Over the past few decades, the oil and gas industry has invested significant amounts of money in the development of technology to reduce emissions as part of its commitment to develop solutions to address climate change.
With this ongoing investment, Louisiana is uniquely positioned with another opportunity to be a global leader as a hub for innovative solutions.
In 2020, Gov. John Bel Edwards established Louisiana's Climate Initiatives Task Force (CTF) to provide recommendations that balance economic development and emissions reductions. CTF is committed to an "all of the above" approach to evaluating climate solutions through multiple lenses.
In LMOGA's view, there are five primary areas of strength that Louisiana should leverage to maximize greenhouse gas (GHG) emissions reductions while growing our economy: carbon capture and sequestration (CCS), natural gas, hydrogen, Gulf of Mexico crude oil and lower- carbon liquid fuels.
Louisiana's geology is some of the best in the world for secure geologic sequestration. Additionally, because of its long history of producing, transporting, and refining oil and gas, Louisiana has a highly trained, skilled workforce capable of constructing and operating geologic sequestration projects and associated infrastructure.
When considering Louisiana's largescale, ongoing coastal restoration efforts, land-based sequestration represents a huge potential area for synergy. All coastal restoration, reforestation and wetlands restoration projects will involve the introduction of new plants, which inherently sequester CO2 throughout their lifecycle. As we restore more and more of Louisiana's coastal wetlands, we will continue to increase the amount of CO2 sequestered.
Louisiana has transitioned into a major gas-producing state over the past decade. Louisiana-sourced natural gas, especially from dry gas plays like Haynesville, often has a lower carbon intensity than natural gas sourced from other plays because flaring is less prevalent. In addition to minimizing flaring, operators have been investing large amounts of time and capital into improving leak-detection technology and developing best management practices to drive down methane emissions.
As with CCS and natural gas, Louisiana is uniquely positioned to be a leader in production and transportation of clean hydrogen. A hydrogen industry in Louisiana will lead to compounded gains in the CCS industry because CCS is a critical component in producing blue hydrogen. Louisiana's strong industrial sector will provide a stable end use for clean hydrogen, and additional uses will continue to emerge, including heating, hydrogen-fueled vehicles and many more.
The Gulf of Mexico represents another area of strength unique to Louisiana that provides a tremendous opportunity toward achieving the state's climate goals. Crude oil sourced from the Gulf of Mexico has some of the lowest carbon intensity per barrel in the world. Gulf of Mexico oil production also results in ongoing investment in coastal restoration projects in the form of the Gulf of Mexico Energy Security Act, which allows for the sharing of offshore oil and gas revenue among oil and gas producing Gulf states and investment in projects that restore coastlines, enhance conservation efforts and provide hurricane protection.
In the downstream sector, the capacity for biofuel and renewable fuel production in Louisiana is significant and continues to grow, representing additional opportunities for economic growth as companies invest in climate solutions.
Clearly, climate solutions and economic growth are not mutually exclusive ideals in Louisiana. Our state has a unique opportunity to play a major role in reducing GHG emissions while producing lower-carbon energy for decades to come. LMOGA firmly believes in Louisiana's potential to become a global leader in climate solutions, and we are committed to working with our members and the state toward achieving climate goals.
For more information about LMOGA and its work to protect and grow Louisiana's oil and gas industry, visit www.lmoga.com or call (225) 387-3205.
