Economy of Grand Junction

as leading employers in these fields. Vast oil shale reserves were known to exist near Parachute, Colorado in the Piceance Basin. The oil embargoes of the 1970s and high gas prices resulted in major financial interest in the region. Exxon purchased rights and used Grand Junction as its seat of operations.

Grand Junction and the surrounding Grand Valley were prosperous in the 1970s and early 1980s largely because of the impact of oil shale development. The United States, western Colorado in particular, has the largest known concentration of oil shale in the world (according to the Bureau of Land Management) and holds an estimated 800 gigabarrels of recoverable oil, enough to meet U.S. demand for oil at current levels for 110 years. Known as the "Rock That Burns" the shale can be mined and processed to produce oil, although in the past it was significantly more expensive than conventional oil. Sustained prices above $95 per barrel, however, may make extraction economically attractive in the coming years (see Oil Shale Economics). ExxonMobil was forced to pull out of the region because of lower oil prices, which led to economic hardship in the region.

The economic bust, known as "Black Sunday" (May 2, 1982) to the locals, started with a phone call from the President of Exxon to the then Governor of Colorado, Richard Douglas Lamm, stating that Exxon would cut its losses while retaining mining rights to the (then and currently) uneconomic oil. The economic bust was felt statewide, as Exxon had invested more than 5 billion USD in the state. Colorado historian Tom Noel observed "I think that was a definite turning point, and it was a reminder that we were a boom-and-bust state...There were parallels to the silver crash of 1893."

By 2008, the economy of Grand Junction appeared to be more diverse and stable than it had been in previous decades. Major contributors to the economy were health care, tourism, agriculture,