Foreign-made drilling rigs used in Colorado produce healthy gains for the state’s economy, according to a study released Tuesday.
Even if an imported oil and gas rig is staffed by a handful of foreign workers, it generates far more jobs for domestic workers and injects millions of dollars into local economies, said the study commissioned by the Colorado Oil and Gas Association.
“We did (the study) because of all the rhetoric and misinformation flying around in the media and the public domain,” said Greg Schnacke, executive vice president of the association.
The U.S. has a shortage of drilling rigs, and the recent importation of two Chinese rigs and crews to Colorado has generated some concern, including from U.S. Rep. John Salazar, D-Colo., who has said he’s worried about displacing U.S. jobs with foreign workers.
Yet the two rigs are staffed by just six to seven Chinese workers charged with setting up the units and helping run them until U.S. workers can be trained.
The industry study shows that even if an imported rig is staffed by 10 foreign workers, it generates 220 U.S. jobs, including 20 direct jobs at the drilling site and 200 oil-field support positions. The total payroll for the domestic employees is 64 times higher than wages paid to the foreign workers, according to the study.
“We saw all this rhetoric that the domestic economy was coming to a halt because of this anomaly,” Schnacke said. “What we found is just the opposite – these are wells that wouldn’t otherwise get drilled, and they are producing significant economic benefits.”
Staff writer Steve Raabe can be reached at 303-820-1948 or sraabe@denverpost.com.
