Louisiana Mid-Continent Oil and Gas Association

Economic Impact

The oil and gas industry is one of the leading industries in Louisiana in terms of economic impact, taxes paid and people employed.

An economic impact study commissioned by the Grow Louisiana Coalition and conducted by economist Dr. Loren Scott in 2018 shows that the total direct and indirect impact on the state is approximately $72.8 billion. The direct impact comes from the taxes, royalties, fees, salaries, and other money spent in Louisiana by the oil and gas industry. The indirect impact results from the salaries and wages earned by oil and gas employees being spent in the state as well as service companies, which do business with oil and gas companies and then do business with other companies.

Read the full study here. 

  • With more than 260,000 employees across the state and an average annual wage of more than $96,500 – almost double the state’s average wage – and a contribution of more than $2 billion in annual state taxes, it is clear that the energy industry is critical to Louisiana’s employment, state budget and economic success.
  • The Louisiana oil and gas industry is one of the leading employers in the state. It is estimated that on average, each industry job supports four other jobs in other sectors in the state, according to a study by Dr. Loren Scott.
  • Energy jobs and earnings were found in all but one of Louisiana's 64 parishes in 2017.
  • The industry generated over $19.2 billion in household earnings (direct and indirect) for Louisianans and supported 262,520 jobs in the state in 2015.
  • Nearly $5.3 Billion in wages paid for Louisiana households in 2017 --- 5 percent of the total covered wages in the state that year.

 

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