Study quantifies oil and gas impact on state economy

A new study by University of Colorado Leeds School of Business verified what many already suspected: The oil and gas industry plays a vital role in the Colorado economy.

Between 2010 and 2012, employment in the oil and gas industry increased 17 percent, the study published Monday said.

In 2012, oil and gas pumped $29.6 billion into the state’s economy and supported more than 110,000 high-paying jobs, the study said.

“Direct employment totaled more than 51,200 jobs, with average wages over $74,800, which are 49 percent higher than the state average for all industries,” the study said.

Collectively, the industry contributed nearly $3.8 billion in employee income to Colorado households, amounting to nearly 3 percent of all Colorado salary and wages in 2012, according to the study.

The study’s conclusions were based on publicly available data concerning statewide employment, wages, property values, royalties, leases, severance taxes, rig and well counts, as well as production and prices. “The oil and gas industry has grown substantially in Colorado over the past five years, offering Colorado graduates the opportunity at high wage jobs directly in the industry,” Brian Lewandowski, research associate in the Business Research Division of the Leeds School of Business at University of Colorado Boulder said in a press release.

“It also helped support many related industries coming out of the recession. The oil and natural gas industry ... plays a pivotal role not only in bringing substantial economic benefits to Colorado companies and households, but also provides significant fiscal benefits for local governments and the state as a whole,” Lewandowski said.


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This is not the whole picture in Colorado. It appears that you took just one piece of the report to play to the locals without reporting on the whole economy.

If oil and gas “nearly 3 percent of all Colorado salary and wages in 2012” it is a minor, not major employer. 97% of all Colorado wages come from other industries.

Not sure if this is the same report you read, http://leeds.colorado.edu/asset/brd/cbr7932013.pdf , but if it is, it also includes these gems: “With Colorado manufacturing employ-
ment at approximately 132,000 jobs in May 2013, this is the second year in a row that the Manufacturing Sector has expanded in Colorado after 10 straight years of job losses starting
in 2001.” (So, manufacturing employs twice the number of people that are directly employed by the oil and gas industry.)
And
“According to the December forecast, 10 of the 11 sectors analyzed were projected to gain jobs, with Information being the only sector
expected to decline. The magnitude of growth has exceeded expectations, and our statewide employment forecast has been revised upward from 1.8% to 2.5% for 2013. Overall,
the committees remain confident that Colorado will continue
to experience employment growth”
And
” Fourth quarter 2012 Quarterly Census of Employment and Wages (QCEW) results indicate Construction; Trade, Transportation, and
Utilities; and Information will undergo the greatest upward revisions to payroll jobs estimates, while Leisure and Hospitality, Government, and Manufacturing are expected to see the greatest downward revisions.”

Ah, now I understand why this story doesn’t tell the whole story. You didn’t go to the actual study for information, you went to the oil and gas industry: http://www.coga.org/index.php/FastFacts/EconomicsTaxes#sthash.LXPExndJ.1cKTGtJ6.dpbs
Shame on you.

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