Louisiana’s oil and natural gas industry is helping the state to recover economically, according to a report released today by the Louisiana Mid-Continent Oil and Gas Association.
The report highlights the energy industry’s direct economic activity in Louisiana as well as the indirect and induced jobs and economic value added to the economy. It shows the industry accounted for nearly $4.5 billion of state and local tax revenue in 2019, comprising 14.6% of total state taxes, licenses, and fees collected. Much of this revenue stream flows into local economies, going toward environmental improvement projects, schools, and other infrastructure. Oil and gas also supported 249,800 jobs and contributed $73 billion to the state gross domestic product (GD) through all supply chain links in 2019, representing some 26% of the total state GDP.
Oil and gas operations support roughly one out of every nine of the state’s jobs and provided $14.5 billion in wages to Louisiana workers. For every direct employee in the state’s oil and gas industry, there are 1.43 additional employees supporting the state economy through indirect and induced effects.
Louisiana also 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 last year. At the point of first sale, these production volumes amounted to a total value of $55.5 billion in the state.
Revenues from natural gas, crude oil, and NGL onshore and offshore production have averaged nearly $68 billion per year or a total of $814 billion between 2008 and 2019.