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Economic Research

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Volume 14 Number 2
Second Quarter 2012


EconSouth Explores Energy Sector Dynamics in Louisiana

energyOil prices have been high and are likely to stay there, domestic oil and gas production is up, and the United States is exporting more petroleum products than it imports. To the casual observer, these factors may indicate a win-win scenario for the energy-dependent state of Louisiana. But dig just below the surface and you'll find that reality is a bit more nuanced, writes Charles Davidson in "Amid National Energy Boom, a Complex Roux in Louisiana."

As Davidson explains, certain factors affect different pockets of the state's diverse energy sector in different ways. Take record low natural gas prices as an example. This phenomenon has been a boon for companies like Dow Chemical, which uses natural gas as a raw material in thousands of products. On the other hand, low prices mean tighter profit margins for the state's natural gas producers.

This is just one example of the highly nuanced energy sector that Davidson explores in the article, featured in the second quarter EconSouth. To learn more, see the full article in print or online.