Alaska OCS Socioeconomic Studies Program

Alaska OCS Socioeconomic Studies Program

Technical Report Number 23 1 Alaska OCS :.:.& —~ ;:.1 Socioeconomic :~.yw :::;:::::::::::::;.X+. Sponsor: ::::::;:::: ::~,:.:.:. BureW of k.:.:*y( Land Management &. %.......:+.:::.. .. Alaska Outer R. Continental Shelf Beaufort Sea Petroleum Development Scenarios Summary of Socioeconomic Impacts The United States Department of the Interior was designated by the Outer Continental Shelf (OCS) Lands Act of 1953 to carry out the majority of the Act’s provisions for administering the mineral leasing and develop- ment of off-shore areas of the United States under federal jurisdiction. Within the Department, the Bureau of Land Management (BLM) has the responsibility to meet requirements of the National Environmental Policy Act of 1969 (NEPA) as well as other legislation and regulations dealing with the effects of off-shore development. In Alaska, unique cultural differences and climatic conditions create a need for developing addi- tional socioeconomic and environmental information to improve OCS decision making at all governmental levels. In fulfillment of its federal responsibilities and with an awareness of these additional information needs, the BLM has initiated several investigative programs, ‘4 one of which is the Alaska OCS Socioeconomic Studies Program. The Alaska OCS Socioeconomic Studies Program is a multi-year research effort which attempts to predict and evaluate the effects of Alaska OCS Petroleum Development upon the physical, social, and economic environ- / ments within the state. The analysis addresses the differing effects among various geographic units: the State of Alaska as a whole, the several regions within which oil and gas development is likely to take place, and within these regions, the various communities. The overall research method is multidisciplinary in nature and is based on the preparation of three research components. In the first research component, the internal nature, structure, and essential processes of these various geographic units and interactions among them are documented. In the second research component, alternative sets of assumptions regard- ing the location, nature, and timing of future OCS petroleum development events and related activities are prepared. In the third research com- c ponent, future oil and gas development events are translated into quan- tities and forces acting cn the various geographic units. The predicted consequences of these events are evaluated in relation to present goals, values, and expectations. In general, program products are sequentially arranged in accordance with BLM’s proposed OCS lease sale schedule, so that information is timely to decision making. In addition to making reports available through the National Technical Information Service, the 13LM is provid- ing an information service through the Alaska OCS Office. Inquiries for information should be directed to: Program Coordinator (COAR), Socio- economic Studies Program, Alaska OCS Office, P. O. Box 1159, Anchorage, Alaska 99510. ,.-. v II P TECHNICAL REPORT NO. 23 CONTRACT NO. AA550-CT6-61 ALASKAOCS SOCIOECONOMIC STUDIES PROGRAIY BEAUFORT SEA PETROLEUM DEVELOPMENT SCENARIO: SUMMARY OF SOCIOECON@lIC IMPACTS Prepared by James Lindsay and Associates Prepared for PEAT, MARWICK, MITCHELL & co. and BUREAU OF LAND MANAGEMENT AIASKA OUTER CONTINENTAL SHELF OFFICE . December 1978 DOCUMENT IS AVAILABLE TO THE PUBLIC THROUGH THE NATIONAL TECHNICAL INFORMATION SERVICE 5285 PORT ROYAL ROAD SPRINGFIELD, VIRGINIA 22161 III NOTICE This document is disseminated under the sponsorship of the U.S. Department of the Interior, Bureau of Land Management, Alaska Outer Continental Shelf Office in the interest of information exchange. The Unitd States Government assumes no liability for its content or use thereof. ALASKA OCS SOCIOECONOMIC STUDIES PROGRPll BEAUFORT SE4 PETROLEUM DEVELOPMENT SCENARIOS: SUMMARY OF SOCIOECONOMIC IMPACTS Prepared by James Lindsay and Associates for Peat, Marwick, Mitchell & Co. Iv o REPORT DOCUMENTATION PAGE 1. Report No 2. 3. Recipient ‘B Acceanion No. I I Technical Report 23 I 6. Title aod Subtitle 5. Report Date Alaska OCS Socioeconomic Studies Program December 1978 Beaufort Sea Petroleum Scenarios: 6. Summary of Socioeconomic Impacts ~. Author(s) 8. Performing Organization Report No. I 9. performing Organization N8me and Address i 10. Projec tJTaak/Uork Unit HO. James Lindsay and Associates for Peat, Marwick, Mitchell & Co. I 11. COntraCt or Grant No. 601 West Fifth, Suite 700 . AA550-CT6-61 Anchorage, Alaska 99501 13. Type of Report 12, Sponsoring Organization Name and Address [ Bureau of Land Management Alaska Outer Continental Shelf Office Post Office Box 1159 Anchorage, Alaska 99510 15. Supplementary Nctea 16. Abstract This report is a summary of six Beaufort Sea Petroleum Scenarios Impact reports prepared for the Alaska OCS Socioeconomic Studies Program between 1977 and 1978. Technical Report Number 13, “Beaufort Sea Petroleum Development Scenarios: Impacts on Anchorage, Alaska,” Rick Ender and Associates. Technical Report Number 18, “Beaufort Sea Petroleum Development Scenarios: Economic and Demographic Impacts,” Institute of Social and Economic Research (ISER). Technical Report Number 19, “Beaufort Sea Petroleum Development Scenarios: Man Made Environment Impacts,” Alaska Consultants. Technical Report Number 20, “Beaufort Sea Petroleum Development Scenarios: Transportation Impacts,” Dooley and Associates. Technical Report Number 21, “Beaufort Sea Petroleum Development Scenarios: Natural Physical Environment Impacts,” Dames and Moore. Technical Report Number 22, “Beaufort Sea Petroleum Development Scenarios: Sociocultural Impacts,” Worl and Associates. .?. Originator’s Key Words 18. Availability Statement I National Technical Information Service 5285 Port Royal Road Springfield, Virginia 22161 U. S. Security Clsssif. of the Report g. 20. u. S. Security Claaaif. of This Page 21. Ho. of”pagea 22. Price I Unclassified Unclassified I u e 9 9 * e 9 * TABLE OF CONTENTS I. Introduction . 1 Purpose of the Socioeconomic Studies Program . 1 Background . ● . 1 Purpose and Organization of Reports . ✎ . : Impact Evaluation Process . e . ● . ✎ . 9 11. Non-OCS Base Case . ✎ . ✎ . Introduction . ✎ . ✎ . ✎ 1; ALASKA . ✎ . ✎ ✎ 12 Economic/Demographic . 15 Transportation . ✎ . ✎ . 15 Highway Mode . ✎ . ✎ . 15 Rail Mode . ✎ . ✎ . 17 Water Mode . ✎ . ✎ . 17 Air Mode..... ✎ . ✎ . 18 ANCHORAGE/FAIRBANKS . ✎ . ✎ . 13 Economic/Demographic . ✎ . ✎ . 21 Urban Services . ✎ . ✎ . 23 BEAUFORT SEA REGION . ✎ . ✎ . 23 Economic/Demographic . ✎ . ✎ . 25 Community Services . ✎ . ✎ . 28 Natural Resources . ✎ . ✎ . 31 Sociocultural . ✎ . ✎ . 35 III. Projected Impacts of OCS Development . ✎ . ✎ . 35 Introduction . ✎ . ✎ . CHARACTERISTICS OF THE OCS PETROLEUM SCENARIOS . 35 Support Facilities - Exploration Phase . 38 Support Facilities - Production Phase . Camden-Canning Scenario . ;; DESCRIPTION . 43 SUMMARY OF IM;A6T~ :::::::: ::::::: . 47 Alaska . 47 Economic/Demographic . ,. 47 Transportation . 50 Anchorage/Fairbanks . 51 Economic/Dmographic . 51 Urban Services . 52 Beaufort Sea Region . 56 Economic/Demographic . 56 Community Services . 56 Natural Resources . 60 Sociocultural . 63 Prudhoe-High Scenario . 65 DESCRIPTION . 65 SUMMARY OF IM;A~T; : : : . 68 Alaska . 68 B Economi;/~e;o~r;p~i; . 68 Transportation . 70 VII Anchorage/Fairbanks . -...” ““””” 72 Economic/Demograph- c. ..’. ● . .“ “ “ “ “ 72 Urban Services . ..”” ““”” 74 74 Beaufort Sea Region . ..*. ● **@” ““””” 74 Economic/Demograph” c . ● .*””””” 79 Community Services . .-..” “...” 81 Natural Resources . ● . 83 Sociocultural . ● .*.* ..-.. 83 Prudhoe-Modal Scenario. ...* . 83 DESCRIPTION . ..**. ● **C. .“.”. 86 SUMMARY OF IMbAiT~ : : . ..*.- ● *.*” ““..” 86 Alaska . ...* ...*. “..”. a. Economic/Demographic . u~ Transportation. ● . ● . ● - . ● . “ ~~ Anchorage/Fairbanks . Economic/Demographic . ~~ Urban Services. ● . 0 . 0 ● . BeaufortSea Region . 90 Economic/Demographic . 90 Community Services. ~~ Natural Resources . Sociocultural . ~~ Cape HalkettScenario . 97 DESCRIPTION . ..*. ..”. .. SUMMARYOFIM;A~T~: : : :: . ;; Alaska . .. “ ● ● . ● . ● “ .. ● ● ● . ● Economic/Demographic . 99 Transportation. , . .]~~ Anchorage/Fairbanks . Economic/Demographic . ● . ]:] Urban Services. .104 BeaufortSea Region . c . .104 Economic/Demographic . ,04 CommunityServices. ,08 Natural Resources . 0 . ● .110 Sociocultural . “ . “ .. “ . “ ● . 113 References . .. ● . ● . “= .- ● - ..O ● .“ “ * . “ VIII LIST OF TABLES Table 1 Aggregate Indicators of Non-OCS Base Case Growth, State of Alaska, 1977 - 2000 . 13 Table 2 Non-OCS Base Case Growth of the Fiscal Sector, State of Alaska, 1977 - 2000 . 14 Table 3 Non-OCS Base Case Growth of Anchorage .Economy, 1977 - 2000 . 19 Table 4 Non-OCS Base Case Growth of Fairbanks Economy, 1977 - 2000 . 20 Table 5 Non-OCS Base Case Anchorage Urban Service Requirements . 22 Table 6 Forecast of Employment, Non-OCS Base Case, Barrow, Kaktovik, Nuiqsut, klainwright and North S- ope Region, 1977 - 2000 . 24 Table 7 Forecast of Population, Non-OCS Base Case, Barrow, Kaktovik, Nuiqsut, Wainwright and North S“ ope Region, 1977 - 2000 . 26 Table 8 Estimated Revenues and Expenditures, Non-OCS Base Case, North Slope Borough, FY 1977/78 - FY 2000/01 . 27 Table 9 Projected Gravel Requirements for North Slope Petroleum Development Scenarios . 30 Table 10 Location of Marine and Terrestrial Wildlife Resources . 41 Table 11 Camden-Canning Scenario Impact on Aggregate Indicators, State of Alaska, 1979 - 2000 . 48 Table 12 Impact on the State Fiscal Sector of

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