More than 12% of Louisiana jobs and 23% of the state’s gross domestic product are tied to the oil and natural gas industry, according to a new analysis from The American Petroleum Institute that aims to highlight the industry’s importance in Louisiana.
The analysis, conducted by PricewaterhouseCoopers and commissioned by API, is based on government figures and shows that Louisiana’s natural gas and oil industry supported 345,760 total jobs across the state’s economy in 2019, the most recent data available.
API Gulf Coast Regional Director Gifford Briggs says the report again shows that the oil and gas industry is critical to Louisiana, from onshore operations to offshore development in the Gulf of Mexico, and drives other industries in the state.
As economic activity, travel patterns and consumption continue to grow following the recession, the U.S. Energy Information Administration expects global oil and liquid fuels consumption to surpass 2019 levels in 2022. According to the findings, in 2019, the industry directly and indirectly:
• Supported 345,760 total jobs (105,310 direct and 240,450 indirect) or 12.6% of Louisiana’s total employment;
• Generated an additional 2.3 jobs elsewhere in Louisiana’s economy for each direct job in the state’s natural gas and oil industry;
• Provided $25 billion in labor income ($12.7 billion direct and $12.3 billion indirect) to Louisiana, 16.8% of the state’s total;
• Contributed $59.2 billion to Louisiana’s gross domestic product ($38.6 billion direct and $20.6 billion indirect), 23% of the state’s total.