Benefits of Alaska OCS development cited

Shell said Feb. 24 that a study by Northern Economics and the Institute for Social and Economic Research at the University of Alaska has highlighted potential economic benefits — to Alaska and to the nation — if oil and gas resources on Alaska’s outer continental shelf are developed.

A 2009 study by Northern Economics and ISER found that development in the Beaufort and Chukchi seas would extend the life of the trans-Alaska oil pipeline for decades.

The new study uses the same development scenarios, and estimates that development of Alaska’s offshore resources could create an annual average of 54,700 new jobs through 2057, resulting in a total of $145 billion in new payroll paid to employees through 2057 — $63 billion in Alaska and $82 billion in the rest of the United States.

Shell Alaska Vice President Pete Slaiby said it is important that Shell continue to make a business case for potential offshore development to Alaska and the rest of the U.S.

“First and foremost is putting in place a safe, responsible exploration program. But if we realize the full potential of the oil and gas resources in the Alaska offshore, generations of Americans will have the opportunity to directly benefit from industries’ success,” Slaiby said in a statement.

Note: See story in March 6 issue.

—Petroleum News