"Overwhelming," is the word Wyoming Business Alliance/Wyoming Heritage Foundation President Bill Schilling used to sum up the results of a new study that examines oil and gas activity as an engine of state economic activity.
Consider the following:
* In 2007, one in five Wyoming jobs was tied to the oil and gas industry, according to the Wyoming Business Alliance/Wyoming Heritage Foundation report. More than 73,000 jobs were either directly or indirectly related to oil and gas activity.
* Interestingly, the largest combination of direct and indirect employment wasn't in the oil and gas industry. It was in government, including schools.
The study found the mining sector, including oil and gas, employed 17,146 workers directly and indirectly 855 in 2007.
But "downstream" employment in government was estimated at 25,149. This represented nearly half of all induced and indirect employment created by oil and gas activity.
* Aside from employment, the study found the industry was responsible for $18.6 billion in direct and downstream economic output, or about a third of the state total. It also contributed about 43 percent of the state gross product.
* In terms of direct revenues, the oil and gas industry accounted for $13.2 billion in 2007. This figure did not include downstream revenues of supporting industries and household spending, or extraction tax payments.
* The industry paid an estimated $2 billion in royalties and taxes to state and local governments.
Schilling said this is the first comprehensive economic study of the state's oil and gas sector. He added that similar analyses would be useful for other industries.
"We don't really know where we are with our economy," he said.
The study was conducted by the consulting firm Booz Allen Hamilton. The aim was to evaluate oil and gas impacts in terms of employment, income, gross revenues and taxes.
The estimated oil and gas employment multiplier is 3.65, meaning that for each direct job, there's a total of 3.65 direct and downstream jobs.
Schilling noted employment figures in the study are higher than statistics calculated by the Wyoming Department of Employment. Unlike the state figures, these include farm employment, people who are self-employed and small-business owners.
A review team of people from a variety of sectors commented on a draft version of the report, Schilling added.
"It was a wonderfully dynamic process," he said.
Holly Bender, lead investigator on the project, said the study describes downstream industries affected by oil and gas, and the extent to which government relies on the industry.
"It shows vulnerabilities associated with oil and gas in that it's such a large portion of Wyoming's economy," she said.
Business Editor Tom Mast can be reached at tom.mast@trib.com, or call 307-266-0574.
Selected employment impacts of oil and gas
Sector Direct Downstream Total
Government 0 25,149 25,149
Mining (includes oil and gas) 17,146 855 18,001
Retail trade 0 4,893 4,893
Health care & social assistance 0 3,801 3,801
Accommodations & food service 0 3,548 3,548
Wholesale trade 0 2,748 2,748
Professional & technical services 0 2,086 2,086
Construction 1,177 543 1,720
Finance & insurance 0 1,388 1,388
Source: Booz Allen Hamilton, Wyoming Oil and Gas Economic Contribution Study
Sector Direct Downstream Total
Government 0 25,149 25,149
Mining (includes oil and gas) 17,146 855 18,001
Retail trade 0 4,893 4,893
Health care & social assistance 0 3,801 3,801
Accommodations & food service 0 3,548 3,548
Wholesale trade 0 2,748 2,748
Professional & technical services 0 2,086 2,086
Construction 1,177 543 1,720
Finance & insurance 0 1,388 1,388
Source: Booz Allen Hamilton, Wyoming Oil and Gas Economic Contribution Study]]>
Print this story
E-mail this story
Rate this story
Reader Comments
Comments to this story.
wonders wrote on Aug 26, 2008 1:38 PM:
Seems we study stuff to death at the cost of doing good. Some 2nd grader could probably have told you that oil and coal are big in Wyoming. "
Whatever wrote on Aug 26, 2008 4:28 PM:
It is very obvious, despite what many of the commenters on this site would say, that oil and gas does dominate our economy. There is little doubt that a pretty aware and up to date second grader could make this conclusion. The point here though, was to quantify and specifically spell out and show what the impact of oil and gas is to this state. Putting hard numbers to something always brings reality out much better than some generalized notion of things. This study should emphasize and reinforce the size and importance oil and gas has to or everyday lives in Wyoming good and bad. It should help wake us up and realize how important it is to seize this opportunity to grow and diversify the state's economy.
Despite what some might say, the price of oil will inevitably crash and burn. How long that is in the future no one knows, but we need to be ready for it whenever that day comes. "
Stephanie wrote on Aug 26, 2008 4:50 PM:
Common Cents wrote on Aug 26, 2008 8:00 PM:
Wyo Boy wrote on Aug 26, 2008 8:07 PM:
A note to the Republican leadership that reads this site. Quit growing government and learn to "just say no!" Ladies and gentlemen of the legislature, you're not living up to your fiscally conservative priciples. It's time to pull your heads out! "
BULL wrote on Aug 27, 2008 7:49 AM:
Richard G wrote on Aug 27, 2008 8:15 AM:
Submit a Comment