Louisiana’s oil and gas sector is expected to gain 3,500 jobs by the second quarter of next year, according to the latest edition of the LSU Center for Energy Studies’ Gulf Coast Energy Outlook.
However, the study’s authors, David Dismukes and Greg Upton, don’t expect employment to reach pre-COVID levels anytime soon.
“Decarbonization policies will challenge existing Gulf Coast energy manufacturing but also create opportunities for the region to take the lead in developing low- and net-zero emissions products,” they say. “Over the forecast horizon, the [Gulf Coast Energy Outlook] sees decarbonization creating considerable regional capital investment opportunities.”
Growing energy demand is expected to spur increased U.S. energy exports, though a global recession could temper that demand. Crude oil prices are expected to fall over the next several years, while Gulf Coast natural gas prices will likely remain elevated compared to recent history, thanks to demand for liquefied natural gas exports.
Now that President Joe Biden has signed legislation reinstating a canceled offshore lease sale and committing to continuing offshore leasing in federal waters for a decade, uncertainty around Gulf of Mexico production has been alleviated, the authors say, while acknowledging that some observers are skeptical the Biden administration will follow through on those commitments.
You can read the report here.