Energy
Energy Industry: An Enduring Sector in South Louisiana
Louisiana is one of the world’s leading markets for energy production, processing, and transportation. It is a top producer of both crude oil and natural gas in the United States, and 88% of the country’s offshore oil rigs are located off Louisiana’s coast.
Located at the mouth of the Mississippi, the Greater New Orleans region is the operational hub for the state’s offshore oil and gas industry and is home to many growing refineries and plants with billions of dollars in planned expansions. The energy, petrochemicals, and plastics industries employ thousands of skilled workers across the region and enjoy the support of political leaders who appreciate the importance of these industries for the region and state.
Facts & Figures
Miles of Pipeline
With nearly 125,700 miles of onshore and offshore pipeline, Louisiana’s extensive pipeline network is well equipped to serve the energy industry.
Petroleum Refineries
Greater New Orleans produces over 1.7M barrels a day – accounting for approximately 10% of the nation’s refining capacity.
Lowest Cost of Consumer Energy
At 7.62 cents per kilowatt-hour, Louisiana has the second lowest average price of electricity across all sectors.
of offshore oil rigs off Louisiana coast
Louisiana’s 17 oil refineries are capable of processing 3.3 million barrels of crude oil per day.
producer of crude oil, #4 producer of natural gas
Louisiana is one of the top five natural gas-producing states accounting for 7% of total gas production and 8% of the nation’s gas reserves.
The Case for Doing Business
Benefitting from historical presence, Energy businesses will find a strong case for doing business in Southeast Louisiana
Low Energy Costs: Louisiana’s electricity and natural gas rates are some of the lowest in the nation, directly decreasing operational costs for companies utilizing large, energy-intensive industrial equipment.
Multimodal Transportation: The Greater New Orleans region boasts a complex transportation infrastructure that provides easy access to the rest of the world via air, land, and sea. This extensive transportation system includes the largest port system by tonnage in the Western hemisphere and the only port in the country with access to all six Class I railroads via the New Orleans Public Belt.
Extensive Pipeline Network: Louisiana’s extensive pipeline network includes approximately 125,000 miles of pipelines—roughly 70% onshore and 30% offshore—that are collectively worth more than $2.3 billion.
Certified Sites: The Greater New Orleans region is home to 16 development-ready industrial sites (“Certified Sites”), each of which has undergone extensive and rigorous review by Louisiana Economic Development and an independent, third-party engineering firm.
Right to Work: Louisiana is a Right to Work state, where qualified employees are free to work in unionized workplaces without being required or compelled to join the union and pay union fees.
Regional Incentives
An economic powerhouse, Energy businesses can explore incentives available in Louisiana
Industrial Tax Exemption: Offers manufacturers up to 80% property tax abatement for an initial term of up to five years and the option to renew for an additional five years on a manufacturer’s qualifying capital investment related to the manufacturing process.
Louisiana Quality Jobs Program: Provides a cash rebate to companies that create well-paid jobs and promote economic development, including up to a 6% rebate of annual gross payroll for new direct jobs for up to 10 years and a state sales/use rebate on capital expenditures.
LED FastStart: Recognized as the nation’s best state workforce training program, LED FastStart provides customized employee recruitment, screening, and training to new and expanding companies at no cost.
Comprehensive Certified Sites Program
Louisiana and the GNO region have developed a thorough and detailed site certification program to help companies quickly identify opportunities
When it comes time to find the best location for your operation, Louisiana has an extensive selection of development-ready sites searchable in its Sites and Buildings Database. Specifically, the GNO region currently has 16 certified sites across the ten-parish region.
The LED Certified Sites program qualifies industrial sites based on zoning restrictions, title work, environmental studies, soil analysis and surveys. These sites are 180-day development ready and have substantial due diligence studies performed to receive certification.
To assist companies needing to make complex site identification decisions, LED has secured or has access to GIS maps for every region of the state — enabling project managers to locate suitable sites quickly.
Notable Employers
The energy sector supports thousands of high-wage jobs in Greater New Orleans and contributes significantly to the regional economy
Jobs in the Greater New Orleans Region (2018)
Average Salary in Greater New Orleans (2018)
In tech careers in New Orleans v. 1.4% nationally (2017-2018)
Companies Plan $1.5 Billion Investment at Norco, Louisiana Plant
Valero Energy Corp. will make a combined $1.1 billion investment to expand their joint-venture Diamond Green Diesel refinery and invest $400 million in the alkylation unit at the Valero St. Charles Refinery.
Mailing List
Receive news and updates on new companies moving into Greater New Orleans, regional awards, and other information about how the local economy is growing.