potential financial and employment impact from the development of oil & gas in the north...
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Potential Financial and Employment Impact from the
Development of Oil & Gas in the North Aleutian Basin
Shell Offshore Inc.Anchorage, Alaska
October, 2006
The authors acknowledge the significant contribution of employment multiplier information from Professor Scott
Goldsmith of ISER, UAA.
Miles
0 50
What might the project contain?
Local Power
Local Power
Sand Point
Natural Gas Liquefaction Facility
Natural Gas Liquefaction FacilityLNG tanker to
US West Coast MarketLNG tanker to
US West Coast Market
Offshore Drilling and Production Platform(s)Offshore Drilling and
Production Platform(s)
Bristol Bay
Pacific Ocean
Bristol Bay Economic Benefits
Federal Income Tax~$12 Billion
Royalties~$7 Billion
State & Local Tax~$850 Million
6.8 TCF sales gas with February 2005 Forward Curve
Revenue Sharing?
Jobs: Offshore Operations & Onshore LNG Facility
0
1000
2000
3000
4000
5000
6000
Year 1 Year 2 Year 3 Year 4 Year 5
Construction Jobs(excludes indirect jobs)
(Pipeline + LNG Plant)Operating Jobs
(excludes indirect jobs)
(Platform + LNG Plant)
0
100
200
300
400
500
600
700
Year
1
Year
4
Year
7
Year
10
Year
13
Year
16
Year
19
Year
22
Year
25
Platform Maintenance
Platform Operations
Onshore Facilities
LNG Plant
2
Category Plan (two crews)Staff PositionsOffshore Installation Manager 2Process Team Leader 2Utilities Team Leader 2Process Staff Associate 2Resource Coordinator 2Marine Supervisor 2Craft PositionsInstrumentation Technician 4Electrician 4Electronic Technician 4Mechanic 6Production Operator 16Total 46
Comments: Typically 100% of staff positions areShell employees. Craft positions are resourced with Shell employees and up to 20% contract employees.
Typical Offshore Operations Staffing Profile
Two crews on board at all times (12 hour shifts). Four crews per platform.
Typical LNG Plant PersonnelOperators 32Operations Line Management 3Mechanical 15Civil 5Electrical 7Instruments 6Industrial Cleaning 5Work Preparation & Planning 1Field, Office & Advisory Eng. 7Inspection 2Materials & Transport 6Management 4Economics & Scheduling 2Technology 3Laboratory 2Finance 3Computing 3Personnel & Training 4Office Services 10Health, Safety, Environment 3Security 18Total 141
Shell US Operations Workforce Strategy
• Recruit Talent• Community & Technical Colleges and Universities
– Partner with scholarships and outreach programs– Participate in Industry Advisory Committees and Organizations (e.g.
Center for the Advancement of Process Technology (CAPT), Process Technology Degree Programs
– Operations leadership involved with schools
• Develop Local Source– Focus on schools in areas of operation (Gulf of Mexico, Rockies,
Texas, Alaska)– Invest in local schools and programs
• Seek Diversity – Actively promote our industry in high schools and colleges– Fund and participate in programs to attract local talent
Shell US Operations Workforce Strategy
• Retain and Develop Talent – Provide rewarding and challenging opportunities– Provide training and development assignments in every area of
operation
• Provide both Supervisory and Technical Career Paths– Technical Operations Professional Program (TOPP), Global
Program for Operations Staff Development– 20+ TOPP Candidates selected every year form US Ops
• Operations Training & Shell Robert Training and Conference Center– Industry’s premier training facility with extensive catalogue of
industry’s best and most current courses
• Offshore Installation Manager
• Process Team Leader
• Utilities Team Leader
• Process Staff Associate
• Resource Coordinator
• Marine Supervisor
• Associate to Bachelors Degree
• Significant offshore operations experience
• Continuing Education – In-House courses– Shell / Industry
approved CE courses– Shell Leadership
Training
• Pertinent License as required
Educational Expectations
Educational Expectations
• Automatic Control Repairman
• Electrician• Electronic Technician• Computer Assisted
Operations• Mechanic• Operator
• Associate to Bachelors Degree
• Continuing Education – In-House courses– Shell / Industry
approved CE courses
Support Positions
• Catering Crew• Helicopter Landing Officer• Medical Technician• Clerk / Office Administrator• Logistics Clerk
Comments: These positions are usually contract positions. Education varies for each job and may require special licenses.
The Job Pyramid*• For every Oil and Gas Industry worker there are about six
positions in the community
1
6
“oil patch”
“public revenue”
* Scott Goldsmith, (2006) Economic Multiplier for Oil and Gas Activities in Alaska Institute of Social and Economic Research, College of Business and Public Policy University of Alaska Anchorage 3211 Providence Drive • Anchorage, Alaska 99508-8180 UAA [email protected] 907-786-7720
Oil and Gas Contractors• Health, Safety, Environment
– Spill Response, Emergency Response
• Well Services– Drilling, Coring, Logging, Completion, Production, Re-
completion, Abandonment
• Platform Services– Equipment Start-up, Maintenance, Renewal, Removal
• Logistics handling– Helicopter, Crew Boats, Equipment Barges, etc.
• Pipe and Materials – Fabrication, Transport, Loading, Installation,
Maintenance, Removal
Community Employment• Services
– Hotels, Restaurants, Transportation– Emergency (Police, Fire Departments)– Infrastructure (Schools, Communications,
Power, Transportation, Water and Sewage, Waste Management)
– Governmental Agencies – Real Estate, Construction, etc.
• Goods– Food, Fuel, Homes, Vehicles– Clothing, Household items, Office Products
Employment and Compensation Impact
Category Ratio Total Count Average Salary per person per year
Total Compensation per Category per year
Operator & Contract Staff 1 650 85,000.00$ 55,250,000.00$ Community 6 3900 38,000.00$ 148,200,000.00$ Total 4550 123,000.00$ 203,450,000.00$
* Scott Goldsmith (ISER) – University of Alaska Anchorage** Based on Kenai Peninsula data, 2005 – 2006
*****