“The economic contributions of the upstream and midstream oil and gas industry totaled $126.5 billion in output in Colorado between 2008 and 2012. In total, the industry supported more than 93,500 jobs in Colorado.”
In a new report by its Business Research Division, the Leeds School of Business at the University of Colorado quantified the Colorado oil and gas industry’s economic impact from 2008 to 2012.
Entitled “Oil and Gas Industry Economic and Fiscal Contributions in Colorado by County, 2008-2012,” the 76-page report breaks out data on oil and gas property taxes, severance taxes, federal mineral lease distributions, school district severance tax, production values, upstream and midstream wages and others.
Across the state, particularly in counties where oil and gas production is prominent, the industry’s financial contributions supported schools, public safety, general government, health and human services, public works, streets and highways, parks and recreation, paramedic services and urban redevelopment and housing.
“Oil and gas revenues impact nearly every citizen in the state through Colorado general fund expenditures on education, transportation, and other public services, as well as through severance tax and federal mineral lease distributions,” the report said. “The public revenue stream, which includes rents, royalties, and taxes, funds activities ranging from schools and roads to parks and healthcare.”
$410 million in taxes and federal lease revenues were paid by oil and gas companies operating in the state of Colorado in 2012. Recipients break down as follows: Total property tax revenue from oil and gas activity to Colorado school districts in 2012 was $202 million, to counties it was $141 million and to cities it was $5.4 million. Severance tax payments to counties in 2012 totaled $14.7 million, to cities and towns it was $12.0 million. Federal mineral lease distributions totaled $18.4 million to counties, $2.8 million to school districts and $14.2 million to cities and towns in 2012.
Weld County was the biggest winner. The $51.7 million in oil and gas tax proceeds collected by Weld County in 2012 covered 31% of the county’s general fund expenses, and oil and gas property taxes provided $94 million for its schools.
“In total the upstream and midstream oil and gas industry recorded almost 32,000 jobs in 2012 and supported an additional 61,000 jobs in the state. Direct wages paid to oil and gas industry workers in the state in 2012 totaled more than $3.2 billion and supported an additional $3.5 billion in wages to other industries,” the report said.
Additionally, oil and gas companies pay Colorado monthly royalties for oil and gas produced on state-owned land. In 2012, the State Land Board authorized a royalty rate of 16.67%, up from 12.5% in 2008. The state’s oil and gas royalties totaled nearly $44.8 million in 2012.
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