NEW ORLEANS (WVUE) – People working in Louisiana’s vital oil and gas sector say former President Donald Trump’s potential re-election could generate new jobs and revenue for the state. Many expect Trump to quickly lift restrictions imposed on the industry under President Joe Biden’s administration, although some believe that could have downsides.

Louisiana’s oil and gas industry, one of the state’s largest economic engines, supports nearly 300,000 direct and indirect jobs, according to the Louisiana Department of Economic Development. Industry advocates say Trump’s return to the White House could lead to positive changes for the sector.

Local oil experts say Biden-led policies have halted new drilling leases for nearly two years, affecting employment and revenues across Louisiana. They say this could soon be reversed.

“Where you might see jobs immediately is additional deepwater drilling activity with onshore jobs, and you might see construction for dock sites and so on,” said Tulane’s Eric Smith Energy Institute.

Industry executives also say the Biden administration has blocked construction of several multibillion-dollar liquefied natural gas (LNG) export centers, like the one currently underway in Plaquemines Parish, which could resume under the Trump administration.

“There are a lot of things on the administration side where we think Republicans will free up investment to get back into the oil and gas sector,” said Mike Moncla, president of the Louisiana Oil and Gas Association.

However, even as experts predict potential gains for Louisiana’s oil and gas industry, they also warn of possible repercussions from Trump’s broader policies. Tulane’s Dr. Eric Smith warns that Trump’s proposal to impose tariffs to limit imports could hurt international oil and gas sales, particularly to China.

“If China imposes countervailing tariffs on its imports, Louisiana, as a leading oil and gas exporter, would be disproportionately affected,” Smith said.

Environmental advocates argue that easing Biden-era restrictions, even with potential job gains, would lead to harmful environmental consequences.

“As we limit our wagon to oil, gas and chemicals, we’re missing out on all kinds of better opportunities like renewable energy,” said Anne Rolfes of the environmental group Louisiana Bucket Brigade.

But oil and gas advocates welcome the anticipated changes.

“When Biden came in, it was from the start a war and an attack on oil and gas,” Moncla said. Industry executives also expect the Trump administration to facilitate construction of the Keystone XL pipeline, which they say would boost production and create jobs at Louisiana’s 15 refineries.

While many in Louisiana’s oil and gas sector view Trump’s potential return as beneficial, financial experts are advising investors to exercise caution.

“Is it worth looking at these areas with more intention? I think so, but you have to look at the earnings of the companies right now, the current valuation assigned by the stock market and see how far those stocks have moved,” said Jim Spiro, managing director at Morgan Stanley at the New Orleans. . Spiro advises a cautious and selective approach to oil and gas investments rather than a blanket strategy.

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