Colorado Mesa University Professor of Economics Nathan Perry released a report last week that concluded each change in rig count in the Colorado Piceance Basin accompanies the employment change of 208 jobs. Perry’s study also showed the oil and gas industry contributes over $1 billion to the regional gross domestic product (GDP).
“The high wages this industry pays resonate with multiplier effects that support 3,478.9 jobs by spending alone,” the report said. It went on to say that including supply chain effects and direct employment numbers, shows the industry creates 10,959 jobs in the Western Slope.
The study was released two days after Governor Polis signed a bill that increases regulations on the oil and gas industry. Senate Bill 181 reversed the will of Coloradans who voted against the regulations proposed in Proposition 112 on the 2018 ballot.
Opponents of Proposition 112 and SB 181 argued the changes had the potential to stifle the industry and destroy jobs. House District 54 Representative, and former CMU Trustee, Matt Soper spoke against the bill when it was discussed in the Colorado House of Representatives.
The same day Perry released his report, Caerus Oil and Gas began laying employees off in the Piceance Basin, lending potential agreement with opponents of SB 181. The move came nine months after Caerus Oil and Gas announced it’s plans to spend $229 million drilling in the Piceance Basin.
If layoffs continue in the oil and gas industry, or rigs begin pulling out of Western Colorado, Perry’s report may see practical application as jobs decrease in the region at a rate of 208 per rig.
Bob Hopper • Apr 24, 2019 at 11:38 am
Colorado needs to lead the nation in finding employment for oil and gas workers that is not destructive to their health, our health, and the planet as a whole. Our future depends upon it.
Robert Smith • Apr 26, 2019 at 9:00 am
Why not just lay them off and walk away as you got what you want bypassing what the majority of Colorado voters wanted?
Just what do you think should be done with shortage of a billion bucks and all the residual jobs lost? Maybe Denver/Boulder/Ft. Collins can belly up to the bar and fun the difference.
The layoffs begin: Caerus Oil and Gas began laying employees off in the Piceance Basin, lending potential agreement with opponents of SB 181. The move came nine months after Caerus Oil and Gas announced it’s plans to spend $229 million drilling in the Piceance Basin.
And Colorado is finding out that elections have consequences as theft destroys this once great state,