Louisiana Layoffs, Shut-ins Happening Faster Than Expected

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A recent survey of Louisiana Oil and Gas Association (LOGA) members shows the nearly one-quarter of the Pelican State’s oil industry-related workforce has potentially already been laid off amid the severe market downturn.

LOGA’s latest online anonymous “point-in-time” survey of its member companies – conducted April 22 to 29 – also revealed that 77.5 percent of Louisiana’s operators have already begun taking steps to shut-in production. The organization counts 450 exploration and production and service companies among its ranks.


In addition to the layoff and well shut-in figures, LOGA’s in-house survey of its members found:

97 percent are moderately or extremely concerned about the industry’s future
51.35 percent said bankruptcy is likely
34 percent applied for Economic Injury Disaster Loan (EIDL) funds through the U.S. Small Business Administration in response to the COVID-19 pandemic
25 percent of EIDL recipients stated they received the funds they expected
46.67 percent of EIDL recipients indicated funds received were insufficient to help them stay in business
72 percent of EIDL recipients stated funds were not enough to avoid laying off workers.
Citing figures from the Louisiana Workforce Commission and the state’s Department of Natural Resources, LOGA noted the oil and gas industry employs approximately 33,900 workers operating roughly 33,650 oil and gas wells statewide. Industry jobs account for approximately $3.2 billion in wages earned in Louisiana, the organization added.

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