Louisiana should be one of the most powerful energy states in America.

The state has abundant natural resources, world-class ports along the Gulf Coast, and a skilled workforce with generations of experience in the energy sector. Yet despite these advantages, Louisiana continues to fall short of its full energy potential.

A new report from the Pelican Institute for Public Policy, Barriers to Louisiana Energy Dominance, examines the legislative, regulatory, and public-discourse obstacles preventing the state from leading the nation in energy production.

The findings point to a troubling reality: a combination of outdated policies, legal uncertainty, and well-funded outside campaigns are holding back one of Louisiana’s most important economic engines.

“Louisiana has every natural advantage—abundant resources, world-class ports, and a highly skilled workforce,” said Daniel Erspamer, CEO of the Pelican Institute. “Yet our state continues to be held back by outdated government policies and a network of well-funded campaigns aiming to undermine the energy sector that has driven Louisiana forward for generations. This report shines a light on those obstacles and empowers lawmakers and citizens alike with the facts they need to champion meaningful change and secure our state’s future.”

The Barriers Preventing Louisiana from Leading in Energy

The report identifies several key challenges that are slowing investment, discouraging innovation, and weakening Louisiana’s ability to compete in the national energy market.

Outdated State Laws Limit Competition and Growth

Many of Louisiana’s energy policies are rooted in regulatory frameworks developed decades ago. Mid-twentieth-century monopoly utility structures continue to shield incumbent providers from competition, leaving consumers with limited choice while rewarding inefficient capital spending.

At the same time, overlapping and redundant permitting processes create costly delays for projects that could otherwise strengthen the state’s energy infrastructure.

Louisiana also faces workforce challenges tied to burdensome occupational licensing requirements, which restrict the pipeline of skilled workers needed to meet growing industrial demand.

Coastal Lawsuits Are Creating Economic Uncertainty

Legal uncertainty has also become a major barrier to investment.

More than 40 coastal erosion lawsuits filed by parish governments against energy companies have created widespread uncertainty in the industry. According to the report, this litigation wave has already had measurable economic consequences.

Capital investment has been driven out of the state, roughly 2,000 energy jobs have been lost, and Louisiana’s share of the national GDP has declined—representing more than $600 billion in lost economic activity.

Without greater clarity and reform, the report warns that the long-term consequences for Louisiana’s economy could be even more severe.

Millions in Out-of-State Funding Target Louisiana Energy

The report also documents significant outside influence shaping the public debate around Louisiana’s energy industry.

Researchers identified at least $115.5 million in out-of-state funding flowing to Louisiana-based groups working to shut down the state’s foundational energy sector. Much of this funding originates from donors based in California, Washington, D.C., and New York.

Major contributors include Bloomberg Philanthropies, the Bezos Earth Fund, the Waverley Street Foundation, the Windward Fund, and the Tides Foundation.

The report also highlights the legal activities of Earthjustice and raises concerns about its financial ties to Energy Foundation China, an organization that has faced scrutiny over alleged connections to the Chinese Communist Party.

A Roadmap to Louisiana Energy Leadership

This new report builds on the Pelican Institute’s previously released policy blueprint, Roadmap to Reform: Six Pillars for Louisiana Energy Dominance.

That report outlines practical reforms designed to strengthen Louisiana’s position as a national energy leader, including:

  • Streamlining permitting processes
  • Reducing litigation risk
  • Implementing sensible tax policy
  • Expanding market competition
  • Increasing consumer choice in electric power
  • Removing unnecessary government barriers to energy production

Together, the two reports present both a vision for Louisiana’s energy future and a clear assessment of the challenges that must be addressed to achieve it.

Louisiana’s Energy Future Is Still Within Reach

For generations, Louisiana has played a critical role in powering the American economy. The state’s energy sector supports thousands of jobs, fuels economic growth, and provides essential resources to communities across the country.

But leadership in energy is not guaranteed.

Without reforms that encourage investment, protect economic stability, and allow innovation to thrive, Louisiana risks falling behind other states that are actively competing for energy development and industrial growth.

With the right policy changes, however, Louisiana can reclaim its position as a dominant force in American energy.

The full report, Barriers to Louisiana Energy Dominance, can be found here:

Barriers to Louisiana Energy Dominance Paper

Barriers to Louisiana Energy Dominance Paper

 

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The Pelican Institute for Public Policy is a non-profit, non-partisan research institute dedicated to removing barriers to human flourishing and expanding freedom and opportunity for all Louisianans. Through research, education, and advocacy, Pelican works to build a Louisiana where everyone has the chance to succeed.