LAFAYETTE, LA (KADN) - Louisiana's economy has long relied on the production of oil and gas but do high prices result in more jobs? The oil and natural gas industry are one of the leading industries in Louisiana in terms of economic impact, taxes paid and people employed.
Tyler Gray says "Over seventy percent of the natural gas that's used in Louisiana is actually used to fuel the manufacturing industry here in Louisiana".
According to a 2020 report, the industry provided $73 billion to the state GDP and supported more than two hundred thousand jobs in 2019.
One lafayette resident says an increase in gas means increase in jobs
Debbie Camry says "There 2.87 for regular and I think I wish it would go a little higher and more people could have jobs".
Oil and gas operations support one out of every nine of the state's jobs, many of which provide annual wages which are significantly above the state average. so why exactly is higher oil prices better for the economy.
Tyler Gray says "If I'm a business that's producing the product and the commodity is higher price so that's better for my business it increases my revenue the way that we pay a severance tax which is a tax that's paid for severing the oil from the ground that's 12 in a half percent so if it's a higher price the state gets more money".
Louisiana climate task force says its formal recommendations early next year will be aimed to balance the state's long identity as an oil and gas state with the reality that climate change is forcing people, industries, and governments to rethink everything.