Louisiana’s Oil and Gas Lawsuits Undermine Wartime Readiness (From RealClearEnergy)

The full text of this article is available below and in RealClearEnergy here.

Throughout American history, the strength of our military has rested not only on soldiers and strategy but on the partnership between government and industry. In times of crisis, private companies have answered the call, retooling plants, rerouting pipelines, and producing the fuel that keeps aircraft flying and ships moving. From the refineries of Baton Rouge to the shipyards of Pascagoula, America’s industrial base has always been its strategic foundation.

That is what makes Louisiana’s coastal lawsuits are so dangerous. If successful, these cases would send a message to every private contractor that complies with federal directives, even in the service of national defense, that they can be retroactively punished decades later. It sets a precedent that reaches far beyond the oil fields of the Gulf and into the heart of America’s wartime readiness.

As Dr. Steven Bucci, Visiting Fellow at the Heritage Foundation points out, the lawsuits are driven by Governor Jeff Landry and a team of trial lawyers. They allege that oil and gas companies caused Louisiana’s coastal erosion and should pay billions in damages. But much of the activity they target occurred under federal oversight, particularly during World War II, when Washington ordered increased crude oil production to supply aviation gasoline for American bombers. Those companies did not act recklessly or illegally; they acted as partners, doing what they were asked.

Two former Chairmen of the Joint Chiefs of Staff warned of the dangers. General Richard Myers and Admiral Michael Mullen warned in their amicus curiae brief to the U.S. Supreme Court, “suits relating to federally-mandated and directed oil production must be adjudicated in a federal forum.” They cautioned that “remanding to state court creates a serious risk that, in the future, private industry will not readily answer the federal government’s call when the nation needs it most.”

Former U.S. Attorneys General William Barr and Michael Mukasey agreed: “When a private company is sued for performing expressly permitted work inherently necessary to fulfilling a federal contract, that case belongs in federal court.” They added that “no local judge or jury can act as a neutral, disinterested fact-finder when there is a deep pocket sitting in the defendant’s chair responding to a lawsuit brought by the local government. This is the quintessential case for which federal officer removal exists.”

These briefs expose what the Fifth Circuit overlooked: that crude oil production during World War II was inseparable from the federally-directed manufacture of aviation gasoline. As Myers and Mullen explained, “the opinion entirely misses the mark when it holds that production of crude oil is separate from production of refined high-octane aviation gasoline.” Barr and Mukasey underscored the same point: “The oil production at the center of this case was necessary to refine high-octane aviation fuel… concerns about maintaining America’s aviation gas supply persisted until the end of the war.”

The lawsuits also disregard Louisiana law. As Barr and Mukasey observed, under the State and Local Coastal Resources Management Act (SLCRMA), “whether Petitioners extracted oil on the Louisiana coast ‘prudently’ before 1980 is irrelevant,” since its grandfather clause protects conduct “lawfully commenced or established” before that year. These wartime operations to produce vital aviation gasoline and other products were therefore both federally directed and ultimately permitted under state statutes because of the grandfather clause.

Today, Louisiana’s energy infrastructure remains a cornerstone of America’s energy and security strategy. The state is home to critical export infrastructure that produces and ships liquefied natural gas to Europe, further weakening Moscow’s grip on European energy supplies. Its offshore platforms feed refineries that replenish the Strategic Petroleum Reserve and stabilize domestic prices. However, these projects rely on continued investments to maintain permits, equipment, and production. Every lawsuit that drains capital from these companies reduces their ability to invest in exploration, expand export terminals, or participate in future federal leases on the Outer Continental Shelf.

The harm caused by legal attacks on private companies is not limited to geopolitics: it also threatens the livelihoods of Louisiana’s domestic workforce.

“Since these suits began in 2013, oil and gas extraction jobs have fallen by 41%, and Louisiana crude production has plunged by 57% – while production in Texas surged 23%,” a former senior Justice Department official pointed out.

Historically, Louisiana has been a premier destination for energy investments, but lawsuits against some of its largest economic drivers could lead other industry players to expand elsewhere, especially at a time when the Trump Administration is pushing for energy dominance.

As the United States faces growing threats from China, Iran, and other adversaries, such legal uncertainty is a national vulnerability. As Barr and Mukasey warned, “Respondents’ cramped interpretation of the federal officer removal statute will only deter private companies from taking risks for the public good during the next national crisis.” Energy abundance is a weapon of deterrence. It keeps allied economies supplied, limits OPEC’s leverage, and gives America freedom to act without fear of shortages.

If production in the Gulf slows, the federal government will lose the affordable supply it needs to refill the Strategic Petroleum Reserve, which is already at its lowest level in four decades. Rebuilding that reserve becomes costlier, and the buffer against global shocks weakens. What begins as a coastal lawsuit ends as a tax on readiness and a warning to every future defense contractor.

As Myers and Mullen concluded, “Our Nation needs private parties to answer the call when asked to use their expertise to assist our national defense.” Ensuring those partners can rely on a fair federal forum is not a legal technicality; it is a strategic necessity.

Energy security is national security. Every barrel produced in Louisiana strengthens America’s hand abroad and protects its citizens at home. Undermining that is not environmental stewardship; it is strategic self-sabotage.