BOUNTIFUL -- The Utah Division of Oil, Gas and Mining is predicting a 50 percent increase in the production sales values of the state's extractive industries.

"In 2004, the total value for oil, gas, minerals and coal was $4.2 billion," said John Baza, OGM Division Director. "For 2005, our projections indicate that number will jump to $6.3 billion."

"Much of the excess revenue in the state's budget is attributable to the recent robust activity in the extractive industries," said Utah Governor Jon M. Huntsman, Jr. "The collection of severance taxes and mineral lease monies far exceeded estimates, which assisted our efforts to bolster funding for education, transportation and other key initiatives."

Utah's job growth rate for natural resources employment (which consists primarily of extractive industry jobs) has been very strong in 2005. In November, natural resources had the biggest percentage increase over the same period in 2004.

"It's important to note that those figures don't even include the jobs in the construction industry associated with building the facilities needed for the drilling of more than 800 new oil and gas wells this year," said Baza.

Additionally, the average cost of drilling and equipping each new oil or gas well is approximately $2 million. Those capital investments made by the extractive industries are also important economic drivers for local economies along with the aforementioned increase in production values.

The state will set another new record in 2005 for the number of well permits approved by OGM. With the current level of industry activity, there will be 1,600 applications approved for calendar year 2005.

According to the Depart-ment of Workforce Services, the monthly average wage for mining in Utah is $4,609, which is 75 percent higher than the statewide average for all industries.

"Mining continues to be an important engine of growth for Utah. These jobs are safer, higher paying and offer steady employment," said Governor Huntsman. "Mining brings greatly needed, positive economic development to our more rural, non-metropolitan areas of the state."

Though the production sales values for 2006 will depend on a number of economic factors including the pricing of various commodities, Baza said he would not be surprised to see the number reach $7 billion. He said most of the increase would take place in the oil and gas industries.

Baza also stated there is potential for growth in the oil shale, tar sands and uranium industries, which could further boost the figures for coming years.