Study: Energy boom’s boon is temporary

A new study from a regional nonprofit research group is questioning whether energy development does more long-term economic harm than good for host counties.

The 31-year study stipulates that short-term development can have a strong positive impact on employment and income that breaks down over time.

“When fossil-fuel development plays a role in a local economy for a long period of time there are negative effects on per capita income, crime rates and educational attainment,” the executive summary for the study by Bozeman, Mont.-based Headwaters Economics said.

The study looked at Colorado, Wyoming, Montana, New Mexico, North Dakota and Utah and determined the following outcomes:

* For counties that participated in the early 1980s oil and gas boom, per capita income declines with longer specialization.

* The longer the duration of oil and gas specialization, the higher the crime rate.

* For counties that participated in the early-1980s oil and gas boom, educational attainment declines with longer specialization.

“These findings contribute to a broader public dialogue about the consequences of resource specialization involving oil and natural gas and call into question the assumption that long-term oil and gas development confers economic advantages upon host communities,” the study stated.

“On average, counties that participated in the early 1980s boom experienced greater declines in socioeconomic performance with each year in which oil and gas income was above average,” the study stated.

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