Strong oil & gas sectors benefits Colorado with $1 billion revenue
DENVER – A study on the economic impact from Colorado’s oil and gas upstream and midstream subsectors found that it’s a critically important spoke in the wheel of the state’s diverse economy. As of 2017, the upstream and midstream subsectors alone were responsible for providing 89,000 direct and indirect jobs, $13.5 billion of the state’s gross domestic product, and $1 billion of public revenue that supports Colorado schools, social assistance programs, parks and water infrastructure.
"This report demonstrates how a strong oil and natural gas sector benefits all Coloradans by ensuring that everyone has access to the great outdoors, good schools, and infrastructure to meet the needs of our growing population,” said Dan Haley, president and CEO of the Colorado Oil & Gas Association. “And in Colorado, where it is nearly impossible to raise taxes, a billion dollars from a single industry is a significant revenue stream that should be trumpeted.”
According to the report, “oil and gas is responsible for at least seven distinct streams of public revenue… And unlike other industries, the assessment rate on oil and gas lands value is 75 to 87.5%, as compared to 29% for the general assessment rate for corporate property. And unlike other industries, oil and natural gas extraction establishments pay royalties and taxes on the value production, in addition to taxes paid on earnings. The state receives royalties for oil and gas production from state and federal lands and severance taxes on all production in Colorado.”
The study was conducted by Global Energy Management Program at the University of Colorado Denver, Business School and paid for by the Colorado Oil & Gas Association. It uses U.S. Bureau of Economic Analysis data from 2017, which is the most current and complete year on record.
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