New report shows oil's importance to Louisiana

POSTED: Monday, October 31, 2011 - 5:04pm

UPDATED: Monday, October 31, 2011 - 7:04pm

A new report shows how important the oil industry is to Louisiana.

The report, which is put together by Baton Rouge economist Loren Scott says all those jobs generated almost $20 billion for Louisiana.

The findings were released by the Louisiana Mid-Continent Oil and Gas Association today.

They say every parish in Louisiana has oil related jobs and the numbers are increasing.

“When people ask me how important is this to the state, I say ‘If we didn't have it, what would we be like?’ My suggestion is to look one state to the east,” states Scott. “We could be very much like Mississippi, which has a (low) per capita income… it’s 50th in the U.S., where we are 28th.”

According to the report, Louisiana is first in the nation when it comes to crude oil production, which is in part because of the over 100,000 miles of pipeline across the state.

The industry helped boost the state's treasury by $2.5 billion, and the report says more than 310,000 jobs in the state relied on the oil industry back in 2009.

The president of the Louisiana Mid-Continent Oil and Gas Association, Chris John, says many of the jobs are because of the oil industry.

John says for every one oil job there are several indirect jobs, including jobs in other industries, such as restaurants and sales.

He says Louisiana's new dependence on the industry really shows through in this report.

John states, “It’s a multiplier of 5 - for every oil and gas job there are four other jobs created - so the oil and gas industry is very important to Louisiana. I think we know that, but this report certainly reinforces the fact of how important it is, not only just (to) business and industry, but to the government.”

You can view Scott's report here.

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