LSU’s Gulf Coast Energy Outlook predicts oil and gas production will continue to expand, and the state will continue to see investment in petrochemicals, LNG projects and energy-intensive manufacturing. Greg Upton, the interim director of the Energy Institute, says with advancements in technology, the oil and gas economy can expand without the need for an increase in drilling activity.
“Efficiencies have been really effective these last two years of growing production regionally, but you just need less rigs in order to do that,” Upton said.
Upton says natural gas prices continue to remain low, which continues to drive investment in refined products.
“Liquid fuels, chemicals, plastics, fertilizers, natural gas in the form of a liquified natural gas, and increasingly now we’re seeing investments, for instance, the Hyundai Steel investment that’s happening,” Upton said.
Hyundai Motor Group is investing nearly $6 billion into the construction of its first North American steel plant in Ascension Parish, creating more than 1,300 jobs.
Upton says with the construction of a massive data center in Richland Parish and the Hyundai plant in Ascension, meeting the electricity demand will be a major story to watch.
“What’s going to happen to electricity demand? Are we going to see this next era of electrification where you see really, really rapid growth in electric demand? And what could that mean for the electric grid?” Upton asked.
Upton says policy swings, both federal and state, will play a large role in investment decisions. This past decade has featured three different federal energy strategies.
