JOBS AND ECOMOMY
WHAT IT MEANS FOR COLORADO:
The not so good, the bad, and the ugly.
The Not so good
In 2022, O&G industry accounted for over $1 billion in state and local tax revenue in Colorado, annually. Although this may seem like a hefty sum, in comparison, recreation & tourism account for $66 billion per year in Colorado! Learn more: our webinar with CFI compares the outdoor economy with O&G industry’s contribution.
In 2023, the O&G industry accounted for roughly 1% of Colorado’s workforce or about 30,000 direct jobs. In comparison, the outdoor recreation and tourism industry accounted for over 321,000 direct jobs in 2023. And clean energy accounted for about 64,000 Colorado jobs in 2022.
The bad
O&G receives bailouts, subsidies, tax breaks, and exemptions, yet at least 12 companies in Colorado have filed for bankruptcy since 2015.
O&G companies in Colorado frequently fail to complete tax documents or file incomplete documents, thereby underpaying their required taxes by billions of dollars. This despite Colorado having one of the lowest O&G tax rates in the country!
O&G is a boom-and-bust business that creates unstable employment dependent on frequent layoffs and transient workers that are often relocated from state-to-state. Production and jobs are dependent on international prices and the laws of supply and demand. When gas prices are low, O&G companies slow production and lay off workers. When wells run dry in one state, workers are laid off or relocated to another state.
The Ugly
Orphaned and abandoned wells in Colorado could cost taxpayers billions! Nearby oil and gas production can drive down home values, trapping people in unsafe living conditions who can’t afford to move away.
Jobs claims are often overstated and include indirect jobs such as gas station attendants, and hospitality employees.