Alaska: Study shows oil industry reigns supreme in Alaska economy
According to the Alaska Journal of Commerce:
An analysis of the industry's spending on the economy was released June 30 by the industry's Alaska Oil and Gas Association.
Oil royalties and taxes have long paid 80 percent to 90 percent of the state's annual budget. But the new report, prepared by consultants Information Insights, shows that industry activities support 9.4 percent of all employment and 11.2 percent of all wages paid in Alaska.
The study used information provided by oil and gas companies and contractors in 2007. It showed 41,744 employed directly and indirectly as a result of industry activities, with a total payroll of $2.41 billion paid that year.
The results of the report were released by AOGA at an Anchorage Chamber of Commerce luncheon June 30.
Direct employment by producing companies and support contractors totals 4,497 jobs with $643.8 million in payroll.
Spending for goods and services by company employees creates another 8,410 jobs and $769.2 million in payroll in the economy. An additional 28,837 jobs and $987 million in payroll are created through the indirect effects of spending by employees of producing companies and contractors.
The total of all three categories, direct company employees, contractor and supplier employees and “induced” jobs created by the spending of industry payroll, results in 41,744 jobs and $2.41 billion in payroll, Brian Rogers of Information Insights, principal author of the report, told the Anchorage chamber. Information Insights is a Fairbanks-based economic research firm. McDowell Group, a Juneau economics firm, assisted with the report....click to continue.
