Recently, a question was posed: Should we be thrilled about the oil and gas boom in Colorado?
As the largest energy sector in Colorado, Weld County is extremely thrilled about the oil and gas industry’s investment in the state and, specifically, in our county.
To date, Weld County has roughly 18,000 oil and gas wells. Those wells support approximately 4,000 jobs and generate just under $50 million of tax revenue for the county annually.
Oil and gas companies are moving jobs to Weld County on both the field and executive levels. During the past decade, Weld County was named one of the fastest-growing counties in the nation, and the job growth spurred by the energy industry will continue to fuel that growth. In fact, Weld County’s job-growth rate from 2009 to 2010 was the 11th-highest among the nation’s counties, according to the U.S. Bureau of Labor Statistics.
In addition to job growth, wages have increased within the county. According to census estimates, the median household income in Weld County has increased over the past nine years, surpassing the median incomes of neighboring northern Colorado counties, which have declined during that same time.
Three of the fastest-growing municipalities in the state are located in Weld County. Frederick and Firestone have grown more than 400 percent during the past decade, while Severance has increased its population by 250 percent. Property values within the county have also increased — 138 percent in the past 10 years.
Weld County, however, isn’t the only benefactor of the oil and gas boom. Coloradans should also be thrilled about the oil and gas activity within the state.
A recent sale of mineral rights for federally owned land in Colorado brought in $2.9 million — 49 percent of that total goes to the state.
The severance taxes collected on nonrenewable natural resources also benefit the state. In fact, the oil and gas industry pays more than 95 percent of the state’s severance tax. The state’s budget crisis has been eased the past two years primarily by the severance taxes paid by the oil and gas industry.
Tom Clark, chief executive for the Metro Denver Economic Development Corporation, noted that without Weld County’s energy cluster, Colorado’s current unemployment rate would be a full percentage point higher than it is today.
Long term, the oil and gas industry could add approximately $4 billion to Colorado’s economy.
The buried treasure under Weld County’s soil is a strong boost for the state’s economy and is keeping Colorado competitive. It is also making our nation stronger.
President Obama, in his 2011 energy security speech, said, “It is time to do what we can to secure our energy future … our best opportunities to enhance our energy security can be found in our own backyard.” He continued by saying, “Meeting this new goal of cutting our oil dependence depends largely on two things: finding and producing more oil at home, and reducing our dependence on oil with cleaner alternative fuels … .”
Weld County is proud to be home to both traditional and alternative energy resources: the oil and gas rich Wattenberg Field and Niobrara Play, the Niobrara Energy Park, and Cedar Creek wind farms.
The Niobrara Play was discovered in early 2010, and the full benefits of this resource are yet to come, but they are coming. And those benefits, along with Weld County’s affordable housing, job opportunities, good wages and no county sales tax, are exciting. And did we mention Weld County has no debt? Make no mistake, Weld County’s economy is thriving — and that is thrilling!
Barbara Kirkmeyer is chair of the Weld County Commission. Also signing this guest commentary were commissioners Sean Conway, David Long, William Garcia and Douglas Rademacher.
