La. energy industry employs 45K, pays $4.3B in wages

via American Press

Louisiana’s oil industry has seen its share of hardships, with falling oil prices leaving thousands of people out of work.

But it’s not all bad news, according to a new economic report paid for by the Grow Louisiana Coalition, a nonprofit industry trade organization. Released last week, the report stated that nearly 45,000 people worked in Louisiana’s energy industry last year in oil and gas production jobs that included “extraction, pipeline, mining and refining.”

Those workers were paid nearly $4.3 billion per year, or an average annual wage of more than $96,500. The report said that’s “almost double the average annual wage for Louisianans in general,” which stands at $45,188.

Economist Loren Scott put the study together using mainly information from the Louisiana Workforce Commission.

Last year, oil and gas-related jobs and income “were found in all but one” parish in Louisiana, the report stated. There were 13 parishes that had more than 1,000 workers in the energy sector.

Calcasieu Parish alone had just over 2,500 employees who earned more than $285 million in wages. Lafayette had the most employees in the energy sector, 9,086.

The concentration of energy jobs wasn’t just in the southern parishes. Caddo Parish had 1,803 employees, while Bossier Parish had 1,214 employees.

The report also discusses the “ripple effects” of the oil and gas industries that improve business sales, earnings and jobs within the state. They “supported $72.8 billion in sales in Louisiana firms” in 2015, helped generate more than $19.2 billion in earnings for state residents and supported more than 262,000 jobs.

Another promising aspect is crude oil prices are on the rise. Current prices are just over $68 per barrel, up from the past year by $14 per barrel.

It’s clear from this report that the economic benefits from oil and gas are widespread. The report said the energy sector’s “economic engine is far from small” in Louisiana.

Judging from the numbers statewide and in our region, it’s easy to see the impact energy continues to have on our economy and the people who live here.