Increased US oil and gas production has created opportunities and challenges for local governments. Through interviews with roughly 250 local officials, we evaluate the fiscal effects of this development in 21 regions across every major US oil and gas producing state during “boom” and “bust” periods. Growing oil and gas production has increased local government revenues through a variety of mechanisms, including property taxes, sales taxes, severance taxes, and more. Industry activity has also increased costs and demand for local services led by road damage, water and wastewater infrastructure, and a range of staff costs including emergency services and law enforcement. Despite volatility in revenues and service demands, our interview results show that 74% of local governments have experienced net fiscal benefits, 14% reported roughly neutral effects, and 12% reported net fiscal costs. Local governments in highly rural regions experiencing large-scale growth have faced the greatest challenges. To further improve future outcomes, local officials can plan for impacts, state policymakers can re-examine revenue policies, and operators can pursue collaboration with local governments.
Could Blockchain Technology Improve Water, Wastewater, and Solid Waste Management in the Oil and Gas Industry?
Workshops & Seminars
Economic Volatility in Oil Producing Regions: Exploring Impacts and Public Policy Responses
Examining regional impacts of oil volatility and potential avenues for federal intervention to support producing communities
Reducing Risk in Merchant Wind and Solar Projects through Financial Hedges
We explore the risks and costs of financial hedges in renewable energy.