Tuesday, December 30, 2014

Does Colorado Economy Go Down In Oil Price Bust?

Oil below $60 a barrel priced at Brent crude will be a huge boom for American consumers and boost for the economy. Analysts describe the price drop similar to a $125 billion tax cut in 2015 or about $550 to $1,000 more to spend on items other than gas.

But it will affect gas and oil producing states. Colorado is not as dependent on oil and gas production for either tax revenue or as a percentage of employment and salaries as eight other states. But it’s on the cusp and Downtown Denver would certainly along with selected Western Slope counties see layoffs and slowdowns.

The eight states that will be hit the hardest start with North Dakota, Texas and Wyoming because of the significance gas and oil exploration is to the economy and to state and local tax revenue.
In Colorado, Weld County is the state’s Saudi Arabia and it will see an impact depending on how long the price stays below $60 which is near the breakeven point for hydraulic fracking on the Niobrara basin. The Western Slope counties of Garfield (Glenwood), Mesa (Grand Junction), and Rio Blanco will also see an affect.

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