Study Examines Economic Impacts of “Revolutionary” Natural Gas Development on State’s Manufacturing
A new study by David Dismukes, professor and associate executive director for the Center for Energy Studies (or CES), examines the potential economic impacts of recent capital investments leveraged by the boom in unconventional natural gas production in the state. The study, titled “Unconventional Resources and Louisiana’s Manufacturing Development Renaissance,” was sponsored by America’s Natural Gas Alliance and the Louisiana Oil & Gas Association. It provides an economic overview of the Louisiana manufacturing sector, examines the importance of natural gas to this sector, and shows how the emergence of unconventional resources has resulted in a virtual manufacturing investment renaissance in Louisiana. To date, some $62.3 billion in new capital investments have been announced in Louisiana and are likely to be developed between the next five to eight years.
Statewide impacts: Potential for in-state capital investment in Louisiana to total $20.2 billion (out of the total of $62.3 billion) over the next nine years.
- More than $29.7 billion in economic output over a nine-year period (2011-2019),
- a cumulative increase of some 214,670 job-years,
- $9.3 billion increase in wages over a nine-year construction period.
Regional impacts: Most of the manufacturing project announcements are anticipated to be located in South Louisiana, so the impacts to the southern part of the state were estimated using three different regions: South East, South Central, and South West.
- Over $22.5 billion in output,
- 160,000 in job-years,
- $7.4 billion in wages.
Click here to download a copy of the report.