ASSESSMENT OF OIL AND GAS INDUSTRY ECONOMIC AND FISCAL IMPACTS IN COLORADO

Abstract

INTRODUCTION The oil and gas industry, along with nearly all extraction industries, inherently provides substantial economic benefits due to its integrated supply chain, high-wage jobs, and propensity to sell nationally and globally. It brings in outside investment and often operates in rural areas where high-wage jobs are scarce and industry is fleeting. Much of Colorado's oil and gas is sold outside of the state, contributing wealth to owners, employees, governments, and schools, all of which are beneficiaries of oil and gas revenues. In 2011, Colorado's oil and gas industry recorded $10.5 billion in production value, accounting for some 27,300 direct drilling, extraction, and support jobs with average annual wages in excess of $105,000. Coupled with the oil and gas supply chain within Colorado—transportation, refining, wholesalers, parts manufacturers, and gasoline stations—direct employment totaled nearly 49,400 jobs, with average wages over $80,000, which is 65% higher than the state average for all ...