New Study: Ventura County Oil and Gas Industry Provides Enormous Value to Local Economy
$50 Million in Tax Revenues and More Than 2,000 Good Paying Jobs for Working Families
Ventura, CA – A recent study by Capital Matrix Consulting reveals that oil and gas production in Ventura County contributes to the county’s economic and fiscal health due to abundant tax revenue, high-wage employment and consistent high production.
Ventura County faces budget pressures due to unfunded pension liabilities, state mandates, and added costs related to state/local realignment of financial responsibilities for health, social services, and public safety programs. The study concludes, “The loss of revenues due to curtailment or elimination of oil and gas production in the County would significantly reduce the limited amount of discretionary funds available to cover these budget pressures.”
According to Lead Author Brad Williams, the oil and gas industry contributes significantly to Ventura County tax revenues, including $21 million paid in taxes to local jurisdictions within the county this year. This revenue funds some of the most crucial services available to the public – schools, police, and fire departments. Further industry regulation will leave a significant shortfall in County revenues and impact local governments’ ability to cover pension liabilities.
The oil and gas industry provides good paying head of household jobs for working families in Ventura County. The study found that 2,100 total people in the County are employed by the industry, including 900 direct employees and additional contracted vendors. That number is projected to increase by 50% in the next five years. And, the average worker employed by oil producers makes $115,000 annually, more than twice the average for other private sector employees.
The study projects that in 2018, Ventura County’s oil and gas industry will be responsible for $760 million in economic output. Two years ago, Ventura County produced 7.7 million barrels of oil, accounting for 4% of the state’s total. The oil and gas industry in Ventura County is the fourth most productive in the state.
The study concludes that stopping oil production in Ventura County will have crippling fiscal effects on the local economy. Thousands of workers and their families will lose a significant source of income, local economic activity will plummet by potentially billions, and the County will lose out on tens of millions of tax dollars used to support education, public safety, transportation, and fire services. A ban on oil production in Ventura County will leave significant impacts on the fiscal health of the local economy along with thousands of its residents.
The oil and gas industry has been operating in Ventura County for more than 100 years and continues to provide safe and affordable energy for all Californians. CEI_Ventura_Final_Fiscal_Report
About Brad Williams
Brad Williams is a Partner at Capital Matrix Consulting. Prior to becoming partner, Williams was involved in economic forecasting, state budgeting and finances in Sacramento for over 32 years, serving in both the executive and legislative branches of state government.
About Capital Matrix Consulting
Capital Matrix Consulting provides a reliable source of expertise, insight and judgment on a wide range of fiscal, economic and policy issues facing California’s state and local governments to those affected by, or involved in their policies and operations.
About Ventura Citizens for Energy Independence (VCEI)
Ventura Citizens for Energy independence is a coalition that supports state and local policies that allow for continued domestic energy production and opposes those policies that hinder production and increase reliance on foreign oil. For more information, visit: venturacitizensforenergyindependence.com
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