Oil Archives - Colorado-based Business and Economic Research

When you mention Greeley, Colorado some people think of the smell of money (the feedlots), others think of the Greeley Stampede, and some are reminded of their days in college at the University of Northern Colorado.

More recently, Greeley has gained notoriety as the leader of the state’s boom in oil production. In 2013 Weld County accounted for 81% of production for the state.

Between 2008 and 2013 oil production has almost tripled in Weld County, increasing from 17.6 million barrels to 51.9 million barrels. For this six year period, production at the state level more than doubled, rising from 29.6 million barrels to 64.1 million barrels.

Between 1999 and 2013 the total oil production for Rio Blanco and Garfield County was unchanged at 6.8 million barrels; however, production in this area was volatile during that period. In 2013 the combined total production of these two counties was the second largest for the state.

Between 1999 and 2013 oil production in the other 33 counties declined from 6.4 million barrels to 5.3 million barrels. Within this period, these 33 counties experienced significant volatility. Production increased in 14 counties, but decreased in 19.

Colorado has 28 counties where there is no oil production.

Boom in Oil Production for Weld County — Colorado Oil Production By Top Counties. Growth led by Weld County

In 2007 nine of the top ten states for proved oil reserves had an unemployment rate lower than the U.S. rate.

In 2012, nine of these top ten states had an unemployment rate lower than the U.S. rate, although the Colorado rate was lower by only 0.1 percentage points.

For the U.S., the gap between the 2012 and 2007 unemployment rate was 3.5 percentage points (8.1% – 4.6%). The percentage point gap for the top 10 states with proven oil reserves is:

5.1 California
4.2 Colorado
3.4 New Mexico
3.1 Utah
2.6 Wyoming
2.4 Texas
1.7 Louisiana
1.1 Oklahoma
0.9 Alaska
0.0 North Dakota

In other words, the economies in 8 of the 10 leading oil reserve states experienced faster reduction in unemployment rates, presumably in part because of the growth in the extractive industries. California and Colorado are the exceptions. For the state of Colorado, it is reasonable to ask the question, “Is Colorado’s high gap a result of more stringent regulation and growing opposition to fracking?”

Tag: Oil

Can You Say Boom in Oil Production for Weld County?

Proved Oil Reserve Leaders have Lowered Their Unemployment Rate Faster than U.S., Except for Colorado and California