Louisiana crude oil and natural gas production both saw year-over-year dips in January, according to newly released data from the Energy Information Administration. Crude oil production stood at 69,000 barrels per day in January, down 20.8% from January 2024. Natural gas production, meanwhile, st ood at 9,274 million cubic feet per day in January, down 15.5% from January 2024. Over the same period, the U.S. as a whole saw year-over-year growth in both categories. So, why are the numbers falling in Louisiana? Economist Loren Scott tells Daily Report that part of the answer lies in the shale revolution—and where it’s happening. Thanks to prolific shale plays like the Bakken Formation and the Permian Basin, states like North Dakota and Texas have seen production of both oil and associated natural gas boom in recent years. Louisiana hasn’t had the same geological luck. “We really don’t have a meaningful oil shale play within our boundaries in Louisiana,” Scott says. “We do have an important natural gas play in the northern part of the state called the Haynesville Shale, but it’s what we call a dry gas play. When you drill into it, the only thing you get is natural gas. You don’t get any oil at all.” Greg Upton, executive director of LSU’s Center for Energy Studies, says oil production in Louisiana has been trending downward since the ‘80s, though he’s careful to note that the state’s oil production numbers only account for output on state lands and water bottoms. Offshore production more than 3 miles off the coast isn’t included in state totals. On the natural gas side, Louisiana has seen stronger production in recent years, particularly from the Haynesville. But production in that category has begun to trend downward, as well. Upton says output from the Haynesville has fallen in large part due to lower natural gas prices. “Whenever prices decline, we see a decline in production in the Haynesville,” Upton says. “I think the Haynesville will continue to produce for a very long time, but whether or not it reaches new peaks will be something to watch given the current price environment. My best guess is that it continues to produce at its current levels for some time.” Still, there may be some upside ahead. Upton points to the Austin Chalk play in central Louisiana as a potential driver of future oil production, though it remains largely untapped due to economic constraints. And while Upton predicts that output from the Haynesville will remain flat for the foreseeable future, Scott contends that a handful of new liquefied natural gas export facilities proposed for Louisiana could help reverse the current slump in natural gas production. “Now that the LNG permitting pause has been lifted, there are several LNG export facilities that are ready to pull the trigger in Louisiana. And as it turns out, the closest natural gas play for them to get their input from is the Haynesville. … These facilities will hopefully enable our natural gas production to turn around and start going in the other direction,” Scott says. Take Our Poll ...read more read less