Newest Economic Impact Study Reinforces Oil & Gas Industry's Importance to Louisiana

07 10, 2014 by LMOGA, Grow Louisiana Coalition

Study shows that industry paid more in taxes since 2009

Noted economist Dr. Loren C. Scott’s latest study reinforces what millions of Louisianians know: the oil and gas industry continues to have a tremendous impact on the state’s economy. Its 287,000 jobs generated $20.5 billion in household earnings and supported nearly $74 billion in sales to Louisiana firms in 2011. More specifically, a Louisiana professional employed in the oil and gas industry earns nearly two times the average Louisiana worker.

In the study, “The Energy Sector: A Giant Economic Engine for the Louisiana Economy,” Scott analyzed the crude oil, natural gas and petroleum refining industries and found that in 2011 alone they yielded more than 11.6 percent of total state earnings. This number puts Louisiana ahead of the gross domestic products of 86 of 185 countries ranked by the World Bank in 2012.

According to Scott, “it is the engine that makes the difference. For Louisiana, the presence of the extraction, refining and pipeline industries have indeed made all the difference. The energy industry, and its accompanying multiplier effects, has been a powerful engine for economic growth in Louisiana.”

State taxes paid by Louisiana oil and gas industry companies increased significantly in recent years. The industry directly paid nearly $1.5 billion in state taxes and fees in FY13, which represents 14.6 percent of total state taxes, licenses and fees collected. Local governments received $410 million in ad valorem taxes, representing more than $1 million per day into their coffers. This combined with the $20.5 billion in household earnings helped generate a more than $1.3 billion boost to local government treasuries.

As the industry has grown in Louisiana, it is investing hundreds of millions in financial resources and countless hours of human resources into dozens of ongoing, major conservation projects along the state’s coast. Up to $500 million more in annual revenue is scheduled for coastal projects in the coming years, through the industry-supported offshore revenue sharing program.

“From the exploration and production and service companies who find and produce needed natural resources, to the pipeline companies who transport the production and products, to the refineries who transform the production into usable material, the industry makes life easier. The energy industry has been a responsible community partner for more than a century, creating more jobs than any other industry in Louisiana, raising the standard of living and quality of life all across the state,” said Chris John, president of the Louisiana Mid-Continent Oil and Gas Association. “At the same time, Louisiana’s energy industry has created projects, invested hundreds of millions of dollars and forged partnerships with the best scientists to develop cutting-edge efforts to protect and rebuild our coast. In partnership with coastal communities and other industries, we have protected tens of thousands of acres in green space, marshland and swamp, and opened thousands of acres for coastal and environmental research. The people and companies of the industry have planted more than one million trees in coastal areas, created miles of artificial reefs for oyster production and introduced even more programs to sustain the Mississippi River, while decreasing air emissions in and around Baton Rouge by more than 40 percent,” said John.

“This study proves the oil and gas industry’s continued dedication to the people of Louisiana,” said Marc Ehrhardt, Grow Louisiana Coalition executive director. “Through these substantial contributions, industry companies are helping secure a strong, flourishing economy for all future generations of Louisianians. Restaurants, stores and automobile dealers see more than $2 billion a year in spending from the businesses and individuals working in Louisiana’s oil and gas industry. Billions more are spent through the sale and purchase of new homes for families working in oil and gas and businesses expanding their own footprints. As other states look to become more competitive in oil and gas, Louisiana must stay committed to protecting the century-old relationship between the people and businesses of our state with the oil and gas industry that is so central to our economy and way of life.”

In 2013, energy jobs and earnings existed in all 64 parishes across Louisiana; 17 parishes employed more than 1,000 workers in the energy industry. In Lafayette Parish alone, the energy sector accounted for more than 16,000 direct jobs and more than $1 billion in salaries.

The 2014 update of “The Energy Sector: A Giant Economic Engine for the Louisiana Economy” is the fifth edition of this industry analysis. The first occurring in 1996. LMOGA underwrote this latest report in partnership with the Grow Louisiana Coalition.

To download the complete report, click here. To learn more about Grow Louisiana, visit

Download a PDF of news this release here.


Loren C. Scott & Associates, Inc., is a 31-year-old firm that provides economic consulting and public speaking services for a wide range of clients. Consulting activities include impact studies, forecasting services, analysis of policy proposals, and general economic analyses. The firm’s objective is to put together the very best team of associates to attack clients’ problems. Dr. Loren Scott makes 50-70 presentations a year on the state of---and the outlook for---the economy.


Louisiana Mid-Continent Oil and Gas Association, founded in 1923, is the only oil and gas trade association exclusively representing all sectors of the oil and gas industry operating in Louisiana and the Gulf of Mexico. LMOGA serves exploration and production, refining, transportation, marketing and mid-stream companies as well as other firms in the fields of law, engineering, environment, financing and government relations.
LMOGA’s mission is to promote and represent the oil and gas industry operating in Louisiana and the Gulf of Mexico by extending representation of our members to the Louisiana Legislature, state and federal regulatory agencies, the Louisiana congressional delegation, the media and the general public.


With 3,000 members, the mission of the Grow Louisiana Coalition is to raise awareness of and to rally support behind the state’s traditional economic industries in order to create a viable future for its citizens. More information is available at