"Overwhelming," is the word Wyoming Business Alliance/Wyoming Heritage Foundation President Bill Schilling used to sum up the results of a new study that examines oil and gas activity as an engine of state economic activity.

Consider the following:

* In 2007, one in five Wyoming jobs was tied to the oil and gas industry, according to the Wyoming Business Alliance/Wyoming Heritage Foundation report. More than 73,000 jobs were either directly or indirectly related to oil and gas activity.

* Interestingly, the largest combination of direct and indirect employment wasn't in the oil and gas industry. It was in government, including schools.

The study found the mining sector, including oil and gas, employed 17,146 workers directly and indirectly 855 in 2007.

But "downstream" employment in government was estimated at 25,149. This represented nearly half of all induced and indirect employment created by oil and gas activity.

* Aside from employment, the study found the industry was responsible for $18.6 billion in direct and downstream economic output, or about a third of the state total. It also contributed about 43 percent of the state gross product.

* In terms of direct revenues, the oil and gas industry accounted for $13.2 billion in 2007. This figure did not include downstream revenues of supporting industries and household spending, or extraction tax payments.

* The industry paid an estimated $2 billion in royalties and taxes to state and local governments.

Schilling said this is the first comprehensive economic study of the state's oil and gas sector. He added that similar analyses would be useful for other industries.

"We don't really know where we are with our economy," he said.

The study was conducted by the consulting firm Booz Allen Hamilton. The aim was to evaluate oil and gas impacts in terms of employment, income, gross revenues and taxes.

The estimated oil and gas employment multiplier is 3.65, meaning that for each direct job, there's a total of 3.65 direct and downstream jobs.

Schilling noted employment figures in the study are higher than statistics calculated by the Wyoming Department of Employment. Unlike the state figures, these include farm employment, people who are self-employed and small-business owners.

A review team of people from a variety of sectors commented on a draft version of the report, Schilling added.

"It was a wonderfully dynamic process," he said.

Holly Bender, lead investigator on the project, said the study describes downstream industries affected by oil and gas, and the extent to which government relies on the industry.

"It shows vulnerabilities associated with oil and gas in that it's such a large portion of Wyoming's economy," she said.

Business Editor Tom Mast can be reached at tom.mast@trib.com, or call 307-266-0574.

Selected employment impacts of oil and gas

Sector Direct Downstream Total

Government 0 25,149 25,149

Mining (includes oil and gas) 17,146 855 18,001

Retail trade 0 4,893 4,893

Health care & social assistance 0 3,801 3,801

Accommodations & food service 0 3,548 3,548

Wholesale trade 0 2,748 2,748

Professional & technical services 0 2,086 2,086

Construction 1,177 543 1,720

Finance & insurance 0 1,388 1,388

Source: Booz Allen Hamilton, Wyoming Oil and Gas Economic Contribution Study

Sector Direct Downstream Total

Government 0 25,149 25,149

Mining (includes oil and gas) 17,146 855 18,001

Retail trade 0 4,893 4,893

Health care & social assistance 0 3,801 3,801

Accommodations & food service 0 3,548 3,548

Wholesale trade 0 2,748 2,748

Professional & technical services 0 2,086 2,086

Construction 1,177 543 1,720

Finance & insurance 0 1,388 1,388

Source: Booz Allen Hamilton, Wyoming Oil and Gas Economic Contribution Study]]>