Energy industry tells committee Iran conflict is driving price spikes and could spur Louisiana investment, but timing is uncertain

Dustin Davidson, secretary of the Department of Conservation and Energy, told the House Natural Resources Committee on March 18, 2026 that the Iran conflict has produced a sharp short-term spike in global crude prices and is already feeding higher pump prices in the U.S.

"I think this morning, we're just below a $100 at roughly $98 a barrel," Davidson said, adding that diesel is likely to rise more than gasoline and that higher diesel would have outsized effects on transportation, agriculture and construction. He urged lawmakers to consider infrastructure and policy steps to keep Louisiana competitive in LNG and refining markets.

Industry witnesses echoed the urgency while describing different winners and losers. Tommy Fauci, president of the Louisiana Mid-Continent Oil and Gas Association, argued Louisiana is well positioned to meet heightened global demand; "The United States produces 27% of the world's LNG supply, the majority of which comes through Louisiana," he said, and asked lawmakers to reduce litigation risk, support pipeline construction and invest in workforce development.

David Cresson, president and CEO of the Louisiana Chemistry Association, said chemical manufacturers depend on predictable, affordable feedstocks and that volatility delays investment. "Predictability is arguably the most critical component of the chemical manufacturing business," Cresson said.

Greg Upton of LSU’s Center for Energy Studies presented price history and futures data for context. Upton said markets are currently in backwardation and that futures pricing suggests the spike may attenuate: "A year out right now, futures markets are saying that the price will be about $73 a barrel." He and other witnesses said markets could remain elevated for months to a few years depending on the conflict and other shocks.

Committee members pressed witnesses on specific consequences for Louisiana: whether rigs will return, how quickly production can scale, the size and timing of possible carbon-capture investments (committee members cited project cost ranges from $500 million to $1.5 billion), and whether federal moves such as a 30‑day Jones Act waiver or Strategic Petroleum Reserve releases materially alter global pricing. Witnesses said Jones Act waivers and SPR draws can ease transportation constraints and localized supply disruptions but are unlikely to change the global price materially; they also warned that repeated cycling of SPR oil into salt domes can raise storage-integrity concerns.

Key numbers cited during testimony included spot crude around $98/barrel, a futures estimate of roughly $73/barrel one year out, a national rig count cited near 570 rigs, and an example that Haynesville rigs in North Louisiana rose from 16 to 26 in a year. Witnesses also described Louisiana’s energy workforce at roughly 306,000 jobs and pointed to potential increases in severance-tax revenues if production expands.

The hearing was informational; no committee action was taken on market policy. Members thanked presenters and asked staff to coordinate follow-ups on orphan-well funding, local lease and school-board details related to earlier agenda bills, and the potential for future briefings focused on storage integrity and infrastructure constraints.

Sources: Committee hearing transcript; testimony by Dustin Davidson, Tommy Fauci, David Cresson, Mike Montclair, Greg Upton and Tyler Gray.

The committee adjourned after the presentations and Q&A.