PIO, Utah Geological Survey
Energy and Mining Industries Contributed Over 10% to Utah’s Total Gross Domestic Product
SALT LAKE CITY (December 13, 2022) – Utah’s energy and mining industries contributed over 10% to the state’s gross domestic product (GDP), supported over 6% of total jobs, and contributed a significant 20% to Utah state tax revenue (data from 2019) according to a new study commissioned by the Utah Geological Survey and completed by Utah State University’s Department of Applied Economics.
Utah is fortunate to have abundant and diverse energy and mineral resources, including large reserves of conventional fossil fuels, several areas suitable for renewable resource development, and vast quantities of vital mineral resources needed for all aspects of modern life. However, effectively managing these energy and mineral resources and their associated supply chains requires knowledge of their economic value and how they currently contribute to Utah’s economy.
“The energy and mining industries are important contributors to Utah’s economy. In particular, the upstream segments of these industries are deeply rooted in rural areas of the state. In addition, the mining industry will only become more important as energy sources evolve and society becomes more reliant on electricity and power storage, which depend on lithium, copper, tellurium, indium and more,” said Michael Vanden Berg, UGS Energy and Minerals Program Manager.
Not only do these industries produce sizable economic value, but they also create high-paying jobs. The average annual wages for the energy and mining industries were calculated to be 45% and 28% higher than the overall state average wage.
“We appreciate working with the state of Utah on this economic contribution report,” said Tanner McCarty, report co-author and assistant professor of the Department of Applied Economics at Utah State University. “Understanding the value of these vital industries is important for proper management and support.”
Funding for this economic study was secured by the Natural Resources, Agriculture, and Environmental Quality Appropriations Subcommittee during the 2021 Utah State Legislative Session.
A copy of the report is available at https://ugspub.nr.utah.gov/