Economic Impact

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

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According to a 2020 report, the industry provided $73 billion to the state GDP and supported 249,800 jobs in 2019.

The report highlights the oil and natural gas industry’s direct economic activity in Louisiana as well as the indirect and induced jobs and economic value added to the economy.

The industry accounted for nearly $4.5 billion of state and local tax revenue in 2019, which represents 14.6 percent of total state taxes, licenses and fees collected. Much of this revenue stream finds its way into local economies and helps provide critical operating resources for local governments.

Oil and gas operations support approximately one out of every nine of the state’s jobs, many of which provide annual wages which are significantly above the state average. The 249,800 jobs supported by industry generated $14.5 billion in wages to in-state workers.

Click here to read the full study on the industry's impact in Louisiana.

The study uses data from the Louisiana state government, the federal government, and other sources to characterize the economic contributions of the oil and gas value chain in the state. The study also uses the IMPLAN model to generate estimates of indirect and induced economic impacts. IMPLAN assesses economic benefits that result from oil and gas activity including multiplier effects within the state and leakage to out-of-state markets.