Study looks at oil & gas economics
by Cat Urbigkit, Pinedale Online!
August 26, 2008
The oil and gas industry in Wyoming significantly contributes to the Wyoming economy. According to a study conducted by Booz Allen Hamilton and commissioned by the Wyoming Heritage Foundation, oil and gas activities contribute:
• $18.6 billion in economic output or 32 percent of total economic activity in the state
• 43 percent of Wyoming’s Gross State Product
• 73,229 total employment or 20 percent of the employment in the state
• 25,149 oil and gas-related government employment, 38 percent of all government employment in the state
• $3.9 billion in labor earnings annually or 25 percent of the state’s total labor earnings
• Average annual earnings per worker for these activities are $53,000, which is 28 percent higher than the state average
• $2.0 billion in extraction tax revenue and over $62.8 million in sales and use taxes from development activities.
The report concludes that Wyoming’s oil and gas industry is a vital and significant economic driver of state’s economy.
For every job that the oil and gas industry directly employs, there are an additional 2.65 jobs created in downstream economic activity through businesses supporting this industry and employees spending their money in the economy.
There is considerable downstream state and local government and educational jobs and labor earnings associated with the substantial state and local taxes paid by the industry. This industry is unique in creating these types of considerable rollover employment and earnings effects in the Wyoming economy.
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