BATON ROUGE, La. - Researchers at the LSU Center for Energy Studies have released their 2025 Gulf Coast Energy Outlook report with key findings in economic growth, employment, electricity demand, crude oil and natural gas production, energy infrastructure, and investment in energy manufacturing. Their overall assessment is one of cautious optimism.
According to the report, the Gulf Coast will continue to be an important regional hub for the manufacturing of hydrocarbon-based products such as liquid fuels, chemicals, polymers, and fertilizers. The refining and chemical manufacturing sectors will continue their upward trajectory, with Louisiana’s employment in this sector projected to increase by approximately 3% in 2024, adding around 1,200 new jobs. This growth is expected to continue at a steady, albeit slower, rate of 0.7–1.2% annually from 2025 through 2027.
“The Gulf Coast's oil and natural gas production has surpassed pre-pandemic levels and is projected to continue growing over the next decade,” said Micheal Hecht, CEO, GNO Inc. “Efficiency improvements mean more hydrocarbons are being produced with fewer rigs.”
The Energy Outlook Report indicates that decarbonization initiatives offer both opportunities and risks. As global demand for lower-emission products has grown, Louisiana has harnessed the opportunity to grow with it, making the state attractive for investment in biofuels, carbon capture, and other emission reducing products.
The Gulf Coast Energy Outlook report cautions that because these initiatives are supported by federal subsidies under the Inflation Reduction Act (IRA) and the Infrastructure, Investment and Jobs Act (IIJA), they may be at risk if the new administration makes significant changes to them. Louisiana is projected to continue growing its decarbonization initiatives largely because the state already has the infrastructure and workforce in place to remain competitive. Investment in pipeline infrastructure over the past decade, for example, has alleviated transportation bottlenecks, reducing reliance on rail and barge, thereby reducing costs.
“The takeaway is clear: a balanced, all-of-the-above approach to energy supply and decarbonization presents a generational opportunity for Louisiana and the Gulf Coast,” said Hecht. “The numbers are large. By 2030, the Gulf Coast region is projected to see $219 billion in liquefied natural gas investments, $151 billion for chemical and refining industries, and $107 billion for energy transition projects.”
Energy demand in the U.S. is expected to remain flat, but international demand will continue to grow, providing ample opportunities for Louisiana to increase production of electricity for electric vehicles (EVs), heat pumps, and data centers.
“Oil prices are expected to stabilize around $60 per barrel in the long term, while natural gas prices are forecasted to remain relatively low, creating a competitive advantage for the Gulf Coast in attracting capital for energy projects,” said Hecht.
The Center for Energy Studies conducts, encourages, and facilitates research and analysis to address energy-related problems or issues affecting Louisiana’s economy, environment, and citizenry. The Center’s goal is to provide a balanced, objective, and timely treatment of issues with potentially important consequences for Louisiana.
The Center for Energy Studies was created by the Louisiana Legislature in 1982 as the embodiment of recommendations made by an independent group of experts and at the urging of Louisiana business and public interest groups as well as LSU.
