Think About Energy Summit Richard Wobbekind Senior Associate Dean Executive Director Business Research Division Leeds School of Business
Mining GDP, Employment, and Wages Share of Colorado Economy GDP 3.7% Total Wages 2.7% Employment 1.3% Colorado GDP Per Employee: $85,639 Mining GDP Per Employee: $182,105 Colorado Average Annual Pay: $50,559 Mining Average Annual Pay: $108,004 Source: Bureau of Labor Statistics, CES (NSA), and Bureau of Economic Analysis.
Average Annual Wages by Sector Management of Companies & Enterprises Mining Professional & Technical Services Information Financial Activities Manufacturing Trade, Transportation, & Utilities Construction Real Estate Health Care Education Administrative & Waste Services Other Services Arts & Entertainment Agriculture Accommodation & Food Services Colorado: $50,559 $0 $40,000 $80,000 $120,000 $160,000 Sources: Bureau of Labor Statistics and Colorado Department of Labor and Employment.
Employment Index Colorado Mining vs. Colorado Total January 2000 = 100 260 240 220 200 180 160 140 120 100 80 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Bureau of Labor Statistics, CES (SA). Mining All Industries
Colorado vs. Mining Employment Months to Recovery Percent 12.0 9.0 6.0 Mining 3.0 0.0-3.0 Colorado -6.0-9.0-12.0-15.0-18.0-21.0-24.0 0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 Number of Months Since Colorado Peak Source: Bureau of Labor Statistics (Seasonally Adjusted).
Colorado Energy Production By Source (Trillion Btu) Colorado Energy Production By Source 3000 2750 2500 Renewable Energy Recessions 2250 2000 1750 1500 1250 Natural Gas 1000 750 500 Crude Oil 250 Coal 0 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Source: U.S. Energy Information Administration
Colorado s National Energy Ranking Colorado s Energy Rank Energy Source Rank Coal 11 Natural Gas 5 Crude Oil 9 Nuclear No rank Renewable 27 Total 7 Source: U.S. Energy Information Administration
Natural Resources and Mining Output and Value 2004=100 220 200 Indexed Colorado Output 2004-2013 Crude Oil 205.3 2004=100 500 450 Indexed Value of Colorado Production 2004-2013 Crude Oil 478.7 180 400 160 140 120 Natural Gas 150.3 350 300 250 200 Coal 231.7 100 80 Coal 79.1 150 100 Natural Gas 81.0 60 2004 2006 2008 2010 2012 Sources: Colorado Geological Survey Mineral and Mineral Fuel Activity Reports, Colorado Oil and Gas Conservation Commission, Department of Minerals and Geology, Colorado Mining Association, and Colorado Business Economic Outlook Committee. 50 2004 2006 2008 2010 2012
Oil and Gas Industry Direct Employment and Wages Source Employment Employee Compensation (Millions) Drilling 2,402 $208.1 Extraction and Support Activities 26,853 $3,412.9 Petroleum Refineries 501 $65.0 Transportation 801 $93.0 Gasoline Stations 14,062 $290.3 All Other 6,611 $430.0 Total 51,230 $4,499.3
Economic Impact Direct, Indirect, and Induced Source Employment Compensation (Millions) Value Added (Millions) Output (Millions) Drilling 4,935 $319.17 $1,054.36 $1,556.59 Extraction and Support Activities 67,572 $5,520.71 $9,580.08 $18,701.75 Petroleum Refineries 4,746 $245.89 $1,133.73 $4,789.86 Transportation 2,889 $178.85 $263.18 $791.88 Gasoline Stations 18,646 $466.24 $1,000.47 $1,649.90 All Other 12,688 $687.31 $1,194.55 $2,078.18 TOTAL 111,476 $7,418.16 $14,226.37 $29,568.16
State Oil and Gas Revenues Oil and Gas Contributions to Colorado Public Revenues By Source 0% 10% Severance Property Leases Royalties Personal Income Corporate Income Sales Taxes COGCC Tax 32% 1% 6% 36% Source: University of Colorado Business Research Division. 10% 5%
Natural Resources Disbursements Total Disbursements, in thousands $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Source: Department of the Interior, Office of Natural Resources Revenue.
Severance Tax Revenue 12-Month Rolling Sum, in thousands $350,000 $300,000 55 Months $250,000 $200,000 30 Months $150,000 $100,000 $50,000 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Colorado Department of Revenue.
Colorado Property Tax Revenues Millions $7,100 Percentage 12% $6,900 $6,700 Colorado Total Property Taxes Est. Percentage from Oil and Gas 10% $6,500 8% $6,300 6% $6,100 $5,900 4% $5,700 2007 2008 2009 2010 2011 2012 2% Source: Division of Property Taxation, Colorado Department of Local Affairs, 2007-2011 Annual Reports. Note: Property tax estimate from BRD, and excludes municipal levy.
Economic Impact Summary $29.6 billion added to Colorado economy in 2012 Oil and gas production totaled $9.3 billion in 2012 Natural gas 51% Oil 46% Carbon dioxide 3% 3,773 approved drilling permits in 2012 Down 19% from 2011 Total employment estimated at 111,476 in 2012 1.9% of Colorado s total employment $3.8 billion paid to workers across the state 2.8% of Colorado s total earnings
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