Colorado could lose 1,000s of jobs, billions with 2,000-foot oil & gas setback, CU-Leeds study warns

Leeds_School_Of_Business_CU_Logo – Reporter-Denver Business Journal – January 8, 2015

A proposal floated in 2014 to push new wells 2,000 feet away from homes and buildings could lead to a 50 percent drop in oil and gas activity across the state, which would drop Colorado’s gross domestic product by as much as $6.4 billion a year and personal income to drop by up to $4.4 billion a year.

That’s according to a study released Thursday from researchers at the University of Colorado Leeds School of Business.

U.S. Rep. Jared Polis, D-Boulder, proposed the 2,000-foot setback last year in a ballot initiative he backed and later dropped.

The CU-Leeds study says that a 50 percent cut in new oil and gas wells also would lead to 49,000 fewer jobs across the state between 2015 and 2040.

The study, finished in September 2014, was based on oil prices that were already declining, but hadn’t yet reached the depths seen in more recent months. But the study offers some insight into how lower oil prices could affect Colorado’s energy industry.

Continue reading story at The Denver Business Journal

 

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