Four officials of the Colorado State government introduced Senate Bill 24-159 on February 13, 2024. The four sponsors are Senators Sonya Jaquez Lewis (D17-Boulder – Boulder, Broomfield and Weld Counties) and Kevin Priola (D13-Henderson – Adams and Weld Counties), and House representatives Andrew Boesenecker (D53-Ft. Colins – Larimer County) and Julia Marvin (D31-Thornton – Adams County). This bill BANS all new oil and gas drilling by 2030 in Colorado.
Colorado is one of the top states for oil and gas production. According to the American Petroleum Institute Colorado contributed more than $48 billion to Colorado’s gross domestic product in 2021 which was 11.2% of the state’s total gross domestic product (GDP). The industry according to PricewaterhouseCoopers supported more than 300,000 jobs which provided $34.1B in labor income which was 7.7% of total employment in Colorado.
The sponsors claim it is needed to control climate change and address “adverse health impacts”. A spokesperson for the governor stated he was not consulted on this proposal, nor has he reviewed it.
Ninety-four Colorado School districts received property tax revenue estimated at $432 million in 2022 from oil and gas production. These districts represent 52% of all students in Colorado and are predominately small school districts located in rural areas.
Weld County received the most property tax revenue from oil and gas in 2022, $887,501,665, 61.3% of their total property tax revenue. Both Jaquez Lewis and Priola represent this county.
Broomfield County received property tax revenue from oil and gas in 2022, $8,392,367, 7.5% of their total property tax revenue. Jaquez Lewis represents this county.
Adams County received property tax revenue from oil and gas in 2022, $76,345,299, 6.2% of their total property tax revenue. Marvin represents this county.
Larimer County received property tax revenue from oil and gas in 2022, $21,758,116, 3.1% of their total property tax revenue. Boesenecker represents this county.
Boulder County received the least property revenue from oil and gas in 2022, $458,128 which is .05% of their total property revenue. Jaquez Lewis represents this county.
Colorado already is one of the most expensive places to live in the United States. The cost of living is 6% higher than the national average, housing is 20% higher, and groceries and clothing are both 3% higher than the rest of the country.
If SB24-159 passes, future drilling will be stopped. Over time production will decrease; whereas more oil will need to be transported in potentially causing the gas price at the pump to increase. Currently in March the Colorado average regular gas price is $3.077 per gallon and the mid-grade gas price is $3.443 per gallon. Unemployment will increase due to the loss of oil and gas jobs. The loss of oil and gas property tax revenue will likely cause other property taxes to increase to offset the loss of revenue for schools.
Is this the beginning to the end of the oil and gas industry in Colorado?
Colorado Senate Bill 24-159: https://leg.colorado.gov/bills/sb24-159
Other sources:
Oil & Gas Industry Blog: Vive La Frack! 