Objection overruled: Louisiana lawmakers have taken significant steps to prohibit the attorney general from contracting with outside lawyers for a portion of a suit’s winnings, as has become a national trend, The New York Times reports. Called a contingency fee contract, plaintiffs’ lawyers nationwide have increasingly often approached their respective attorneys general with cases. If the state wins, it draws more money into its coffers and the plaintiffs attorney sees a large payoff. Attorney General Buddy Caldwell has collected more than $294 million from pharmaceutical companies since 2011 under these kinds of contracts, according to the report. Such contacts were debated last legislative session—a case filed by a New Orleans levee board against 97 oil and gas companies brought the issue to the forefront—and a law was passed to prohibit them. Caldwell tells The New York Times the law was devised by the companies to “restrict and destroy the attorney general’s ability to hold them accountable.” The New York Times has the full story.
Texas tea: Some of the economic features that fueled the mid-1980s oil bust are strikingly similar to the way things are in modern-day Texas, according to a report by FuelFix.com, and are leading analysts to forecast a regional recession in Texas next year if oil prices continue to slump. Similarities include the amount of Texas’ gross state product attributable to the oil and gas industry—11%—and the rate at which oil has dropped. Discount oil will lift the U.S. economy, as lower gas prices give consumers more purchasing power, but in Texas, “oil is a fair bit more important than gas,” says economist Michael Feroli with JPMorgan. “We think Texas will, at the least, have a rough 2015 ahead, and is at risk of slipping into a regional recession.” FuelFix.com has the full story.
Three’s company: The number of rigs exploring for oil and natural gas in Louisiana fell by three this week. The number dropped by 18 in the nation as a whole to 1,875, according to numbers from oilfield services company Baker Hughes Inc. That number is still higher than a year ago, when 1,768 rigs were active. Some of the major oil- and gas-producing states did gain rigs, such as Arkansas, which gained three, and Kansas and New Mexico, which each added two to their counts. North Dakota saw the largest decline in rigs, at seven. Across the nation, 24 rigs ceased production. The U.S. rig count peaked at 4,530 in 1981 and bottomed at 488 in 1999. The Associated Press has the full story.
