Gulf Coast Energy Outlook 2025 
On December 6, 2024, the LSU Center for Energy Studies released the 2025 edition of the Gulf Coast Energy Outlook (GCEO). The annual report provides an analysis of the Gulf Coast's energy landscape and its trajectory through the upcoming years. Center for Energy Studies Executive Director Greg Upton, Professor Emeritus David E. Dismukes, Research Fellow D. Andrew Owens, and Director of Energy Education & Outreach Chris McLindon authored the report.
Key Findings
Economic and Policy Context
The Gulf Coast—comprising Texas, Louisiana, Mississippi, and Alabama—continues to
play a vital role in global energy production and exports. The report contextualizes
the region amidst dynamic global market forces and domestic policy frameworks shaped
by the Inflation Reduction Act and Infrastructure Investment and Jobs Act. Despite
geopolitical uncertainties and policy shifts, the sector demonstrates resilience,
underpinned by steady global economic growth and growing international energy demand.
Crude Oil and Natural Gas Production
Forecasts indicate sustained growth in Gulf Coast oil and gas production: crude oil
output is expected to rise from 9.8 million barrels per day (2024) to 11.6 million
barrels per day by 2032, while natural gas production is projected to expand from
55.4 billion cubic feet per day to 63 billion cubic feet per day within the same period.
Energy Transition and Decarbonization
The Gulf Coast continues to expand energy transition initiatives, particularly in
“clean” hydrogen, ammonia, and carbon capture technologies. Announced regional investments
total $60 billion in 2025, with nearly equal emphasis on liquefied natural gas (LNG)
developments ($27 billion) and energy transition projects ($25 billion). These developments
underscore the region's dual focus on economic competitiveness and decarbonization.
Electricity Demand and Infrastructure
Industrial expansion, data center proliferation, and the electrification of transportation
and heating are expected to drive growth in electricity demand. The region’s electricity
planning includes investments in over 82,000 MW of solar and 18,000 MW of natural
gas capacity, signaling a balanced approach to meeting future electricity requirements.
Exports and Global Influence
U.S. LNG exports—predominantly originating from the Gulf Coast—have surged, increasing
from 6.5 billion cubic feet per day in 2020 to 11.6 billion cubic feet per day in
2024. The region's energy infrastructure positions it to support global market stability
even among geopolitical disruptions abroad.
Employment Trends
Employment forecasts reveal relatively flat upstream oil and gas employment and modest
growth in refining and chemical manufacturing employment.
Conclusion
The Gulf Coast Energy Outlook 2025 underscores the Gulf Coast’s role in the global
energy landscape, balancing traditional production with energy transition and decarbonization
investments. The report highlights the region’s continued contributions in adapting
to meet global energy needs in an evolving energy sector.
View the full slide presentation.
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