Economic Analysis of Future Offshore Oil & Gas Development: Beaufort Sea, Chukchi Sea, and North Aleutian Basin A study to describe and quantify potential economic benefits to the State of Alaska from development of oil and gas resources in the Alaska Outer Continental Shelf areas. Developed by: Northern Economics Institute of Social and Economic Research, University of Alaska
17
Embed
Economic Analysis of Future Offshore Oil & Gas Development: Beaufort Sea, Chukchi Sea, and North Aleutian Basin A study to describe and quantify potential.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Economic Analysis of Future Offshore Oil & Gas Development: Beaufort Sea, Chukchi Sea, and North Aleutian Basin
A study to describe and quantify potential economic
benefits to the State of Alaska from development of oil
and gas resources in the Alaska Outer Continental Shelf
areas.
Developed by: Northern Economics Institute of Social and Economic Research, University of Alaska
Trans-AlaskaTrans-AlaskaPipelinePipeline
Shell In Alaska Today
• 160 Beaufort Leases
• 275 Chukchi Leases
• Spent more than $84 Million on Beaufort Leases
• Spent over $2 Billion on Chukchi Leases
• Hundreds of millions with Alaska contractors
Beaufort SeaBeaufort Sea160 Leases160 Leases
Chukchi SeaChukchi Sea275 Leases275 Leases
Alaska’s Future with OCS: Major Findings
Creates 35,000 jobs on an average annual basis 6,000 direct jobs
Provides $5.8 billion direct to State and local governments
Total benefit of $15.3 billion to State Net benefit of $6.6 billion after state expenditures
Extends the life of the TAPS Reduces pipeline tariffs for onshore production and
enables development of marginal oil and gas fields Underpin success of the natural gas pipeline project
Slowing Job Growth after Gas Line Construction Petroleum industry jobs slowly decline Other resource industry growth replaces oil and gas Wage rates lower and more seasonal employment
Population Growth Decelerates State and Local Government Fiscal Capacity Falls
Petroleum revenues fall with drop in oil production Gas revenues insufficient to replace oil Public spending squeeze New revenue sources—income tax and permanent fund earnings
Household Income Growth Slows
OCS Scenarios
Beaufort Sea 7 major fields, 7 platforms, 6.3 BBO, 7.0 TCF produced
Chukchi Sea 4 major fields, 4 platforms, 6.2 BBO, 7.8 TCF produced Pipelines across the NPRA to connect to TAPS and gas line
North Aleutian Basin 2 major fields, 2 platforms, 1.3 BBO, 5.1 TCF produced Pipelines across the Alaska Peninsula with LNG plant and oil
terminal on Gulf of Alaska side of the peninsula Total production during study period is 10.2 BBO and
Work Residence Work ResidenceAnchorage 800 2,500 15,000 16,000Mat-Su Borough -- 500 3,000 3,000Kenai Peninsula Borough -- 500 2,000 3,000Fairbanks North Star Borough <100 250 3,000 3,000Aleutians East and West 600 100 1,000 1,000North Slope Borough 4,500 <100 6,000 2,000Balance of State -- <100 5,000 5,000Outside Alaska -- 2,000 -- 2,000Total 6,000 6,000 35,000 35,000
Place
DirectEmployment
Total Employment
State of Alaska Fiscal Effects
Projected State Revenues 15.3
Direct OCS Petroleum Revenues 1.4
Population Related Revenues 3.9
Subtotal 5.3
Indirect Petroleum Revenues due to OCS development TAPS-Fuller Pipeline Enhanced Value of North Slope Production 5.7
TAPS-Fuller Pipeline Additional North Slope Production 2
Gas Pipeline Tariff Reduction Effect 1.2
Incremental Production due to OCS Infrastructure 1.2
Subtotal 10.1Projected Incremental State Expenditures -8.8
Projected State of Alaska Net Fiscal Balance: 6.6
State Revenue/Expenditure CategoryBillions
($)
Direct Revenues
Entity/TaxAmount
(Billions $)
State of Alaska 1.4
Property Tax 0.4
Corporate Income Tax 1
Shared Lease Payments --Impacted Local Governments 4.5
North Slope BoroughProperty Tax 3.5
Aleutians East BoroughProperty Tax 1
Total Alaska: 5.8
Questions & Comments
Economic Study Report can be viewed at:
www.shell.com/us/alaska
Major Findings OCS development could generate an annual average of 35,000 jobs over
the next 50 years. These jobs represent a total payroll of $72 billion (2007$) over the 50-year
period. OCS-related employment growth could great a generation of jobs in
Alaska. Opportunities would be created throughout the state in both high paying,
long-term, year-round jobs and in seasonal and short-term jobs. Of the 6,000 oil and gas sector jobs, about 3,900 would be long-term, year-round jobs.
The growth in jobs resulting from OCS development would lead to a five percent increase in statewide population. Most of the growth would be concentrated in Alaska’s population centers, but directly impacted regions would experience a much greater percent increase
The potential cumulative direct petroleum revenues to Alaska would be $5.8 billion (2007$) with most revenues going to directly impacted local governments from property taxes on onshore petroleum facilities.