6-1-14 Alaska Advantage Information Program – Alaska Oil & Gas Association Annual Meeting Economic Report Findings

The Alaska Oil & Gas Association (AOGA) hosted its annual luncheon on Thursday.  Jim Calvin from the McDowell Group presented findings from their updated report “The Role of the Oil and Gas Industry in Alaska’s Economy”. The McDowell group was contracted by AOGA to assess the role of the oil and gas industry in Alaska’s private and public sector economy. The economic impact was based on detailed expenditure and payroll data provided by 16 primary companies in Alaska’s oil and gas industry. The study also measured direct, indirect and induced jobs and wages from the industry. An addition to the 2014 report was the tracking of tax and royalty payments made by the industry.  

Key findings in the study showed that during 2013, the 16 primary companies employed 5,335 workers; 4,700 individuals, or 88%, were Alaska residents. The employees earned $780 million in wages in 2013. Adding indirect and induced employment numbers, spending by the industry accounted for 51,000 jobs and a total of $3.45 billion in wages for Alaska’s private sector. This does not include non-resident oil and gas industry workers or their wages. Government spending of oil revenue accounted for an additional 60,000 jobs and $3 billion in wages. The total for direct, indirect and induced jobs within the primary companies, as well as the private and public sector is over 111,000 jobs and $6.45 billion in wages. For every primary company job, there are 20 more jobs generated in the Alaska economy. A multiplier of 20 is difficult, if not impossible, to find within other industries or areas of the country.

The report also broke out private sector spending within six geographic areas; the Municipality of Anchorage, Fairbanks North Star Borough, Kenai Peninsula Borough, Mat-Su Borough, North Slope Borough, and Valdez.  

(Read more here….)