**REPORT TITLE**: Federal Oil and Gas Activities: A Socioeconomic
Review. Detailed Data Tables

(North Atlantic, Mid‑Atlantic, South Atlantic, Eastern Gulf of Mexico,
Central Gulf of Mexico, Western Gulf of Mexico, Southern California,
Central/Northern California, Washington‑Oregon, Gulf of Alaska
Subregion, Bering Sea Subregion, and Arctic Subregion) and Annotated
Bibliography.

**STUDY TITLE**: Federal Oil and Gas Activities: A Socioeconomic Review.

CONTRACT NUMBER(S): MMS: 14‑12‑0001‑30051.

SPONSORING OCS REGION: Washington.

APPLICABLE PLANNING AREA(S): All.

FISCAL YEAR(S) OF PROJECT FUNDING: 1983; 1984.

COMPLETION DATE OF REPORT: September 1984.

COST(S): FY 1983: \$291,195; FY 1984: \$164,520; CUMULATIVE PROJECT
COST: \$455,715.

PROJECT MANAGER(S): V. Kugajevsky.

AFFILIATION: Executive Resource Associates, Inc.

ADDRESS: 1745 Jefferson Davis Highway, Arlington, Virginia 22202.

PRINCIPAL INVESTIGATOR(S)\*: C. Bakewell.

KEY WORDS: North Atlantic; Mid‑Atlantic; South Atlantic; Eastern Gulf;
Central Gulf; Western Gulf; Southern California; Central California;
Northern California; Washington‑Oregon; Gulf of Alaska; Kodiak; Cook
Inlet; Shumagin; North Aleutian Basin; St. George Basin; Navarin Basin;
St. Matthew Hall; Aleutian Basin; Norton Basin; Hope Basin; Chukchi Sea;
Beaufort Sea; socioeconomics; coastal zone; impacts; literature review.

ACCESS NUMBER: 30051

**BACKGROUND**: Section 18 of the Outer Continental Shelf (OCS) Lands
Act requires that the Secretary of the Interior consider a variety of
factors in preparing a leasing program to ensure equitable sharing of
developmental benefits and environmental risks among OCS regions.  This
project contributes socioeconomic data to assist the Minerals Management
Service (MMS) in responding to this requirement.

**OBJECTIVES**: (1) To search current literature to gather existing
quantifiable socioeconomic information that identifies OCS related
socioeconomic impacts, summarized by Planning Area; (2) To prepare a
series of tables containing relevant quantifiable socioeconomic baseline
information for each Planning Area; (3) To prepare a description of
potential OCS oil and gas activity impacts on the socioeconomic
environment, with accompanying tables, for each Planning Area; and (4)
To translate impact to dollar value using market and non‑market
valuations, as appropriate.

**DESCRIPTION**: The study products are an annotated bibliography and a
12‑volume set of detailed data tables for 21 OCS Planning Areas. 
Existing information and data were collected for the bibliography that
document baseline conditions and impacts of OCS oil and gas development
on the socioeconomic environment in each Planning Area.  The information
was assembled in a format that allows comparisons between Planning
Areas.  The bibliography and data tables were categorized into the
following socioeconomic resource sectors: oil spill cleanup costs;
commercial fishing industry; recreation, tourism, and aesthetics;
subsistence activities; economic and demographic impacts; air and water
quality; oil and gas development supplies and services; commercial
fishing and other water‑based extraction activity (e.g., kelp,
minerals); transportation and transportation‑related resources; military
operations; and infrastructure (housing, schools, public finance).  Many
effects from OCS activities do not register in quantitative and
statistical data (e.g., certain political systems and economic effects
and a broad range of social, cultural and community effects).  This is
particularly true for \"frontier\" regions such as Alaska.  A principal
focus of the MMS was quantification and conversion of the effects data
to monetary or dollar values per barrel of oil produced or estimated as
available resources.  In order to relate effects to natural gas
production, gas was converted to its barrel of oil equivalent (BOE).

**SIGNIFICANT CONCLUSIONS**: Secondary data showing quantitative impacts
of oil and gas development activity on coastal zones are very spotty,
limited, or not available in many study sectors for many OCS Planning
Areas, or exist in non‑uniform measures across Planning Areas. 
Available statistical data reflect only a small segment of the totality
of impacts.

**STUDY RESULTS**: Exploration and development costs (supplies and
services) are a major indicator of OCS socioeconomic impact.  Comparable
expenditure data were found for only 5 of the 21 OCS Planning Areas
studied.  As calculated from the Central Gulf of Mexico Planning Area,
\$17.66 cost per BOE was the benchmark cost.  Three sets of data are
needed to convert benchmark cost to cost estimates for other regions:
(1) mean estimates of additions to recoverable oil and gas reserves for
each Planning Area; (2) a composite index of relative cost of
exploration and development of a given amount of additional oil and gas
reserves in each Planning Area or region; and (3) economies of scale and
cost reductions which may be achieved as oil and gas resource volumes
increase.

Oil spill cleanup costs are sensitive to local geomorphological
characteristics of the coast.  For example, fragmentary but consistent
cleanup cost information suggests that oil cleanup from a rocky
coastline may have unit costs three times as large as similar cleanup
activities on a sandy coastline.  Also, estimated cleanup costs assume
that oil spills in each Planning Area reach shore (worst case data).

OCS effects on the fishing industry in all Planning Areas are primarily
related to oil spills.  Effects due to OCS‑related oil spills and other
effects due to OCS activities required development of percentage
reduction of fish landings by species.  Application of these percentages
to fish landing data quantifies effects on commercial fish landings by
species for each Planning Area.

For transportation and transportation‑related activities, no effects
methodology was used.  Baseline data were reported for each Planning
Area.

Information on subsistence economies in Alaska is limited, very
tentative, and subject to significant error.  The methodology used in
development of fish and game harvest estimates involved three stages:
(1) review of surveys conducted by the State of Alaska Fish and Game
Office or local communities; (2) information on subsistence fish and
game harvests on a per capita and per household basis for consumption
and trading was extracted from select materials; and (3) information was
extrapolated to other communities on the basis of subjective judgement
of community economic structure, native population size, opportunity for
market‑economy employment, annual income statistics, etc.  The data
presented do not clearly distinguish between subsistence and commercial
harvests.

OCS activities which affect recreation and tourism are wide‑ranging and
can have both positive and negative effects.  Estimated tourism and
recreation are expressed monetarily in terms of gross revenues for
various goods and services sectors that are purchased for recreation
activities.  It is possible that losses in gross revenues in one
subarea\'s recreation and tourist activities may well be offset by gains
in gross revenues in another subarea within the same Planning

Area or in another Planning Area.  This potential offset is not
reflected in the secondary data.  The annual loss of tourism and
recreation is multiplied by the projected project lifespan and divided
by projections of spilled barrels of oil and mean hydrocarbon resource
estimates, providing two measures of losses.

Data from several socioeconomic areas were used and potential effects
were presented.  Effects on total personal income expressed in dollars
were developed by using new and local resident employment years over the
project life multiplied by representative salary for direct and indirect
oil and gas workers employed in the Planning Area.  Effects per BOE were
calculated by dividing dollar values by increased recoverable reserves
or BOE.  Effects on two health capacity measures, hospital beds and
physician services, were developed.  Effects on police officer\'s
payrolls were developed by adding officers with increasing population. 
Average annual residential housing dollars were calculated by increased
demand in new housing.  Average annual residential kilowatt hour
consumption, water usage, and telephone lines were calculated by
addition of new housing units.  No military effects were projected.

The dollar values of air quality effects were not estimated.  Effects
from OCS‑ related emissions were found in the literature.  The physical
weight of those emissions were divided by mean hydrocarbon resource
estimates to obtain amount per BOE.

Data on discharges of drill cuttings, drilling muds, and formation
waters indicate that impacts on the marine environment from these
effluents tend to be local in nature and result primarily from
mechanical rather than toxicological properties of substances.  Thus, if
concentrations of these effluents are maintained at an acceptable level,
effects of these pollutants are negligible.  Hydrocarbon emissions from
chronic and acute oil spills do result in environmental damage.  These
effects are approached in the oil spills and cleanup costs section.

**STUDY PRODUCT(S)**: Executive Resource Associates, Inc.  1984. 
Federal Outer Continental Shelf Oil and Gas Activities: A Socioeconomic
Review.  Detailed Data Tables (North Atlantic, Mid‑Atlantic, South
Atlantic, Eastern Gulf of Mexico, Central Gulf of Mexico, Western Gulf
of Mexico, Southern California, Central/Northern California,
Washington‑Oregon, Gulf of Alaska Subregion, Bering Sea Subregion, and
Arctic Subregion) and Annotated Bibliography.  A final report for the
U.S. Department of the Interior, Minerals Management Service,
Washington, D.C.  Contract No. 14‑12‑0001‑30051.

\*P.I.\'s affiliation may be different than that listed for Project
Manager(s).