Oil patch insider: Oil industry multiplier effect in jobs and wages highest in Alaska

Kay Cashman

Petroleum News

Each oil and gas company job supports 15 other jobs, and each dollar in oil and gas industry wages yields $4 in other Alaska wages, according to a McKinley Research report that was presented by Katie Berry at the Alaska Oil and Gas Association's conference in Anchorage at the end of August.

(See graphic in the online issue PDF)

"This is a significant multiplier. This is the highest multiplier in the state," Berry, McKinley's director of economics and research, said in her presentation at AOGA's conference. It "comes about because the oil and gas industry has such a high level of spending and is so connected to their vendors and is so connected to the state of Alaska."

The report covered oil and gas investments, jobs and industry growth in 2022, plus anticipated investment within the next five years, which she said could be as high as $14 billion on projects.

A graphic designed by AOGA for the conference shows the following as new oil and gas discoveries and projects in Alaska: Horseshoe, Willow, ANWR, Pikka, Liberty and Nuna. The list, which was compiled from 2019 and 2020 data, does not include all planned projects, such as Coyote, Sourdough, and Alkaid.

--Petroleum News