CADDO PARISH, La. (KTAL/KMSS) – The LSU Center for Energy Studies releases its outlook for 2023.
The 38-page report covers all aspects that affect the economy and jobs in the energy sector. The biggest factor now is the war in Ukraine. The conflict is affecting the future of the industry worldwide.
The 2023 Gulf Coast Energy Outlook provides a “one-stop” overview for stakeholders. It details how economic changes, government policies, and outside factors will affect Louisiana, Texas, Mississippi, and Alabama.
Coming out of the historic pandemic that increased demand for goods but halted supply chain production and the transfer of goods.
The report said, “This past year will be remembered for Russia’s invasion of Ukraine and its implications for energy markets globally.”
Which shifted the conversation toward energy security as consumers see higher prices worldwide, and Europeans are at risk during winter.
Russia’s war will continue to have rippling effects.
The second largest producer of oil next to the United States invaded Ukraine at the same time corporate strategies look to decarbonize. But Russia’s military action has accelerated the global movement to wean off fossil fuels.
This also happened as the U.S. passed its most ambitious legislation to address energy transition. The report states that the Inflation Reduction Act should bring more investment in lower-carbon energy and create investment opportunities for the Gulf Coast.
However turbulent this time may be, the Gulf Coast is positioned for economic growth. Oil and gas employment is forecasted to increase into next year. Employment in refining and chemical manufacturing is expected to increase in Texas and Louisiana through 2025.
The report said since the economic downturn of Covid-19 in 2020, Louisiana gained back 2,500 jobs, and Texas has back about 44,700 jobs.
This report is similar to what LSU economist Dr. Loren Scott predicted in his forecast that he released in October.