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.