Oil sector should see job growth in 2015

Even with declining oil prices, the Alaska Department of Labor and Workforce Development expects inertia to keep oil industry employment growing this year.

The department expects the oil and gas sector to add 200 jobs this year, which would represent 1.4 percent growth over 2014, according to an analysis from state economist Caroline Schultz in the January 2015 issue of Alaska Economic Trends. According to preliminary figures, the oil and gas sector, which includes service companies, added some 500 jobs in 2014, which would represent 3.5 percent growth. Current oil industry employment is about 14,800, up 200 over a year ago, according to the state.

The growth in employment will come from development work at the ExxonMobil-operated Point Thomson unit, the ConocoPhillips-operated Kuparuk River unit and Colville River unit, appraisal activities from Repsol E&P USA and Caelus Natural Resources Alaska.

Already this year, BP Exploration (Alaska) Inc. laid off some 275 employees as part of its sale of assets to Hilcorp Alaska LLC. Hilcorp is expected to rehire many of the employees. And CH2MHill recently ended attempts to sell most of its Alaska operation.

The small increase in oil sector jobs will be an anomaly this year, according to the department, which is predicting flat job growth for the state overall, as small gains in the private sector offset small losses in the public sector, particularly federal employment.

Oil industry employment in Alaska is closely correlated with oil prices. Over the past quarter century, the two have moved nearly in lockstep, despite steadily declining production and various fiscal systems, according to a 2008 study from the department.

- Eric Lidji