Investor Presentaiton
The oil industry is extremely important to Alaska's economy.
Along with federal spending, Alaska's economy is driven by the oil industry. Although only
only a few thousand people are directly employed by oil companies, many more work in oil-
related jobs such oilfield service activities, oilfield construction projects, and pipeline
operations. The State of Alaska is extremely dependent on oil revenues, mostly from oil
royalties and severance taxes which oil companies pay to the state. Oil accounts for about
85% of the "unrestricted" revenue available to the State for spending for general purposes.
Thus the oil industry pays for a very large share of state government and local government
employment. UAA Professor of Economics Scott Goldsmith has estimated that about 1/3
of Alaska jobs can be attributed directly or indirectly—to the oil industry.
Prudhoe Bay, on Alaska's North Slope, is the largest oil field ever
discovered in North America-and a huge industrial complex.
19View entire presentation