By Caitie Burkes | Business Report
Louisiana’s oil and natural gas industry supported 249,800 jobs and contributed $73 billion to the state gross domestic product through all supply chain links in 2019, representing some 26% of the total state GDP, according to a report released today by the Louisiana Mid-Continent Oil and Gas Association.
The report—which highlights the energy industry’s direct economic activity in Louisiana as well as the indirect and induced jobs and economic value added to the economy—shows the industry accounted for nearly $4.5 billion of state and local tax revenue in 2019, comprising 14.6% of total state taxes, licenses and fees collected. Much of this revenue stream flows into local economies, going toward environmental improvement projects, schools and other infrastructure.
LMOGA President Tyler Gray says his organization commissioned the report in an effort to help lawmakers recognize its large impact on Louisiana’s economy.
“It all comes down to the competitiveness of the state and its business climate, and it’s important we don’t take this sector for granted,” Gray says. “Any policy decisions going forward should consider what a strong part of Louisiana’s economy oil and gas is.”
Oil and gas operations support roughly one out of every nine of the state’s jobs and provided $14.5 billion in wages to Louisiana workers. What’s more, for every direct employee in the state’s oil and gas industry, there are 1.43 additional employees supporting the state economy through indirect and induced effects.
Louisiana also supported the production of 738 million barrels of crude oil and lease condensate, 3.81 trillion cubic feet of natural gas, and 102.4 million barrels of natural gas plant liquids last year. At the point of first sale, these production volumes amounted to a total value of $55.5 billion in the state.
Recently constructed LNG export operations in Sabine Pass and Cameron also provided $7.1 billion in revenue to the state last year as well as $2.1 billion in state GDP.
Revenues from natural gas, crude oil and NGL onshore and offshore production have averaged nearly $68 billion per year, or a total of $814 billion between 2008 and 2019.
LMOGA provided funding for the report to international consultant ICF in partnership with the American Petroleum Institute. Read the full report and methodology.