Revenues from the drilling will be shared among the energy-producing states in the Gulf Region and go towards wetlands restoration, hurricane protection and other environmental projects.

“It's the most positive thing that's happened since the hurricane,” said Peter Ricchiuti, dean of the A.B. Freeman School of Business at New Orleans' Tulane University. “It's rejuvenated everyone here.”

Louisiana is projected to receive at least $13 billion in oil-drilling revenues over the next 30 years as a result of the bill; the state also anticipates receiving as much as $9 billion for hurricane protection and wetlands restoration in the next 10 years from the regular budget process and other legislation.

The new energy law opens 8.3 million new acres in the Gulf of Mexico to oil and natural gas production. New revenues are expected to increase by as much as 37 percent for the coastal, energy-producing states—Louisiana, Texas, Mississippi and Alabama.

The U.S. Department of the Interior is expected to issue the first drilling leases for the area within a year. Energy officials estimate that as many as 1.3 billion barrels of oil and 6 trillion cubic feet of natural gas could be found.

“From an oil-drilling standpoint, it's all good news,” said Ed Fabacher Jr., president of Fabacher Inc., a Harvey, La., distributor of hose, hydraulics and other items used in oil and energy exploration.

Fabacher said distributors dealing in hydraulics, flexible connectors, expansion joints and metal hoses will benefit once the oil drilling picks up deeper into the Gulf.

“There's not a rig in the Gulf of Mexico that doesn't have a hydraulic crane on it, for example” he said. “And that's our big forte. After that, flexible metal hose. Some units have to have hose that can withstand 800-degree temperatures. So as a consequence, they'll use metal hose, rather than rubber. And we do that, too. We service that industry, so it's big for us.”

Though the legislation went through several Congressional hoops, the eventual passage and presidential signing “gave everybody here a lift,” Fabacher said.

The more immediate impact will be felt by companies and industries that work on wetlands clean up and restoration, Ricchuiti explained, adding that he's hopeful funding from the bill will add to the area's general business growth.

“The more important part, I think, will be when the money does start to come in and [people see that] it's being used to shore up the city. That will be a boon. Businesses as well as people will regain confidence about moving into the city [of New Orleans],” Ricchiuti said. “Right now, so many people are still tentative about coming back.”

As an example of the opportunities the law created, Ricchiuti cited the announcement in early January that General Electric Co. paid $1.9 billion for Vetco Gray, a Houston-based oil equipment manufacturer and distributor. Vetco Gray provides drilling, completion and production equipment for oil and gas fields. Though the deal had probably been in the works for some time, Ricchiuti says it indicates the opportunity many businesses will see in the Gulf Region now that the energy bill is law.

“[The Vetco deal] was a huge sign. It appears [GE] really wanted a piece of this going forward,” Ricchiuti said, adding, “If people get the confidence that the wetlands and levees will hold, you'll get businesses that will chomp at the bit at the money and opportunities here.”

Louisiana's oil-drilling revenues will be used to restore wetlands, which provide a natural barrier against flooding and hurricane damage. Many of those wetlands have been damaged over the years by the construction of roads and canals for previous energy exploration.

The increase in oil drilling-related royalty payments to the Gulf States was a crucial part of the legislation for Louisiana.

“Now we really have a chance of protecting the city and rebuilding the wetlands. That had been an overwhelming problem,” Ricchiuti said.

The marshlands were at one time the first line of natural protection against hurricanes—protection that was in place even before rising waters could reach the levees.

“The big thing was the wetlands. We're losing them. We lose a football field each hour,” Fabacher explained. “Over a 15-year period of time, that's astronomical. So when Katrina came, [there was] nothing to stop it.”

Mother Nature, better technology and the new law's funding can bring those marshlands back, Ricchiuti said.

“When this money starts coming in, there are some fascinating things they can do to pump fresh water back into the marshes and have them rebuilt. We killed it, but there's no question that Mother Nature can heal herself,” he explained.

And Ricchiuti is optimistic that oil and other energy sources will be found as exploration heads further out in the Gulf to deeper, previously unexplored waters.

“They always knew there was oil in the Continental Shelf. In the last 20 years, they've come up with the technology to drill in that area. When you talk to analysts about where the future drilling will be, they say it's all in that deep water,” Ricchiuti said.

As an example, Ricchiuti said the Chevron Co. recently announced “a huge find, some 275 miles south of New Orleans. It could be the biggest find since Alaska.”

Last year was a quiet year for hurricanes and enabled the Gulf Region to make progress rebuilding. The new energy measures have strengthened that position, Ricchiuti said.

“We're getting our feet back on the ground,” Ricchiuti said. “It's been so painful here for the past 16 months. We've had a couple of positives and this would go to the top of that list.”

A new bill signed into law in late December will expand the oil and natural gas drilling area in the Gulf of Mexico, creating business opportunities for distributors and others serving the region's oil and gas industries.