There are generational changes taking place in the production and usage of energy and Southwest Louisiana is poised to be one of the major players in our nation and the world.

Conditions beyond our control are making our economic outlook appear to be cooling down. Rising interest rates and recession fears could keep a cap on investment in the large, capital-intensive projects that drive the construction sector.

One upside is the concentration of LNG facilities which leads to expanded pipeline construction. Here in our region, we are bucking the trend with billions of dollars of industrial and commercial projects coming later this year and/or next year. Moody’s Analytics in its latest report said the Lake Charles MSA is “on life support.” Well, Moody’s, we are stronger than that. With the current petrochemical industries which include refineries and LNG, we are in a position to overcome national economic woes.

Our regional economic sectors such as Healthcare, Aviation, Agriculture and Forestry, and Gaming and Hospitality give us a diversity that many areas do not have. 

By the way, a Metropolitan Statistical Area (MSA) is a geographic entity based on a county or a group of counties, or in our case, parishes, with at least one urbanized area with a population of at least 50,000 and adjacent counties/parishes with economic ties to the central area. The Lake Charles MSA is comprised of Calcasieu and Cameron Parishes.

Most industries are adding to their headcount. The labor force has resumed growth after a poor year in 2022 and the unemployment rate remains low at 3.6%. The national average is 3.7%. For example, Cheniere is planning an expansion of its LNG shipping facility in Cameron Parish that will need construction workers. Second, the rapid pace of refining will lift demand for the construction firms that perform regular upkeep and seasonal maintenance on refineries. 

“The Lake Charles MSA is arguably the biggest beneficiary of the shift in global natural gas markets. The Russian invasion of Ukraine has encouraged most European countries to distance themselves from Moscow, which includes finding alternate sources of gas supply. Lake Charles is the best-positioned metro area in the nation to capitalize,” according to Moody’s. US producers have every incentive to ship as much gas as possible given the higher prices across the Atlantic. This demand will continue after the war ends.

Our area needs to prepare now for a tremendous increase in energy industries. To prepare our workforce, now is the time for those wanting new careers to attend SOWELA Technical Community College, McNeese State University, or ABC School. Job seekers can’t wait because jobs in the energy sector are rapidly coming.

The demand to reduce the carbon footprint is giving our region an opportunity to lead. The offshore wind industry is coming, solar farms are being planned and built. H2 The Future is a coalition including the SWLA Alliance that will actively recruit clean industry. The carbon capture industry will be tremendous for our area. As large LNG projects and other industries move ahead we will see a big increase in employment. Longer term, the LNG industry will form the backbone of the economy helping SWLA keep pace with Louisiana. 

For a comprehensive look at our regional economy, attend “The State of SWLA”, on August 9th at 7:30 am at The SEED Center, 2nd floor in the Willis Noland Conference Center. Details and registration may be found on the Alliance website: allianceswla.org. At the breakfast, information will be presented by Jonathan Dean, Alliance VP of Economic Development, Dr. Dan Groft, McNeese and Alliance Economist, and Richert Self, Director of The Port of Lake Charles, who will present an update on the Port, which is the largest economic driver in our region, and more. 

Those in the know predict that the energy renaissance will be larger for Southwest Louisiana than any previous industrial expansions. And that is huge and bodes a great future for SWLA.