October energy leases hit four-year low

The Louisiana Mineral and Energy Board collected only $2.6 million for the state in its monthly lease sale last week, which is the lowest October output on record since 2006, when the overall tally reached $1.8 million. By comparison, the October oil and gas lease sale conducted last year brought in more than $12 million. The fiscal year-to-date total is trending downwards as well. Since July 1, the board has collected only $12 million worth of leases. By this time last year, the board had amassed nearly double the sum. As with the October sale, the fiscal YTD total is at a four-year low. Still, there was plenty of action. At this month’s lease sale, the board awarded 28 leases covering more than 3,000 acres. The board sold leases in Acadia, Assumption, Bossier, Caddo, Cameron, DeSoto, East Carroll, Iberia, Lafourche, LaSalle, Plaquemines, Rapides and Sabine parishes. If there’s a silver lining, it’s that leases in the southern part of the state remain attractive to private investors, who more or less shunned coastal leases in 2009. In fact, of the 28 leases awarded, 18 were in north Louisiana and 10 were located in southern parishes. On the other hand, all of the leases were onshore, meaning that offshore leases went completely ignored – for a change. While offshore leases have struggled, due in large part to federal actions like the recent moratorium, the wet plots leased in August set a record for the calendar year and 32 acres off the cost of Plaquemines Parish went for nearly $41,000 last month. – Jeremy Alford