With its low business costs and abundant natural resources, the state of Louisiana is home to a number of powerful manufacturing companies, especially those in the petrochemical and oil industries. Today, we're taking a deep dive into the state's manufacturing sector, providing key industrial facts, insights, and covering the largest industrial companies in Louisiana.

In the United States in 2022, there were ** foreign direct investment projects in the chemicals industry in the state of Louisiana. There were an additional ** FDI projects in the business services industry.

Graph and download economic data for Gross Domestic Product: All Industries in East Baton Rouge Parish, LA (GDPALL22033) from 2001 to 2023 about East Baton Rouge Parish, LA; Baton Rouge; LA; industry; GDP; and USA.

Louisiana derives a significant portion of its general revenue and an important portion of its economic and employment base from the oil and natural gas sector. However, production from shallow waters of offshore Louisiana (less than 200 meters water depth) has been in decline: -Crude oil production has dropped from over 630,000 barrels per day in 1992 to 380,000 barrels per day in 2003. -Natural gas production has declined from 3.3 trillion cubic feet (Tcf) per year in 2002 to 2.3 Tcf per year in 2003. -Increases in production from the deep federal waters (greater than 200 meters) have helped offset declines in shallow water production. The Louisiana economy is also highly dependent on a wide variety of industries that depend on offshore oil and gas production. For example, Louisiana is he third largest consumer of natural gas in the U.S., and a large number of chemical industry jobs in Louisiana are highly dependent on the continued availability of adequate volumes of moderately priced natural gas. Moreover, offshore oil and gas production operations support a vast spectrum of other activities in the state, including platform fabrication, drilling and related services, offshore transport and helicopter operations, and gas processing.

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The US natural gas market, a significant component of the global energy landscape, is projected to experience robust growth over the forecast period (2025-2033). Driven by increasing demand from the power generation sector, a shift towards cleaner energy sources (compared to coal), and ongoing industrialization, the market is poised for expansion. The abundance of shale gas reserves within the US contributes significantly to this growth, making the nation a key player in global natural gas production and trade. While challenges exist, such as fluctuating prices influenced by global supply chains and environmental concerns regarding methane emissions, technological advancements in extraction and infrastructure development are mitigating these risks. The residential sector also contributes to market growth, albeit at a slower rate compared to power generation and industrial applications. Competition among major players like ExxonMobil, Chevron, and ConocoPhillips, fuels innovation and efficiency improvements within the industry. The market segmentation by gas type (wet and dry) further reflects the diverse applications and evolving needs of consumers and industries. Assuming a conservative CAGR of 5% based on the provided information, and a 2025 market size of approximately $300 billion (a reasonable estimate considering the scale of the US energy market), we can project substantial growth throughout the forecast period. Growth is expected to be most pronounced in regions with strong industrial activity and expanding power grids. The specific growth trajectory will depend on factors such as government policies promoting natural gas utilization (or potentially phasing it out), technological advancements, and global geopolitical events impacting energy prices. Nonetheless, the US natural gas market is expected to maintain its position as a major contributor to the national energy supply and a significant player in the global energy market. Further analysis of specific segments (e.g., wet vs. dry natural gas within each end-use sector) would provide more granular insights into market dynamics and investment opportunities. The overall outlook remains positive, projecting significant value creation and economic benefits over the next decade. Recent developments include: May 2022: According to the US Energy Information Administration, the Natural Gas Pipeline Project Tracker was updated with recent approvals and completions of pipeline projects. As of the end of the first quarter of 2022, the Federal Energy Regulatory Commission (FERC) approved three projects to increase the export of US natural gas by pipeline and LNG. FERC approved two projects connecting LNG terminals in Louisiana. The Evangeline Pass Expansion Project, owned by Tennessee Gas Pipeline Company, is 1.1 billion cubic feet in size. It is intended that the proposed Plaquemines LNG Project in Plaquemines Parish, Louisiana, be supplied with natural gas by constructing 13.1 miles of new pipeline and two new compressor stations., April 2022: TotalEnergies signed a Heads of Agreement (HOA) with Sempra Infrastructure, Mitsui & Co., Ltd., and Japan LNG Investment for the expansion of Cameron LNG, a liquefied natural gas (LNG) production and export facility located in Louisiana, United States. The expansion project includes the development of a fourth train with a production capacity of 6.75 million metric tons per annum (Mtpa), as well as the debottlenecking of the first three trains to increase production by 5%.. Notable trends are: Power Generation Segment to Dominate the Market.

Most of the Louisiana construction firms with the highest revenue in 2023 came from Baton Rouge, with Turner Industries leading the pack. Turner Industries Group LLC reached a turnover that was over *** billion U.S. dollars, which was more than twice higher than that of the second company in the ranking.

Texas is by far the largest oil-producing state in the United States. In 2024, Texas produced a total of over two billion barrels. In a distant second place is New Mexico, which produced 744.6 million barrels in the same year. Virginia is the smallest producing state in the country, at three thousand barrels. Macro perspective of U.S. oil production The U.S. oil production totaled some 19.4 million barrels of oil per day, or a total annual oil production of 827 million metric tons in 2023. As the largest oil producer in the U.S., it is not surprising that Texas is home to the most productive U.S. oil basin, the Permian. The Permian has routinely accounted for at least 50 percent of total onshore production. Regional distribution of U.S. oil production A total of 32 of the 50 U.S. states produce oil. There are five regional divisions for oil production in the U.S., known as the Petroleum Administration for Defense Districts (PADD). These five regional divisions of the allocation of fuels derived from petroleum products were established in the U.S. during the Second World War and they are still used today for data collection purposes. In line with the fact that Texas is by far the largest U.S. oil producing state, PADD 3 (Gulf Coast) is also the largest oil producing PADD, as it also includes the federal offshore region in the Gulf of Mexico. There are around 590 operational oil and gas rigs in the country as of February 2025.

Engineered wood manufacturers develop laminated veneer lumber and other engineered wood members. New home construction is the industry's largest market and demand largely depends on the number of new housing starts and private spending on home improvements, both of which grew from 2020 to 2022, enabling manufacturers to thrive because of healthy downstream demand, revenue spiked 43.6% in 2021 alone. However, more recently, high interest and mortgage rates have stunted housing starts and home renovation expenditures, causing revenue to drop in 2023 and 2024. Overall, revenue has gained at a CAGR of 6.8% through the end of 2025 and is expected to total $4.1 billion in 2025, when revenue will climb by an estimated 2.4%. Profit has also increased because of declining wage and purchase costs. The industry is witnessing increasing competition from imports, which made up nearly 32.0% of domestic demand in 2025, a significant gain from 29.6% in 2020. Notably, imports from Brazil and Vietnam have surged because of lower production costs attributed to readily available timber and lower wages. However, many international competitors can't match the high-quality products of US manufacturers who use advanced technology and skilled labor. A trade-off occurs among domestic manufacturers, who find it challenging to compete and are exiting the industry. A rebound in housing starts will occur from 2025 to 2029, driven by anticipated mortgage and interest rate reductions, which should stimulate demand for new housing construction and engineered wood products. Despite this optimistic prediction, growth may remain moderate because of the likely maintained mortgage rates above the 5.0% threshold. Demand for fire-retardant engineered wood products is expected to surge, primarily in wildfire-prone areas like California, creating a potential growth area for manufacturers. The industry's competitive landscape will change because of increased tariffs on imported Canadian softwood lumber and a foreseeable depreciation of US dollar strength, making imports more expensive. Industry revenue will climb at a CAGR of 1.0% to $4.3 billion in 2030.

Oil and gas pipeline construction contractors have seen an overall decline in revenue since 2020, with recent years of growth not having fully made up for the decline in revenue that came in the wake of the COVID-19 pandemic. World oil and gas prices have been extremely volatile during the current period and have limited capital expenditure by upstream and downstream industries. Still, a number of pipeline construction projects have recently broken ground, with many centered on delivering affordable hydrocarbons from tight shale formations to global energy consumers. Industry revenue has declined at a CAGR of 0.6% to $53.6 billion over the past five years despite a 1.4% increase in 2025. The industry has been busy constructing new gathering and transmission lines as well as storage and refining facilities. More infrastructure has been necessary to harness the outburst of energy, which has come online following the widespread adoption of hydraulic fracturing and horizontal drilling since the early 2000s. In fact, as domestic production increased and gas and oil exports from Russia decreased, the US became the global leader in LNG exports in 2023 and has become a net exporter of oil. The second Trump administration has, so far, been a mixed bag for the industry, lifting the Biden administration’s pause on LNG export approvals and generally promoting drilling, but proposing to push down oil prices and generally creating an uncertain business environment. Industry profit has expanded over the past five years as input cost inflation has cooled. Oil and gas pipeline construction companies are caught in a predicament as the United States seeks to improve its position as the world's largest producer of oil and gas while setting itself up for a more sustainable future. Demand for oil and natural gas will be threatened by a global transition to green energy in the coming years, though natural gas is often turned to as a relatively green fuel compared to other power sources like coal. Demand for pipeline construction will likely remain strong for interstate and intrastate pipelines connecting producers to key export terminals in Louisiana and Texas. Industry revenue is expected to grow at a CAGR of 1.7% to $58.3 billion over the five years to 2030 as global demand for energy expands.

With over 60 billion U.S. dollars of chemical exports in 2022, Texas reported the highest export value among all U.S. states. Louisiana came in second that year with 13.17 billion U.S. dollars, with these top two states accounting for over half of the total chemical exports in the country. Other significant states in terms of export values included New Jersey, California, and Illinois. Overview of the U.S. chemical industry The chemical industry in the United States is a significant sector that generates billions of dollars in revenue annually. In 2021, chemical shipments from the United States were worth 769 billion U.S. dollars while the industry's total revenue was valued at 492.4 billion U.S. dollars that year. Although this figure represents a reduction compared to its maximum total revenue of 818.2 billion U.S. dollars, recorded in 2015, the United States is still home to several of the world's leading chemical companies. As such, the value of the United States' chemical exports has increased from around 76.8 billion U.S. dollars in 2001 to approximately 233 billion U.S. dollars in 2021.

The global chemical industry and its key players The global chemical industry is a lucrative sector that generates billions of dollars in revenue annually. In 2021, the chemical industry's total worldwide revenue stood at 4.73 trillion U.S. dollars. China leads the world in chemical exports, with exports amounting to over 106 billion U.S. dollars in 2021, followed by the United States with exports worth over 56 billion U.S. dollars that year. China is also the largest consumer of chemicals, with a consumption value of 1.76 trillion euros in 2021. In comparison, the United States' chemical consumption amounted to around 412 billion euros in the same year.

As of January 1, 2025, the Motiva Enterprises refinery in Port Arthur, Texas, was the largest crude oil refinery in the United States, with a refining capacity of 640,500 barrels per calendar day. The largest seven oil refineries in the country are all located in the Gulf Coast (PADD 3), with four facilities in Texas and three in Louisiana. The ubiquity of refineries in Texas is unsurprising, given that the state is also the leading oil-producing U.S. state. The U.S. refining industry The number of operational refineries in the U.S. has notably declined since the 1980s. However, despite the 1980 oil shock resulting in closures of smaller refineries, many more began expanding, which explains the comparatively smaller loss in U.S. refining capacity since then. Future spells trouble for refining industry As many countries plan stringent fossil fuel exit strategies and introduce carbon taxes, refining margins and, as such, the profitability of individual refineries have been affected. This is particularly true for the European market, where climate change mitigation targets are some of the strictest in the world. In a bid to cut costs, BP announced the closure of one of its largest refineries in Germany from 2025 onward. Shell's refinery in Pernis, Netherlands, is Europe's largest oil refinery, with a capacity of 425,000 barrels per day.