Oil and gas debate: Business community urges lawmakers to respect will of voters, find common ground

February 28, 2019

Dear Governor Polis, Speaker Becker and President Garcia:

As leaders of Colorado’s business community, we strive for a healthy business environment that supports our state’s workforce, benefits its citizens, protects our environment and makes Colorado the envy of the country. As such, it’s our belief that any proposals dealing with oil and natural gas development during this year’s legislative session deserve serious and thoughtful consideration. We hope you will engage in thoughtful stakeholder meetings to find common ground in changes to the oil and natural gas regulatory framework.

First, we hope we can agree that respecting the will of voters is paramount to ongoing conversations around oil and natural gas regulation. As you know, Coloradans last fall rejected, by a 10-point margin, an extreme setback that would have driven oil and natural gas development out of Colorado. The people of Colorado voted against the extreme measure and efforts to push that type of agenda through the legislature, similarly, should be rejected in a strong, bipartisan manner.

We hope you will seek reasonable compromise and workable outcomes. Since the defeat of Proposition 112, leaders in Colorado’s oil and natural gas industry have worked collaboratively with a wide spectrum of stakeholders to increase setbacks from schools and have shown a genuine willingness to work with legislators and the Polis administration on additional constructive improvements to the state’s regulatory framework, which already is considered a national leader. This collaborative spirit should continue to serve as the model going forward.

It is critical that scientific facts drive the debate on oil and natural gas regulation. Unfortunately, activist groups have made a series of demonstrably false claims concerning health, safety and the environment. Colorado health officials have been monitoring the effectiveness of the state’s oil and natural gas regulatory framework for years and have factual answers to the questions raised by some citizens and elected officials about energy development. The facts must continue to drive the discussion.

Similarly, we respectfully request that you reject false choices on energy and environment. The oil and natural gas produced in Colorado has helped our nation lead the world in reducing carbon emissions, delivered cleaner air and helped renewable electricity sources dramatically expand by making the power grid more flexible and responsive to weather dependent sources like wind turbines and solar panels. This “all of the above” approach also has delivered major national security benefits and has strengthened our country and our allies.

We hope as you work to find commonsense solutions, you will maintain the tax base for schools and other essential services. As one of the state’s largest economic sectors, the oil and natural gas industry is one of the most significant sources of tax revenue for basic public services at the state and local level. More than $1 billion in taxes and other public revenues are generated by oil and natural gas development every year in Colorado, including more than $600 million for K-12 and higher education.

Finally, but perhaps most significantly, we ask that you support the working families in our state. In addition to contributing $31 billion to our economy, energy development is woven into the fabric of our state, supporting the livelihoods of more than 230,000 men, women and families across Colorado.

Besides economic impact, Colorado’s energy professionals contribute so much to our communities: They
are our friends, family members, neighbors, and community volunteers who give countless hours and
resources to our communities and charities. We ask that you defend the jobs of oil and natural gas
professionals just as you defend the jobs of working men and women in other sectors of our economy.
We appreciate your commitment to serving your constituents and our state. We deserve an economy –
and a Colorado – that works for all of us. We appreciate your interest in working toward a reasonable
outcome on this issue that benefits our state and our future.

Colorado's Oil and Gas Industry Stands United

Over 2,000 oil and gas industry employees rally at the Colorado State Capitol

DENVER - In a strong show of support for the oil and gas industry, state troopers estimate 3,500 people rallied on the steps of the Colorado state capitol this afternoon. Organized by local energy companies, the rally was attended by industry employees, their families, and members of the community who stand behind this vital part of Colorado's economy. 

"As we face yet another attempt by anti-oil and natural gas activists to ban new development in Colorado, it's incredible to see our employees stand together and fight for their industry, their livelihoods, and the jobs they need to keep food on their tables," said COGA President and CEO Dan Haley. 

"The industry in Colorado supports more than 100,000 jobs and generates $31 billion dollars in economic activity. A ban of our industry would not only hurt oil and natural gas families but would have severe ripple effects throughout Colorado's economy. If approved by voters, Initiative 97 would kill an estimated 147,000 jobs by 2030 - many of them outside our industry due to the interconnectedness of our economy and the important role energy plays within it. Colorado's energy employees take great pride in their work - and their jobs - and today their voices were heard loud and clear. We are proud to work here. We are proud to live here. And we stand united as Coloradans."

Led by Liberty Oilfield Services, CEO Chris Wright, the rally featured short speeches thanking members of industry for their contributions to the economy and our communities. The speaker lineup included former Secretary of the Interior under President George W. Bush, Gale Norton; CEO of the Tennyson Center for Children, Ned Breslin; CEO of Petroshare and former Denver Bronco safety, Steve Foley; and VP of Civic Engagement for ACE Scholarships and State Representative for HD - 7, James Coleman. 

"The modern world is not possible without oil and gas," said Liberty's Chris Wright. "Together, with dramatic advances in human liberty, the mass production of oil and gas has improved the human condition in ways that would have been simply unimaginable to our ancestors. I felt tremendous pride today as our industry stood together to celebrate our contributions to not only Colorado but humankind."

Secretary Norton touted the advances our country has made in a relatively short time. "American energy independence was once thought to be impossible, yet with advances in technology, our country is rapidly moving in that direction. In 2006, the U.S. imported 60 percent of our oil. This year, we are more secure because we rely on foreign sources for only 15 percent and that number continues to decline. I think this is something we should celebrate."

The strong turnout at the rally serves as a reminder that the oil and natural gas industry is not only a critical piece of our modern economy and contemporary society, but it is also comprised of Coloradans who love living and working in our great state. 

Recent Analysis of Initiative 97

Colorado Oil and Gas Conservation Commission

Common Sense Policy Roundtable

About COGA

Founded in 1984, the Colorado Oil & Gas Association's (COGA) mission is to foster and promote the beneficial, efficient, responsible and environmentally sound development, production and use of Colorado oil and natural gas. COGA is a nationally recognized trade association that aggressively promotes the expansion of Rocky Mountain natural gas markets, supply, and transportation infrastructure through its growing and diverse membership. 

University of Colorado Economic Study Shows the Oil and Gas Industry is Key to Colorado’s Economic Health and Stability

For Immediate Release
December 29, 2015

Contacts:
Doug Flanders
303-861-0362
[email protected]

Rachel George
[email protected]

New Study Shows Positive Impact of Oil and Gas to Every Coloradan

DENVER (December 29, 2015) – The oil and gas industry in 2014 pumped $31.7 billion into Colorado’s economy, according to a new economic study by the Business Research Division of the Leeds School of Business, University of Colorado at Boulder. The study, released today by the Colorado Oil & Gas Association (COGA), demonstrates the vital role the industry plays in the state’s economy.

Overall, the report found, the industry recorded $15.8 billion in production value, accounting for 38,650 direct jobs with average annual wages in excess of $105,000 —twice the average wage of all industries in Colorado. The total economic impact of the industry was $31.7 billion in 2014, supporting 102,700 jobs and $7.6 billion in compensation.

The report, Oil and Gas Industry Economic and Fiscal Contributions in Colorado by County, 2014, conducted by University of Colorado Boulder researchers Brian Lewandowski and Richard Wobbekind, found that in 2014 the oil and gas industry supported over 100,000 high paying workers and their families.

“The capital investments and industry production create jobs, income, wealth, and taxes, notably concentrated where production exists; however, as tax dollars flow into the state general fund and cash fund, the outflow of these dollars impacts every citizen in the state through investments in education, transportation, and others, “ the report stated.

Dan Haley, President and CEO of COGA said, “The industry’s overall tax bill represents approximately $600 of tax revenue per household in the state, and this does not include the industry’s corporate tax bill. Every Coloradan is positively impacted by this industry, no matter where you live.”

The report also details the significant amount of tax revenue generated by the oil and gas industry for school districts, as well as state and local governments that is well “beyond what other industries contribute. … Ad valorem taxes, for instance, are 3 times higher for oil and gas production than for commercial property within the state and 11 times higher than residential property.”

“Clearly, even as we work through this period of lower commodity prices, the oil and gas industry’s impact on Colorado’s economy is significant,” said Haley. “The industry continues to provide, and support, thousands of good paying jobs in all corners of the state. Governments across Colorado also depend on the oil and gas industry to pay for much-need public services. Without revenue from this industry, we would not be able to provide the necessary funding, or would have to further raise taxes, for public schools, roads, parks, and many other government services that Coloradans depend on.”

The study also found:

·       The oil and gas industry paid over $434.7 million in property taxes in 2014 and accounted for $156 million from the Colorado State Land Board School Trust distribution or 88 percent of the overall distribution of $178 million.

·       Severance tax revenue increased 92.9 percent from 2013 to 2014, generating $330 million in 2014 compared to $171 million in 2013.

·       In total, the oil and gas industry contributed over $1.1 billion in revenues to state and local governments, school districts, and special districts.

·       34 counties had oil production and 38 produced natural gas; 37 of Colorado’s 64 counties recorded taxable oil and gas property.

·       90 percent of Colorado’s taxable oil and gas property is in five counties: Weld, Garfield, La Plata, Rio Blanco and Montezuma.

·       Weld County produces 86 percent of the state’s oil and 25 percent of its natural gas.

·       Weld and Garfield alone accounted for 80 percent of drilling permits in 2014, with Weld having more than 66 percent of all active rigs in the state.

While Weld and Garfield Counties are the leaders in production, Denver, Weld, Mesa, Garfield, and Adams counties are the “center of employment for the industry,” accounting for 79 percent of the total direct jobs. Interestingly, the City and County of Denver had the most direct industry jobs in the state with nearly 13,000 paying over $161,000 dollars a year.

“This study clearly shows that cities and counties that either don’t have or have limited oil and production are reliant on our positive contributions to their community. When any new rules or regulations are being considered that impact oil and gas production, Weld and Garfield Counties’ voices must be heard,” Haley said. “We must avoid the domino effect of production in these two counties being negatively impacted and then the rest of the state’s employment and revenue declining as well.” 

This study used publicly available industry data to quantify the economic impacts of the industry in Colorado by county. The study examined the economic indicators and impacts to the county level, looking at employment, wages, and well activity to economic and fiscal impacts.

Go to the COGA website to see the full report on the 2014 oil and gas industries economic and fiscal contributions in Colorado.

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