10/31-11/7: economic model (team work)
10/24-10/31: jobs from drilling (individual work)

10/31-11/7:  This chart reflects the most up-to-date model team 8 has thus far constructed.  Followingthe chart are the factors we plan to use to compute the economic value of each benefit and cost.

Perspective	Benefits	Costs
1. Oil Corporations	1. Revenue from oil	1. exploration 2. transportation 3. production 4. wages 5. clean-up for potential oil spills 6. refining ? 7. fund for workers (future)
2. Society	1. Jobs 2. access of Alskans to infrastructure 3. fund for workers 4. revenues from leasing land 5. decrease in the price of oil	1. environmental 2. risk of oil spills- clean up and damage of what remains 3. disruption to culture of natives

 

Oil Corporations:

1. Exploration:

            -trend for world oil market

            -seismic testing

            -size of area

2. Production:

            -how many wells

            -depth of well

            -type of well

            -type of machinery

            -amount of (extractable) oil in the well

            -replacement due to wear and tear

3. Transportation:

            -cost of pipeline (materials)

            -cost of maintaining pipeline

            -roads (materials)

            -shipping costs

4. Wages:

            -no. of jobs

            -wage rate for each type of worker

            -#hours/ week

            -import of workers ?

5. Oil Spill Clean-up:

            -how frequently

            -cost of cleaning:

-how many people

-how bad the spill (area)

6. Refining

            -how much oil

            -cost of transporting it to refineries

7. Building infrastructure: (more of a cost to society ?)

            -hospitals

            -schools

            -houses

            -supplies- import

            -entertainment, building a “city”

8. Revenue from Oil:

            -how much oil is extracted

            -current price:

-trend

-probability of conflicts/disruptions globally

            -time lag (7-8 years)

            -demand curve and supply curve: equilibrium price

 

Society:

1. Environmental:

            -no. and type of wildlife affected

            -degree to which they are affected

            -pollution

2. Risk of Oil spills:

            -how often

            -clean-up costs

            -cost of damage (impact of what is left- pollution)

3. Disruption to culture:

            -% of people who’s lives are altered

            -value for degree of alteration

4. Jobs:

            -no. of jobs

            -wage rate

            -who gets the jobs: unemployed or move from another job?

5. Access to Infrastructure:

            -price decrease in gas due to easier transportation to the area

            -greater access to goods due to easier transportation to the area

-increase in no. of schools, hospitals, etc.

10/24-10/31:

Jobs- Oil Extraction:

• 3.89 jobs/ $1million in sales
• hourly earnings of petroleum workers: $21.49
  
• 95% chance of recovering 5.7 billion bbl oil over 25 year time period from ANWR

Jobs- Oil Refining:

• 16.53 jobs/ $1million in sales

Models:

• jobs if ANWR opened approximation model:
  (3.89 jobs/$1million sales)*(oil revenue/ billion barrels sold)*(recoverable oil/ # years to exhaust supply)= (#jobs/drilling period)
• comparision of drilling wages ($21.49/hour) to current average wages in Alaska of potential drilling workers
• decrease in unemployment > benefit to Alaskan economy