Pacific Region

Background
[See Appendix B for a description of the characteristics of the Pacific Region and past and present MMS socioeconomic studies in the region.]

Issues

Major Issue: Synthesizing Research Results

The session devoted considerable time to identifying some of what has been learned from MMS socioeconomic studies in the Pacific Region. It was noted that an econometric study of the impact of the oil industry on personal income in the tri-county area had found almost negligible effects. This prompted both efforts at explanation (such as observations on the relatively small share of the local economy for which the oil industry accounts) and a discussion of how MMS socioeconomic studies have developed a more sophisticated understanding of the nature of community impacts. That is, they have developed an appreciation for communities as networks of social relationships rather then merely “geopolitical centers.” Hence, the impact of oil and gas development can be disproportionate to its narrowly defined economic effects. In the Pacific Region, the influence of oil and gas development has permeated the social fabric of many coastal communities, even where its effects on personal income have been comparatively small. Such a phenomenon makes qualitative as well as quantitative research vitally important. It was also noted that, while no single study has focused on the phenomenon, the results of a number of studies suggest that a neglected effect of oil and gas development is often the development in the local population of new skills that are potentially transferable to new locales or new local enterprises. One participant also pointed out that a great deal has been learned not simply from the studies themselves but from public responses to reports on research results and responses to the process of conducting studies.

It was proposed that it would be beneficial to go beyond such local stock-taking to review and synthesize the results of research on OCS development impacts, not only in all three U.S. regions but also around the world, for example, in Newfoundland and the North Sea. What can be learned about methodology as well as from research findings? What can be learned about how to make findings more useful for decision-making? It was noted that such an effort has been suggested in previous MMS workshops, but the program was not yet ready to review and synthesize. Perhaps, it was argued, enough research has now been done to make the effort worthwhile.

It was observed that one could not gauge the effects of MMS socioeconomic studies on decision-making in the region because there has been no need to make a decision on a lease sale since the early 1980s. The results of socioeconomic research in the region, however, have accomplished several things, participants pointed out. They have deepened understanding of the nature of socioeconomic impacts on communities. Research on public opinion has improved understanding of how the agency should conduct its role in decision-making processes. And research has identified issues and concerns that the NEPA process will have to address in any future decision-making and produced information that will be useful to decision makers.

Major Issue: Encouraging Cross-Disciplinary Research

Past research has shown that oil and gas development has significant effects on both commercial and recreational fishing. It was pointed out that many kinds of factors (technological, ecological, social, etc.) affect the capacity of fishers to adapt to changing circumstances. Discussion of this issue led to strong statements of the need to employ “pluralistic methodologies” and to promote cross-disciplinary research. It was also pointed out that a cross-disciplinary approach is essential to understanding the dynamics of communities. Participants observed that while collaboration among different kinds of social scientists is clearly important, the greatest and most intractable disciplinary divide is that between social scientists and natural scientists. Some government agencies issue RFPs that give points for projects that bring together a variety of disciplines. And the ESP already funds projects in a variety of disciplines and has cross-disciplinary connections through the University of California at Santa Barbara Marine Science Institute. Hence, the socioeconomic studies effort is in a good position to promote greater cross-disciplinary collaboration.

Major Issue: Understanding Decommissioning

Component Issues:

Understanding Industry Decision-Making
It was observed that a variety of factors that influence decisions concerning when to decommission rigs are not well understood. Larger industry trends affect incentives for major producers to maintain production in the Pacific region and may make it advantageous to hand over rigs to independent producers at very low cost. Such decisions are driven not simply by the level of productivity of rigs but by issues of amortization of equipment, the potential costs of decommissioning (hence, the advantages of extending the lives of rigs in the hands of independents) and accounting considerations. Regulatory requirements that affect costs are also a major issue.

Understanding Alternative Uses for Rigs
Participants noted that the real value of alternative uses for decommissioned rigs is not adequately understood. What is their value for recreational use? How does distance from shore or from population centers affect their value as diving or sport fishing sites? Some fishers value drilling platforms for the fish habitat they provide, suggesting the value of removing only the upper portions of the rigs and leaving the sub-surface structure in place. This, however, may be a hazard to boaters. Are there other feasible non-recreational uses, such as, for example, aquaculture?

Regarding the value of sinking platforms to provide aquatic habitat (“rigs to reefs”), it was suggested that liability for the sunken structure is an element in the cost-benefit equation, although (as the cost of insurance) it would be part of an oil company’s operational costs and not of direct concern to the MMS. The biological question, one participant argued, was most fundamental. That is, would sunken platforms actually provide biological benefits?

Major Issue: Understanding Perceptions of Risk Among Activists and the General Public

Participants raised questions about the relevance of general public opinion to the “public” role in OCS decision-making. Community organizations and activist groups, it was argued, dominate public participation in decision-making processes. Hence, one participant noted, public meetings on OCS issues often did not constitute general public discussion. Further, one participant argued that MMS studies have little effect on general public opinion, which is shaped largely by the media and activist organizations. Media coverage, it was suggested, tends to emphasize the risks of OCS activity and downplay evidence that risks are low, perhaps due to the skill of activist groups in using the media.

Major Issue: Understanding Traditional Knowledge

Component Issues:

Using Traditional Knowledge
Participants recounted several cases in which local people in close touch with the natural environment have made useful and accurate observations on natural events. Alaskan villagers, for example, were able to provide researchers with information on extreme weather events that researchers themselves could not observe. In another instance, surfers in San Luis Obispo County noticed an unusual odor in the water that was the result of an oil spill. It was argued that such observations would prove valuable in many kinds of research if researchers could identify questions which traditional knowledge might help answer and those who might have relevant knowledge. Also, local observations may suggest relevant questions or hypotheses for research to address.

Defining Traditional Knowledge
A more fundamental question than how to use traditional knowledge that arose was, just what is it? Participants asked how traditional knowledge could be distinguished from “local knowledge”, “someone’s opinion”, “someone’s cause” or “personal experience”. One participant contrasted the knowledge of the Inupiat people of Alaska with that of Santa Barbara surfers on the grounds that the Inupiat “have a cultural tradition” and their knowledge constitutes not just their own personal experience but “the personal experiences of their ancestors.” Another asked if surfers might, indeed, pass knowledge from generation to generation, suggesting that this would constitute a cultural tradition and, thus, lend their knowledge greater credibility. It was also noted that all traditional knowledge starts as personal experience and that traditional knowledge and local knowledge have non-cognitive functions, among them, strengthening a sense of community.

Major Issue: Understanding the Role of the Ocean in Everyday Life/The “Coastal Connection”

It was suggested that it is important to understand the many intangible ways in which the ocean contributes to everyday life in coastal Pacific communities. For example, the proximity of the ocean may help provide a “sense of place”, an intangible phenomenon that, nevertheless, may provide both civic and economic benefits. Enjoyment of views of the ocean or brief, casual visits to the beach may also be very important to local residents. And, as one participant noted, simply the knowledge that one is near the ocean, whether one visits it or not, may be valued. All such values, it was noted, may depend on the belief that the ocean is not polluted. One participant referred to the collection of such intangible factors as the “coastal connection” and described them as “bequeath, existence and option values.” (That is, respectively, the value of knowing the beach and ocean will be there for future generations, the value of knowing they are currently intact and the value of the opportunity to visit the beach and ocean, even if it is not exercised.) Several federal agencies, it was suggested might be interested in research on the “coastal connection” (such as the Navy, the National Oceanic and Atmospheric Administration and the Fish and Wildlife Service).

Major Issue: Understanding Recreation and Tourism

In both California and Florida, ocean recreation and ocean-related tourism are key issues in the oil debate and participants discussed these topics at length. In southern California, the coastal area (the coastal zone, near shore, and offshore areas) is heavily used for oil development as well as a range of recreational, military, and commercial activities, some compatible, others conflicting. Placement of platforms and on-shore processing plants precludes some other uses. Offshore to onshore pipeline construction may temporarily close beaches. These impacts are mitigated to the extent possible. The impact of a potential oil spill on recreation and tourism is also a major concern. The Pacific Region is funding a study to determine the value of a beach recreation day in southern California. The study will survey residents regarding beach recreation activities. Results should be instrumental in determining the cost of a beach closing caused by an oil spill. (It was explained that recreation and tourism are not the same thing and have to be distinguished for purposes of research. Tourists may engage in recreation, but all those who engage in recreation are not tourists. Similarly, beach recreation must be distinguished from other recreation and beach recreation itself can be divided into beach-dependent and beach-enhanced recreation.)

The southern California coast is heavily populated. High-quality beach area is scarce and the demand for multiple-use beach recreation area is growing. Some recreationists in California have organized into strong, vocal, and politically active groups. Multiple-use conflicts can become very pronounced, as evidenced in conflict between some recreation uses and commercial fishing. Some recreation groups have voiced opposition to new oil development. Recreationists are expected to be influential in the decommissioning process and in determining the fate of retired drilling platforms. It was noted that along the Florida coast, oil is absent and beaches are abundant. The large recreation and tourist sector of the economy will likely play an important role in determining the future status of exploratory and drilling leases in Florida.

Component Issues:

Understanding Tourist Perceptions
Some participants held that the aesthetic impact of drilling platforms was an important issue in coastal communities, even though discussion usually focuses on questions of environmental risk. One participant, however, argued that the visibility of platforms probably had an insignificant effect on patterns of recreation and tourism when compared with other factors. It was pointed out that virtually no research has been done on how tourists (and potential tourists) perceive drilling platforms or other industry structures. What do they willingly overlook? What would it take to drive them away? Thinking about the effects of platform aesthetics on tourism and recreation, it was argued, has been based largely on assumptions about tourist perceptions.

Understanding the Relationships Among Aesthetic Concerns, Structure Visibility and Perceptions of Risk
One participant noted that a survey of students at the University of California, Santa Barbara found that they exhibited a preference for placing platforms in remote or obscure locations, where few coastal residents could see them, even though this might mean placing structures in relatively pristine areas. Another participant reported that, in the mid-1980s, it had been easier to get approval for development in an environmentally sensitive area beyond public view north of Point Conception than in a more visible but less sensitive area. Sub-sea completions (structures not visible on the surface) are another way of removing structures from sight, but they may entail greater pollution risks. Peoples’ assessments or awareness of the risks of what they cannot see and how they deal with conflicts between aesthetic and environmental values are questions for further study. It was suggested that simulation technology could be used to test reaction to different scenarios using methods similar to those used in the legal profession in research on jury characteristics and litigation strategies.

Assessing the Value of Tourism to the Local Economy
It was pointed out that research on tourism and recreation in the Pacific Region has not focused on a fundamental question, that is, its contribution to local economies.

Major Issue: Using GIS in Socioeconomic Research

Discussion of the advantages and disadvantages of GIS yielded some specific issues for the agency's attention. Advantages noted included the following:

  • GIS can be a very powerful research tool. Using layers of dissimilar information, such as biophysical and social science data, GIS technology can reveal patterns and anomalies that would not be apparent using other methods.
  • Layers of socioeconomic data can be used to reveal the distribution of social groups unfettered by arbitrary demarcations, such as county lines.
  • Efforts to put data in GIS format may help to improve the quality of data, as researchers may be more conscientious if they know other researchers may be using their data.

The following disadvantages also were noted:

  • While GIS is extremely powerful, researchers should keep in mind that it is only a tool and may be inappropriate for some applications. In the OCS drilling regions in Alaska for example, the communities are small, so gains from GIS research may be small as well.
  • Use of GIS does not ensure that findings will be useful. Compiling good socioeconomic data still requires asking good questions.
  • In socioeconomic research, collecting confidential data requires aggregating data, thereby limiting its precision and its usefulness for GIS mapping and analysis.

Component Issues:

Clarifying the Role of GIS in Funding Decisions
Participants felt that GIS technology should not be a major criterion for funding MMS projects. If it were, researchers might write GIS into proposals merely to sell a project, whether the technology was useful or not.

Requiring the Use of GIS
The regions can require, where appropriate, that data collected in MMS projects be delivered in GIS format. Some participants argued that because GIS software is expensive this might raise the cost of doing socioeconomic research. However, it was observed that the cost of GIS software is going down; a desktop version is already available. In the meantime, researchers can economize by sharing equipment their institutions already own. (Not to do so would risk making their work inaccessible because re-keying and coding old data for GIS is often prohibitively expensive.) Proponents of requiring data in GIS format whenever appropriate expressed their belief that the additional cost is small compared to the potential gain from making data available for future MMS research.

Preserving Data
Delivering data in GIS format does not ensure that it will be accessible in perpetuity. Data storage media will continue to change and whatever is in use today will be obsolete in 10 years. One participant recommended employing an archivist to preserve MMS databases.