News Release

Utah’s economy benefits from a large and changing energy industry

February 11, 2020 (Salt Lake City) – The Kem C. Gardner Policy Institute today released a study that shows Utah’s energy industry supports 76,425 jobs, contributes $9.4 billion in gross domestic product, and pays $4.3 billion in earnings into the Utah economy. These significant impacts, along with Utah’s relatively low energy prices, occur at a time when rapid advancements in technology and a global energy revolution are spurring new opportunities for renewable energy. Electricity generation from renewables in Utah increased five-fold since 2008, making Utah the fifth-largest producer of utility-scale solar electricity in the United States.

“Energy is fundamental to the functioning of a modern economy,” said John Downen, deputy director of economics and public policy at the Gardner Institute. “It enables every production process, whether of goods or services, and facilitates practically every human endeavor. By understanding the diversity and economic impacts of our energy economy, we can be better prepared for the future as transitions in energy trends and technologies continue.”

While 2017 coal production in Utah was 40% lower than in 2008 and the share of fossil fuels in electricity generation shrank from 98% to 86% over the same period, electricity generation from renewable sources increased fivefold. In 2017, Utah was the fifth-largest producer of utility-scale solar electricity, accounting for 4.1% of U.S. solar generation.

“Too often when we talk about Utah’s nation-leading economy we fail to recognize the major contributions of Utah’s energy industry, including energy companies, leaders, workers, and counties,” said Natalie Gochnour, director of the Gardner Institute. “Utah’s coal, oil, natural gas, and renewable energy companies deliver low energy prices for Utah consumers, provide needed economic opportunity in rural Utah, and help explain Utah’s best-in-the-country economic diversity.”

Other key findings from the report include:

  • GDP—Utah’s energy industry contributed $4.9 billion to the state’s GDP, 3.0% of the total.
  • Additional Impact—Energy industry purchases supported an additional 37,911 jobs, $2.3 billion in earnings, and almost $4.5 billion in state GDP. The energy industry’s total economic impacts in Utah in 2017 included 76,425 jobs, $4.3 billion in earnings, and $9.4 billion in state GDP.
  • Earnings—Average earnings (excluding energy efficiency jobs) were $81,257 per annum, 60% higher than the statewide average for all industries.
  • State and Local Fiscal Impacts—Direct energy-related royalties, severance taxes, conservation fees, property taxes, and sales taxes totaled $492.1 million in 2017.
  • Low Retail Energy Prices—Prices range from 6% to 23% below the national average for most energy users. At our current consumption levels, if we were paying national average prices Utahns would pay $578.4 million more for electricity and natural gas. Because of these low prices, state GDP is about 0.4% larger than it would have been under national average prices, employment is about 0.3% higher, and earnings are about 0.7% higher.

The full report is now available online.