In the aftermath of the COVID-19 pandemic, demand for advanced energy resources has dominated the global energy market. Louisiana’s O&G industry adapted to this new energy era, allowing our state to capitalize on energy investments and innovation.
Today, the energy industry’s economic influence is growing thanks to expanding opportunities across the state.
According to the Louisiana Mid-Continent Oil and Gas Association’s (LMOGA) economic study on Louisiana’s energy industry, the energy sector is a dominant economic provider, contributing more than $77 billion annually to the state’s economy. This comprehensive study by economist Stephen Barnes, PhD, shows how Louisiana’s energy resurgence is unfolding across four key super-regions, creating a stronger, more resilient economy and elevating Louisiana as a global energy innovator.
River corridor: From New Orleans to Baton Rouge
The river corridor leads to both employment and value creation. Fueled by refinery and petrochemical upgrades and low-carbon investments, the industry provides 134,654 energy jobs, $11.4 billion in earnings and $39.1 billion in added value. Recent investments include $100 million in upgrades for ExxonMobil’s Baton Rouge complex to supply critical materials for U.S. semiconductor chip manufacturing. In Ascension Parish, CF Industries, JERA and Mitsui, announced a $4 billion project to build the world’s largest low carbon ammonia production facility. Together, these projects will deliver hundreds of energy related positions while also establishing a competitive advantage directly benefiting Louisiana’s manufacturing and refining sectors.
Bayou region: From Lafayette to Houma
In the Bayou region, the industry supports 62,485 jobs, generates $4.7 billion in earnings and adds $9.7 billion in value. The region’s proximity to the GoA makes it a prime location for major energy investments and infrastructure improvement projects. These include an $18 billion expansion project for Venture Global Plaquemines LNG, and Port Fourchon’s cooperative endeavor agreement to develop a multi-purpose heavy industrial facility on Fourchon Island. These projects support hundreds of positions, boost offshore energy services and maintain Louisiana’s position as a leader in the global energy market.
Southwest Louisiana: Lake Charles region
In Southwest Louisiana, the industry generates 26,620 jobs, $2.3 billion in earnings and roughly $9 billion in added value. The region’s massive LNG infrastructure has captured investment opportunities in energy innovation and new LNG developments. This includes Lake Charles Methanol II’s $3.24 billion plan to develop a low-carbon intensity methanol manufacturing plant and a $17.5 billion investment from Woodside Energy Group for a new LNG production and export terminal in Calcasieu Parish. Creating hundreds of new energy jobs and thousands of construction roles, these investments fuel U.S. energy trade efforts and reinforce Southwest Louisiana as a world-class LNG supplier.
Northwest Louisiana: Shreveport region
In Northwest Louisiana, the industry supports 27,236 jobs, delivers more than $2.1 billion in earnings and adds nearly $10 billion in value. This region is influenced by the Haynesville Shale, one of the most resourceful, mineral rich natural gas reserves in the country. Major energy companies from around the world are investing in the area, building new pipelines to transport Haynesville gas to the Gulf Coast and expanding existing pipeline operations to optimize productivity. These pipeline projects bring new energy positions and thousands of construction jobs to the region, showcasing Northwest Louisiana as a leader in advanced natural gas production.
A resilient energy economy
The LMOGA study confirms that Louisiana’s four energy super regions illustrate a unified narrative: the industry is growing to meet modern energy demands, creating consistent investment opportunities that will continue to secure vital energy resources and power Louisiana’s energy economy for generations to come.
For more information, visit lmoga.com or call (225) 387-3205.
