ECONOMIC-IMPACTS OF ENERGY DEVELOPMENT

This article examines the economic impacts of offshore petroleum extra ction and production on communities in Louisiana. The study extends pr evious work concerning the economic impacts of energy development by i ncluding all phases of petroleum development, by accounting for the de gree 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 ch anges in activity on year-to-year changes in economic impacts. The fin dings show an initial improvement in economic conditions followed by s erious economic decline. The results also point out the need for a div ersified involvement in petroleum production and the necessity of miti gation programs during the boom and decline in petroleum activity.