BATON ROUGE — The state’s economic picture is looking up with respect to the energy sector of the economy. For the fiscal year 2006-07 (which ended June 30th), mineral income figures indicate that the oil and gas business in Louisiana is quite robust and is reaching new highs.

Louisiana Mineral Board Secretary Marjorie McKeithen announced the record-setting FY amounts on Wednesday, during the first mineral lease sale of the 2007-08 fiscal year.

The Mineral Board reported that the state’s income from oil and gas royalties was $522.5 million, an all-time high, and that the state’s total income from bonus, leaseholder, and interest payments was $600.1 million, the highest since the 1982-83 fiscal year.

“This is great news coming from the Office of Mineral Resources and the Mineral Board. These figures coupled with severance tax income (not yet complete for FY 06-07) and increases in drilling activity, all suggest that times of growth and prosperity are upon us,” said Department of Natural Resources (DNR) Secretary Scott Angelle.

“While Louisiana has an increasingly diversified economy, the energy industry remains a vital part of this state’s economy,” Angelle said.

“Record royalty income has been driven not only by just high prices, but by increased production as well.  The fact that lease sales are generating record income indicates that the industry views Louisiana in a more attractive light for future energy investments.  These numbers certainly support the conclusion that Louisiana's proactive resource policies, which have streamlined permitting, eliminated waste, and reduced legal and regulatory uncertainty, are paying big dividends," noted LSU Center for Energy Studies professor David Dismukes.

“The Blanco administration had its antenna up early on and responded to some of our concerns, and with effective change there certainly is indication in these numbers that business is on an upward spiral in this state,” said Louisiana Oil and Gas Association President Don Briggs.

“If you look at ways in which this state is recovering from the storms, indeed, a robust oil and gas industry plays a role in it.  Benefits of the energy sector include not only jobs for many of our own people as well as direct revenue to the state, but also as taxpayers, we can reap benefits as are earmarked for improvements in health care, transportation, coastal restoration and education,” Secretary Angelle remarked.

The July 11th monthly lease netted the state $2.5 million, McKeithen said.

Below are the preliminary results of the lease sale and 2007-2008 FY totals.

Record Setting Mineral Income Collections in Fiscal Year 2006-07 are as shown:

• July 11, 2007 Mineral Board Charts and Data