Oil, gas booming in Utah
'Extractive industries' poised to post 50% jump in total sales value
By the end of 2005, Utah is expected to see the total sales value for oil, gas, minerals and coal reach $6.3 billion, a 50 percent increase from $4.2 billion in 2004, and the largest amount in the 40 years the state has been tracking the number, according to John Baza, director for the Utah Division of Oil, Gas and Mining.
The figures encompass the sales value of produced crude oil, natural gas, minerals, coal and metals.
"It's the biggest number I've seen, and I've been working in Utah now since about 1984," Baza said. "As product is produced and purchased in the state, people are paying taxes on that. Revenue streams and livelihoods are dependent on those kinds of numbers. There are people who are receiving income because they are working on those projects."
Baza said the state approved 1,600 applications for well permits in 2005, up from about 1,100 in 2004.
In a statement released Wednesday, Gov. Jon M. Huntsman Jr. attributed much of the excess revenue in the state's budget to "recent robust activity in the extractive industries."
Huntsman said the collection of severance taxes and mineral lease monies far exceeded estimates, assisting efforts to fund education and transportation.
And with the monthly average wage of mining jobs in Utah at $4,609, according to the mining division, the industry is a significant economic engine of growth for the state.
"These jobs are safer, higher-paying and offer steady employment," Huntsman said. "Mining brings greatly needed, positive economic development to our more rural areas of the state."
Though production sales values for 2006 will depend on a number of economic factors, including the pricing of commodities, Baza said that he would not be surprised to see the number reach $7 billion. He said most of the increase would take place in the oil and gas industries.
Baza also said there is potential for growth in the oil shale, tar sands and uranium industries, which could further boost the figures for coming years.
E-mail: danderton@desnews.com
Comments
- Papers plan boycott of Britney show 10:50 a.m.
- A look at the world in pictures 10:41 a.m.
- Arrests in near dragging of officer 10:35 a.m.
- Myths harmless, unnecessary 10:17 a.m.
- Reactions on Boozer speculation 10:15 a.m.
- Obama and pope hold first meeting 10:11 a.m.
- Stocks falter 10:10 a.m.
- Springville may allow chickens 10:08 a.m.
- Man admits slaying in cold-case 10:07 a.m.
- Armstrong drops to 3rd at Tour 10:04 a.m.
- Jazz talking Boozer trade?
- Stadium of Fire flag burning was fake
- Jazz in back of line for free agents
- Okur signs two-year extension
- A primer for the 6th Potter film
- Jazz won't meet Lopez on Europe trip
- Restaurant destroyed by fire
- Mall owner seeks to retain zoning
- Jazz rally for OT win at Orlando
- AK will not play for Russia this summer
- Bronco collecting a galaxy of recruits
140 - Letters: Palin mistreated
137 - Teachers struggle with district cuts
135 - Blazers may offer Millsap a contract
123 - Jazz talking Boozer trade?
110 - Fairness of BCS debated
81 - Moon landing: Let's hear from you
78 - Chaffetz eyes challenging Bennett
73 - Services bids farewell to Jackson
70 - Letters: Single-payer system best
69
By now you've probably read about the investigation that showed just how...
The photographs are mysterious, brooding, dark. They show dimples and...
Until you have fought a long corner going 30 MPH on ice, you really have no...
There have been chickens in our neighborhood in Springville for the more than...
Kevin is extremely qualified for this position and listens to the little...
Education (K-12) is generally a state's largest budget item. The Supreme...
A narrow snapshot in time and geography is meaningless. I can't believe the...
Did Michelle wear something inappropriate or man handle the Pontiff. I hear...
Bernick, keep drinking the Koolaide. You state that Conservatives are...
Since 1998 the Honda Civic GX has been recognized EVERY YEAR as the cleanest...
So, even if the issue is not "settled", does it mean we should not be better...
Yeah? Look at all the GOP still defending their dead and irrelevant party to...




You can be the first to comment on this story.