Will the Moratorium Cost Louisiana its CCS Lead?

Tommy Faucheux of the Louisiana Mid-Continent Oil and Gas Association joins the show to discuss Governor Landry’s recent executive order placing a moratorium on new carbon capture and sequestration (CCS) applications. While the order acknowledges Louisiana’s leadership in energy and the potential of CCS technology, it halts the review of new permit applications—raising concerns about slowing progress and losing competitive ground to states like Texas.Faucheux emphasized that Louisiana has already made significant strides in CCS, including securing Class VI primacy from the EPA, which allows the state to regulate its own CCS projects. This regulatory advantage has attracted tens of billions in investment. However, the moratorium could chill future investments and allow other states to catch up, especially as Texas nears its own primacy status.He noted that companies already operating in Louisiana have been proactive in engaging communities, supporting local education, and training first responders—efforts that align with the executive order’s call for community involvement. Importantly, the moratorium does not apply to projects already in the permitting process.Faucheux also pointed out that the executive order lacks a clear “punch list” or sunset clause, making it uncertain how or when the moratorium will be lifted. He stressed that the rigorous safety and environmental standards established during the primacy process remain in place and are being followed by companies.Ultimately, Faucheux warned that this pause could undermine Louisiana’s momentum in a critical moment of energy innovation. With strong federal support and growing global demand for energy and manufacturing, Louisiana stands at a pivotal point. The industry’s continued evolution depends on maintaining regulatory clarity and encouraging investment—not creating uncertainty that could drive opportunity elsewhere.