A study released Thursday found that it’s unlikely consumers would be affected by putting an end to Colorado’s severance tax for oil and gas companies.
The Sonoran Institute, a conservation group, countered claims made by oil and gas companies that ending the 30-year tax break would raise prices in Colorado.
The study stated that Colorado produced 23 million barrels of oil in 2007 — “slightly more” than the amount the U.S. consumes in one day, not enough to affect prices.
The study also stated that there is little chance that ending the tax would increase the price of natural gas.
Proponents say ending the tax would free about $300 million to go toward scholarships and the environment.
Oil and gas companies are trying to scare consumers, said George Merritt, a spokesman for A Smarter Colorado.
“The oil and gas industry has tried again and again to cloud this issue in an attempt to keep a $300 million subsidy in Colorado,” he said.
However, opponents said ending the tax would have a direct effect on consumers.
“It’s going to be reflected at the pump. . . . It’s a tax that will have a clear impact on the consumers here,” said Dan Hopkins, a spokesman for Coloradans for a Stable Economy.
Christopher Sanchez: 303-954-1698 or csanchez@denverpost.com
