GRETNA, La. (press release) – President of the Louisiana Mid-Continent Oil and Gas Association, Tommy Faucheux, presented the findings of a new study on Louisiana’s energy industry at the GNO, Inc. Investor’s breakfast in Gretna on May 16. The report, which was released in April, is one of the most comprehensive studies of the industry’s economic impact in the state, showing energy generates 25% of Louisiana’s economy and holds opportunities for continued growth.
“Louisiana’s energy industry is tied to over 306,000 Louisiana jobs, with workers earning over $25.5 billion in wages just last year. That’s about 15% of total employment and 19% of all wages in the state,” Faucheux said. “Energy adds $77.7 billion in value, or 25% of state’s GDP. This is what we’re building on, and we’re trying to protect.”
The report was commissioned by LMOGA and conducted by Louisiana economist Stephen Barnes, PhD., who studied Louisiana’s energy industry’s economic impact from direct, indirect and induced effects, finding $974 million paid in specific taxes in fiscal year 2024 (FY24), $1.1 billion in local property taxes paid in FY24, and $3.48 billion, or 20.4% of FY24 state taxes, licenses and fees.
Faucheux detailed localized findings from the study that are concentrated in four energy super regions, where over 90% of the industry’s economic impact is concentrated.
- In the River Corridor, from Baton Rouge to New Orleans, 134,654 total energy jobs generate $11.4 billion in earnings and add $39.1 billion in local value.
- In the Bayou Region, from Lafayette to Houma, 62,485 total energy jobs generate $4.7 billion in earnings and add $9.7 billion in local value.
- In Southwest Louisiana 26,620 total energy jobs generate $2.3 billion in earnings and add $8.9 billion in value.
- In Northwest Louisiana, 27,236 total energy jobs generate $2.1 billion in earnings and add $9.9 billion in value.
The study also shows that in FY24 the energy sector contributed up to 31.3% of the total local property taxes and up to 19.4% of local sales taxes in the four energy super regions. The tax benefits hold future promise, Faucheux said, for communities outside of these super regions, as well.
“There’s so much that happens in energy communities if we just bring the benefits, like we have here in Southeast Louisiana. A lot of rural parts of the state, without the industry, don’t have the ability to pay teachers, provide the best law enforcement protection or even basic services like clean drinking water. In many cases, there has been two different Louisianas, and energy can play a large part to support more communities as the industry grows.”
At the GNO, Inc. event, Faucheux emphasized the state’s current opportunity to expand the industry and meet global lower-carbon energy demands.
“We’re always trying to become more efficient and produce energy cleaner and with less emissions of all types.”
The recent $17.5 billion dollar Woodside Energy final investment decision and $10 million Meta data center announcement were tied, in part, to Louisiana’s ability to provide large-scale, lower-carbon energy, Faucheux said.
For more information about LMOGA, visit lmoga.com. Click here to read the full report.
About LMOGA
The Louisiana Mid-Continent Oil & Gas Association (LMOGA), founded in 1923, is a trade association exclusively representing all sectors of the oil and gas industry operating in Louisiana. LMOGA represents exploration and production, refining, transportation, marketing, and mid-stream companies as well as other firms in the fields of law, engineering, environment, financing, and government relations.
