Economic impacts of energy development

Abstract

This article examines the economic impacts of offshore petroleum extraction and production on communities in Louisiana. The study extends previous work concerning the economic impacts of energy development by including all phases of petroleum development, by accounting for the degree and type of involvement of the community in petroleum production, by using analysis of variance to determine the effect of the rate and direction of change in as well as level of petroleum activity, and by using time series regression to examine the effect of year‐to‐year changes in activity on year‐to‐year changes in economic impacts. The findings show an initial improvement in economic conditions followed by serious economic decline. The results also point out the need for a diversified involvement in petroleum production and the necessity of mitigation programs during the boom and decline in petroleum activity.

Keywords:

• Keywords economic impacts
• economics
• economy
• energy development
• energy extraction
• Gulf of Mexico
• Louisiana
• petroleum development
• resource extraction