There is not a single challenge related to the development of Colorado’s oil and gas resources that can’t be solved with the smart application of technology; an arbitrary ballot initiative like Proposition 112 is not our answer. Technology continues to propel the shale oil and gas revolution, accompanied by a host of benefits, and it is with technology that we will find the solutions for any negative impact of oil and gas development.
At Altira Group, a 20-year-old oil and gas venture capital firm based in Denver, we are actively investing in the small, innovative companies that are driving the technology renaissance of shale oil and gas basins. Every day, we consider investing in companies with new applications of technology that promise to eradicate emissions, eliminate noise, reduce footprint, improve safety, cut costs and increase production, all of which and more is required in a highly competitive, global industry of which the U.S. is the leader.
Innovation is not unique to Silicon Valley. There is an amazing group of people here in Colorado coming up with real innovation to propel the oil and gas industry forward. Oil and gas is the most data intensive industry on the planet, and many of the scientists and engineers developing products and services that rely on advanced data analytics, artificial intelligence, automation and robotics are your Colorado neighbors. All of us choose to live in this state and are proud to be contributing to the technological innovation required to progress the industry and improve our collective quality of life.
It is exactly this innovation that is directly responsible for U.S. leading the world in total CO2 emissions reduction, for example. Between 2005 and 2017, the U.S. reduced emissions by 12.5 percent on an absolute basis and 19.9 percent on a per capita basis. This 758 million metric ton decline is greater than any other country in the world and has been largely driven by the use of unconventionally-sourced shale gas as a replacement for coal in power production. Moreover, we are seeing technologies on the horizon that claim to completely eliminate all CO2 emissions from the use of oil and gas.
The shale revolution is also a uniquely American story driven by independent oil and gas companies applying technology to the challenge of extracting oil and gas from tight rock – and supported by private ownership of mineral rights and entrepreneurial can-do attitudes. A recent Harvard Business School/BCG report estimates that the U.S. economic impact of shale oil and gas development will be nearly half a trillion dollars in the coming years (not including indirect and induced impact), currently supporting more than 2.7 million American jobs that pay, on average, two times the median U.S. salary. Take a moment to appreciate the value that has been created by the technologists and entrepreneurs of the oil and gas industry locally, statewide and on a national scale.
The wealth creation brought about by the oil and gas industry is shared widely and includes some eight million royalty holders across the country as well as oil and gas company shareholders, oil and gas company employees, schools and governments. The list of beneficiaries is extensive, and we should all take seriously the economic impact on our state that has been studied by the Common Sense Policy Roundtable and others. Colorado is a long-time recipient of the wealth that oil and gas technology has created.
The remarkable story of unconventional shale in the U.S. has completely changed the narrative of energy in our country — and in developing countries around the world, as we all are able to expand our access to cheap and abundant energy. In 10 years, we have transitioned from a nation dependent on external sources of energy to a country that is the largest producer of crude oil in the world, with several hundreds of years of natural gas reserves. This is one of the largest turnabouts in our economic history and is an under-appreciated story of the power of technology and innovation. We should not let the discussion on this important piece of our future here in Colorado be directed by an ill-advised and deceptive proposition on this year’s ballot. We urge you to vote against Proposition 112 and for innovation.
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