UTAH PETROLEUM ASSOCIATION
My Image

ECONOMIC IMPACT

Utah's oil and gas industry has a huge positive impact on the State's economy. Both the upstream and downstream segments of the industry provide high paying, quality jobs as well as much needed tax and royalty revenues for local, state and federal governments. Supporting the State's oil and gas industry is a very large support infrastructure supplying additional jobs and economic development.

50 percent of the royalties the State’s oil and gas industry pays to the federal government for production on federal lands is returned to Utah in the form of mineral lease payments. The mineral lease monies are divided statutorily to UDOT and local governments for energy supporting infrastructure and to mitigate the impacts our industry has on local communities. That money also goes to build numerous community projects that benefit all residents.

Through royalties on production from School Trust Land parcels, our industry is the single largest contributor to the State's Permanent School Fund. The principal on that Trust has grown dramatically over the past two decades, largely due to increased oil and gas development in the State. The interest from that Fund is distributed each year with every public school in the State getting a check to be used as they, in consultation with parents, choose.