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The United States Consumer Confidence Index, a measure of consumer confidence, declined significantly during the year, reaching a low in October 2002. In contrast, the same index for the State of Louisiana showed little change and remained well above the national level throughout the year. Through this measure, the citizens of Louisiana are demonstrating their relative well being and optimism in the economic future of Louisiana. 

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The economic well being of Louisiana is affected, to some degree, by the fortunes of the energy sector. Louisiana is the second largest producer of natural gas and the fifth largest producer of oil in the country. In addition, Louisiana holds approximately 15% of all the oil in the United States and 16% of the country’s natural gas supply. Our citizens are affected either directly or indirectly as oil and natural gas prices change. The state has benefited from the increase in oil and gas prices during the year, thus adding to the optimism of the citizen base. 

Crude oil prices rose from $19.39 per barrel in December 2001 to $29.46 in December 2002. The average rig count of 165 for Louisiana in 2002 was down from last year’s 231. Although Louisiana suffered minor employment decreases in 2002 in the energy service sector due to a decrease in Louisiana drilling and exploration, it did not have an affect on the statewide unemployment rate. Forecast for 2003 ( Oil & Gas Journal, January 27, 2003) states that United States energy demand will increase in 

2003 as the anticipated economic recovery takes hold. Consumption of petroleum products, natural gas and coal will grow while demand for other primary forms of energy is on par for 2002. 

Historically, Louisiana experienced substantial swings in economic fortunes as a result of changes in energy prices. After many repeated swings in energy prices, companies 

increased to 1.9 million. Therefore, while the state has experienced a significant benefit from improved oil and gas prices, the diversification of the local economies helps soften the negative cyclical nature of the changes in oil and gas prices. 

Louisiana is known for other accomplishments outside of the energy sector as well. The following are just a few of the notable items of interest: 

• Ranked 1 st in harvested acres of sugar cane and 2 nd in sweet potatoes and rice (2001 Louisiana Agricultural Statistics, October 2002). 

• Ranked 3 rd in percentage of growth in income over the last two years – up 9.4% since 2000 (Bureau of Economic Analysis, October 2002). 

• Ranked 1 st in productivity of manufacturing workers as measured by value of shipments per production worker and ranked 4 th most productive in value added per production worker (Bureau of Census, November 2002). 

in the energy field became more focused and conservative in their financial affairs. In addition, economic diversification became a more important part of the local economies. Over the last few decades, many communities in Louisiana have been able to diversify their revenue base with sources of income outside of the oil and gas sectors. For example, in 1980, approximately 5.5% of the Louisiana workforce was in oil and gas related fields. By 2002, this figure declined to 2.5%. In 1980, 1.5 million people were employed, and in 2002 the workforce 

