Oil and gas contributed $73B to Louisiana’s 2019 GDP

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America's oil and natural gas industry is a critical and irreplaceable component of our nation's economy, supported by thousands of small businesses and hundreds of thousands of energy workers throughout the Gulf Coast and beyond.

This message was championed by LMOGA, small businesses and workers throughout our state and nation leading up to the 2020 election.

Now, as President Biden takes office, LMOGA is pressing ahead to ensure that energy policies put into place continue to support American energy workers and families who depend on the industry's high-wage jobs. We will work diligently to promote development of a strong, longterm energy policy that recognizes the importance of a robust oil and gas industry to America's energy security and preserves the industry's economic contributions to our Gulf Coast communities and families.

A recent report by global consulting firm ICF explores just how significant these economic impacts are in Louisiana. According to the report prepared for LMOGA and the American Petroleum Institute, Louisiana's oil and natural gas industry supported 249,800 jobs and contributed $73 billion to the state's GDP in 2019 -- and that's just the beginning.

ICF's findings included the oil and natural gas industry's direct economic activity in Louisiana as well as the indirect and induced jobs created and economic impacts, further reinforcing the importance of the industry to our state's economy.

Here are a few other compelling highlights from the report:

  • The state income generated by the production, processing, transportation, distribution and retailing of crude oil, natural gas, natural gas liquids and petroleum products within Louisiana represents approximately 26 percent of the state's total GDP in 2019.
  • The oil and gas industry accounted for nearly $4.5 billion of state and local tax revenue in 2019, which represents 14.6 percent of total state taxes, licenses and fees collected. Much of this revenue stream finds its way into local economies and helps provide critical operating resources for local governments.
  • Oil and gas operations support approximately one out of every nine of the state's jobs, many of which provide annual wages significantly above the state average. The 249,800 jobs supported by industry generated $14.5 billion in wages to in-state workers.
  • Louisiana supported the production of 738 million barrels of crude oil and lease condensate, 3.81 trillion cubic feet of natural gas and 102.4 million barrels of natural gas plant liquids in 2019. At the point of first sale, these production volumes amounted to a total value of $55.5 billion in the state. Recently constructed LNG export operations also provided $7.1 billion in output value to the state in 2019.

It's clear the oil and gas industry is critical to Louisiana's economy, creating jobs and raising the quality of life for residents across the state. These findings also reinforce the need for policies and initiatives that promote economic growth and encourage continued industry investment to move our state and nation forward.

The economic futures of our state and our nation depend on a strong, robust oil and natural gas industry and the safe, responsible delivery of energy resources for all. That's the message LMOGA will continue to deliver to the White House and Capitol Hill in the months and years ahead as we work to sustain this critical economic engine.

We can't afford to lose it.

For more information about Louisiana's oil and gas industry and LMOGA's work to protect and grow the industry, visit www.lmoga.com or call (225) 387-3205.

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