DENVER (KDVR) — Colorado ranks among the most oil and gas-heavy economies in the nation, according to a new report.
The American Petroleum Institute released an annual report on the economic impacts of the oil and gas industry on all 50 U.S. states. Nationally, total operational and capital investment impacts of the oil and natural gas industry comprised 5.4% of U.S. employment and 6.4% of its labor income.
Oil and gas operations are heavily concentrated in several states including Colorado. The Centennial State is high on the list, ranking among the top 10 states for the number of jobs directly provided by the industry, the income and the direct value added.
Colorado’s oil and gas industry pays handsomely – it has the fourth-highest direct labor income among U.S. states with $15.4 billion paid to industry workers in 2021. Texas, California and Oklahoma alone have higher direct labor income.
The state also had the 10th-highest direct employment with 54,000, 10 times less than in Texas, and seventh for direct value added with $19.8 billion.
As a share of the state’s total employment impact, oil and gas represent 7.7% of Colorado’s employment. As a share of total labor income, it represents 12%.