Oil and gas extraction, refining and pipeline industries cumulatively supported 310,217 jobs in Louisiana in 2009, generated over $16.1 billion in household earnings and supported $77.3 billion in sales, according to a study conducted by economist Loren Scott and released today by the Louisiana Mid-Continent Oil and Gas Association. The study finds Louisiana is the No. 1 producer of crude oil in the U.S., No. 2 in petroleum refining capacity and No. 3 in natural gas production. For every job created in these sectors, the study says, another four additional jobs are created through other sectors. “In today’s economy, the significance of that [jobs] statistic is huge,” says LMOGA President Chris John in a prepared release. The industries’ revenue also makes up a significant portion of state income, the study says, with nearly $1.4 billion in state taxes and fees in fiscal year 2010. Through the $16.1 billion in household earnings generated by these three industries, state government indirectly collected an additional $1.1 billion in taxes in fiscal year 2010. The study says a “very conservative estimate” is the three industries directly paid $298 million in ad valorem taxes to local governments in 2009. Further, the household earnings generated by the three added approximately $707 million indirectly to local governments in fiscal year 2010. The industries created jobs and earnings in all of the state’s 64 parishes in 2010, and 15 parishes had an excess of 1,000 workers. Read an executive summary of the study’s findings here.
Today’s poll question: Do you think Louisiana’s economy should move away from its dependence on the oil and gas industries and toward a more knowledge-based economy?
