A newly released economic impact study from the Louisiana Mid-Continent Oil and Gas Association (LMOGA) underscores the significant role of the energy industry in Louisiana's economy, revealing it accounts for 25% of the state's total economic output.
Conducted in 2025 by economist Stephen Barnes, the comprehensive study offers a post-pandemic analysis of the sector's wide-ranging influence. The findings indicate that the energy industry supports 15% of total state employment, contributes 19% of total earnings and is responsible for up to 31.3% of local property tax revenue.
Key statewide findings detailed in the study, which encompasses the direct, indirect and induced effects of the energy sector, include:
- 306,750 jobs, representing 15% of total state employment
- $25.5B in annual statewide earnings
- $77.7B added annually in total value, or 25% of Louisiana’s economy
- $974M paid in specific state taxes in fiscal year 2024
- $1.1B paid in local property taxes in FY24
- $3.48B, or 20.4% of state taxes, licenses and fees generated in FY24
Economist Stephen Barnes emphasized the sector's potential for future growth, noting Louisiana's interconnected economic structure and the emerging opportunities linked to new technologies and global energy trends. He suggests that capitalizing on these developments could position Louisiana as a leader in the global energy transition, thereby securing long-term economic benefits for generations to come.
The report also pinpoints four key “energy super regions” where over 90% of the industry's economic impact is concentrated: the River Region (Baton Rouge to New Orleans), the Bayou Region (Lafayette to Houma), southwest Louisiana and northwest Louisiana.
The River Region alone accounts for:
- 134,654 energy-related jobs
- $11.4B in earnings
- $39.1B in local economic value
According to LMOGA President Tommy Faucheux in a prepared statement:
“LMOGA commissioned this study to get a pulse on the true value of our state’s energy sector after the pandemic. 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.”
