Local Government Financial Impact of Oil/Gas Development

Since the mid-2000s, technological advances have led to a dramatic increase in natural gas and oil production from shale formations in the United States. With this increased production comes new revenue – and new costs – for local and state governments.

The Shale Public Finance project seeks to identify the key public finance issues facing local governments that are dealing with the shale boom. Led by Energy Initiative Director Richard G. Newell and Associate in Research Daniel Raimi, and with the support of the Alfred P. Sloan Foundation, the project has produced reports on new revenue and costs, and on revenue allocations. The research continues and more reports are planned.

Summaries of our findings to date can be found in the interactive map below.

Mobile users, click to open map in new window

Local government revenues and costs associated with oil and gas production

May 2014

This report reviews the major revenues, costs and net fiscal impact for county and municipal governments in eight states where large increases in oil and/or gas production have recently occurred.

Download an issue brief (.pdf)
Download the summary report (.pdf)
Download the full report (.pdf)

Oil and gas revenue allocation for local governments in eight states

October 2014

This report provides detailed analysis of how revenue from the oil and gas sector flows to local governments in Arkansas, Colorado, Louisiana, Montana, North Dakota, Pennsylvania, Texas and Wyoming.

Download an issue brief (.pdf)
Download the summary report (.pdf)
Download the full report (.pdf)

Project team members are traveling to key shale gas and oil production regions around the United States to investigate firsthand the impact on local government finance. We have traveled to “plays” including the Bakken in North Dakota and Montana, the Eagle Ford and Barnett in Texas, and the Haynesville in Louisiana. Our current research will take us to the rest of the major U.S. oil- and gas-producing regions.

Read about these trips on our travel blog.

More about the Shale Public Finance project:

Workshops:

More than a dozen experts and local officials came to Duke University in the spring of 2014 to discuss how they handled or are still managing key fiscal issues raised by shale oil and gas development. They were joined by experts on energy policy, economics, and law from across the United States, Duke University and North Carolina to discuss the roles local government, state policy-makers and industry play in helping communities manage shale development’s fiscal implications.

A second workshop is being planned for fall 2015.

2014 Workshop Presentations:

Mailing Address

Duke University Energy Initiative
Box 90467
Durham, NC 27708

Street / Delivery Address

Duke University Energy Initiative
140 Science Drive
Gross Hall, Suite 101
Durham, NC 27708

 
Sep
03
Location: West Campus Chiller Plant (Meet at Gross Hall atrium)
Time: 10:00 am to 11:45 am
Sep
03
Location: Building 09/CR 137, RTI International
Time: 3:15 pm to 4:45 pm
Sep
03
Location: The Foundry, ground floor, Gross Hall
Time: 4:30 pm to 6:00 pm
  • Associate in Research

    Daniel joined the Energy Initiative in 2012 after earning a master's degree in public policy from the Sanford School at Duke University.