This has been a pivotal year for the energy industry in Louisiana and LMOGA, as this year marked our 100th anniversary.
Looking back on 2023, major milestones impacted Louisiana’s energy industry and shaped the future of energy independence and progress for the state and nation.
Louisiana took the lead in the next generation of energy production and innovation, capitalizing on the changing energy marketplace to remain an energy-rich state. The industry invested in innovations, such as CCS, blue and green hydrogen and offshore wind power. These initiatives were propelled by a federal funding commitment of $1.2 billion for carbon capture technology hubs. Louisiana capitalized on these opportunities generated by global industry demands, including the billions of dollars invested by companies in new technologies and renewable energy resources.
It’s no coincidence that Louisiana has become the epicenter of the world’s modern energy economy. Louisiana’s ideal geography, natural resources, working infrastructure and highly skilled workforce sets us apart from neighboring states and makes us extremely marketable to energy companies around the world.
For this reason, industry advocates support establishing Class VI primacy for Louisiana, a pivotal step in allowing state leaders to determine what’s best for our industry and communities. Granting primacy for Louisiana would give it the ability to quickly and safely implement the latest processes, technologies and regulations to keep the state at the forefront of energy innovation and production.
Home to three of the largest LNG export terminals, Southwest Louisiana is one of the world’s top producers of LNG, exporting supplies and reliable energy resources around the world. Southwest Louisiana continues to be a major energy resource for Louisiana as the region’s industry giants implement new technology for low-carbon LNG production and growth.
The GoM’s offshore production continues to set the standard worldwide, producing 46% less carbon emissions than the global average, according to the National Ocean Industries Association. Today, Louisiana’s offshore industry is a fundamental economic resource, as well as the state’s primary contributor for coastal restoration and hurricane protection.
Louisiana’s O&G industry is the largest private investor on the state’s coast. This year, Louisiana received more than $156 million from the Gulf of Mexico Energy Security Act, one of the largest funding sources for the state’s coastal efforts through the Coastal Protection and Restoration Agency. These revenues are generated through offshore lease sales and energy production.
Unfortunately, moratoriums on lease sales and energy production in the Gulf, and a lack of commitment from the Biden Administration, creates uncertainty and forces companies to look for these energy resources elsewhere. As a leader in the next generation of modern energy production, we should be promoting policies that increase cleaner, affordable production, and securing the safe delivery of reliable energy resources that sustain our life and deliver economic opportunity now, and for decades to come.
This year’s statewide elections dominated the headlines as candidates at the state and parish levels battled for top positions. For Louisiana to remain a global energy leader, we will need the support of elected officials to capitalize on opportunities to modernize our energy resources and technologies, and to encourage pro-industry policies that protect Louisiana’s future and secure America’s energy independence.
The energy industry’s vision for the future of development will drive the state’s economy and America’s next generation of energy leaders for another century. To achieve this, the industry is making planned investments and groundbreaking ideas that can increase commerce and simultaneously protect infrastructure, while building up the coast.
LMOGA continues to be at the forefront of advocating for Louisiana energy, supporting business investments and policies that improve the state’s economy.
For more information, visit lmoga.com or call (255) 387-3205.
