High energy costs cut two ways in Colorado

Allison Linn Senior writer • Profile • E-mail

While many Americans worry about high energy prices and the economic woes that go with them, Gary Terrell has the luxury of being able to take the long view.

Terrell has felt the pain at the pump, but the 55-year-old also has seen the upside of rising energy costs: The economy on the western slope of Colorado, where he lives, is benefiting from the rising prices because of its rich natural gas reserves. While much of the rest of the country suffers through a housing crisis, the local boom enabled him to profit handsomely on the recent sale of his home and position himself well for retirement.

But seeing the good and bad sides of high energy prices also has persuaded him that this country, more than anything, needs a plan to wean itself from foreign-produced oil.

In November's presidential election, the Colorado native said the candidates’ positions on economic issues — especially energy — will be key in determining how he votes.

"I want to vote for somebody that's going to try to put this country on its feet, with its own energy," he said. "Everything else will follow."

Energy concerns and the economy in general are on the minds of voters across the U.S. as the nation prepares to select its 44th president on Nov. 4. But as Colorado clearly demonstrates, voters’ views of the economy will be colored by diverse local circumstances when they head to the polls.

To get a sense of how economic issues will play out in some of the so-called battleground states that will decide the election, we asked Gut Check America readers in two such states – Colorado and Minnesota – to tell us how the economy is affecting them.

As Colorado prepares to host the Democratic National Convention this weekend, we examined the economic currents at work there and how they might factor into what is seen as a very tight race. (You can read about the economic factors buffeting Minnesotans next week, prior to the Republican convention.)

Plusses and minuses
In Colorado, the run-up in energy prices is both a blessing and a curse: It’s a boon in rural western Colorado, but it's also squeezing residents facing rising gas prices and the prospect of hurtful heating bills this winter.

Video   Economic stress hard on your health Aug. 20: Impending layoffs, rising gas prices and foreclosures are just some of the factors contributing to higher-than-normal stress levels. WTVJ-TV's Diana Gonzalez reports. NBC News Channel

Further complicating the picture is the state's potential to become a hub for future energy production, whether through the clean energy companies now setting up shop there or new interest in the vast oil shale reserves nestled in the state's western side.

“Even though most of us feel the pain of higher gasoline and energy prices, Colorado’s one of those states that has a fairly significant energy industry,” said Richard Wobbekind, associate dean of the Leeds School of Business at the University of Colorado.

That has the state's voters paying close attention to the energy and economic policies of Democrat Barack Obama and Republican John McCain.

So far, though, they appear to be having a tough time deciding which candidate would be best for the Centennial State. A Quinnipiac University poll, conducted with The Wall Street Journal and Washingtonpost.com in July, found McCain holding a razor thin lead over Obama — 46 percent to 44 percent — among likely voters. The poll also found that 48 percent of Colorado residents said the economy was the most important issue influencing their vote.

“Economics is now the No. 1 issue when you say, ‘What do you think is the biggest issue facing Colorado, or the most important issue for the presidential candidates to deal with?’” said Floyd Ciruli, a nonpartisan state pollster who has done work for area economic development groups.

Both the GOP and the Democrats see the state as up for grabs. President Bush won Colorado in both the 2000 and 2004 elections, but Democrats have prevailed in more recent state and local contests.

While Republicans may benefit from the state's military presence and conservative Christian base, Democrats could get a boost from people like Gut Check America reader Burrall Sanders. The 54-year-old resident of Falcon, who owns a small business that manufactures custom aircraft, voted for Bush but has been badly disappointed by his policies on issues such as Iraq and the war on terror.

"I'm not exactly all excited about the Democrats, but they've got my vote this time," he said.

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