Oil and gas companies have outsized economic impact on Alaska, says industry study

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For each direct oil and gas company job, industry activity supported 15 other jobs, and each dollar in oil and gas industry wages supported $4 in other Alaska wages, according to a new report.

, which includes industry workers’ purchases in the larger economy.

The 15 primary oil and gas companies operating in the state employed 4,105 workers, 83% of whom were Alaska residents, and paid $1.1 billion in wages in 2022, Berry said in her presentation. The companies that year paid $4.6 billion for goods and services in Alaska and contributed $4.5 billion in total tax and royalty payments, $4.1 billion of which went to the state government, she said.That $4.1 billion amounted to 47% of state revenue in the 12 months that ended on June 30, 2022, she said.

“We feel compelled to remind you that these companies are operating in a global environment in which they’re competing to bring capital to the projects in Alaska. So to have this level of investment in the state is very significant,” she said.

 

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