No private entity is more invested in the health of Louisiana’s coastline than our state’s energy industry.
As the number one private investor in our working coast, the industry that fuels our state’s economy is also dedicated to preserving our coastline. Efforts to foster resilience, from protecting wetlands and barrier islands to restoring habitats and safeguarding communities, are essential to sustain both our working coast and Louisiana’s energy future.
The energy industry is deeply connected to the health of our state’s coastline. Along the coast is where members of the energy industry live, go to work and raise their families. The same severe storms and erosion driving land loss also threaten the vast network of pipelines and vital energy infrastructure that power our state and the world.
That is why major energy companies devote hundreds of millions of dollars to private and philanthropic initiatives to support nonprofit and community-based coastal restoration programs. Their contributions include funding for marsh restoration and habitat creation, like the Bayou Chene Marsh Enhancement Project in Vermilion Parish, artificial reef installations, like the Goose Point Reef in St. Tammany Parish, and innovation community programs, like the Coastal Innovation Challenge, which supports startups working to address coastal challenges.
GOMESA: Fueling Louisiana’s coastal resilience
In addition to private funding, lease sales and offshore production by oil and gas companies are a critical source of coastal funding for Louisiana. Under the Gulf of Mexico Energy Security Act (GOMESA), the federal government auctions off leases in the Gulf. Energy companies can bid on the area and will then pay fees, including rentals, royalties and bonuses once production begins. A portion of these revenues is then allocated to four Gulf Coast states — Louisiana, Alabama, Mississippi and Texas. These funds are then used for critical coastal restoration, hurricane protection, conservation and infrastructure projects in affected areas.
Of the four Gulf-producing states, Louisiana often receives the largest GOMESA disbursement. Last year, our state received over $156 million in both state and individual parish funding.
This is a significant program for everyday Louisianians because coastal resilience does not happen without revenue.
These essential GOMESA funds provide the backbone for many coastal initiatives. For example, according to the Coastal Protection and Restoration Authority, GOMESA funding was used to support several coastal projects, including terrace creation for Hwy. 1 in Lafourche Parish, hydraulic restoration in Tangipahoa Parish, breakwater extension in Vermilion Parish and marsh creation around Lake Pontchartrain in St. Tammany Parish.
Recent policy changes and support from the Trump administration to increase revenue sharing, accelerate leases and streamline permitting will also create new opportunities for Louisiana. Last year, the GOMESA cap was raised from $500 to $650 million annually. That’s a 30% increase for the next 10 years beginning in fiscal year 2025. In addition, the DOI announced two new lease sales in the GoA and the Trump administration just released a new, robust 5-year plan for offshore lease sales that will put Louisiana to work, strengthen energy security and deliver more vital funding to restore Louisiana’s coastline. By raising the cap and unlocking critical energy resources in the Gulf, future revenue sharing will have an even larger impact, which is a big win for Louisiana and all Gulf Coast states.
Preserving a resilient working coast
The industry’s relationship with Louisiana’s coast extends far beyond economic output. It’s a shared connection rooted in the preservation of the land that protects our working coast, its communities and its environment. Continued private coastal investments, stronger GOMESA profits, new offshore lease opportunities and rising support for American energy dominance are driving progress for our state. With this momentum, we can preserve a resilient working coast and a promising future for the energy industry and the communities that call Louisiana home.
For more information, visit lmoga.com or call (225) 387-3205.
