Local Fiscal Effects of a Drilling Downturn: Local Government Impacts of Decreased Oil and Gas Activity in Five US Shale Regions
After a downturn in drilling, most local governments in Colorado, North Dakota, Pennsylvania, and Texas continue to benefit from oil and gas development.
- Government revenues and demand for services have declined, but are higher than they were before the shale revolution.
- Local governments have become more reliant on oil and gas revenues, exposing them to risk from a volatile revenue source.
- Some local governments in Texas and North Dakota now face challenges managing debt amidst revenue volatility.
- Revenue for many small local governments in Pennsylvania have doubled as a result of the state’s Impact Fee.
- Fiscal impacts for most governments along Colorado’s economically diverse Front Range have been minor.
Daniel Raimi is a fellow and director of the Equity in the Energy Transition Initiative at RFF. He works on a range of energy policy issues with a focus on tools to enable an equitable energy transition.
Richard G. Newell
President and CEO, Resources for the Future
Dr. Richard G. Newell is the President and CEO of Resources for the Future. From 2009 to 2011, he served as the administrator of the US Energy Information Administration, the agency responsible for official US government energy statistics and analysis.
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