The contribution of any industry to an economy goes beyond the primary or direct activities of the businesses that make up that industry. Jobs creation, property and corporate tax payments to local jurisdictions, and royalties paid to individual and government agency mineral owners are only a small part of the economic importance of the oil and natural gas industry.
The energy industry is a large contributor to the state, county and local jurisdictions through royalties and property taxes. In 2014, Venoco paid more than $24 million in royalties to the State of California, and more than $33 million in royalties in 2013. These royalty payments – which vary based on oil prices— are paid into the General Fund used for education, corrections, public safety, and health and welfare safety net programs.
In addition to generating high-paying jobs at Venoco locations in Colorado and California, jobs are created in sectors that provide services to the industry including: engineering, environmental consultants, transportation firms, and material manufacturers. It is estimated that overall the energy industry creates about 3.6 indirect jobs for every direct job. This compares on average to half of a job created for every one job in the economy as a whole.
Venoco’s economic impact is widespread and directly benefits local communities where we operate. In Santa Barbara and Ventura counties alone, Venoco paid more than $7.2 million in 2014 in property taxes. These revenues are used to fund education, public safety and fire protection, to name a few.