The landscape is evolving, but Louisiana oil and natural gas still have a place in the future of energy.
Published 10:51 am Saturday, March 25, 2023
The oil and natural gas industry has been the leading economic driver for Louisiana for more than a century, and our energy sector is a pivotal resource for our region and the world. We are proud to produce American-made energy right here in our communities that support global demands and strengthens our nation’s energy security.
Today, we have an opportunity to capitalize on changing global marketplace demands and lead the future of energy by bringing online new advancements in the industry such as carbon capture and storage (CCS), blue and green hydrogen and renewable diesel.
This does not mean we are replacing oil and natural gas. Instead, we are creating additional processes that allow us to enhance and expand our current infrastructure while lowering emissions and increasing efficiency to meet the world’s future energy demands.
Oil and natural gas will continue to supply the majority of the world’s energy needs for decades to come. According to the International Energy Agency, oil and natural gas will provide 46% — nearly half the world’s energy in 2040 — even if every nation meets the goals of the Paris Climate Agreement.
At the same time, processes such as CCS could create thousands of new jobs, expand on environmental progress at our manufacturing and energy facilities and generate more revenue for Louisiana. This technology provides a viable pathway for the decarbonization and continued operation of existing industrial, manufacturing and energy facilities — preventing facility closures and securing the jobs and livelihoods of thousands of Louisianians.
According to The Great Plains Institute, we have the opportunity to create an annual average of up to 4,920 project jobs over a 15-year period and 2,500 ongoing operations jobs through the deployment of CCS at 33 industrial and power facilities in Louisiana. Along with the development of CO2 transport infrastructure, CCS could generate up to $13.7 billion in private investment in our state.
Louisiana is a key location for renewable energy investment and innovation with more than $18 billion of projects announced for carbon capture, renewable biofuels, blue and green production of hydrogen and ammonia, and advanced recycling operations.
Investing in new technology and innovation in conjunction with existing oil and natural gas development supports our goal of meeting the world’s growing need for energy, while also advancing a lower-carbon future.
New energy opportunities help Louisiana companies continue to operate in the state — thus retaining and growing hundreds of thousands of jobs. Through these new energy processes, Louisiana’s industry will continue to successfully compete for customers and investments, supporting the state and local economies.
Louisiana is poised to be at the forefront of the next generation of energy and maintain our place as an energy-rich state. Industry, science and communities are working together to make things happen across our state and across the nation to meet America’s energy needs in a multitude of ways that will help maintain and create Louisiana jobs, strengthen our economy and benefit the environment.
Tommy Faucheux, president, Louisiana Mid-Continent Oil and Gas Association. Tommy is a resident of St. Charles Parish.