In his State of the Union address, President Obama underscored the importance of developing shale gas to jump-start the economy. Here in Colorado, industry is already safely and responsibly developing this enormous energy resource, but realizing the full potential of shale oil and gas will require that we continue to be smart, act responsibly and work together to protect the health and safety of our residents and natural resources.
We’re just now beginning to tap into the enormous potential of shale oil and gas development, thanks to the technological advances offered by horizontal drilling and hydraulic fracturing. Colorado controls 10 percent of the nation’s shale gas reserves and nearly 2 percent of its crude oil reserves, fuel that could provide clean power to our state and country for years to come. In the long term, increasing domestic production of oil and gas will lead to a more prosperous Colorado.
In Colorado, the oil and gas industry supports more than 107,000 jobs and contributes $31 billion to our state’s economy. Plus, the average oil and gas wage is twice that of the average Colorado job.
At a time when our economic recovery is still fragile, protecting and growing these jobs is critical. So, too, is generating revenue for state and local governments to build new roads, renovate schools, and hire more teachers, policemen and firefighters. The oil and gas industry is doing just that in the form of severance taxes levied on shale gas development. In Colorado, more than 90 percent of the state’s severance taxes are paid by industry — money that goes directly to counties and local municipalities and is also being used to support state conservation, remediation and water development projects. In total, the industry contributes more than $1.1 billion in annual revenues to the state and local governments.
As the president pointed out in his address, we don’t have to choose between our economy and the environment. One reason the industry has been so successful here in Colorado is that we’ve joined together to set careful parameters around development. We recognize that the opportunity afforded by this abundant resource must be pursued responsibly and cautiously, and we’re taking measures to address these concerns.
Last year, the Colorado Oil and Gas Association worked with the Colorado Oil and Gas Conservation Commission and many environmental groups to approve the most comprehensive hydraulic fracturing chemical disclosure rule in the country, promoting transparency in oil and gas operations.
To address growing concerns related to groundwater safety, we’ve worked with state regulators to implement best practices that prevent contamination in two critical areas: surface fluid management and well casing and cementing. Taking it a step further, we also implemented the first statewide voluntary groundwater-quality monitoring program for oil and gas operations in the country to give local communities the resources they need to hold us accountable.
Nowhere is the potential of shale oil and gas more apparent than right here in Colorado. Maintaining a business climate that supports this development will require that we continue working together, and industry is committed to doing our part.
Tisha Schuller is president and chief executive of the Colorado Oil and Gas Association.
