BATON ROUGE, LA (WAFB) - Oil and gas companies from across Louisiana asked state tax officials to reduce taxes in hopes to save money and jobs.
Companies gathered at the Louisiana State Capitol to make their case in front of members of the Louisiana Tax Commission on why the state needs to reduce taxes on the oil and gas industry.
Don Briggs, with the Louisiana Oil and Gas Association, said companies are in bad shape and are looking for any way to stretch their dollars.
"Right now we are bleeding. Right now our companies are going bankrupt. Right now they are hanging on," said Briggs.
Briggs said it has a lot to do with low gas prices. When prices at the pump are low, companies have to charge less for a barrel of oil, which is a problem because the cost to produce oil and gas remains the same.
"We are selling a product for 30 to 40 percent less than what our cost is. So we are losing so much money," said Briggs.
He said if something isn't done soon companies may have to resort to cutting the number of jobs, which could be in the thousands. He points out "Mom and Pop" oil and gas companies are hurting the most.
Joe Jacobs owns a company in Monroe, Louisiana.
"Natural gas prices have come down so much, I think cutting employees and outside services we use, all the operators will be considering it," said Jacobs
They expect to hear back from the tax commission on that request in August.