Louisiana Oil & Gas Association Urges Congress to Protect and Safeguard Energy Investment

Mike Moncla recently sent a letter to Congress urging the Louisiana delegation to protect and safeguard energy investment. Read the full letter below:

Dear Speaker Johnson, Majority Leader Scalise, Senator Cassidy, and Senator Kennedy:

On behalf of the Louisiana Oil & Gas Association (LOGA), which represents over 900 oil and

gas operators and service companies of the oil and gas industry in the state of Louisiana,

I’m writing today to strongly urge you to help preserve our current tax treatment of carried

interest to protect energy investment, support job creation, and ensure the continued

growth of a resilient, domestically powered energy economy—particularly in a leading

energy-producing state like Louisiana.

The carried interest structure has been in place for over 100 years to reward long-term

investment and responsible risk-taking across America. It is particularly critical in the oil

and gas industry, where smaller, independent companies often partner with private equity

investors to raise the capital needed to explore, drill, and produce America's energy

resources. Nowhere is this model more embedded—or more vital—than in the Gulf Coast

states, where these partnerships drive innovation, economic growth, and energy resilience.

Private investment has long played a foundational role in U.S. energy development. Over

the last decade, private equity firms invested nearly $12 billion through 32 deals with

Louisiana-based companies alone. This capital directly supports the creation of high-

paying jobs, local tax revenue, infrastructure development, and American energy

independence.

Changing the tax treatment of carried interest would disproportionately burden the very

same partnerships that have fueled this growth. Smaller producers without access to

public markets rely on these joint ventures to fund operations, navigate price volatility, and

invest in new technologies that improve e\iciency and reduce environmental impact. A tax

hike would chill this essential investment, putting American jobs and energy security at

risk.

Critically, carried interest is granted not for routine services, but for taking on long-term

financial and operational risk—whether by investing sweat equity, guaranteeing financing,

or absorbing project uncertainty in highly capital-intensive environments. The current

capital gains tax treatment properly reflects the nature of these entrepreneurial risks and

changing it would unfairly penalize those who are building America's energy future. The

result would be fewer new ventures, slower innovation, and reduced competitiveness—

particularly in Louisiana, where private investment has proven indispensable.Congress addressed this issue in 2017 through thoughtful reforms. Revisiting it now would amount to a retroactive tax increase on job creators and investors at a time when energy stability and affordability are national priorities.

We urge you to resist any e\ort to increase taxes on carried interest, a change that would

directly and negatively impact the businesses, communities, and people powering the

infrastructure our nation depends on.

Sincerely,

Mike Moncla

President, Louisiana Oil & Gas Association

LOGA-Letter.pdf

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