2025 Study: Energy industry generates 25% of Louisiana’s economy

Louisiana Mid-Continent Oil and Gas Association (LMOGA), the long-standing trade association representing all sectors of Louisiana’s oil and gas industry, releases the findings of a 2025 economic impact study on Louisiana’s energy industry. Conducted by Louisiana economist Stephen Barnes, PhD., the report is one of the most comprehensive post-pandemic economic studies of the state’s energy industry. It shows that the industry is a dominant player in the state, generating 25% of Louisiana’s economy, 15% of total state employment, 19% of total earnings and supporting up to 31.3% of local property taxes.

Statewide findings tied to Louisiana’s energy industry from direct, indirect and induced effects, include:

• 306,750 energy jobs, or 15% of the state’s total employment

• $25.5 billion in annual total statewide earnings, or 19% of total earnings

• $77.7 billion added annually in total value, or 25% of Louisiana’s economy

• $974 million paid in specific taxes in fiscal year 2024 (FY24)

• $1.1 billion in local property taxes paid in FY24

• $3.48 billion, or 20.4% of FY24 state taxes, licenses and fees

“LMOGA commissioned this study to get a pulse on the true value of our state’s energy sector after the pandemic,” said Tommy Faucheux President of LMOGA. “What we found is that energy remains a strong pillar of our state economy, with over 300,000 proud Louisianians working for or with the industry and billions of dollars funding local priorities, like teacher pay, police protection and road improvements. It also exposes regions of our state that can benefit from increased energy enterprises – either by expanding existing opportunities or embracing innovations that are part of the state’s ‘all of the above’ energy approach.”

Dr. Barnes notes the opportunity for future growth of Louisiana’s energy industry, as well, writing, “Considering the rich and highly interconnected economic environment that has grown up around Louisiana’s oil and gas sector, it is clear that the modern energy sector will continue to play a vital role in sustaining a major portion of the Louisiana economy. In addition, emerging technologies and an evolving global economic landscape will create new opportunities for growth fueled by the energy sector. Capitalizing on those opportunities to meet domestic and international demand will position the state to be a leader in the global energy transition with economic opportunity for generations to come.”

The study further outlines localized findings in four energy super regions, where over 90% of the industry’s economic impact in Louisiana is concentrated. Energy super regions include the River Region (from Baton Rouge to New Orleans), the Bayou Region (from Lafayette to Houma), Southwest Louisiana and Northwest Louisiana.

In FY24, the energy sector contributed up to 31.3% of the total local property taxes and up to 19.4% of local sales taxes were tied to these regions. Additionally, the study highlights the following impacts on local employment, earnings and added value:

• River Corridor: 134,654 total energy jobs generate $11.4 billion in earnings and add $39.1 billion in local value.

• Bayou Region: 62,485 total energy jobs generate $4.7 billion in earnings and add $9.7 billion in local value.

• Southwest: 26,620 total energy jobs generate $2.3 billion in earnings and add $8.9 billion in value.

• Northwest: 27,236 total energy jobs generate $2.1 billion in earnings and add $9.9 billion in value.

LMOGA is sharing this in-depth analysis of the energy industry’s impact on local prosperity, with Faucheux travelling parish-to-parish to conduct in-person meetings and presentations with Louisiana business, community and government groups. LMOGA further anticipates the study will also help lawmakers make educated decisions about the future of the industry during the current Legislative Session.

“It is our mission to promote Louisiana’s oil and gas industry, and this report is further proof that our brightest future and biggest economic impact is made by supporting energy workers and energy innovators in our great state,” Faucheux said.

Click here to read the full report.