In 1999, Oil & Gas Produced 33% Of LA Economic Output; Now It's 14%; State's Obvious Solution - More Tax Cuts!!!
President-elect Donald Trump has promised to lift roadblocks to oil and gas production and approve construction of more than a dozen liquefied natural gas terminals in Louisiana and elsewhere. At the same time, a special session in the Louisiana Legislature that began Nov. 6 seeks to cut state taxes for oil refineries and petrochemical companies. The state’s generous property tax exemption for industry won’t be touched.
But a new report and long-time observers of the state’s economy say continuing to expect the oil and gas industry to provide an economic renaissance in Louisiana is unrealistic. Not only do those industries no longer drive Louisiana’s economy — providing just 4.5% percent of state revenue, compared with 40% percent in the late 1990s — but slowing global demand for those commodities is poised to further diminish the industry’s benefits to the state.
Louisiana’s growth trajectory is less like most of its neighboring states and more like Puerto Rico, which has experienced negative or very small economic growth in recent years, said Tom Sanzillo of the Institute for Energy Economics and Financial Analysis (IEEFA) and an author of the report titled “The Declining Significance of the Petrochemical Industry in Louisiana.”
“At the turn of the 21st century, Louisiana had one of the country’s fastest-growing economies, placing sixth among the states for five-year average gross domestic product (GDP) growth”, according to the report. “Today, Louisiana is 49th out of 50 states in GDP growth. It also ranks 49th in population growth and 45th in median household income.” The report also notes that in 1999, the oil and gas sector accounted for 33% of the state’s GDP. By 2022, it had sunk to 14%.
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https://floodlightnews.org/experts-warn-oil-gas-cant-save-louisiana-economy/