Sunday, July 26, 2009

CHK opens Shreveport Office; Jindal Signs HB 110

A double "finally!" An article in yesterday's Shreveport Times notes that Chesapeake has opened a new office in downtown Shreveport and that Gov. Jindal signed H.B. 110 to increase the tax credit for using alternative fuel (including CNG) vehicles.

On the CHK office: what took you guys so long? Chesapeake is a true believer in the Haynesville Play - they should have considered moving their headquarters to Louisiana! But I know there is too much Oklahoma blood in the company to do that. In his remarks, Chesapeake CEO Aubrey McClendon noted that the company plans to spend $2 billion per year in Louisiana until 2029. I hope Gov. Jindal got that in writing.

On HB 110: The article reports that HB 110, which was authored by Shreveport Rep. Jane Smith, was "co-authored by all legislators." I knew there were a lot of tag-alongs, but I didn't realize it got to 100%. Jindal wasn't exactly left with a choice about whether or not to sign it. His comments at least indicate that he gets it: "This new law will stimulate the demand for the production of more natural gas and, in turn, help to grow our economy...Most importantly, it drives the demand to produce more energy here at home instead of remaining dependent on foreign countries to supply our energy needs." Let's hope he realizes that we've got the cat by the tail. While he's traveling the country on the Jindal 2012 Express he should also push the gospel of natural gas.

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