Energy / Petrochemicals / Plastics
The power to prosper.
Louisiana is the number one producer of crude oil in the nation – as well as the number two producer of natural gas. Roughly 88 percent of the nation’s offshore oil rigs are located off Louisiana’s coast. The Greater New Orleans Region is the state’s energy hub, home to a number of growing refineries and petrochemical plants with planned expansions over the next 2-3 years totaling $6.4 billion.
Take a closer look at the Greater New Orleans Region.
The industry is complemented by the region’s strengths in trade, logistics, distribution and advanced manufacturing, which provide a large base for common suppliers and opportunities for workforce training. That, combined with our strategic location, unparalleled infrastructure, top-notch workforce and unprecedented incentives, gives you the power to prosper.
Relevant Entities
Energy
- Louisiana is a major producer, processor and transporter of domestic energy with 88% of the nation’s oil rigs off our coast
- Louisiana ranks first in crude oil production and second in natural gas production in the U.S., including offshore production
- Some 30% of all domestic oil production comes from Louisiana’s coast
- Over 20% of all natural gas production comes from Louisiana’s coast
- There is over 18.5 billion cubic feet per day of natural gas processing capacity in Louisiana
- 47% of total U.S. refining capacity is in the Gulf Coast region
- 50 million tons of crude oil are refined in Louisiana and distributed through the United States
- Southern Louisiana has 30 Trillion cubic feet of natural gas, unexplored below 15,000 feet
“The region will continue to excel in the production of oil and natural gas, and the conversion of these crude products into usable petrochemicals, fuels and plastics.” – Tommy Faucheux, Dow Chemical
Enhanced Oil Recovery
- US Department of Energy estimates Louisiana contains 128 on-shore reservoirs that are candidates for CO² – EOR
- Louisiana has industrial producers of CO², a bountiful feedstock for gasification producing CO² and an extensive pipeline system for transfer of CO² from producer to user
- Louisiana’s mature oil fields hold 10 Billion barrels of stranded oil, and if we recover a mere .5% of that oil, we will generate an estimated $7 Billion in new mineral revenues by 2039, and sequester 765 billion cubic feet of CO²
Petrochemicals
- There are more than 300 major chemical plants located in Louisiana
- There are some 23,000 chemical industry jobs in Louisiana
- Louisiana exports nearly $4.5 billion in chemical products a year
Multiple Refineries
The Greater New Orleans Region is home to six refineries. The state of Louisiana can refine more than 2.9 million barrels of gasoline per day, which is the second largest capacity in the U.S.
Offshore Production
The vast majority of U.S. offshore oil rigs (88 percent) are located in Louisiana’s Outer Continental Shelf.
Clean Power and Energy Research Consortium (CPERC)
A consortium of five Louisiana research universities, the CPERC develops world-class technologies that permit greater efficiencies, greater reliability, lower emissions and lower power costs.
A Leader in Natural Gas
20 percent of all domestic natural gas production comes from Louisiana’s coast and the state has a natural gas processing capacity of 18.5 billion cubic feet per day. With 15 natural gas storage facilities, Louisiana boasts one of the highest natural gas storage capacities in the nation.
The state is also home to the Henry Hub, a strategic connection of nine interstate and four intrastate natural gas pipelines, and the delivery point for natural gas futures contracts on the New York Mercantile Exchange.
Key Incentives
Federal, state and local incentives available to the energy, petrochemical and plastics industry in the Greater New Orleans Region comprise one of the most aggressive, and potentially lucrative, financial packages in the nation.
- The Gulf Opportunity Zone (GO Zone) federal tax incentives offer a competitive advantage for the relocation or expansion in the region;
- The Enterprise Zone and the Quality Jobs programs offer lucrative job-based incentives;
- The Industrial Tax Exemption Program abates property (ad valorem) taxes for a 10-year term;
- Louisiana FastStart provides customized recruitment, screening, and training to new and expanding companies at no cost; and
- The Research & Development Tax Credit provides up to a 40% refundable tax credit for expenditures within the state relating to R&D activity.
“The incentives currently available to Louisiana businesses are nothing short of remarkable.” – Brent Wood, Chevron
Multimodal Transportation
The energy, petrochemicals and plastics industry in the Greater New Orleans Region benefits from a complex transportation infrastructure providing easy access to the rest of the world. The region contains:
- The largest port complex in the world;
- Major highway systems;
- An international airport;
- All six Class 1 railroads operating in North America; and
- More than 25,000 miles of pipeline moving natural gas, crude and refined product.
Education / Workforce
The Greater New Orleans Region is home to a talented and dedicated energy, petrochemicals and plastics workforce, and the region offers ample education and training opportunities. The industry is sure to find a talented workforce now and in the future.
- Louisiana ranks fourth in total oil and gas employment in the U.S.
- Louisiana ranks third in total refinery employment in the U.S.
- The region’s colleges and universities offer specific degrees for this industry.
- The region has many cross-trained employees.
- The state has developed a two-year associate’s degree in Petroleum Technology, also known as PTEC, with significant industry support and input.
- The region has lower wage and property tax rates than competing regions in Texas and elsewhere in Louisiana.
Political Support
Louisiana’s leaders understand the importance of the energy, petrochemicals, and plastics industry to their state.
Governor Bobby Jindal sponsored the Deep Ocean Energy Resources Act, which eliminated the moratorium on offshore oil and gas drilling over the outer continental shelf.
Senators Mary Landrieu and David Vitter supported the Domenici-Landrieu Gulf of Mexico Energy Security Act, which opened substantial new areas to oil and natural gas drilling in the Gulf of Mexico. The bill also secured a fair share of offshore oil and gas revenues for Louisiana, and is expected to provide the state with billions of additional dollars over several decades for coastal restoration and hurricane protection projects.
Corporate Presence
Chalmette Refining LLC
Chevron Corporation (Gulf Operations)
Chevron Oronite Company LLC
ConocoPhillips Company – Alliance Refinery
Cytec Industries Inc.
Dupont
Energy Partners Limited
ENI SpA
Exxon Mobil Corporation
Hornbeck Offshore Services
Marathon Petroleum Company LLC
McMoRan Exploration Company
Mosaic Fertilizer LLC
Motiva Enterprises LLC
Murphy Oil Refinery
Pinnacle Polymers
Shell Offshore Services Company
Taylor Energy Company LLC
Tidewater Inc.
Valero Energy Corporation
Downloads
Renewed Energy Economy for Louisiana: Executive Summary
Renewed Energy Economy for Louisiana: Three Opportunities – A Summary
Non-Conventional Energy Plan: Briefing
