GNO, Inc. Sunday Night Highlight – LSU Energy Report is Balanced & Bright

Researchers at the LSU Center for Energy Studies have released their 2025 Gulf Coast Energy Outlook, and the takeaway is clear: a balanced, all-of-the-above approach to energy supply and decarbonization presents a generational opportunity for Louisiana and the Gulf Coast. The numbers are large. By 2030, the Gulf Coast region is projected to see:

• $219 billion in liquefied natural gas investments
• $151 billion for chemical and refining industries
• $107 billion for energy transition projects

Key insights from the report include:

• Policy and Election Impacts: The report assumes the overall continuation of the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) subsidies in the new administration. Trade relations with China are identified as a risk to energy industry expansion​​
• Economic Growth and Employment: Despite recession fears in 2023, the U.S. economy expanded, with employment and wages outpacing inflation. Global energy demand continues to rise, particularly in developing countries, driving the Gulf Coast’s energy export opportunities​​
• Decarbonization Challenges and Opportunities: Companies are focusing on balancing cost competitiveness with greenhouse gas emissions reductions. The IRA provides substantial funding for decarbonization initiatives, which are expected to bring significant capital investment opportunities to the Gulf Coast region​​
• Electricity Demand Growth: The adoption of electric vehicles (EVs), heat pumps, and data centers is increasing electricity’s share in the U.S. energy mix. However, overall energy demand in the U.S. is projected to remain flat, with international demand driving growth​​
• Crude Oil and Natural Gas Production: The Gulf Coast’s oil and natural gas production has surpassed pre-pandemic levels and is projected to continue growing over the next decade. Efficiency improvements mean more hydrocarbons are being produced with fewer rigs​​
• Commodity Pricing Trends: Oil prices are expected to stabilize around $60 per barrel in the long term, while natural gas prices are forecasted to remain relatively low, creating a competitive advantage for the Gulf Coast in attracting capital for energy projects​​
• Infrastructure and Midstream Activity: Investment in pipeline infrastructure over the past decade has alleviated transportation bottlenecks, reducing reliance on rail and barge. International natural gas price disparities highlight the need for further infrastructure development​​
• Power Sector Trends: The Gulf Coast enjoys competitive electricity rates, particularly in Louisiana. Industrial electricity sales have grown significantly in the region, outpacing national trends. Renewable energy is also expanding rapidly​​
• Energy Manufacturing Investment: The Gulf Coast has seen substantial investments in energy manufacturing, particularly in decarbonization and renewable energy projects. This positions the region as a leader in producing lower-emission energy products​​
• Employment Outlook: The Gulf Coast energy sector is expected to sustain employment growth, driven by increasing production and export-oriented projects. The energy transition is anticipated to create significant additional job opportunities in the region

You can read the full energy here.