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LA Gulf of Mexico Impacts

A study conducted by the Louisiana Mid-Continent Oil and Gas Association revealed that the offshore oil and gas operations taking place in the Gulf of Mexico have an annual $6 billion positive impact on the state economy. More than $1.2 billion of this impact is in the form of salaries and wages paid to offshore workers. The remainder of the impact, results from the business the offshore industry does with onshore vendors located in Louisiana, which provides the goods and services needed by the offshore industry. In addition, the offshore industry spends up to $15 billion on capital expenditures. Each black dot on the adjacent map represents one vendor in Louisiana who does business with the offshore oil and gas industry.

Specific items determined by the Mid-Continent study include:

More than 21,000 producing company jobs exist as a direct result of oil and gas activities in the outer continental shelf (OCS) of the Gulf of Mexico.

16,725 of those employees are Louisiana residents.

The estimated payroll is $1.2 billion or an average of $74,000 per employee. Actual average salaries are in the low to mid $60,000 range.

Nearly $6 billion was paid by producing companies to vendors and contractors in support of OCS activities, with more than $3.7 billion of that amount or 58 percent spent in Louisiana.

• Nearly 6,000 unique vendors and contractors were identified by the study.

• More than 60 percent of the vendors are based in Louisiana and are found in 205 different communities.

• Statewide, the vendors account for 4.3 percent of all Louisiana business establishments.

• Louisiana vendors employ an estimated 55,376 persons.

• Approximately 45 percent of the Louisiana vendors derive more than half of their income from OCS activities in the Gulf of Mexico.
Source: Impacts by Applied Technology Research Corp., 1994 and 1999 for Louisiana Mid-Continent Oil and Gas Association

Source: Impacts by Applied Technology Research Corp., 1994 and 1999 for Louisiana Mid-Continent Oil and Gas Association

Gulf of Mexico Links
Gulf of Mexico Program- The Gulf of Mexico Program was formed in 1988 by the Environmental Protection Agency as a non-regulatory, inclusive partnership to provide a broad geographic focus on the major environmental issues in the Gulf.

Mineral Management Service (MMS) - Minerals Management Service regulates domestic energy production off America’s coast on the Outer Continental Shelf (OCS).

Gulf MMS Atlas -The Atlas documents principal geologic and engineering characteristics of natural gas and oil sands of the offshore northern Gulf of Mexico basin.