Proposed Colorado Rule Will Have Significant Economic Impact

Proposed Colorado Rule Will Have Significant Economic Impact

November 20, 2020

Recently the Colorado Oil and Gas Conservation Commission (COGCC), proposed setback restrictions on energy development in environmental areas. The proposed rule could cost the energy sector thousands of jobs and take hundreds of millions out of the state economy.

report done by the Common Sense Institute (CSI) shows how devastating the new rule will be for the future of Colorado.

“If the setbacks are implemented, the think tank estimates an average of 85,000 to 110,000 jobs would have been lost over the first 10 years, along with $7 billion to $9 billion in cumulative tax revenue.”

And the losses would not stop there, the Washington Examiner reports:

“Potential ripple effects include a $2.7 billion hit to the state’s gross domestic product (GDP), up to 22,000 jobs lost outside of the energy industry, and further damage to the commercial real estate industry.”

This is a great reminder of how important the energy industry is and disruptions to the sector affect the economy as a whole. If the setbacks were implemented, Coloradans would not only lose thousands of jobs but also hundreds of millions in tax revenue; which goes towards schools, infrastructure, and other vital programs throughout the state.

Now more than ever we must lift up the oil and gas industry and continue to support the hard-working men and women who provide reliable and affordable energy across the country. Imposing further restrictions and regulations will only hurt energy-rich communities nationwide and push increased costs onto American households currently desperate for relief in this time of economic uncertainty.