S2_11-15-04

• Basin: Statewide
• Title: SWSI Phase 1 Report - Section 2 Statewide Demographic, Economic, and Social Setting
• Date: 11/15/2004
• Author: CWCB
• SWSI - Doc Type: Final Report

Section 2
Statewide Demographic, Economic, and Social Setting
2.2.4.3 Coal Production
Coal mining uses water primarily for dust control. The
amount of water used in coal mining is relatively
insignificant. According to the USGS, the production
value of Colorado coal in 2001 was approximately
$574 million.
Coal production has increased in Colorado in recent
decades according to the U.S. Energy Information
Administration. Nevertheless, based upon production
figures, Colorado is not considered a top coal producing
state. From 1970 to 2000, annual coal production in
Colorado increased from about 5 million short tons to a
little less than 30 million short tons. As a comparison with
the top producer, Wyoming produced 700 million short
tons of coal in 2001.
The Regional Economic Information System of the
Bureau of Economic Analysis provides historical
production figures, as shown in Table 2-17. The value of
coal production provided by the USGS differs from the
GSP figure provided by the Bureau of Economic Analysis
because different methodologies are used to estimate
the figures. USGS figures are based upon output
reported by producers.
Table 2-17 Colorado Coal Production
(Millions of Current Dollars)
•«f •'1 Ot! 81
GSP 211 194 177 222 202 230
Source: Bureau of Economic Analysis
2.2.4.4 Mining Gross State Product
The U.S. Department of Commerce's Bureau of
Economic Analysis reports that the GSP in Colorado
attributable to mining rose from $967 million in 1977 to
$3.1 billion in 2001 (in current or nominal dollars).
Table 2-18 is a summary of the mining component of
Colorado's economy from 1977 to 2001 relative to the
mining component of the U.S. economy GDP through the
same period.
The value of mining output in Colorado and total
Colorado GSP in real (chained) dollars is shown in
Table 2-19 on the following page. The GSP that is
attributable to Colorado mining, including coal mining
and oil and gas production, rose from $1.44 billion in
1986 to $2.45 billion in 2001 in 1996 dollars. However,
the relative percentage of the mining sector contribution
to the cumulative chained-dollar GSP for all industries in
Colorado has remained relatively stable over the same
period - between 1 and 2 percent, as shown in
Table 2-18.
2.2.4.5 Mining Employment
Employment in mining in Colorado accounts for a
relatively minor portion of the state's total employment.
Mining employment has declined from 1.7 percent of the
state's workforce in 1970 to only 0.8 percent in 2000.
Employment in mining is not a major component of the
Colorado economy, employing roughly 22,000 people in
2000. Table 2-20 on the following page illustrates how
mining employment increased from 1970 to 1985, and
then decreased from 1985 to 2000. The importance of
mining employment has fluctuated over the years but has
recently decreased, relative to the Colorado economy.
Table 2-18 Nominal GSP Attributable to Colorado Mining, Total Colorado Industry, and United States Mining from 1977 to 2001 in
Current Millions of Dollars
1977 967 25,229 54,008 3.8% 1.8%
1980 2,124 38,446 113,084 5.5% 1.9%
1985 2,129 59,050 135,323 3.6% 1.6%
1990 1,770 74,701 111,875 2.4% 1.6%
1995 1,586 109,021 95,651 1.5% 1.7%
2000 2,841 169,341 133,082 1.7% 2.1 %
2001 3,068 173,772 139,040 1.8% 2.2%
Source: U.S. Bureau of Economic Analysis: (www.bea.doc.gov/bea/regional/gspn.
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