BATON ROUGE, La. (press release) – The Louisiana Mid-Continent Oil and Gas Association (LMOGA), a long-standing trade association representing all sectors of Louisiana’s oil and gas industry, has released the findings of a 2025 economic impact study on the state’s energy industry.
Conducted by Louisiana economist Stephen Barnes, Ph.D., the report is one of the most comprehensive post-pandemic economic studies of the sector. It shows that the energy industry plays a major role in Louisiana’s economy, generating 25% of the state’s total economic output, accounting for 15% of all employment, 19% of total earnings, and supporting up to 31.3% of local property tax revenues.
Statewide impacts from direct, indirect, and induced effects include 306,750 energy-related jobs, representing 15% of total state employment; $25.5 billion in total annual statewide earnings, or 19% of total earnings; and $77.7 billion in added economic value, or 25% of Louisiana’s economy. In fiscal year 2024 (FY24), the energy sector paid $974 million in specific state taxes, $1.1 billion in local property taxes, and contributed $3.48 billion—20.4%—of total state taxes, licenses, and fees.
“We commissioned this study to get a pulse on the true value of our state’s energy sector after the pandemic,” said Tommy Faucheux, President of LMOGA. “What we found is that energy remains a strong pillar of our state economy, with over 300,000 proud Louisianians working for or with the industry and billions of dollars funding local priorities, like teacher pay, police protection and road improvements. It also exposes regions of our state that can benefit from increased energy enterprises—either by expanding existing opportunities or embracing innovations that are part of the state’s ‘all of the above’ energy approach.”
Dr. Barnes noted that the energy industry remains well-positioned for future growth. “Considering the rich and highly interconnected economic environment that has grown up around Louisiana’s oil and gas sector, it is clear that the modern energy sector will continue to play a vital role in sustaining a major portion of the Louisiana economy. In addition, emerging technologies and an evolving global economic landscape will create new opportunities for growth fueled by the energy sector. Capitalizing on those opportunities to meet domestic and international demand will position the state to be a leader in the global energy transition with economic opportunity for generations to come,” he wrote.
The study also includes localized findings across four major energy regions that account for over 90% of the industry’s economic impact in the state. These energy “super regions” are the River Region (from Baton Rouge to New Orleans), the Bayou Region (from Lafayette to Houma), Southwest Louisiana, and Northwest Louisiana.
In FY24, the energy sector contributed up to 31.3% of total local property taxes and up to 19.4% of local sales taxes in these regions. Specific impacts include:
- River Corridor: 134,654 energy jobs, $11.4 billion in earnings, and $39.1 billion in economic value.
- Bayou Region: 62,485 jobs, $4.7 billion in earnings, and $9.7 billion in value.
- Southwest Louisiana: 26,620 jobs, $2.3 billion in earnings, and $8.9 billion in value.
- Northwest Louisiana: 27,236 jobs, $2.1 billion in earnings, and $9.9 billion in value.
LMOGA is sharing this analysis statewide, with Faucheux traveling parish-to-parish to meet with business, community, and government leaders. The organization hopes the findings will help lawmakers make informed decisions during the current legislative session.
“It is our mission to promote Louisiana’s oil and gas industry, and this report is further proof that our brightest future and biggest economic impact is made by supporting energy workers and energy innovators in our great state,” Faucheux said.
LMOGA, founded in 1923, represents all sectors of the oil and gas industry in Louisiana, including exploration, production, refining, transportation, marketing, and midstream operations, as well as related fields such as law, engineering, environmental services, finance, and government relations. For more information, visit lmoga.com.
