COGA Fact Sheet: How Colorado’s Oil and Gas Industry Powers the Economy
The oil and gas industry is a vital backbone of Colorado’s economy, significantly contributing to employment, public services, and overall economic growth. Here’s a closer look at how the oil and natural gas industry supports our communities across Colorado.
Job Creation and Economic Contribution
In 2021, the oil and gas sector supported over 303,000 jobs, accounting for 7.7% of Colorado’s total employment. The sector is also considered a ‘primary’ employer in our state, which means that for every direct oil and gas job, an additional 1.2 jobs are generated elsewhere in the economy, demonstrating a multiplier effect that benefits a wide range of sectors.
Financial Impact on Local Services and Education
The oil and gas industry’s financial contributions extend far beyond job creation. In 2022, the sector generated $1.9 billion in state and local tax revenue, averaging $321 per Colorado resident. This revenue plays a crucial role in funding essential public services:
$768 million was allocated to local services, including police and fire departments, cities, and counties.
$432 million was directed towards schools, making up 7% of all school district property tax revenue.
Property Tax Revenue
In 2022, oil and gas accounted for 10.7% of all assessed property value in Colorado, providing a significant source of funding for various community needs.
Overall Economic Impact
The oil and gas industry’s influence on Colorado’s economy is substantial.
In 2021, it contributed over $48 billion to the state’s economy, representing 11.2% of the total economic output.
Additionally, the industry provided $15.4 billion in direct labor income, highlighting its role as a major economic driver.
For more detailed information, visit the American Petroleum Institute and the Common Sense Institute.