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Two State Studies Tout Oil And Gas Economic Benefits

Richard Nemec | Natural Gas Intel

03 APR 2014

Separate academic studies in California and Colorado emerged Tuesday supporting the macroeconomic benefits of oil and natural gas development and warning against bans on hydraulic fracturing (fracking).

The California Policy Center's (CPC) new study by a University of Wyoming economist concluded that the state's energy development has a net positive impact in the form of thousands of added jobs and billions of dollars of tax revenues. A separate study by the University of Colorado (CU Boulder) Leeds School of Business research arm warned that a proposed statewide ban on fracking could cost jobs and reduce gross domestic product (GDP).

Wyoming economist Tim Considine used conservative estimates, according to the policy center, a nonpartisan think tank in Orange County, in determining that average annual employment gains between 67,000 and 299,000 are attached to more offshore oil drilling and onshore development of the Monterey Shale, leading to annual state and local tax gains in the range of $1 billion to $4.5 billion.

Noting that at least two Southern California cities have enacted (Carson) or proposed (Los Angeles) bans on fracking, CPC Executive Director Ed Ring said the Considine study supports the contention that the timing is right "to safely capitalize on developing the valuable oil/gas resources available in the state," with an emphasis on the potential of the Monterey Shale.
Colorado's pro-industry organization, which is fighting proposed fracking bans, Coloradans for Responsible Energy Development (CRED), called attention to the report out of the business school at CU Boulder, "Hydraulic Fracturing Ban: The Economic Impact of a Statewide Fracking Ban in Colorado," as estimating the loss of 93,000 jobs and up to $12 billion in GDP from a fracking ban.

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