MAG-PLAN Alaska Update , Final Report
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OCS Study BOEM 2011-059 MAG-PLAN Alaska Update Final Report Northern Economics, Inc. IMV Projects, Inc. Eastern Research Group, Inc. Funding Agency: Bureau of Ocean Energy Management Alaska Region 3801 Centerpoint Drive, Suite 500, Anchorage, AK 99503 Contract No. MO9PCOOO45 May 2012 Cover Photo Credit: Shell Alaska, 2011 This report has been reviewed by the Department of the Interior and approved for publication. Approval does not signify that the contents necessarily reflect the views and policies of the Department, nor does mention of trade names or commercial products constitute endorsement or recommendation for use. ii MAG-PLAN Alaska Update Prepared by: Patrick Burden Leah Cuyno Stephen Thistle Prepared under BOEM Contract MO9PCOOO45 by Northern Economics, Inc. IMV Projects, Inc. Eastern Research Group, Inc. Published by U.S. Department of the Interior Anchorage Bureau of Ocean Energy Management May 31, 2012 Alaska Region iii DISCLAIMER This study was funded by the Bureau of Ocean Energy Management, U.S. Department of the Interior, Washington, D.C., under Contract Number M09PC00045 REPORT AVAILABILITY This report is available only in compact disc format from BOEM, Alaska Region, at a charge of $15.00, by referencing Study Number BOEM 2011-059. The report may be downloaded from the BOEM website through the Environmental Studies Program Information System (EPSIS). You will be able to obtain this report also from the National Technical Information Service at the following addresses in the near future. You may also inspect copies at selected Federal Depository Libraries. U.S. Department of the Interior U.S. Department of Commerce Bureau of Ocean Energy Management National Technical Information Service Alaska OCS Region 5285 Port Royal Road 3801 Centerpoint Drive, Suite 500 Springfield, Virginia 22161 Anchorage, AK 99503-5820 Phone: (701) 605-6040 Fax: (703) 605-6900 Telephone Number: (907) 334-5200 Email: [email protected] Fax Number: (907) 334-5202 CITATION Suggested Citation: Northern Economics, Inc., IMV Projects, and Eastern Research Group. 2012. MAG-PLAN Alaska Update. U.S. Department of the Interior, Bureau of Ocean Energy Management, Alaska Region, Anchorage, AK. BOEM study number BOEM 2011-059. 180 pp. CONTRIBUTING AUTHORS Patrick Burden – Northern Economics, Inc., Anchorage, Alaska Leah Cuyno – Northern Economics, Inc., Anchorage, Alaska Stephen Thistle – IMV Projects, Inc., Calgary, Alberta, Canada ACKNOWLEDGMENTS Northern Economics, Inc., IMV Projects, Inc., and Eastern Research Group, Inc. would like to thank Jerry Brian and Kim Coffman of BOEM for their helpful comments and assistance with preparing this report and their guidance during the project. A number of firms, organizations, and individuals contributed a significant amount of confidential and proprietary data, without which this report would not have been possible. Although for confidentiality reasons we cannot name these contributors here, we offer our deepest thanks for their invaluable assistance. iv TABLE OF CONTENTS Page List of Figures ............................................................................................................................... vi List of Tables ................................................................................................................................ ix 1 Study Summary ..................................................................................................................1 1.1 Objectives and Scope of Work ................................................................................1 1.2 Geographic Area and Offshore Modeling Areas .....................................................2 1.3 Model Overview ......................................................................................................2 1.1.1 Approach and Data used in the Model .........................................................3 1.1.2 Model Outputs .............................................................................................4 2 Introduction ........................................................................................................................5 2.1 Objectives and Scope of Work ................................................................................6 2.2 Geographic Area ......................................................................................................7 2.3 MAG-PLAN Alaska Model Overview ....................................................................8 3 Description of MAG-PLAN Alaska Inputs......................................................................9 3.1 Exploration and Development Scenarios .................................................................9 3.2 Modeled and Extrapolated Offshore Modeling Areas ...........................................10 3.3 Revisions to Activity Types and Functions ...........................................................12 3.4 Summary of OCS Activities ..................................................................................17 3.5 Activity Costs and Manpower Requirements for Modeled Offshore Modeling Areas ......................................................................................................................21 3.5.1 Environmental Support Activities..............................................................21 3.5.2 Site Surveys ...............................................................................................33 3.5.3 Exploration Activities ................................................................................53 3.5.4 Development Activities .............................................................................86 3.5.5 Production Activities .................................................................................96 3.5.6 Abandonment ...........................................................................................125 3.6 Activity Costs for Extrapolated Offshore Modeling Areas .................................126 3.7 Economic Sector Allocations for each OCS Activity ..........................................135 3.7.1 Allocation of Non-Labor Spending by Economic Sector ........................136 3.7.2 Allocation of Labor Spending by Economic Sector ................................138 3.8 On-shore Area Distribution (OMA to OSA mapping) ........................................144 3.8.1 Non-Labor Costs ......................................................................................144 3.8.2 Labor Costs ..............................................................................................146 3.9 Government Revenues from OCS Activities .........................................................151 3.9.1 Revenue Categories .................................................................................152 3.9.2 State and Local Government Spending Patterns ......................................155 3.9.3 On-shore Area Distribution ......................................................................155 4 References .......................................................................................................................157 Appendix A: Sources used in Model Creation ........................................................................163 v LIST OF FIGURES Page Figure 1. MAG-PLAN Alaska Upgrade Study Objectives ..........................................................1 Figure 2. Study Approach ............................................................................................................3 Figure 3. Alaska OCS Planning Areas .........................................................................................8 Figure 4. Exploration Phase Activities .......................................................................................19 Figure 5. Production Phase Activities ........................................................................................20 Figure 6 R/V Mt. Mitchell ........................................................................................................23 Figure 7 DeHavilland Twin Otter .............................................................................................23 Figure 8. M/V Nanuq .................................................................................................................26 Figure 9. Hull 247 (Ice Management/Anchor Handler) .............................................................27 Figure 10. M/V Perseverance .......................................................................................................27 Figure 11. Arctic Endeavor Barge ...............................................................................................28 Figure 12. M/V Point Barrow, a Point Class Tug/Tow Boat .......................................................29 Figure 13. Alaska Arctic Cap and Containment System ..............................................................30 Figure 14. Invader Class Tug/Tow Boat ......................................................................................31 Figure 15. M/V Mikhail Ulyanov ................................................................................................32 Figure 16. M/V Boa Galatea ........................................................................................................35 Figure 17. M/V Oceanic Vega .....................................................................................................36 Figure 18. M/V Geo Celtic ...........................................................................................................36