In courtrooms across Louisiana, a never-ending legal war is being waged against hundreds of oil and natural gas producers in a battle that not only threatens the backbone of our state’s economy, but also directly undermines President Trump’s bold vision for American energy independence. For a state whose identity and prosperity are intertwined with energy production, this legal quagmire is a self-inflicted wound we can ill afford.
The numbers tell a stark story. A 2019 study by the Pelican Institute found that coastal lawsuits against oil and gas companies cost Louisiana’s economy between $44.4 million and $113 million annually. Over a two-year period following the initial filings in 2013, we lost more than 2,000 jobs and $70 million in wages—direct casualties of litigation risk that chilled drilling activity. State and local governments, meanwhile, saw royalty revenues shrink by as much as $22.6 million per year, money that could have funded schools, roads, or coastal restoration itself. These are not abstract figures; they represent livelihoods lost and opportunities squandered.
Nationally, the ripple effects are just as troubling. Louisiana’s energy sector is a linchpin of America’s oil and gas production, supplying the fuel that powers homes, businesses, and industries across the country. These lawsuits handcuff the very producers who are key to President Trump’s goal to return our Nation to energy dominance and ensure the stability and affordability of American energy prices.
With more than 40 lawsuits filed since 2013—many spearheaded by trial lawyers working in cahoots with parish and state officials—the legal onslaught has created a hostile environment for energy companies. The result? Reduced investment, fewer wells drilled, and a drag on the abundant energy supply that President Trump seeks to unleash.
After more than a decade of litigation, a Plaquemines parish jury began considering arguments in the first of these suits earlier this month. Designed to extract billions from oil and gas companies, the cases assert seemingly questionable claims that the government-authorized operations energy producers conducted decades ago caused coastal erosion. Plaintiffs’ lawyers are alleging all sorts of violations of coastal use permits and bad behavior carried out 60 to 70 years ago that they believe should be punished by the courts now. But this narrative oversimplifies a complex problem.
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In fact, a number of the activities the plaintiffs’ attorneys allege have violated coastal use permits took place before the permitting laws even existed. Much of that work was done at the direction of the federal government as part of the effort to protect America during World War II. Holding someone accountable for a law that didn’t exist creates a terrifying legal precedent that should be soundly rejected.
Furthermore, if there are legitimate violations of coastal use permits – and very likely there have been instances – these infractions could be resolved today (or anytime over the last 12 years of litigation) by state government taking action. Instead, as the Pelican Institute has documented, the Department of Energy and Natural Resources under former Governor John Bel Edwards outsourced its enforcement responsibilities to a small group of well-connected trial lawyers. This misguided “sue first” approach directly undermines Louisiana and America’s best interests.
President Trump’s energy dominance vision hinges on unleashing market forces, not shackling them with litigation. Increased supply, paired with rising demand, drives down prices and strengthens our Nation’s economic and national security. Yet, here in Louisiana, we’re suing the very companies that could help us achieve that goal.
Proponents of the lawsuits argue they’ll fund coastal restoration. But after more than a decade of litigation, what do we have to show for it? A supposed $100 million settlement with Freeport-McMoRan in 2019 promised environmental credits, yet a Pelican Institute report revealed such schemes often fail to deliver, devolving into slush funds for unrelated projects. Meanwhile, the economic toll mounts.
Louisiana can’t litigate its way to prosperity. We need a legal and regulatory environment that attracts investment, not repels it. The Trump administration offers a chance to reset, prioritizing energy production over courtroom battles. Let’s seize it—before the costs of these lawsuits bury us deeper than the Gulf of America waters ever could.
Daniel J. Erspamer is the CEO of the Pelican Institute for Public Policy, a Louisiana-based think tank dedicated to advancing free enterprise and individual liberty.
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