On the heels of the 2023 statewide elections, Louisiana’s energy industry begins 2024 under a new administration and with an abundance of new opportunities on the horizon.
The stage is set for Louisiana to become the epicenter of the world’s modern era of energy development and production. We are at a pivotal moment as demand for lower carbon, American-made energy skyrockets.
For more than a century, we have seen Louisiana’s energy industry grow and evolve, developing a working infrastructure using innovative technologies and creating a highly skilled energy workforce. This has contributed to O&G exploration and production in the U.S. and around the world. Louisiana’s energy sector remains a major resource globally. Economically, it supports more than 346,000 jobs and over $25 billion in wages, as well as contributing more than $54 billion to Louisiana’s economy, according to an economic report by the API.
The U.S. government and global energy companies are investing billions of dollars in Louisiana’s infrastructure to develop emerging energy sources and low-carbon solutions. This includes $3.5 billion from the DOE for offshore wind manufacturing and port investments, more than $30 billion in emerging energy capital investments and over $20 billion from Louisiana’s private sector for hydrogen energy projects across the state.
In recent years, Southwest Louisiana has become one of the world’s top producers and exporters of LNG, providing 63% of the nation’s LNG exports according to the EIA. Home to some of the largest LNG export terminals in the country, energy companies have taken notice of the region by investing millions of dollars in LNG expansion projects to develop sustainable solutions that will deliver cleaner products around the world.
Last year, Southwest Louisiana received $603 million in funding from the DOE to create a direct air capture hub in Calcasieu Parish. Known as Project Cypress, the hub is expected to generate approximately 2,300 jobs and is projected to capture more than 1 million mt of CO2 annually and sequester the CO2 underground.
By supporting the industry and emerging energy projects, we can secure billions of dollars in Louisiana energy investments and support thousands of new jobs for citizens living in communities across the state.
Louisiana is also leading the way in clean energy production in the GoM, producing 46% less carbon emissions than the global average, according to the National Ocean Industries Association. More importantly, Louisiana’s energy industry is the largest private investor in our state’s coast, with Louisiana’s vibrant offshore industry as the state’s primary provider of coastal restoration and hurricane protection. In the last 15 years, Louisiana’s energy sector has provided more than $1 billion in funding for coastal restoration and hurricane protection investments throughout the state.
Industry leaders and advocates continue to challenge the Biden Administration over its reluctance to open more federal O&G leasing in the GoM. As a leader in offshore low-carbon energy production, lifting restrictions on lease sales in the Gulf and promoting policies that increase cleaner production is essential for Louisiana to continue delivering reliable energy resources. These would provide sustainable energy opportunities for our state, nation and the modern energy economy.
An administration that recognizes and understands the impact of pro-energy policies and initiatives can influence the progress and advancement of Louisiana energy, helping secure our nation’s future energy supplies.
Given the increased demand for reliable energy resources worldwide, combined with the unique leadership role in both the energy industry and clean energy initiatives, the future of Louisiana’s industry looks bright.
When Louisiana’s energy industry succeeds, it means more jobs and economic opportunity for all Louisianians and a more robust energy supply for our nation. This is an exciting time for our energy industry, and we look forward to a stronger, more viable Louisiana in 2024.
For more information, visit lmoga.com or call (255) 387-3205.
