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While many in the American oil and gas industry are suffering due to lowered oil prices, Port Fourchon remains relatively unscathed.
Construction is still ongoing, just at a slower pace, and tenants are enjoying a 20 percent rent discount intended to keep jobs at the port.
“We just gave a break to the tenants,” said Harris “Chuckie” Cheramie, Jr, board member of the Greater Lafourche Port Commission. “If we weren’t healthy enough, we couldn’t give that break to help tenants.”
The discount went into effect April 1 – no fooling. The measure was meant to keep those businesses, which are mainly service-related companies that support larger offshore operations, from having to layoff worker.
“Is it working? I don’t know if that’s the case,” said Chett Chaisson, executive director of Port Fourchon. “I think it was a good move by our commission to assist our tenants in looking at the long-term viability of the port in continuing to keep our tenant base strong.”
Economist Loren Scott said Port Fourchon enjoys a cushion from most layoffs because offshore oil production generally takes a long time to go from exploration to extraction versus onshore shale oil plays, which are more vulnerable in the short-term.
Scott recently completed a study for Port Fourchon forecasting rig activity in the deep waters of the Gulf of Mexico.
“Oddly, we found that the price of oil does not figure into the equation,” he said. “And the reason for that is that [oil companies] have a 10-year planning horizon … in that particular area of the Gulf.”
Scott did say that exploratory operations aren’t likely right now, but offshore work is still ongoing.
Likewise, construction is still ongoing at the port, Chaisson said, though at a slower pace.
“We just received our permit to develop our new slip – Slip D – that’s going to create over 10,000 linear feet of waterfront and another 300 acres of property, so we’re moving forward with beginning that development.”
Chiasson said he expects Chevron’s new facility at the Greater Gulf of Mexico Airbase to be completed soon – something that will be a boost to offshore efforts.
“That’s going to be Chevron’s Gulf of Mexico Aviation Logistics Facility,” Chiasson said. “All of their Gulf of Mexico aviation logistics will come out of the airport here in Galliano.”
The facility is expected to be a major economic engine for the port, according to the port director.
The building boon reinforces the extended recovery to the oil-and-gas industry recovery in the wake of the 2010 Deepwater Horizon explosion and its aftermath. Port Fourchon survived the moratorium on oil and gas exploration immediately following the BP oil spill, which spelled doom for the port in many workers’ hearts.
It is for this reason Chaisson believes Port Fourchon’s future is filled with good fortune.
“Everything that I’ve seen [indicates] that the deep waters of the Gulf of Mexico have a very bright future and it’s going to be good for a long time.”
Aerial view of Port Fourchon. Despite lowered oil prices, the port is still growing, though at a slower pace.
