Louisiana’s Natural Gas and Oil Industry Thankful For Trump’s Supportive Action

Louisiana’s Natural Gas and Oil Industry Thankful  For Trump’s Supportive Action

April 6, 2020

Last Friday, the U.S. Department of Energy announced that storage space for 30 million barrels of crude oil would be made available to struggling oil producers. Particularly after Congress blocked funding a direct purchase to the Strategic Petroleum Reserve (SPR) last weekend, Louisiana’s natural gas and oil industry was very grateful for President Trump’s supportive action.

Gifford Briggs, Louisiana Oil & Gas Association President, said:

The oil and gas industry is the backbone of Louisiana’s economy and the foundation for many communities who have found themselves reeling in the wake of both COVID-19 and the Russian-Saudi oil price war.

The natural gas and oil industry supports over 260,000 good-paying jobs in Louisiana, generates hundreds of millions of dollars in annual wages, and supports tens of billions of dollars in sales for in-state businesses. For a state that’s the second-highest producer of crude oil and fourth highest producer of natural gas in the U.S., the relief provided by President Trump has a particularly significant impact.

This market-based solution creates a win-win scenario by opening up badly needed storage for producers and filling up the SPR for citizens when American energy security is needed most.

The worldwide reduction in consumer demand, market glut of produced oil, and increase in the need for storage is an unprecedented set of challenges for the industry. It is encouraging, but certainly not surprising, to see President Trump recognize the value of the natural gas and oil industry to the economy and provide much-needed support to a vital industry.