Friday, October 28, 2011

Petroleum industry packs big punch in state’s economy

Tim Bradner
Alaska Journal of Commerce

Alaska’s oil and gas industry packs a powerful economic punch in the state. A new study by McDowell Group, a Juneau-based consulting firm, has estimated that the petroleum industry directly creates 4,000 jobs, that industry support and service companies create 7,700 jobs, and that the “indirect” employment effect of those 11,700 industry and contractor jobs creates another 26,000 jobs.

The grand total is 44,800 jobs and $2.65 billion in annual payroll in the state, according to Jim Calvin, McDowell Group’s lead researcher on the project.

The data is from industry activity in 2010.

Calvin said that every one job created by a primary company, such as an oil producing company, creates nine additional jobs in the support sector.

The work was sponsored by the Alaska Oil and Gas Association, the petroleum industry trade group. McDowell Group presented the findings last Thursday, Oct. 27, at AOGA’s annual luncheon in Anchorage.

In terms of regional employment impact, the industry created 25,400 jobs and $1.56 billion in wages in Anchorage; 4,700 jobs and $320 million in wages in the Kenai Peninsula Borough; 3,000 jobs and $168 million in wages in the Fairbanks North Star Borough; 3,600 jobs and $268 million in wages in the Matanuska-Susitna Borough; and 700 jobs and $57 million in wages in Valdez.

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Republished with the permission of the Alaska Journal of Commerce. Tim Bradner can be reached at tim.bradner@alaskajournal.com. Read more: http://www.alaskajournal.com/Alaska-Journal-of-Commerce/AJOC-October-30-2011/Petroleum-industry-packs-big-punch-in-states-economy/#ixzz1c9Cwgu5v