Rising fuel prices typically lead to job growth in an energy hub like Louisiana, but experts say the state is unlikely to see much of a benefit this year as fossil fuel companies have so far been hesitant to spend more on drilling and production, reports Louisiana Illuminator.
The energy sector, in Louisiana and the world at large, is still recovering from the decline in demand from the coronavirus pandemic combined with supply collusion from foreign oil suppliers. The market is now dealing with the added disruption of Russia’s invasion of Ukraine, which has caused gasoline prices to surge above $4 per gallon in Louisiana.
Dr. David Dismukes, an economist and policy analyst at LSU’s Center for Energy Studies, said most U.S. oil companies are not ramping up production.
“We’re just not getting that supply response, and I don’t see a real big boom coming from this,” Dismukes said. “If anything, it might hurt more than it helps. For us as a state, we’re more of a net energy consumer than we are a net energy producer.”
Dismukes said high fuel prices will likely put a strain on transportation and other sectors such as housing and agriculture. Home builders, particularly, are likely to face higher prices for petroleum-based materials such as carpets, paint and insulation, he said. Read the entire story.