| MMS ENVIRONMENTAL STUDIES PROGRAM: ONGOING STUDIES | ||||||
| MMS OCS Region: | Alaska (Social Sciences & Economics) | |||||
| Title: | North Slope Borough Economy, 1965 to Present | |||||
| Total Cost: |
$99,000 |
Period of Performance: | FY 2003-2004 | |||
| Conducting Organization: | Northern Economics, Inc. | |||||
| MMS Contact: | ||||||
| Description: | ||||||
| Background The focus of the social and economic studies of the MMS Alaska OCS Region has been the potential for increase in offshore oil and gas activity. Many MMS socioeconomic studies were based on scenarios of change from no-industry activity to development-stage activity. However, through 1999, industry activities in all Alaska OCS leased areas had gone only to the exploratory phase, and industry activities onshore in Alaska currently are in decline. Although there was much greater production in the 1980’s, reduced production at Prudhoe Bay fields in the 1990’s and attractive international exploration and development opportunities are additional factors affecting property tax revenues to the North Slope Borough (NSB). This historical economic activity and its effect on NSB revenues/expenditures, provides a context for anticipated offshore development and production at Northstar and, if approved, Liberty and their potential effect on regional and local economies. A descriptive characterization of historic and recent North Slope economic activity due to onshore activities is necessary in order to evaluate relative significance of projected offshore development. The anticipated decline in oil production may be offset to a degree by production of natural gas from Prudhoe Bay and surrounding fields. The major oil and gas companies are seriously considering natural gas production as of the year 2001. This could increase the NSB revenues. |
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| Objectives 1. Describe revenues and expenditures of the NSB, 1965 to the most current year available. 2. Portray how the NSB, as the local government, and individuals and households anticipate dealing with decline in revenues from the oil industry. 3. Describe the structure of NSB economy and changes to the structure, 1965 to the most current year available. 4. Describe the role of the regional Native corporation in the economy. 5. Provide a comparative basis for assessing potential economic effects of upcoming offshore oil and gas activity. |
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| Methods 1. Make a quantitative and narrative description of NSB revenues and expenditures for each year from 1965 through the most current year available for capital projects. Classify local government services by departments of the NSB and other major categories. 2. Using the institutional profile analysis method focusing on key informants, describe how the NSB, as the local government, anticipates responding to a decline in revenue. 3. Also using key informants, describe how individuals and households anticipate responding to a possible economic change, such as doing more subsistence hunting or moving to areas in Alaska where cash jobs are available. Focus on the family (households), personal income, and sources of income for the families. 4. Using data from the NSB and State Department of Labor, describe the structure of the NSB economy and changes, 1965 to the most current year; i.e., employment by sector of the economy and employer. Analyze local jobs and the types of jobs. Describe the flexibility of jobs in relation to subsistence (for example, getting time off to engage in subsistence. Using the best data available, describe in- and out-migration). 5. Describe the role of the regional Native corporation, Arctic Slope Regional Corporation, in the North Slope Borough economy. Depict its role both in quantitative and narrative form. 6. Coordinate the study with NSB officials, as needed. |
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| Importance to MMS This study will be useful to MMS in assessing potential economic impacts of OCS development activity on the NSB and NSB residents with respect to revenues and expenditures, employment, subsistence and migration. It will provide a region-wide perspective of the economic effects of recent on-shore oil and gas development against which upcoming OCS economic effects may be gauged. |
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| Current Status: Draft final reviewed by North Slope Borough in January 2004. Additional peer review due in May 2004. |
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| Final Report Due: |
July 2004 |
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| Publications: | ||||||
| Affiliated WWW Sites: | ||||||
| Revised date: |
April 2004 |
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| ESPIS |
ESPIS - All completed
ESP Studies: |
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