go further to prepare for restoration opportunities. He said in the short-term the wa-

ter management sector will provide great jobs while protecting and maintaining the region’s most valuable resources. In the long-term, the plan is to develop and use the knowledge gained on restoration work here to export to other parts of the country and the world, giving Louisiana companies even more opportunity. However, that advantage is based on local firms winning the work here in the first place, something Maloz, LaFont and others are planning for.

“Those who work in coastal Louisiana know how to work in coastal Louisiana.

That could be oil and gas or that could certainly be in construction on a mitigation project. They both work in the same environment,” Maloz said.

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A tribute to oil, marine workers BAYOUSIDE

BY JOHN DESANTIS

Senior Staff Writer

There is no way to adequately thank those who go to work every day – or a succession of days and even weeks, for that matter – to do some of the toughest jobs imaginable under conditions that would make most of us melt.

It seem there are ways of glorifying all kinds of people, like first responders, who certainly deserve a great deal of praise. And other professions we might

find interesting that involve work done other than here seem to get our attention.

We recognize the dangers of mining, for example.

But the value of a job does not always have to be judged by its danger. Sometimes it gets judged by its importance to society overall.

And in this part of the world, there is far less praise given than should be to the men and women who make a living on the water, prepare and build things that go to, into and non the water, and who travel over the water routinely to get to the jobs they hold.

They work on rigs but they also work in welding shops, at safety centers and on and around boats.

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BOLLINGER: Ship building company earns safety award for 12th-straight year FROM PAGE C10 run.

Bordelon had been a high-ranking official with Bollinger for several years at the time of his appointment.

He was the company’s chief operating officer at the time of the sale.

Bordelon had also been a member of the Bollinger board of directors since 2002, and was the company’s executive vice president of repair.

When the sale was announced, Bordelon, a Central Lafourche High School graduate, said he shared the same vision as his grandfather, and couldn’t wait to bring that vision into action for the shipbuilding company that’s generated billions of dollars worth of contracts since its existence.

“Fishing with my grandfather near the family marsh near Leeville gave me a lot of time to hear stories about his vision, as well as his personal and business life,” Bordelon said. “I look forward to building on the values set out by my grandfather all those years ago. With a commitment to our customers, a deep appreciation for our workers, a strong focus on safety, the clean environment and quality service, we will grow this company as we build on a great base.”

So far, he’s helped to do exactly that.

In the past several years, Bollinger has delivered 23 Fast Response Cutters to the United States Coast Guard – a great feather in the cap for the local company.

The ship is slender, but powerful – a 154-foot patrol craft that was named after a Coast Guard hero who distinguished himself in the line of duty.

The vessel has top speeds of 28 knots and is loaded with a state-of-the-art command center, control communications and computer technology.

“It’s a game changer,” a high-ranking official with the Coast Guard said in a news release.

For Bollinger, it’s a game changer, too.

The company has logged countless hours of work time on the ships, which are built then deployed around the world for Coast Guard use.

The latest was delivered on April 20 – the Benjamin Dailey. The company also owns contracts to produce several more over the next several years.

The ships, Bordelon said, had played a huge hand in helping the Coast Guard save countless lives, while also assisting

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o COURTESY| THE TIMES A Bollinger Shipyards CEO Ben Bordelon (right) smiles with pride as the company wins the SCA Award for Excellence in Safety for a 12th-straight year. T b Bollinger’s commitment to safety and overall excellence stems from the 1940s when the business started in Lafourche. o We service all products we sell. i such a major impact on our nation’s secuin narcotics busts and other missions. commitment to being an economic leader.

“We are extremely proud that the Fast rity,” Bordelon said when the Benjamin That’s been Bollinger’s way – now 70 3 Response Cutters built locally on the bay- Dailey was launched. “We at Bollinger years and counting.

New Maytag ou by Louisiana craftsmen are having Shipyards are looking forward to hearing “Our company is proud of its accomVacuum of the heroic exploits of the USCGC Benja- plishments,” Bordelon said. “We look forStop by and see min Dailey as it joins the Coast Guard’s ward to its future – one which we expect them demonstrated! operational fleet.” to be very bright.”

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MDB4949SDthe “We are very pleased to announce arrival of the ‘Mrs. Jody’ at Bollinger casey@rushing-media.com Simmons Lift Bed Algiers,” Bordelon said.

“This drydock 2 Years No Interest On Bedding will position us well in the diverse cusaddition to the cutter, Bollinger was (See StoreInFor Details) also busy recently welcoming a new dry- tomer markets that we serve and will further enhance our position in the mardock – an addition the company believes Samsung will strongly boost its future.

Range ket with lifting capacity needed by our NX58K9850 Bolinger announced last week the ar- customers.”

Two-Way Radios · Gas Detectors Sale Prices plus The ‘Mrs. Jody’ is 198-feet-by-76-feet rival of therebates drydock ‘Mrs. Jody’, which on Bolt Torquing · Hydrostatic Pressure Testing between its wing walls, and it has a total will be positioned at the company’s Alselect items!

Porta-Powers · Flange Spreaders lifting capacity of 4,000 tons. giers location.

Hot/Cold Pressure Washers · Pipe Threading The company said it has two commerBordelon said the drydock will help the company serve its customers now cial drydocks in Algiers with a combined lifting capacity of 5,800 tons. and into the Danby future. 3.3 cu.ft.

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STILL FINDING DEALS EDISON CHOUEST DOING BUSINESS IN BRAZIL

CASEY GISCLAIR | THE TIMES

The main offices at Edison Chouest Offshore in Galliano show a product of one of the most successful businesses in the area. The company recently worked two deals with oil multinationals, which will allow for Chouest to do work in South America. ECO President Gary Chouest said the company is “honored” to sign the deal and keep the company churning.

BY KARL GOMMEL

karl@rushing-media.com The marine giant from Cut Off known as Edison Chouest Offshore has been able to find additional work in spite of the oil and gas slowdown.

ECO has announced two deals with oil multinationals spanning across the Americas over the last month-and-a-half.

The deals have the local shipbuilder furbishing vessels for work in both the Gulf of Mexico and providing support services in South America.

In April, ECO announced a new 30-month agreement with British Petro-

leum that will include vessel services, facility uses at Port Fourchon and logistics coordination. The deal extends a working relationship ECO has had with BP for over eight years. Aside from continued use of BP’s Gulf of Mexico Preservation and Maintenance facility in Gray, the agreement also includes a new 312 ft. new generation platform supply vessel. The ship, which will be used to deliver supplies to BP platforms in the Gulf, is currently under construction at Chouest’s shipyard in Houma and is scheduled for delivery in several months, according to a press release announcing the deal. ECO President Gary Chouest said the alliance with BP is a chance to continue the great

work the two industry giants have done together.

“We are honored to build upon our many years of operating together in the Gulf of Mexico and worldwide,” said Chouest. “We will continue to work with BP to uphold the superior standard of service and safety culture that both companies have adopted, and is second to none in our industry.”

In South America, Shell Brazil will be receiving support services from an ECO vessel. The five-year contract covers construction, inspection, maintenance and repair services from the M/V Island Enorcer, a 402 ft. subsea installation and construction vessel. The agreement

also features a variety of services from Chouest affiliates. This agreement also marks the extension of a working relationship, with ECO having supported Shell Brazil exploration since 2012. ECO Brazil Director Ricardo Chagas said his company’s services are critical at a time when oil and gas companies worldwide are looking for savings during the downturn.

“It’s unparalleled proof of versatility in the subsea market, which translates into cost benefits for our customers, especially valuable in times such as those we now face,” Chagas said.

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DESANTIS: Paying tribute to the wonderful men and women in the marine industry FROM PAGE C11

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COURTESY | THE TIMES

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Boats sit in Bayou Terrebonne, waiting to be called to work. John DeSantis offers support and praise to those in the oil and gas industry this week.

There should be some form of monument right here, near where the real works in oil and gas are employed, to show the gratitude of a community that relies so much on oil and gas for its economic health.

Without men and women who find ways to get the crude out of the ground, or the oil up the pipe, there is no energy

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industry.

So in the interests of fairness and goodness, absent a permanent memorial, a fleeting one will do. The next time you are at the convenience store and see that guy picking up a 12-pack for a long weekend off, still wearing his coveralls, or with that welder’s cap on his head, say hello. Thank him for the hard work he

b a does for our community, for helping in i his own way to put gas in the pumps and t i oil in the burners.

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stand outside the TWIC office, where they go to get the cards that allow them to be in close proximity to ports and vessels and oil tanks. They are humble, they look rough, a lot of them, and this is because they are out in the elements. They party too hard sometimes when they are off work, especially the younger ones.

But most are just people trying to raise a family in an industry that largely chews them up and throws them out when they are done.

Ask any workman’s comp or disability lawyer. They see a steady stream of the injured and the wounded every day. And even as the companies that pay them brag on the safety awards they receive, danger for the workers continues. And if you don’t believe that, go see the Deepwater Horizon movie again.

But it doesn’t have to be that dramatic.

It is the small injury that has big consequences, the one that makes you no longer useful but otherwise looking painfully normal, that does the damage.

But there is no memorial, there is no statue, there is nothing to recognize what these workers do down in our neck of the woods.

Just the fabrication workers going for lunch on Prospect Street – a lot of them not speaking much English, having come here from work quite legally from Central America – they are a part of this great army of workers we have here as well.

In Tulsa there is a great statue of a giant oilman, built by an oilfield supply company out of Texas, dubbed “The Golden Driller.” There have been several incarnations of this but the most famous is 76 feet tall, and it has been at the fairgrounds in Tulsa sine 1966. George S. Hondronastas designed the statue and if you want to see cool pictures go to www. roadsideamerica.com/story/2190#sthash.PZV7bkjQ.dpuf.

It’s a great blog worth viewing.

Our offshore and related industries are having a hard time though they say things are getting better. So it’s not like the oil and gas industry locally has money to throw around on statues. But it sure would be nice.

East Texas has an interesting bust of “Joe Roughneck,” a creation done in 1955 and seen as a symbol of oil workers. But again, it’s in Texas.

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PORTS ARE LOUISIANA GOLD STATE BUDGETS DON’T DO ENOUGH TO SUPPORT STATE’S PORTS

BY DON BRIGGS

Louisiana Oil and Gas Association If you talk to anybody about Louisiana, nine times out of ten, the first thing that comes to mind is our food — and it is for good reason. We take great care in preparing local dishes and protecting our secret ingredients or special processes, especially when it comes to gumbo. Whether it is a homemade roux, a certain smoked sausage, or fresh duck out of the rice field, every recipe is meant to stand out.

Louisiana, like many other states in the nation, is known to produce energy. The secret ingredient that makes Louisiana stand out from the rest of the country is not only our access to the Gulf, but the infrastructure available to export U.S. goods to the world through our ports.

Our ports and ship channels are the roux to our oil and gas industry gumbo. These avenues of exportation are an economic driver for our state providing 525,000 jobs, nearly $2 billion in local taxes, and another $2.4 billion in state taxes.

The LNG community relies heavily upon these shipping channels as they grow and expand. Recently, Cheniere exported its 100th LNG Cargo, Venture Global announced an $8.5 billion LNG complex, G2 LNG is planning for an $11 billion natural gas facility, and Magnolia LNG has announced a planned $3.45 billion facility, to name a few. There is a reason that LNG and petro chemical companies have chosen Louisiana, and that is because our waterways give these companies unprecedented access to foreign consumers.

With the amount of tax revenue it brings and the total number of jobs created by our ports, it would seem that this infrastructure would remain a top priority. Unfortunately, scrolling through Louisiana’s budget doesn’t seem to show that sentiment.

As it stands, the state has no dedicated funding source to keep our ports and channels at proper depth and to keep them maintained. The only funding that could come for these projects is through

COURTESY | THE TIMES

An overhead shot shows the many things going on at the Port of Terrebonne. Louisiana Oil and Gas Association President Don Briggs said the state’s ports are a national treasure. He said they’re unappreciated and under funded – something he’d like to see fixed.

the capitol outlay process, and that tends to be very political. Year after year of recommendations, we often see these funds have yet to materialize. The current Port Priority Program does not allow for funding of these channel projects.

There is a current backlog in deepening projects, of which the state is responsible for no more than 25 percent of the total cost, which is around $100 -130 million over twenty years. The rest of the funding, albeit that the proper permits are in place, is provided by the state from the federal government. The Calcasieu Ship Channel alone is in need of $79 million from the state over the next twenty years to meet its federal obligation.

If there is currently a backlog, how are these channels still navigable for cargo ships? Local communities and parishes have had to dig up and sometimes borrow funds in order to keep the channels functional, but this is not a viable long-term solution. The local parties may be able to come up with cash to dredge to proper depth once or twice but what happens when there is nothing left?

Unfortunately, there is a dreaded smell – the smell of a burning roux. As we see expansion of LNG facilities, we also see the shallowing our waterways. These deep draft channels are vital to the existence of our state, but without the proper funding, these channels will not be navi-

gable.

Our state leaders must realize that an investment in our ports means an overall investment in Louisiana. It is time that the state join the locals’ hands on that spoon to stir the roux, keeping our channels deep and open for business. Maybe it’s time to revisit Louisiana’s offshore limits in the Gulf and increase our revenue sharing so that Louisiana infrastructure would see the proper attention it deserves.

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KARL GOMMEL | THE TIMES

Carl Moore, assistant dean at South Central Louisiana Technical College’s marine program, drives six barges along the Mississippi River near New Orleans at his school’s vessel simulator. The $500,000 simulator gives students lifelike, hands-on experience with marine navigation.

WE’VE GOT NEXT! STUDENTS TRAIN AT LOCAL MARITIME PROGRAMS

BY KARL GOMMEL

karl@rushing-media.com The marine industry is always changing, and it’s always in need of new workers to join the ranks.

In the Bayou Region, two local higher education institutions help train both the current and next generation of the industry. Both schools work closely with and receive financial and material support from maritime businesses to provide current, hands-on training to their future employers.

In spite of the oil and gas downturn, both South Central Louisiana Technical College and Nicholls State University are still successfully training and placing students in jobs once they leave. SCLTC, with maritime campuses in both Morgan City and Houma, has a brand-new facility and is adding components to its training and certification classes for all levels of seafarers looking to stay sharp. In Thibodaux, NSU is continuing to churn out future managers set to handle the logistics and coordination aspects of maritime companies.

SCLTC finally settled, with new responsibility After more than 55 years wandering the Bayou Region from building to building, SCLTC’s marine program finally has a place it can call its own.

Last month, the technical college’s maritime school moved out of SCLTC’s main campus in Morgan City and head-

ed down the road to a brand-new building built specifically for marine studies. The marine campus features classrooms and simulators inside while outside features a variety of hands-on courses, from a firefield to lifeboats and ship decks for students to train on.

The new campus comes as SCLTC has taken on a larger role in marine training in the Bayou Region. Previously, SCLTC and Fletcher Technical Community College had run separate marine industry training courses before recently being married together as complementary courses. As of July 2016, however, Fletcher’s marine program was finished and marine training was consolidated at SCLTC. Seafaring students looking to get their next level of certification can take courses at either SCLTC’s Morgan City or Houma campuses, depending on their schedules.

Carl Moore, assistant dean of the marine program, said SCLTC provides training for all levels of marine labor, from greenhorns just starting to sea captains maintaining their certifications. Moore said many companies prefer those wishing to join a boat to come in and at least get some work at SCLTC before hitting the waters.

“The industry doesn’t want to send a person out there green without any type of training. They actually want to get them in here, get them aware of these classes, so when they go out there they’re not going to be a hindrance,” Moore said.

Most marine students at SCLTC are not receiving a two or four-year degree, al-

though Moore said the school is working with a consortium to take their courses and a student’s seatime and move it towards a degree. However, all seafarers must get the proper training and certification, combined with that time on a boat, to be eligible to move up a position.

Most of the students coming to SCLTC are already experienced in the maritime industry, according to Moore. He estimated that 90 percent of his students to be employed and the average age of a student to be about 30 years old. Moore said attendance has dropped off during the oil and gas downturn, particularly among new hires, but now more experienced mariners are coming back to either upgrade their license or change their certification to work in another field.

“You have to change, you have to be able to evolve, and that’s one of the things the school has been able to do, is to evolve,” Moore said.

Evolve Moore’s marine program has and continues to do so. SCLTC has a $500,000 vessel simulator, with a full, 360-degree view, digital tracking and steering systems. Students can drive vessels up and down rivers and in the Gulf of Mexico for hours on end while an instructor monitors their progress, and can change the scenario with a click, just outside the room.

“We like for them to ride for a couple of hours then send a tugboat up behind them to run them over when they get comfortable, because that’s how it happens in the real world,” Moore said.

On the outside, the marine campus in Morgan City has a bunch of hands-on amenities for students. The technical college receives lots of input from the industry, and many courses are created at the behest of specific companies, who not only tell SCLTC what they want but then provide them with the proper equipment to teach the course. The college has a firefield as well as a flash-over unit for students to learn how to put out fires. There is a deck overlooking Bayou Bouef for students to make open-water dives and repair a flange in zero visibility. There are also sample ship decks, complete with cranes so prospective mariners can fully practice loading containers onto ships.

There are also lifeboats, for both offshore and inshore boats, as well as a pool to learn water survival. Moore said Cenac Marine Services is refurbishing an entire oil barge where students at the Houma campus can learn to be tanker men, due to be finished within a few weeks.

All of these amenities are part of the larger emphasis on hands-on experience at SCLTC, moving away from memorizing tests and instead moving to real, applicable skills. Moore said getting students comfortable in those real-life situations gets them much more ready to handle the jobs on a boat. That comfortability makes things run smoother for those boat businesses, but it also means everyone involved is safer.

“Even though the economy is down, SEE SCHOOL, PAGE C23

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TRUMP’S BUDGET CONCERNS BUT DELEGATION SAY DOLLARS FOR COAST WILL PREVAIL

COURTESY | THE TIMES

United State President Donald Trump’s proposed budget could eliminate oil and gas royalties to Louisiana, but local lawmakers say the budget is just a draft and it’ll be amended to protect the state.

BY JOHN DESANTIS

john@rushing-media.com President Donald Trump’s proposed budget raised some hackles in Louisiana because of it includes elimination of state oil-and-gas royalty sharing. That money is supposed to help the state out by contributing to coastal restoration projects.

And coastal restoration projects – in addition to their stated purpose – also serve as an increasing source of jobs that could make up for flagging oilfield service business for the local marine industry.

Overall the White House proposes ending payment to four states now required under the Gulf of Mexico Energy Security Act, Alabama, Louisiana, Mississippi and Texas, to the tune of billions. It amounts to a sharing of dollars the feds take in on oil and gas royalties, allowing dollars back to the states themselves.

So far Louisiana’s delegation doesn’t seem terribly worried, Sen. John Kennedy R-La among them.

“It’s vital for Louisiana and other states along the Gulf of Mexico to continue to get a share of the federal revenue from offshore drilling,” Kennedy said in a statement issued after Trump’s proposed budget was announced. “That’s why GOMESA exists; this money is used for critical coastal and wetlands restoration and preservation. I fully support GOMESA and, after talking to many of my Senate colleagues, I’m confident that GOMESA will be preserved and will not be repealed.”

GOMESA, pushed hard by former Sen.

Mary Landrieu, was signed into law in 2006 by President Barack Obama. It shares leasing revenues with Gulf producing states and the Land & Water Conservation Fund for coastal restoration projects. GOMESA also contains restrictions including a ban on leases within 125 miles off the Florida coastline and other areas until 2022.

Beginning in Fiscal Year 2007, 37.5 percent of all qualified outer continental shelf revenues, including bonus bids, rentals and production royalty, were shared among the four states and their coastal political subdivisions from certain new leases.

A second phase of revenue sharing kicked in this year.

There was a bonus for the oil and gas industry in the legislation, which mandated the offering of an additional 8.3 million acres.

Sen. Bill Cassidy R-La. made clear his reservations about the GOMESA portion of the budget.

“Taking funding away from Louisiana’s coastline is a nonstarter,” Cassidy said. “Our state’s future depends on this funding to rebuild our coastline. However, this budget is a guideline; Congress must now hold hearings and do the necessary work to ensure the bill protects American taxpayers and families. There are deal breakers for me in the current budget. For one, this budget fails to prioritize restoring Louisiana’s eroding coasts. This is a national issue – restoring Louisiana’s coasts ensures our state can continue to produce energy needed by our entire nation. Any cuts to coast-

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al restoration efforts or GOMESA are short-sighted. As the committee process moves forward, I will not only oppose cuts to the revenue sharing program but continue to work to expand it for the gulf coast.”

Closer to home, the chairman of the agency that stands to lose ground without GOMESA said he is not panicking.

Tony Alford, chair of the Terrebonne Levee and Conservation District, said the president’s busget must be seen in per-

spective.

“A lot of things are up in the air,” Alford said. “When the president is looking over this budget he is not zeroing in on every little fact of that budget because it’s not up to him. This budget is his recommendation. It’s still up to congress to implement the budget to make it happen. The president does not have the final say. The sky is not falling.”

•

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STILL AN ECONOMIC ENGINE EVEN IN DOWNTURN, PORT FOURCHON A HUGE LOCAL COUP

COURTESY | THE TIMES

An overhead shot of Port Fourchon shows how massive the port has become in recent years. Port work is down, but officials hope it will pick back up sometime soon.

BY CASEY GISCLAIR

casey@rushing-media.com Heading south through Lafourche Parish isn’t much of a scenic drive – especially once one gets past Golden Meadow.

Basically, there’s a road, a bayou and marsh – not much else.

Oh yeah, and an economic engine which powers the country, too.

We can’t forget about that.

Tucked away in extreme southern Lafourche Parish sits Port Fourchon – one of the great energy hubs in the United States; an overlooked, underappreciated commodity that literally impacts every, single person in the country.

At present, work at the port is slower than it once was because of a sag in the price of oil – a prolonged dip, which has everyone sort of gritting their teeth.

But Executive Director Chett Chiasson said the port’s philosophy is never to sit idly when things go sour, but instead to plan for the future in anticipation of the next big boom – something which folks at the port say is expected.

“When things speed up, the work gets so busy that honestly, we might fall behind a little on some projects,” Chiasson said earlier in the year. “We use the downtime to try and outpace the demand and get ahead of the game so that we’re upstream when the next surge comes. It’s slow now, and a lot of people are hurting.

We fully understand that. But we believe we have a resilient industry filled with resilient people. We fully expect things to pick back up.”

HUGE, UNKNOWN IMPACTS For Port Fourchon, its impacts are significant.

A lot of those impacts are not understood and/or aren’t fully appreciated by the general public because the port is just a small flicker on the map and also because there’s not much to do in that part of the country except fish and work offshore.

For fun, The Times questioned 11 people this week at Southland Mall – six women and five men. Three were in the 18-29 age demographic and the others were 30-45.

Of the 11 people questioned, nine said they’d heard of Port Fourchon, but four of those nine said they wouldn’t be able to drive there without a map or GPS. When the 11 people were asked to give a number from 1 to 10 on how important Fourchon is to the area with 1 being the least important and 10 being the most, the average number listed was 6.2, though business owners and those who fully understand what happens at the port would clearly say it’s a 10.

“People don’t truly understand and we know that,” Chiasson said. “People don’t realize the importance, nor the significance of what is happening in our back yard.”

According to a factsheet located at the port’s official website, the Lafourche Parish-based location services more than 90 percent of the Gulf of Mexico’s deepwater oil production.

In addition, Fourchon plays a strategic role in furnishing the country with about

18 percent of its entire oil supply.

Think about that: of every 100 barrels of oil used in America, 18 come from Port Fourchon. Putting dollar signs into that total shows that literally billions of dollars flow through the area through that port.

“I think how big the port actually is to your area, but also to the nation as a whole, is largely misunderstood,” noted economist Dr. Loren Scott said. “It’s vital to the community there, but it’s also vital

to the state, the Southeast and in many respects, the country. The work that goes on there has a huge impact on the quality of life in many, many places.”

Now – for some more impressive facts.

Fourchon is the home of more than 250 oil and gas companies, which utilize the port as a base of operations, including some of the biggest companies in the world.

And on average, 1.5 million barrels of crude oil per day are transported via

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pipelines through the port. People flow into and out pretty quickly, as well. Approximately 15,000 people per month are flown to offshore locations supported by Port Fourchon, and traffic studies show that up to 1,200 trucks per day go through the port.

RENT CHANGE AIDS PORT’S FUTURE But lately, things at the port have been quieter than normal – a direct byproduct of the dip in the price of oil.

But port officials have been quick and fast-reacting throughout to ensure the future success of tenants within the port.

When the bottom fell out on the price of oil, the Greater Lafourche Port Commission voted to reduce rent on tenants at the port – a reduction that has since been renewed and still remains in place today.

Chiasson has gone on record multiple times and said the rent reduction was useful and something he supported because of the loyalty businesses have shown the port in recent years.

Louisiana Oil and Gas Association President Don Briggs agreed and said it was exactly what was needed to ensure future sustainability and success.

“The industry is slower than folks have become accustomed to, and companies were struggling to pay,” Briggs told The Times last fall. “That was the best thing

for them to do – lowering the rent.”

By doing so, Chiasson said the port has stayed about as full as possible – even with the significant slowdown in work.

He said some companies terminated their leases at the port, but many others opted to just downsize in an effort to stay afloat.

Last fall, the port’s occupancy was in the upper 90 percent range.

Today, it’s still about as full as can be expected – given the economic circumstances.

“Our customers are still there,” Chiasson said. “They’re staying the course.”

But make no mistake about it, things could certainly be better.

Chiasson said one of the most helpless things about being in the oilfield are the ups and downs, which have occurred several times over the past few decades.

But by dealing with other downturns, Chiasson said he’s also learned a valuable lesson, which he uses to stay patient.

He said his experience shows that oil sometimes goes to the mat, but never has he seen it get knocked out.

That history, he believes, is going to repeat itself, and when it does, Port Fourchon will be ready to work.

•

PORT

FOURCHON

READY TODAY, READY FOR TOMORROW

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AIRPORT HELPS SUPPORT FOURCHON’S OPERATIONS

BY CASEY GISCLAIR

casey@rushing-media.com According to Port Fourchon Executive Director Chett Chiasson, operations at the South Lafourche Leonard Miller Jr. Airport remain steady and strong, even in the face of low oil prices that have slowed down a lot of the area’s offshore work.

Chiasson said the airport has grown immensely over the years and is now a gigantic piece that’s allowed Fourchon to become such an economic hub for Louisiana and the entire United States.

“Operations at the airport have been very strong as far as takeovers and landings are concerned, and that’s very, very good,” Chiasson said last fall, a sentiment that’s echoed into the start of the new year.

Several recently completed projects have been a huge source of pride for people at the airport.

The attention-grabbing renovation is the big one – the $29 million project that Chevron recently completed. It’s a complete overhaul of the company’s airport operations that aims to move 6,000 additional workers through the airport per month – doubling the activity the facility sees in a 30-day period.

Chevron officials have said the project is complete, and all that’s left for the oilfield juggernaut is moving all of its Gulf of Mexico operations to the Galliano facility – a process that will take place slowly over the next few years.

Warner Williams, the vice president of Chevron’s Gulf of Mexico business unit, said the company’s Leeville facility has already shut down and moved its business to the Galliano facility.

Before long, Chevron’s operations in Venice will also be based out of Galliano, thanks to the project, which Williams said will create jobs and be huge to the economy of Lafourche Parish.

“This facility upgrade is proof of our dedication to the community, and it’s proof that we recognize the Gulf of Mexico is the cornerstone of what we do in our business,” Williams said. “The people in this area are good people. There

is no better place for us to have this airbase than in Galliano.”

Councilman Jerry LaFont agrees. He said during a ribbon cutting for the facility that it’s a blessing to have the project in southern Lafourche Parish.

“It’s a big thing for us,” the councilman said. “It’s great to see the commitment they’ve made to this area.”

But while the Chevron expansion generates a lot of attention, Chiasson said other, smaller projects have those with the facility excited, as well.

He said the airport is taking advantage of some new lighting technology to keep the area well-lit during nighttime hours.

“We want to get that done, and we’re working on that right now,” Chiasson said.

From there, Chiasson said work is also being done to bring new, smaller hangers to the airport to service fixedwing aircrafts.

That project is still in the planning stages, and isn’t yet complete.

The big-picture goal is for continued growth, and planning is being done for that to take place as soon as the price of oil goes back up.

Chiasson said the airport will someday have a new terminal – a project that was discussed, but was pulled back in once the downturn took place.

But once the industry gets back rolling, that will be a reality.

“It got pushed back a little bit because of what we’re dealing with,” Chiasson said. “But we know it’s coming. We hopefully plan to build that in a couple more years once things pick back up.”

Add it all together and it’s a string of victories for the airport, which has changed drastically in the past 15 years.

The airport was once under control of parish government – a relationship that ended in 2001 when the Greater Lafourche Port Commission took it under its wing.

Since that time, air traffic has increased by more than 4,000 percent, according to statistics on Fourchon’s website. It’s a number that will likely inSEE AIRPORT, PAGE C23

SERVING THE GULF COAST FOR OVER 52 YEARS

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established service hub, the Gulf’s Energy Connection for high-quality and cost-effective energy industry supplies and services from a variety of equipment, service, and logistics companies in one concentrated “niche” market with a world-class reputation for efficiency.

• Port Fourchon has a history of safe, responsible, and resilient property development, with each new site tailored for both business and environment, permitted and shovel-ready.

• We’re working to keep Louisiana’s “economic engine” running by developing and improving port properties, supporting businesses that provide jobs, and expanding to meet the needs of our tenant companies into the future.

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DOING THE DIRTY WORK HOT ENERGY SERVICES TAKES PRIDE DOING ‘HARD JOBS’

COURTESY | THE TIMES

Hot Energy Services in Houma takes pride in doing a lot of hard work. The company does a little bit of everything, according to those within it. They do a lot of the difficult jobs others aren’t able to do.

BY CASEY GISCLAIR

casey@rushing-media.com Some businesses are only good at doing one thing. Maybe they do two things at the most.

But for Hot Energy Services in Houma, the game plan is a little different.

Those guys do a little bit of everything.

Open since the 1980s, the oilfield service company continues to evolve, possessing a number of useful skills including the cleaning of storage tanks, paraffin removal, environmental cleanup and just about anything else that makes offshore work more efficient.

“We do a lot of stuff,” Vice President of Operations Zack Giroir said. “We have 16 employees and combined, they have more than 300 years of combined experience.

Companies use our services to have a smoother run. We’re the ones who help make sure that everything that happens out there is as efficient as possible.”

For Hot Energy Services, Houma has been the company’s home from day one.

The business started in 1988 and is owned by a group out of Oklahoma City that specializes in oilfield service work.

Businessman Michael Platt is the company’s president.

Giroir said Hot Energy Services has maintained its day-to-day operations, out of a couple spots, but the locations always been in Houma.

Today, the company operates on 921 Dunn St. – right on the side of the tunnel on the west side part of town.

Giroir said the business’s top clients are Hilcorp, Swift Energy Company, Texas Petroleum, Whitney Oil & Gas, Dimension Oil & Gas, Energy XXI and Tanner Resources, among other companies.

“Houma is home,” Giroir said. “This is where we’ve always been.”

Since their start in operations, Giroir said efficiency has been Hot Energy Service’s calling card and through that mantra, the company has evolved to encompass many things.

One of the main jobs the company focuses on is paraffin removal – a process that saves drilling companies time and money.

Paraffin is a waxy material that is found at drill sites during the extraction of oil from the earth’s surface.

While oil is being pulled up to the surface, paraffin often clogs the line, which causes the extraction process to take much longer if the problem isn’t remedied.

“It’s like if someone has an artery that’s blocked. Obviously that means the right amount of blood can’t flow through the heart, which causes a big problem,” Giroir said. “It’s almost the exact same thing. This paraffin comes in and clogs up the line and stops the flow from being as clean as it should. We have a way of going in there and keeping things flowing.”

Once that process is complete, Hot Energy Services is just getting started. Giroir said the company is licensed and certified to clean up the work site and move hazardous materials and chemicals to where they’re properly taken care of.

“There are some dangerous chemicals

out there,” Giroir said. “We go in there, remove those things and bring them to disposal sites so that they can be handled in the right way.”

The company is also on the scene if something goes wrong in the extraction process.

Giroir said Hot Energy Services has several workers trained in environmental cleanup – a skill that comes in handy when any problems arise.

As soon as oil begins leaking in the water, Giroir said Hot Energy employees can get on the scene to contain, then begin work on eliminating the problem.

“We have experience in emergency spills,” Giroir said. “We are trained and have the ability to get out there and clean it up. We also have the equipment to clean the tools used in the industry. We can pressure wash oily equipment and other things that need it after the job takes

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Just about anything that makes the job easier, Hot Energy Services is willing to do it.

Giroir said that’s the recipe that’s allowed the company to stay rockin’ – more than 25 years running.

The vice president said the company has seen its business slow in the economic downturn, but he believes it’ll pick back up as the industry stabilizes and the price of oil slowly trots back up.

“It’s a little down,” Giroir said. “But we’re hopeful it can get back up. We like what we do. We maximize oil production for the oil majors.

“We do some of the work people don’t think about. But we do it with a smile.”

•

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WEDNESDAY, MAY 31, 2017

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SCHOOL: Nicholls professors think their students are well prepared to enter the workforce FROM PAGE C17

safety is the first when it comes to their employees. they want to make sure their employees, when they go to work, they’re able to do the job, and they’re able to make it home to their families,” Moore said.

The technical college’s marine program follows the Standards of Training Certification and Watchkeeping, standardized training rules for the International Maritime Organization. Someone labeled an able-bodied seafarer in England will have received the same training as someone in Morgan City. Moore said the continued input and contributions from industry partners shows the support they have for the training SCLTC is providing their workers.

“They know the integrity of the training here. Because we’re a state entity. We can’t just give certificates willy nilly,” Moore said. “They go through, as a student would, they know that every one of them are being taught what we said we’re going to test, so the integrity of our training in Morgan City and Houma is probably our brand. They know when they come to this facility, the equipment’s top notch, the instructors are top notch, so when the student comes here, the students realize where they are.”

Nicholls: white-collar marine training While SCLTC handles the everyday workers and captains on boats, Nicholls prepares those who will be coordinating the business.

NSU’s maritime management program is part of the university’s business school, but the maritime students take five particular courses focusing on the marine industry. These students continue to graduate and find jobs for companies servicing offshore oil exploration and those shipping commodities up and down rivers.

Dr. Ken Chadwick, director of NSU’s maritime program, said attendance has been down during the downturn. However, the students coming through the maritime program have still mostly been able to find jobs, even during these slow times.

“Some of these companies that are struggling, many are still looking for good people, especially as baby boomers continue to retire, not only in this industry and in others,” Chadwick said.

Seth Cheramie joined Nicholls’ maritime program after spending a year at Louisiana State University and realizing it wasn’t for him. He was born into the marine industry, as both his father and grandfather have operated tugboats since the 1970s, but he never gave much thought about coming to Nicholls. Once he looked into the maritime program, he made the switch to NSU. He graduated on bMay 13 this year, but he said even he had doubts about the job market during this energy sector malaise. e

“These big companies that are laying off people at the moment, why would you want to hire a guy that’s fresh out of school with no experience? But, our program’s been proven that the type of people we’re graduating have proven themselves to at least be above other college students in that realm,” Cheramie said.

Last week Cheramie was dealing with a good problem to have, as he was having to choose which company he would work for. He said he turned down a coordinator job outside of the marine industry to instead take a dispatch job at A-Port in Grand Isle because maritime oil and gas is his passion. He hopes his arrival for the slowdown will have him ready to move up the ladder once the industry starts booming again.

One of the key classes for maritime students is the “Economics of Shipping” course, which Cheramie cited as the one he learned the most in. Laura Noonan teaches that class, bringing her own real-world shipping experience and a combination of micro- and macroeconomics to the course. Students are required to look at the demand of individual vessels and ports while also looking at global demand, developing countries and commodity prices.

Noonan said that kind of outlook is something critical for the students at Nicholls. She said she also pushes students to become more observant, suggesting reading news items or even stopping along the Mississippi River under Highway 310 for 10 minutes to notice all the shipping activity going on. Between that kind of big-picture emphasis and the hands-on experience learned at an internship, which students are required to spend 150 hours at, Nicholls can adequately prepare students for an evolving industry.

“It’s an industry that has its ups and downs, it’s always changing. It’s not really cyclical like the same thing going up and down. It’s always transforming into something new, but it’s always going to be there,” Coogan said. “There’s always going to be global trade, there’s always going to be demand for energy. The true economic drivers will always be there.”

Nicholls’ maritime program was started in 2013 as a way to answer a labor shortage. While local technical colleges trained boat workers and captains, there was no local training ground for the white-collar managers of marine business. A collection of regional marine powerhouses, working with the South Central Industrial Association, developed the curriculum with Nicholls and provided money for the program’s first five years of operation. Chadwick said the marine program has received additional funds from SCIA, as well as the Lafourche Oilman’s Association and shipping company Archer Daniels Midland for the program to keep going well beyond 2018.

“We’re still pretty set financially for the foreseeable future,” Chadwick said.

‘These big companies that are laying off people at the moment, why would you want to hire a guy that’s fresh out of school with no experience? But, our program’s been proven that the type of people we’re graduating have proven themselves to at least be above other college students in the realm.’

While so much of Terrebonne and Lafourche parish is dependent on the energy sector, there are still other opportunities nearby for NSU marine graduates.

According to Chadwick, many students have been finding jobs with shipping companies on rivers, as those businesses have not been hit as hard by the oil glut. As the employment successes of those students show, the industry is always looking to tap the talent pool for gifted young managers. Cheramie credited Chadwick and Dr. Joe Orgeron, an instructor at Nicholls and the chief technology officer at Montco Offshore, for their guidance and encouragement during his education and subsequent job search.

“If anybody has second guessed going into the maritime industry, even in the downturn, I would suggest coming visit and talk to Dr. Chadwick and Dr. Joe and see what it’s like,” Cheramie said.

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y k e FROM PAGE C21

t crease as more of Chevron’s work comes e into Galliano. n “It’s amazing to see,” Chiasson said.

“The airport has grown so much.” t With that growth has come greater responsibility, of course, but Chiasson said it makes the industry better and more efficient, and that’s all that matters to both he and others with the airport.

“It really allows us to be in truly the

multi-modal business,” Chiasson said.

“We have the capability for aviation logistic services as well as highway infrastructure by trucking. We have multi-modal capability, and we wouldn’t have that without this airport. Just having that ability and being able to offer that, is good for us.”

•

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FAMILY-LIKE FEEL CENAC MARINE SERVICES WITHSTANDS THE TEST OF TIME

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THE TIMES *WithCOURTESY Approved| Credit

Arlen B. Cenac talks to an audience at a Cenac Marine Services company event. The local marine business is continuing to plug forward in the tough climate.

BY JOHN DESANTIS

john@rushing-media.com Preparing for the unexpected has placed some local companies in a position to weather economic downturn.

As the local energy industry places a greater emphasis on inland transport of products and goods, those companies that

Founded by marine transportation pi- below her in the 78-foot range and smalloneer Jock Cenac, passed on to Arlen B. er.

Cenac, and now in the hands of Arlen B. Operating those boats – and shoreside Cenac Jr., the firm has continued hiring facilities – with safety in mind has also throughout the local economic slowdown been essential. and is hiring still.

That’s why Cenac says he is particuWe service all products we sell.

Arlen B. Cenac Jr. says continued cap- larly pleased that this year the company ital expansion, including the building of was recognized with an award naming it new boats and barges, has allowed a con- among the state’s safest places to work. tinued leadership position in the indus“We pride ourselves on providing top New Maytag try. of the line training for all of our employVacuum “Years ago, Cenac Towing made a stra- ees. It’s a vital part of our success in the Stop by and see tegic decision to expand our target mar- maritime industry,” Cenac said, after Cethem demonstrated! ket. We now serve the entire Intracoastal nac Marine Services was presented with AMERICAN $ Canal and related river systems,” Cenac the Louisiana Workmen’s CompensaMADE“Safest 70” award last said. “This regional footprint protects us tion Corporation’s EACH from any localized downturn in the econ- month. omy. We here are uniquely positioned The company was recognized based on INTRODUCTORY PRICES with the youngest, most modernAmana fleet in the effectiveness of its safety efforts in Large Capacity Electric preventing injuries and controlling costs. the business.”

Washer & Dryer Cenac says he has considered Range himself “We are honored to have received such a part of the business since the age of an award,” Cenac said. “We’d like to also $349.99 5-years-old, raised on and around boats acknowledge that this award would not all of his life and as he grew older work- be possible without the hard work and ing on them every summer. The maritime dedication of all of our wonderful employbusiness, he says, is literally in his blood. ees.”

Maytag At a time when the economy locally has As for the future, Cenac says better become difficult, he expresses gratitude times are coming overall.

Dishwasher MDB4949SD that the firm is a place where qualified “I think the growth will be slow and people who also consider themselves insteady this coming year.

The regulatory Simmons Lift Bed extricably attached to the waterways can environment is stimulating confi dence in 2 Years No Interest On Bedding fi nd an employment home. the energy sector again.

I see only positive (See Store For Details) Operating as a family, Cenac says, things happening in 2017 and I’m looking makes a huge difference.

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WEDNESDAY, MAY 31, 2017

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2 STEPS FORWARD; 2 STEPS BACK TERREBONNE PORT ENDURING SOME POSITIVES AND NEGATIVES

COURTESY | THE TIMES

The Port of Terrebonne has had a wild couple months. Officials with the port admit that they’ve had some rough times, but are also quick to add that the port has had successes lately, as well.

BY JOHN DESANTIS

john@rushing-media.com The Port of Terrebonne’s building that houses federal agencies and the port itself is now officially open, marking what its director says is an important chapter in the facility’s development.

A ribbon-cutting ceremony was held last week to mark the opening of the port commission’s “Multi-Use Government Complex,” now home to U.S. Immigration and Customs Enforcement, U.S. Customs and the port commission itself.

“We are also negotiating for another Customs group, the Office of Field Operations,” said the port’s executive director, David Rabalais. “With our own offices in the building, that will mean five leases altogether on the building.”

An additional three acres of leasable land adjoins the building, Rabalais said.

Meanwhile, as the local economy begins its slow climb back to better health, some of the port’s tenants have indicated abilities to adapt to a changing economy.

Gulf Island Fabrication is diversifying the role they play, building vessels and products that are less geared for the offshore industry that has been a mainstay.

Construction projects have ranged from wind farms to accommodation of the petrochemical industry.

Deepwater Wind CEO Jeffrey Grybowski has hailed the role Gulf Island is playing in manufacturing for his firm.

“They bring experience to the job, and we’re thrilled to add them as a partner,” said Grybowski, referring to the jackets for the first offshore windfarm being built by Gulf Island right here in Louisiana.

“They are diversifying their portfolio,” Rabalais said.

Another indication of a tenant’s adaptation to changing times is word that Oregon State University has granted a contingent intent to award Gulf Island construction of a Regional Class Research Vessel (RCRV) with an option for two additional 193-foot vessels.

“As we continue to explore areas outside our traditional sectors, we are excited to obtain this important project and we look forward to working closely with Oregon State University as they explore ways to enhance our environment for our way of life and for future generations beyond,” said Gulf Island president and CEO Kirk J. Meche.

Not all of the news from the port is good, however.

A major issue is the need for the Houma Navigation Canal to be dredged, and while some maintenance dredging has been arranged, an eventual deepening of the channel from 12 to 15 feet is going to be required for continued viability, Rabalais said. One tenant had a potential ship-repair job collapse because of inability to move the vessel to the port facility.

“We need more money,” Rabalais said.

“We have $1 million allocated this year for dredging and it’s a guess how much we are actually going to need. It is a fight all the time, it is a never ending battle.”

Trying to do more with less, Rabalais said the port is working with local officials to determine how sediment that falls from the bases of barrier islands can be channeled away from the southernmost reaches of the marked waterway.

“Ten miles of Terrebonne Bay is open water,” he said. “If we can get rocks between the channel and Timbalier Island it would stop that migration of sand. It would maybe eliminate a couple of mil-

Protect your world

lion dollars a year in dredging costs.”

But moving rocks in place has a hefty price tag as well, Rabalais noted.

Plans are continuing, meanwhile, for better tabulating of the cargo that moves through the port, which includes every waterway in Terrebonne Parish.

Meanwhile Rabalais is thankful for the good fortune that has shined on the port, and hopes continued legislation – such

as pro-port packages that have moved through the state legislature, authored

by State Sen. Norby Chabert – will continue, and that upstate Louisiana lawmakers will recognize the importance of port success not only to coastal parishes but to the state as a whole.

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WEDNESDAY, MAY 31, 2017

PROVIDING THE LABOR USA GENERAL LABOR SERVICES TOP HANDS TO COMPANIES

B

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T h s m r l c w a e F

n e p U 4 h L t

COURTESY | THE TIMES

A welder is hard at work for a marine-related job in Port Fourchon. With companies always needing qualified, skilled workers, USA General Labor provides top hands to companies in the Gulf.

L t U a m t r o t S e t

s S

BY CASEY GISCLAIR

casey@rushing-media.com Louisiana’s marine industry is huge to the Tri-Parish area’s economy.

It provides jobs to thousands of Tri-Parish natives – income that feeds households all across our three parishes.

In such a wide-ranging field, countless hands are needed at all times for various jobs that arise on docks, ships or platforms.

That’s what Original USA General Labor is for – they employ trained professionals who are ready and able to do quality work in almost any situation.

Open since 1997 and owned by P.J. St. Pierre Jr., the company has two locations – one in Raceland and the other in Golden Meadow.

According to Executive Vice President and COO Damien St. Pierre, the two offices work hand-in-hand with each having a purpose.

“Both offices work hand in hand to ensure daily operations are handled” St. Pierre said. “That’s the way that our business is handled and taken care of.”

So what exactly does Original USA General Labor do?

Perhaps their website says it best – the company aims to “fill the ever-increasing gap between the workforce needed and the workforce available.”

According to St. Pierre, business has been pretty good as of late, even in the face of the current economic downturn in the oil and gas industry.

“Lately business has been better than average,” St. Pierre said. “It appears to be on the upswing, too, so that’s even better.”

One of the most appealing things about Original USA General Labor is the wide array of services that they provide to businesses needing labor.

The business provides pipe fitters and

t a L a R e a l

t

welders, combination welders and fitters, alloy welders, technicians and cable installers.

The also have experienced carpenters on hand, as well as blasters and painters.

“Original USA General Labor has provided many skilled and unskilled workers to job sites for both short and long term projects,” their website reads. “We specialize in finding employees that are hard working, trustworthy and qualified.”

But Original USA General Labor said it doesn’t want to be known as the stereotypical “day labor company.”

St. Pierre said that in addition to providing skilled labor, Original USA General Labor also does a check on all of its employees so that they can ensure that workers are quality people and quality technicians.

“We pre-screen all our employees, verify their previous employment and also their previous references,” St. Pierre said.

Regardless of what is the most common need today, the company just aims to be ready and willing to assist anytime labor is needed.

St. Pierre said Original USA Labor takes pride is being able to provide skilled and unskilled personnel anytime any demand is needed.

He believes the company’s ability to always have workers ready is why things are going so well.

“We’ll provide riggers, forklift operators, crane operators, welders, fitters – really anything,” St. Pierre said. “Whatever a need may be, we take pride in being able to provide it.”

The local economy needs workers to fulfill its constant demand.

Original USA General Labor tries its best to plug in the gaps – one job at a time.

“All of our employees are put through physicals, drug screenings and also our ever-growing safety department.”

Workers looking to get a job within the company should take note that qualifications within an industry are definitely preferred when looking to work for Original USA Labor.

But St. Pierre said that the company also has the ability to help workers to get certified if they are not currently.

“Experience and certifications are a definite plus,” St. Pierre said. “But along with our pre-employment process and safety presentation, we can also assist in obtaining necessary requirements.”

St. Pierre said that the most common crafts that Original USA General Labor provides vary from time-to-time, but currently there are two favorites.

“Our most common positions currently are riggers and roustabouts,” St. Pierre said. “But this can fluctuate with the times.”

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WEDNESDAY, MAY 31, 2017

C27

THE ROAD TO RECOVERY GIVING TRUST TO TRUMP’S AMERICAN ENERGY FIRST PLAN

BY DON BRIGGS

Louisiana Oil and Gas Association

It has been over one hundred days since Trump took office and in that time, we have seen the Dakota Access and Keystone XL pipeline projects jump started, many regulations from the Obama Era rolled back, as well as a rejuvenation of leasing programs and streamlining processes for permitting on federal land and water. The American people and the oil and gas industry alike have greatly benefitted from Trump’s America Energy First plan.

The optimism that was once sensed has not only been realized by energy producers but has since grown in strength. The proof is in the pudding. In May of 2016, the United States was struggling with only 404 rigs, but as of last week, the rig count has grown to nearly 900 rigs nationwide.

Louisiana went from 21 land rigs last year to more than double that amount today.

At first glance, the increase in rigs in Louisiana looks promising, but upon further review, of the nearly 900 rigs in the United States, over 50 percent of the rigs are in Texas; the Permian Basin alone makes upon 40 percent of our nation’s total rig count. Louisiana, with our 42 land rigs, accounts for less than 5 percent of all oil rigs running in the United States. Of the 42 rigs, a dismal 2 rigs are running in South Louisiana. While the United States experiences record growth, we continue to be inflicted by historic lows.

If there is one thing that Louisiana should excel in, it should be in oil and gas.

So what standing in the way?

Well on May 2nd, numerous representatives of oil and gas companies from all across Louisiana descended upon the Louisiana State Capitol for the 2017 Oil and Natural Gas Industry Day in Baton Rouge. There, oil and gas professionals, executives, as well as legislators were able to discuss recent activity as well the lack of growth in Louisiana.

One executive commented that when traveling into Midland, Texas, nearly a

COURTESY | THE TIMES

Donald Trump has been the president of the United States since January, and he’s worked to make oil-friendly policies. Those policies will need time to work and will require the patience of those in the field, according to Don Briggs with the Louisiana Oil and Gas Association.

third of the license plates he saw were from the great state of Louisiana. Another local oil company executive said that Louisiana is losing the battle when it comes to retaining an oil and gas workforce and that states like Texas and Colorado are stealing our talented laborers.

It was shared among all at the event that while companies look to invest, Louisiana is more often than not scratched off the list due to current litigation against

oil and gas companies.

Presently, there are over 400 legacy lawsuits, and as of recent, six coastal parishes filing suit against oil and gas companies. These lawsuits are detouring future oil and gas investment and forcing the hardworking men and women of the oil and gas industry to seek jobs elsewhere.

The opportunity to fix our budget issues and stop the ongoing trend of unemployment is sitting right in front of us.

The federal issues that once plagued the oil and gas industry seem to be on their way out under the Trump administration. The stage is set for Louisiana to drive down the road to recovery, but first we must take the car out of park.

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Visit us online at lwcc.com or call 225-924-7788 to learn more.

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