Development of Oil & Gas in the North Aleutian Basin

forestsaintregisOil and Offshore

Nov 8, 2013 (3 years and 10 months ago)

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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

LNG tanker to

US West Coast Market

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

Platform Maintenance

Platform Operations

Onshore Facilities

LNG Plant

2

Category
Plan (two crews)
Staff Positions
Offshore Installation Manager
2
Process Team Leader
2
Utilities Team Leader
2
Process Staff Associate
2
Resource Coordinator
2
Marine Supervisor
2
Craft Positions
Instrumentation Technician
4
Electrician
4
Electronic Technician
4
Mechanic
6
Production Operator
16
Total
46
Comments: Typically 100% of staff positions are
Shell 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 Personnel

Operators
32
Operations Line Management
3
Mechanical
15
Civil
5
Electrical
7
Instruments
6
Industrial Cleaning
5
Work Preparation & Planning
1
Field, Office & Advisory Eng.
7
Inspection
2
Materials & Transport
6
Management
4
Economics & Scheduling
2
Technology
3
Laboratory
2
Finance
3
Computing
3
Personnel & Training
4
Office Services
10
Health, Safety, Environment
3
Security
18
Total
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


Afosg2@uaa.alaska.edu


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

*

**

**