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The Louisiana Mid-Continent Oil and Gas Association has released a new economic impact study showing that the energy industry is responsible for 25% of Louisiana’s total economic output.
The 2025 study, conducted by economist Stephen Barnes, provides a comprehensive post-pandemic analysis of the sector’s influence. It reveals that the energy industry accounts for 15% of total state employment, 19% of total earnings, and supports up to 31.3% of local property tax revenue.
Key statewide findings from the study, which captures direct, indirect, and induced effects of the energy sector, include:
- 306,750 jobs, representing 15% of total state employment
- $25.5 billion in annual statewide earnings
- $77.7 billion added annually in total value, or 25% of Louisiana’s economy
- $974 million paid in specific state taxes in fiscal year 2024
- $1.1 billion paid in local property taxes in FY24
- $3.48 billion, or 20.4% of state taxes, licenses, and fees generated in FY24
Barnes highlights the sector’s growth potential, pointing to Louisiana’s interconnected economy and the opportunities emerging from new technologies and global energy trends. He emphasizes that capitalizing on these developments could position Louisiana as a leader in the global energy transition, securing long-term economic opportunities for future generations.
The report also identifies four key “energy super regions” where more than 90% of the industry’s economic impact is concentrated: the River Region (Baton Rouge to New Orleans), the Bayou Region (Lafayette to Houma), Southwest Louisiana, and Northwest Louisiana..
The River Region accounts for 134,654 energy-related jobs, $11.4 billion in earnings, and $39.1 billion in local economic value.
“LMOGA commissioned this study to get a pulse on the true value of our state’s energy sector after the pandemic,” LMOGA President Tommy Faucheux says in a prepared statement. “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.”
