CEA Report: Coloradans Saved Nearly $12.4 Billion Over 10 Years Thanks to Lower Natural Gas Prices

Consumer Energy Alliance Report Examines How Ballot Proposition 112
Threatens to Undo the Low-Cost Benefits Local Energy Production Has
Provided Colorado Families and Small Businesses

DENVER–(BUSINESS WIRE)–#CEA–The state with the Mile High City is also experiencing mile high savings
– in energy costs – a new report by Consumer
Energy Alliance (CEA) reveals.

Thanks to record energy production and safer, state-of-the-art
technologies, which has significantly reduced the price of natural gas,
Colorado households and businesses saved nearly $12.4 billion between
2006 and 2016, CEA said in a report released today. Residential users
saved over $4.3 billion and commercial and industrial users saved more
than $8 billion, the report, titled “The
Importance of Affordable and Abundant Oil and Natural Gas for Colorado,”
said.

The analysis examines how the shale revolution has helped families and
businesses statewide increase disposable income, job growth and economic
investment, as well as revitalize communities. Case in point: Aurora’s
city manager, in 2018, proposed a budget that included $1 million in oil
and gas property taxes to be set aside for affordable housing projects.

On average, each Colorado resident spent $2,681 for their energy needs
in 2016. While this may not seem like a lot to some, it is a lot for the
more than 10 percent of Coloradans who live in poverty, or more than
564,000 men, women and children. For those people living at or below the
poverty line that translates to at least 22 percent of their income
going toward energy expenses.

CEA’s analysis also found that the state’s oil and gas industries
support 232,900 workers, contribute over $31.4 billion to the state’s
economy and accounts for nearly 10 percent of gross state product,
supporting jobs in 50 the state’s 64 counties. Moreover, producers
contributed nearly $1.2 billion to state budgets via property, income
and severance taxes in addition to public land leases and royalties –
all of which helps funds municipal services including school, road
maintenance and safety. The State Land Board, for instance, has
distributed $1.4 billion in revenue from energy development to build and
support public schools over the last 10 years.

But should voters approve a proposed initiative, Ballot Proposition 112,
next month, the following could unfold:

• 54 percent of the state’s entire land surface would be made off-limits
  to oil and gas production, decreasing property and severance tax
  revenue and income from land leases and royalties
• Local tax revenues statewide would be reduced during the first year,
  from $459 million to $258 million – a 56 percent cut. Lost revenues
  could reach $1 billion by 2030.
• School funding would be reduced by 60 percent, with $230.3 million
  eliminated over a three-year period, according to a State Land Board
  estimation.
• Farmers who lease land to energy companies would lose a significant
  portion of their income, hurting the state’s agricultural sector
• Households would see their energy costs increase. On average, each
  Colorado resident spent $2,681 on energy needs in 2016. For the
  approximately 564,000 residents in poverty – that’s more than 10
  percent of the state’s population – that translates to at least 22
  percent of their income.
• States gasoline prices have sustained a 4.7 percent increase as access
  to local energy resources has been challenged; on-highway diesel has
  seen a 1.7 percent bump.

“Colorado has fast become one of America’s leaders in safe, economical
oil and natural gas production, rejuvenating communities statewide and
helping families and businesses of all sizes reduce expenses, growth and
prosper via abundant sources of locally-made, affordable energy,” CEA
Executive Vice President Andrew Browning, in Denver, said.

“Yet anti-development activists, funded by organizations from out of
state, are threatening our way of life by trying to eliminate the
production and transportation of these safe, affordable resources
despite Colorado having the strongest air and water regulatory framework
for oil and gas production in the nation. Their efforts threaten the
environment and offer no realistic solutions to how we meet growing
consumer demand, fund much-need municipal services and reduce costs for
those who need it most – all key points voters must keep in mind when
they cast their ballots in the coming weeks.”

To view the report, click
here.

About Consumer Energy Alliance

Consumer Energy Alliance (CEA) brings together families, farmers, small
businesses, distributors, producers and manufacturers to support
America’s energy future. With more than 500,000 members nationwide, our
mission is to help ensure stable prices and energy security for
households across the country. We believe energy development is
something that touches everyone in our nation, and thus it is necessary
for all of us to actively engage in the conversation about how we
develop our diverse energy resources and energy’s importance to the
economy. Learn more at ConsumerEnergyAlliance.org.

Contacts

CEA
Emily Haggstrom, 720-582-0242
ehaggstrom@consumerenergyalliance.org