In February, after a mild start to the winter, temperatures plummeted well below average, with freezing temperatures in Texas, eradicating the remaining gas surplus. Gas inventories were 3% lower last week than the prior five-year seasonal average, down from an 18% surplus in June 2020.
As a result, futures prices have risen to the 78th percentile of the five-year average from 2016 to 2020, discouraging more inventory erosion and encouraging further well drilling. The number of Gas drilling rigs increased to 103 last week, up from 68 at the end of July and the highest level since March 2020, before the first wave of novel coronavirus.
John Bel Edwards, the Democratic Governor, said in a statement, “Taking action to address climate change can strengthen our communities and our economy. Our kids are counting on us. If anyone can identify innovative and sustainable solutions for our future, it’s Louisiana.”
Louisiana is the fifth-largest Carbon-producing province, with a burgeoning petrochemical industry in recent years. It has supported the oil and gas industry with tax cuts and subsidies for decades, thus making it difficult for wind and solar companies to operate or expand. The climate commission will also investigate the Gulf of Mexico’s potential for electric vehicles, mass transportation, solar power, and offshore wind turbines. Scientists, state officials, researchers, oil industry leaders, and environmentalists make up the group.