Environmental Concerns Over Canals for Oil and Gas Production in Louisiana

The Louisiana coastal region's wetland ecology is being damaged by the construction of new canals for oil and gas production, according to research by the Department of the Interior. The region supplies 90% of gas and 70% of oil for U.S. offshore production. The Clinton administration has sent Congress a report recommending restrictions on natural gas exploration and elimination of tax incentives for drilling that may affect wetlands.

Key Takeaways:

• The Louisiana coastal region produces 90% of U.S. gas and 70% of U.S. oil, making it a crucial area for oil and gas production.
• The construction of new canals for oil and gas production damages the wetland ecology in the region, according to the Department of the Interior research.
• The Interior Department report recommends restricting natural gas exploration in coastal Louisiana and eliminating tax incentives for drilling that may affect wetlands.
• The report suggests that federal regulatory oversight in cooperation with the state could encourage minimizing additional canal construction and making greater use of existing canals.
• More than 152 pipelines come ashore from the outer continental shelf to the Louisiana coast.
• The report calls for evaluation of the impact on tax revenues and the industry of eliminating the federal income tax deductions in wetland areas for oil and natural gas depletion allowances.

Statistics:

• 90% of U.S. gas is produced in the Louisiana coastal region.
• 70% of U.S. oil is produced in the Louisiana coastal region.
• 152 pipelines come ashore from the outer continental shelf to the Louisiana coast.

Sources:

• "The Impact of Federal Programs on Wetlands" report by the Department of the Interior
• Statement by Interior Secretary Bruce E. Babbitt
• Statement by Robert G. Szabo, counsel for the National Wetlands Coalition
• Statement by Charlotte J. LeGates, a spokeswoman for the Natural Gas Supply Association