The Pelican Institute for Public Policy today released a chilling new economic impact report, “How Coastal Lawsuit Abuse Undermined Louisiana’s Economy,” detailing how years of coastal lawsuits cast a long shadow over Louisiana’s energy economy. The study conducted by Dr. Gavin Roberts, Ph.D., of Weber State University’s Goddard School of Business and Economics, Department of Economics, provides the most comprehensive evidence to date that Louisiana’s decade-long surge in coastal litigation has significantly impacted the state’s energy economy—contributing to lost investments, shrinking production, and less Louisiana energy jobs, wages, and royalty revenues.

“Louisiana has all the assets to lead the world in energy—our natural resources, our workforce, our infrastructure. But we’ve been tripped up by a decade of self-inflicted wounds,” said Pelican CEO Daniel Erspamer. “These lawsuits are unproductive, and they’re driving away jobs, investments, and opportunity at a time when we need them most. The good news is we can fix this. By restoring fairness and predictability to our legal system, Louisiana can spark a true energy and economic comeback.”

Building on a 2019 analysis, the new study uses updated economic data and comparative trend modeling (Louisiana state waters vs. federal Gulf offshore) to document “a structural collapse” in Louisiana’s offshore energy investment. The report finds that the economic harm from coastal lawsuits is no longer hypothetical—it is measurable, structural, and reversible:

  • Since 2009, Louisiana’s share of U.S. GDP has fallen from 1.4% to 1.1%, translating to over $600 billion in lost economic activity.
  •  Oil and gas reserves in Louisiana’s waters have plummeted 42% while federal offshore reserves declined only 4.6%.
  • Employment in Louisiana’s energy sector is down 37% — far steeper than the 24% national drop — and state mineral royalties have been cut in half.

“Our analysis shows that the litigation wave beginning in 2013 fundamentally altered the economics of energy development in Louisiana,” said Dr. Roberts, author of the report and Professor of Economics at Weber State University. “The downstream effects we predicted in 2019—declines in reserves, production, employment, and income—are now fully visible in the data. Yet this isn’t an irreversible trend. Reducing legal and regulatory uncertainty is the single most effective way to rebuild confidence, attract investment, and restore Louisiana’s role as a vital contributor to U.S. energy security.”

For over a decade, Louisiana has privatized government enforcement of state environmental laws by outsourcing sovereign powers to private lawyers who claim that decades-old energy production activities caused coastal erosion. The result is sprawling litigation targeting over 200 oil and gas producers for activities dating back to the 1940s, many of which were conducted under federal permits, contracts, or wartime directives. After a Louisiana district court awarded a $745 million jury verdict in one case, Chevron v. Plaquemines Parish, earlier this year—and with more than 40 similar cases still pending—the economic and legal stakes are enormous.

“After more than a decade of this never-ending legal nightmare, what does Louisiana have to show for it?” said Melissa Landry, Vice President of Strategy at the Pelican Institute. “Less wells, fewer jobs, and every bit of progress that’s been made on the coast has happened in spite of these lawsuits — not because of them. It’s time to end the courtroom chaos and focus on real solutions that can revitalize Louisiana’s energy economy and our coast.”

Read the full report here.

Media Contact:
Sydney Petite
Chief Marketing Officer
Pelican Institute for Public Policy
(504) 717-1606 | sydney@pelicaninstitute.org