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July 14, 2008

Environmental Studies

Socioeconomics

Environmental Studies Program Direction: Accelerated Deepwater Activities

Deepwater: Socioeconomics

Oil WorkersThe oil and gas industry in the Gulf of Mexico has operated in offshore waters for nearly 50 years. While growth in this industry slowed in the early 1980's through the early 1990's, recent changes reinvigorated the industry and focused many of its new efforts in deepwater (i.e. water depths greater than 300 meters). Individuals involved in off and on-shore activities are experiencing such program benefits as full employment and strong benefit packages, but they also place significant stress on public infrastructure and institutions such as schools and local government services. Since ports with sufficient draft to accommodate deepwater servicing equipment are limited, onshore effects appear to be concentrated in a few communities. This contrasts with earlier, nearer shore activities which could be supported by innumerable ports and coastal communities.

Oil and Gas Industry Information Needs: In response to the deepwater driven growth industry in the Gulf of Mexico and as a result of the workshop on issues surrounding deepwater oil and gas development, MMS has initiated a study titled Assessing and Monitoring Industry Labor Needs. The information in this study is critical in addressing such issues as the direct affects of the industry on state and regional economies. Since these are driven by issues of industry employment and purchasing, this would allow MMS to make more detailed and accurate projections and economic forecasts and to address issues of state and local benefits of deepwater development and/or exploration.

Infrastructure Information Needs: At the community level, research is being focused on the inventory effects on roads, water, waste disposal, public education, medical and health available facilities for supporting oil and gas development. Benefits and Burdens of OCS Activities on Selected Communities and Local Public Institutions is a study that is attempting to deal with the above while An Analysis of the Socioeconomic Effects of OCS-Activities on Ports and Surrounding Areas in the Gulf of Mexico Region is identifying available port facilities that directly or indirectly support oil and gas production.

Labor Force and Human Factors: Finally, the topic of labor migration as it relates to areas experiencing deepwater development is becoming an issue of importance. Labor Migration and the Deepwater Oil Industry is dealing with migration as it pertains to domestic as well as international consequences.

Summary: The above research efforts focus on such things as local public institutions, port communities as well as labor and industry needs and migration in the hopes of assessing the socioeconomic impacts of OCS deepwater activity in a timely fashion. Timing is critical considering the recent upswing in industry activity. Therefore efforts are being made to establish early baseline industry, labor force, infrastructure and migration data in order to avoid post facto research.

For more information, contact Rodney Cluck.

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