2025 News
Center Releases White Paper on Carbon Sequestration Fee Structures
Keith Hall, 海角社区 Mineral Law Center and John P. Laborde Energy Law Center, and Greg Upton Jr., 海角社区 Center for Energy Studies, along with Daniel Keniston, 海角社区 E. J. Ourso College of Business, and Joanna Walker, 海角社区 Center for Energy Studies have co-authored a white paper titled, "Legal and Regulatory Considerations for Carbon Sequestration Fee Structures".
This white paper examines the legal and regulatory issues that arise when developing carbon capture and storage (CCS) projects, with a focus on Louisiana and comparisons to broader U.S. practices. Because CCS requires injecting carbon dioxide deep underground, operators must secure rights to use subsurface pore space鈥攁n area of law that is still evolving and differs in key ways from traditional oil and gas activity.
The paper explains why CCS developers need legal rights to pore space, touching on foundational property law concepts like ad coelum and the risk of trespass if injected CO鈧� migrates beyond a project boundary. It reviews the types of agreements used to obtain pore space rights (e.g., leases, servitudes) and the compensation models associated with them. It also discusses statutory tools鈥攕uch as unitization and eminent domain鈥攖hat may be used when private agreements with all landowners cannot be reached.
Read the white paper here.
海角社区 Energy Institute Names Tyler Gray Director of Energy Innovation
BATON ROUGE, La. 鈥� The 海角社区 Energy Institute has named Tyler Gray as its inaugural
director of energy innovation, a key leadership role within 海角社区鈥檚 expanding energy
research and policy enterprise. Gray鈥檚 appointment marks an important step in 海角社区鈥檚
continued move to align energy-focused units under a single institute to serve Louisiana鈥檚
evolving energy economy.
Gray previously served as secretary of the Louisiana Department of Conservation and
Energy since the inauguration of Governor Jeff Landry. During his tenure in the Governor鈥檚
cabinet, Gray spearheaded efforts to modernize Louisiana鈥檚 energy and natural resource
governance. His move to 海角社区 reinforces a shared commitment between higher education,
industry, and government to connect scholarly research with practical implementation.
鈥淯nder my administration, we鈥檝e modernized how Louisiana manages energy and natural
resources鈥攃lear roles, better oversight, and a stronger foundation鈥攁nd Tyler was central
to that effort,鈥� Governor Jeff Landry said. 鈥淗is move to the Energy Institute will
continue building a cohesive, trusted pipeline from research to execution so projects
are safe, technically sound, and delivered with confidence. I鈥檓 asking everyone鈥攊ndustry,
higher education, and agencies鈥攖o row in the same direction. One team. This is an
opportunity to align talent and research to Louisiana鈥檚 needs and move faster on the
projects that matter to families across our state.鈥�
Center Releases White Paper on Orphan and Idle Wells in Louisiana
Gregory B. Upton Jr., 海角社区 Center for Energy Studies; Mark Agerton, UC Davis Department of Agricultural and Resource Economics; Ipsita Gupta, 海角社区 Department of Petroleum Engineering; Kanchan Maiti, 海角社区 Department of Oceanography & Coastal Sciences; Siddhartha Narra, 海角社区 Center for Energy Studies; Brian Snyder, 海角社区 Department of Environmental Sciences; and Joanna Walker, 海角社区 Center for Energy Studies, have co-authored a report titled "Orphan and Idle Wells in Louisiana," published in July 2025.
Researchers at 海角社区 were commissioned by the Louisiana Department of Energy and Natural Resources (DENR) to evaluate the costs of plugging orphan and idle oil and gas wells across the state and to estimate associated methane emissions. The study provides an in-depth look at the Louisiana Oilfield Site Restoration (OSR) program, which was established in 1993 to address environmental concerns related to abandoned wells.
The report highlights the current landscape of well status in Louisiana, where out of more than 224,000 drilled wells, about 19,500 are classified as idle and nearly 4,900 as orphaned as of March 2025. Although orphan wells represent only roughly 4% of all wells drilled, the number has been increasing in recent years, due in part to new wells becoming orphaned before plugging.
Augmented by federal funding from the Infrastructure Investment and Jobs Act (IIJA), which allocated $4.7 billion nationally for orphan well plugging and remediation, Louisiana has received an initial grant of $25 million and anticipates an additional $156 million over the coming years. These funds aim to reduce methane emissions鈥攁 potent greenhouse gas鈥攆rom leaking wells.
Key findings from the report include:
- The backlog of orphan wells is outpacing plugging activity. Many recently drilled wells have already been added to the orphan list, suggesting the issue extends beyond legacy wells.
- The projected increase in OSR fees starting in July 2025 is expected to raise additional
funding by about 18%, bolstering plugging efforts.
The estimated cost to plug all orphan and idle wells in Oklahoma and northern Louisiana districts is approximately $860 million鈥攃onsiderably exceeding available federal funding so far. - Methane emissions vary widely among wells, with a small fraction contributing disproportionately. Detection methods showed methane presence in nearly all wells tested with sensitive equipment.
- The initial $25 million investment in Louisiana supported approximately 120 jobs and generated $16.4 million in economic output through well decommissioning since early 2023.
- Ongoing federal funding is projected to sustain over 160 jobs annually, along with
millions in wages and economic value.
Methane abatement from plugging northern Louisiana wells is estimated at up to 1,170 metric tons per year, equating to significant energy value that would otherwise be lost. - Targeted plugging based on measured methane emissions could maximize environmental benefit per dollar spent by prioritizing high-emitting wells, though this may reduce the total number of wells plugged given budget limits.
This study informs state policymakers and stakeholders about the scale and economics of addressing orphan well liabilities in Louisiana and underscores the importance of strategic methane mitigation. The findings align with broader efforts to reduce greenhouse gas emissions while supporting economic activity in oil and gas field restoration.
Read the white paper here.
Center Releases White Paper on the Production and Potential for Biofuels in Louisiana
Center for Energy Studies Assistant Professor of Research, Dr. Anurag Mandalika, has authored a white paper titled, 鈥淭he Biofuels Landscape in Louisiana鈥�.
This paper discusses biomass types and availability in the state, drawing from an analysis of the US Department of Energy鈥檚 Billion Ton 23 report, followed by an assessment of current and potential future biofuels production in Louisiana. Louisiana leads the nation in the production of renewable diesel, and biofuels contribute ~4.2% to primary energy production in the state. Deployment of announced biofuels projects has the potential to increase this contribution to ~9.2%. Production of sustainable aviation fuel (SAF) is likely to see an increase in the state with several project announcements focusing on this fuel. Based on the US Department of Energy鈥檚 SAF Grand Challenge target (producing 35 billion gallons by 2050 in the US), the state can meet between 1 and 3% of this target in the near term and mature-market medium terms of biomass production from BT23. The contribution of biofuels to energy generation in the state is likely limited to specific transportation applications such as aviation, maritime, long-haul trucking, etc.
Sustainable deployment of biofuels is not without challenges and concerns, and some of these are identified in this white paper, along with a consideration of strengths, weaknesses, opportunities, and threats (SWOT) for the industry in Louisiana.
Read the white paper here.
Center Announces Launch of Louisiana Energy News Online Resource
The Center is pleased to announce the launch of a new online resource 鈥� the Louisiana Energy News.
This tool was developed in response to Act 727 of the 2024 Regular Legislative Session, which calls upon CES, in cooperation with the Office of Energy within the Louisiana Department of Energy and Natural Resources, to create and maintain a central, comprehensive, and unified energy data and information program for the state.
The Louisiana Energy News Archive compiles and organizes historical news articles and information related to Louisiana's energy sector, offering a centralized view of the developments that shape our state's energy landscape. The archive will be updated approximately daily moving forward, ensuring stakeholders have timely access to important information.
The Louisiana Energy News Archive was created through collaboration between the 海角社区 Center for Energy Studies and the Louisiana Department of Energy and Natural Resources to serve as a comprehensive resource for energy stakeholders throughout the state.
Access the Louisiana Energy News application .
Center Releases White Paper on Potential for Hydrogen in Louisiana
Dr. Anurag Mandalika, Assistant Professor of Research at the Center for Energy Studies, and Dr. Greg Upton Jr., Executive Director and Associate Professor of Research, along with Dr. Brian Snyder, Professor of Environmental Science, and Dr. John Flake, Professor of Chemical Engineering, at 海角社区 have co-authored a white paper titled "The Potential for Hydrogen in Louisiana.鈥�
This paper discusses the different types of hydrogen, their production processes, and current and potential future uses in Louisiana while considering its potential as a low-carbon emission fuel. Low carbon or 鈥渃lean hydrogen鈥� is the focus of the Internal Revenue Service (IRS) Section 45V production tax credit which has led to additional interest in hydrogen production in Louisiana.
The authors estimate that the amount of hydrogen currently used in Louisiana is ~2.4 million metric tons each year, primarily for petrochemical production. Results suggest the potential for hydrogen at approximately 13 times that amount from additional uses, chiefly from energy exports.
The Greater New Orleans Development Foundation (GNODF) commissioned 海角社区-CES to study the potential for hydrogen consumption in Louisiana through the H2theFuture initiative. H2theFuture is a 25-organization partnership led by GNO, Inc. and GNODF, funded by a federal grant from the U.S. Economic Development Administration. GNODF was provided the opportunity to review and provide feedback on this report. The analysis and opinions expressed are those of the authors alone.
Read the white paper here.