Sen. Giessel Comments on McDowell Study
Of Productivity of NS Compared to Other Oil Provinces
(Juneau) Sen. Cathy Giessel, R-Anchorage, today addressed the State Senate about the just-released jobs study by Juneau-based McDowell group, which compares Alaska North Slope job numbers with production.
“The McDowell report confirms that, yes, employment numbers are up on the North Slope, but unlike in past decades, production per worker is way down,” Giessel said. “At peak production of more than 2 million barrels per day in the pipeline, the ratio of what each worker produced was 200,000 barrels per year. Now, the ratio has dropped to 27,000 barrels per worker per year. In other words, it takes nearly eight times as many workers to produce that 200,000 barrels of oil.
“The argument that all is well on the North Slope, based on employment numbers, is specious,” Giessel said. “Production is what brings wealth to state government. Production is declining by 7-8 percent per year. Our focus must be on increasing production. Increased production brings with it more job opportunities for Alaskans, in good-paying jobs.”
Senator Giessel also noted that, even though North Slope job numbers are up a modest number, other oil producing areas have added tens of thousands of jobs. She cited Alberta, where tar sands production is fueling a huge boom, has 60,000 openings.
“This is oil that would have filled the Keystone pipeline, if the Obama administration had not rejected that project,” Giessel said. “The pipeline itself would have generated tens of thousands of construction and operating jobs.”
The study, requested by the Senate Labor and Commerce committee, was paid for by the Senate Finance committee, at a cost of $175,000. To read the McDowell report, please go here:
To listen to Sen. Giessel’s comments under Special Orders, please go here:
http://gavelalaska.org/media/?media_id=SFLS120125A
