Louisiana’s oil and gas industry, which includes extraction, refining and pipelines, supports 310,217 jobs and generates more than $16.1 billion in annual household earnings for the state, according to a study released Monday by the Louisiana Mid-Continent Oil and Gas Association.
The study shows that Louisiana is the United States’ No. 1 producer of crude oil, when one includes production from federal waters; No. 2 in petroleum refining capacity; and No. 3 in natural gas production.
The study, by economist Loren Scott, says the three industries paid local governments $298 million in taxes in 2009. In addition, the $16.1 billion the industries generated in household earnings added around $707 million indirectly to local governments’ coffers in fiscal year 2010.
“These findings make a compelling case about the major role the extraction, refining and pipeline industries play in the state economy, particularly relative to jobs,” association President Chris John said in a news release. “On average, the job multiplier for these three industries is five. That is, for every job created in these sectors four additional jobs are created through other sectors in the state. In today’s economy, the significance of that statistic is huge.”