June 30th, 2008
The Alaska Oil and Gas Association (AOGA) released a study today on the role of oil and gas in Alaska’s economy. Information Insights and the McDowell Group collaborated on the research, which used 2007 industry data to update a study the two firms published in 2001. The 2008 report expands on the earlier work quantifying the economic role of the oil and gas industry on specific regions within the state including the Municipality of Anchorage, FNSB, KPB, Mat-Su Borough, North Slope Borough, and the Valdez region, and examining direct, indirect and induced economic effects of the industry in these regions and communities. Brian Rogers presented the study findings at the Anchorage Chamber of Commerce’s Monday Forum. An overview of the results appears on the AOGA website. Download the full report (large file).
From the Executive Summary…
The oil and gas industry has far-reaching effects on the economy of Alaska. The industry continues to outspend all other non-governmental industries, contributing the majority of funds to the state general fund through taxes and royalties, donating millions to local charitable organizations, and creating thousands of high wage jobs.
This report takes a second look at how the industry affects Alaska’s economy as follow-up to an initial study conducted in 2000…. Published in January 2001, the report looked at industry activity in calendar year 1999. Prior to that effort the scope of the industry’s economic influence had been widely speculated upon and was commonly understood to be significant but had never been objectively assessed.
Divining information about the reach of the industry is not an easy task. Although both state and federal governments report on the industry, the picture painted is somewhat blurry. Oil production is often included as part of the “mining” sector; oil refining may be folded into “manufacturing” statistics without delineation; and pipeline operations are rolled into the broad category of “transportation, communications, and utilities.”
…Eight years later, much has changed. We find that industry spending is up, with increases in both payroll and purchasing; the oil and gas industry remains a driving force in the state economy and a primary economic driver at the regional level….
Keep reading on AOGA’s website: Key Findings