OCS Study MMS 2008-044 History of the Offshore Oil and Gas Industry in Southern Louisiana Volume III: Morgan City’s History in the Era of Oil and Gas – Perspectives of Those Who Were There U.S. Department of the Interior Minerals Management Service Gulf of Mexico OCS Region OCS Study MMS 2008-044 History of the Offshore Oil and Gas Industry in Southern Louisiana Volume III: Morgan City’s History in the Era of Oil and Gas – Perspectives of Those Who Were There Author Diane E. Austin Prepared under MMS Contract 1435-01-02-CA-85169 by Louisiana State University Center for Energy Studies Baton Rouge, Louisiana 70803 Published by U.S. Department of the Interior New Orleans Minerals Management Service Gulf of Mexico OCS Region September 2008 DISCLAIMER This report was prepared under contract between the Minerals Management Service (MMS) and Louisiana State University’s Center for Energy Studies. This report has not been technically reviewed by MMS. Approval does not signify that the contents necessarily reflect the view and policies of the Service, nor does mention of trade names or commercial products constitute endorsement or recommendation for use. It is, however, exempt from review and compliance with MMS editorial standards. REPORT AVAILABILITY Extra copies of the report may be obtained from the Public Information Office (Mail Stop 5034) at the following address: U.S. Department of the Interior Minerals Management Service Gulf of Mexico OCS Region Public Information Office (MS 5034) 1201 Elmwood Park Boulevard New Orleans, Louisiana 70123-2394 Telephone Number: 1-800-200-GULF 1-504-736-2519 CITATION Suggested citation: Austin, D. E. 2008. History of the offshore oil and gas industry in southern Louisiana. Volume III: Morgan City’s history in the era of oil and gas – perspectives of those who were there. U.S. Dept. of the Interior, Minerals Management Service, Gulf of Mexico OCS Region, New Orleans, LA. OCS Study MMS 2008-044. 238 pp. ABOUT THE COVER Offshore rig, vessels, and barge in the Gulf of Mexico, May 1956, Jesse Grice Collection (photo number 242-16), Morgan City Archives. iii TABLE OF CONTENTS Page LIST OF FIGURES ...................................................................................................................... vii PREFACE...................................................................................................................................... xi ACKNOWLEDGMENTS ........................................................................................................... xiii 1. INTRODUCTION ....................................................................................................................1 2. SOCIAL AND ENVIRONMENTAL HISTORY OF THE 1800’s..........................................3 3. THE TURN OF THE CENTURY TO THE EARLY 1940’s...................................................9 3.1. Profiles...............................................................................................................................9 3.2. The Timber Industry at the Start of the Century .............................................................15 3.3. Other Livelihood Strategies: Trapping, Fishing, and More ............................................17 3.4. World War I and Postwar Industrial Expansion..............................................................19 3.5. The Great Depression......................................................................................................21 3.6. Shrimp .............................................................................................................................23 3.7. Integration of Oil and Gas into the Local Economy........................................................25 3.8. Environmental Changes...................................................................................................34 3.9. Community and Social Organization ..............................................................................35 4. WORLD WAR II AND ITS AFTERMATH..........................................................................43 4.1. Profiles.............................................................................................................................43 4.2. Oil Exploration as a Critical Service to the Country.......................................................48 4.3. Military Service and Oilfield Work.................................................................................51 4.4. The Making of an Industrial Landscape: Chicago Bridge and Iron................................57 4.5. War’s End........................................................................................................................61 5. OFFSHORE DEVELOPMENT AS A DISTINCT PHENOMENON: THE LATE 1940’s THROUGH THE 1950’s .....................................................................................71 5.1. Profiles.............................................................................................................................71 5.2. The Oil and Gas Industry Establishes a Firm Foothold ..................................................77 5.3. East St. Mary Parish as a Fabrication Center ................................................................101 5.4. The Industry Brings Change to Morgan City................................................................109 v TABLE OF CONTENTS (continued) Page 6. THE OFFSHORE INDUSTRY TAKES SHAPE: THE 1960’s...........................................129 6.1. Profiles...........................................................................................................................129 6.2. Innovation and Change..................................................................................................134 6.3. Fabrication.....................................................................................................................136 6.4. Oilfield Vessels.............................................................................................................140 6.5. Commercial Oilfield Diving..........................................................................................149 6.6. Other Oilfield-Related Businesses and Operations.......................................................160 6.7. Company Loyalty..........................................................................................................164 6.8. Workforce Changes.......................................................................................................166 6.9. Community Impacts ......................................................................................................172 7. THE OIL EMBARGO AND ITS IMPACTS: THE 1970’s .................................................183 7.1. Profiles...........................................................................................................................183 7.2. The Arab Oil Embargo ..................................................................................................185 7.3. Rapid Growth, Turnover, and Concerns about Safety ..................................................192 7.4. The Environmental Movement and Its Impacts on the Louisiana Oil Industry ............199 7.5. Expanding the Workforce..............................................................................................202 7.6. Vietnam War and Its Impacts ........................................................................................211 7.7. Community Impacts ......................................................................................................213 8. REFLECTIONS ON THE INDUSTRY, ITS PEOPLE, AND ITS IMPACTS ...................217 8.1. Surviving the Bust .........................................................................................................217 8.2. Reflections on the Changes Wrought by the Industry...................................................221 9. REFERENCES .....................................................................................................................229 10. GLOSSARY .........................................................................................................................235 vi LIST OF FIGURES Figure Description Page 1.1. Tracing the Names of Major Petroleum Companies in the Gulf of Mexico Offshore Oil and Gas Industry........................................................................................2 2.1. Morgan City and the Surrounding Waterways. Photo Courtesy of the Jesse Grice Collection, Morgan City Archives..................................................................................3 2.2. Morgan City in Relation to New Orleans and the Mississippi River ..................................4 2.3. Logging in the Swamps around Morgan City. Photo Courtesy of Bernie Overhultz, Morgan City Archives...................................................................................6 3.1. Timber Workers Pulling Logs in the Swamp. Photo Courtesy of CB Dilsaver, Morgan City Archives...................................................................................................16 3.2. Cut Timber in the Southern Louisiana Wetlands. Photo Courtesy of the Morgan City Archives................................................................................................................18 3.3. Union Bridge and Iron Company in Morgan City. Photo Courtesy of the MP Palmer Collection, Morgan City Archives ........................................................................19 3.4. Union Bridge and Iron Company Drydocks.