Researcher produces detailed model of employment effects on energy production in Colorado’s Piceance Basin
Grand Junction, CO — Colorado Mesa University Professor of Economics Nathan Perry, PhD, released a two-part study that analyzes relationship between rigs, natural gas prices and employment in the Piceance Basin, and in the second part creates an economic impact model designed to measure the regional contribution of the oil and gas industry.
The study confirmed that for each change in rig count, employment changes by 208 jobs in the five county region of Mesa, Garfield, Rio Blanco, Delta and Moffat.
Perry was able to use the approach to measure county-level effects. Mesa County experiences a high-side effect of 122 jobs per rig while Delta experiences job effect of just 15 per rig. Garfield County gains per rig were measured at 70, with Moffat County and Rio Blanco County at 15 and 16 respectively.
“There is volatility in this sector, and the hope is the study provides local governments and businesses a planning tool to forecast for themselves based on rig counts and prices,” said Perry.
The study also determined a similar metric for measuring job gains and losses around the price of natural gas. Perry revealed that for every $1.00 change in price, as measured by the Rocky Mountain Opal Hub, employment changed by 1,183 jobs.
“In the case of natural gas prices, the biggest beneficiary is Garfield county whereas when it comes to rig counts Mesa County gains or loses the most,” said Perry.