Louisiana has a lot to celebrate. Our state is widely recognized as a global energy leader, ranking among the top exporters of liquefied natural gas and home to some of the most innovative next-generation energy solutions in the world. International investors have taken notice.
In recent months alone, Meta, Hyundai Steel and Woodside Energy have all announced billion-dollar investments, drawn by our state’s deep ports, access to natural gas and skilled labor force.
But while this spotlight is shining brightly on our state’s promise, a shadow has been cast over the very industry driving this renaissance.
In April, a jury awarded $745 million in damages to Plaquemines Parish in a lawsuit against Chevron. The case is the first of more than 40 similar suits brought by private plaintiffs’ attorneys on behalf of coastal parishes, claiming oil and gas companies are responsible for decades of coastal erosion.
These lawsuits have been cast as a form of environmental justice. The reality is they impose retroactive liability for legally permitted activities and, moreover, are further proof of our state’s culture of jackpot justice that prioritizes high-dollar litigation at the expense of long-term prosperity.
What’s at stake with these lawsuits is not just “big oil’s” balance sheet. What’s at stake is the economic foundation of our state. And we should all care about that.
In Louisiana, the oil and gas industry directly supports 346,000 jobs, accounting for 13% of our workforce and more than $25 billion in wages. Every job in the industry creates nearly three additional jobs across the economy, contributing a total of $54.3 billion annually to Louisiana’s bottom line.
We produce more than 10% of the nation’s natural gas and sit atop 6% of its reserves. In short, we don’t just benefit from energy — we are an energy state.
Now, contrast that with what we’re losing because of predatory lawsuits in Louisiana. According to an economic study by The Perryman Group, Louisiana’s excessive litigation culture costs our state’s economy $3.2 billion in direct costs each year.
That translates to a $4.6 billion hit to our gross state product, a loss of nearly 40,000 jobs and more than $440 million in lost revenue for state and local governments. Every Louisiana resident pays what amounts to a “tort tax” of $1,011 annually.
Regarding the coastal lawsuits, it’s important every resident understands they are not about environmental accountability and do very little to ensure real coastal restoration.
In fact, no assurances exist that any of the awarded funds actually go toward coastal restoration. Such blunt-force legal actions only stand to stifle investments in Louisiana’s energy sector, thus threatening critical jobs and placing much-needed infrastructure projects at risk.
Louisiana has seen how this script plays out. In 2010, following the Deepwater Horizon spill, the Obama administration’s offshore drilling moratorium crippled entire communities. Jobs vanished, family businesses shuttered and many Louisianans left the coast altogether. The current wave of litigation threatens to have the same result — this time not due to a disaster but due to our state’s unchecked litigation environment.
And here’s the irony: Many of the companies targeted in these lawsuits are the largest investors in cleaner energy production, coastal restoration and environmental research. They should not be treated as financial scapegoats, but as partners in solving the dual challenge of economic growth and environmental resilience.
None of this is an argument against industry oversight. Environmental responsibility is real, and energy companies must be held to modern standards. But the answer isn’t a litigation-first approach that brings instability.
It’s a policy framework that balances accountability with economic growth. States like Texas, Florida and Georgia have pursued meaningful legal reform, providing predictability that attracts innovation and fuels long-term investment.
It’s past time for Louisiana to do the same. If we want to continue our economic momentum, if we are serious about energy leadership and if we care about creating opportunities to keep our next generation from leaving this state, then we must align our laws with our aspirations.
Right now, the Chevron verdict sends a clear message to investors: In Louisiana, proceed with caution. If we don’t fix our legal landscape, we risk becoming a state known more for its lawsuits than its leadership.
Bryan Hanks is the president of BETA Land Services, LLC. in Lafayette.
