Sustained lower oil prices will mean fewer jobs in Louisiana, as well as other oil-producing states, according to a report by Bloomberg News.
A 25 percent drop in crude prices could result in employment slipping 0.8 percent in Louisiana, according to researchers at the University of Nevada-Las Vegas and Federal Reserve Bank of Dallas. The impacts of low oil prices will be even stronger in Wyoming, where employment could fall 2.1 percent, and North Dakota and Oklahoma, where employment could slip by 1 percent.
The state budgets of Louisiana and other oil producers are already being hit by falling crude prices' impact on mineral royalties and taxes.
In November, Louisiana lowered its oil revenue projections, which were based on an average price of $95.80 per barrel to $81.33. A $1 drop in oil price means around $12 million less in state revenue. With oil prices now around $60 per barrel, those projections now appears hopelessly optimistic. The Jindal administration has already said it must make a second round of cuts.