REPORT: LA Energy Industry Adds Over $54 billion to State’s Economy
A new report commissioned by the American Petroleum Institute (API) and prepared by PricewaterhouseCoopers (PwC) highlights the growing economic contributions of America’s natural gas and oil industry in all 50 states, including Louisiana. The report showed that the industry supported more than 346,000 jobs and contributed over $54 billion towards the state’s economy in 2021.
The findings of the report illustrate the significant role of policies that promote energy development and the importance of safe and responsible delivery of energy resources. According to the study, the natural gas and oil industry directly and indirectly supported over 346,710 jobs or 13.1% of Louisiana’s total employment, generating an additional 2.8 jobs elsewhere in Louisiana’s economy for each direct job in the industry.
Moreover, the industry provided $25.8 billion in labor income to Louisiana, 16.7% of the state’s total, and contributed $54.3 billion to Louisiana’s total gross domestic product, 21.0% of the state’s total. The report shows that the industry is critical to Louisiana’s economy and boosts the economy, creates jobs, and raises the quality of life for residents across the state.
“It is clear the energy industry is critical to Louisiana’s economy, creating jobs, boosting the economy and raising the quality of life for residents across the state. Our state’s economic future depends on a strong, robust oil and natural gas industry and the safe, responsible delivery of energy resources for all,” said Tommy Faucheux, LMOGA President.
The natural gas and oil industry has contributed to a growing economy in the United States. In 2021, the industry supported 10.8 million total jobs or 5.4% of total US employment and produced $909 billion in labor income or 6.4% of the US national labor income. The industry supported nearly $1.8 trillion in US gross domestic product, accounting for 7.6% of the national total.
“America’s economic outlook is brighter when we are leading the world in energy production and this analysis serves as a reminder that we need policies and regulations that encourage investment and enable development,” said Mike Sommers, API President and CEO.
The report is based on the latest government data available at the state, national, and congressional district level. It underscores the importance of policies that promote energy development, including meaningful action on permitting reform and the issuance of a final five-year plan for offshore oil and gas leasing.
Louisiana Mid-Continent Oil and Gas Association (LMOGA), founded in 1923, represents all sectors of the oil and gas industry operating in Louisiana and the Gulf of Mexico. LMOGA serves exploration and production, refining, transportation, marketing, and midstream companies as well as other firms in the fields of law, engineering, environment, financing, and government relations.
API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. The organization has developed more than 800 standards to enhance operational and environmental safety, efficiency, and sustainability.