VOLUME 3 | ISSUE 1 | MARCH 2026
energy policy leaders, has us focused on TAPS 100 and many more milestones ahead.” Dr. Scott Goldsmith, a well-known pro- fessor at the UAA Institute of Social and Economic Research (ISER), provided his valuable insight recently at a RDC breakfast forum titled “50 Years in Alaska Without TAPS.” Goldsmith, who was on the eco- nomics faculty at ISER from 1975 to 2013, ISER’s director from 2001-05 and later a professor emeritus of economics, said oil and gas have laid an incomparable founda- tion across all sectors in Alaska. He pointed to 2023 studies that have shown the petroleum industry in the state accounts for roughly 16% of all jobs in the workforce and about the same percentage of income generated within the Alaska economy. “It's interesting,” Goldsmith said. “As we went around the room here and introduced ourselves, I only identified a couple of peo- ple who work directly for one of the major oil companies. Everybody else is in a sup- port position. So that just gives you some idea of the size of the power that these oil
and gas industry jobs have for the whole economy. It was very striking to me. It's that big network of vendors and the high wages paid in these industries that generates that 16% of total jobs in the economy.” Goldsmith said the direct impacts of the oil and gas industry can be easily quantified. However, the industry has numerous indi- rect impacts that are equally as important. Among those is a local oil and gas supply, which he said is vital for in-state operations such as the air cargo industry that relies on petroleum products from Alaska, as well as the Permanent Fund Dividend, the annual payment for eligible Alaskans from the in- vestment earnings of oil wealth. Another massive benefit of oil produc- tion, Goldsmith said, is providing funding to back other industries. “Expansive state budgets have allowed the government to support our other in- dustries, including mining, seafood, timber and tourism through generous capital ex- penditures and operations that help fund a variety of projects,” he said. Goldsmith also pointed out to his audi-
ence the resounding impact that taxes on petroleum activity have had and will con- tinue to have in Alaska. “You guys pay taxes but your relative contribution is modest compared to the dominance of oil and gas,” the economist said. “One study has estimated that the tax burden would need to increase five-fold on businesses, in the absence of petroleum, to provide public sectors in Alaska with ser- vices that are equivalent to other states.” “Without oil, the three-legged stool would really be a two-legged stool … and it would be a shaky stool at that. One of the legs would be the federal government. And actually, that would be the longest leg … half of the jobs would be dependent upon federal, military and civilian spending, as well as the jobs related to that spending.” Goldsmith noted that the construction and early days of TAPS were much differ- ent than the current pipeline landscape. Among the changes he joked: “There's an old saying that before the pipeline you had to go to Seattle and get your haircut. But that's not the case anymore.”
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TAPS HAS CHANGED THE LANDSCAPE — FOR GOOD
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Oil industry has helped shape the state of Alaska during the past 50 years BY FIREWEED STRATEGIES WHEN OIL FIRST BEGAN FLOWING THROUGH THE TRANS-ALASKA PIPELINE SYSTEM IN 1977, IT DID MORE THAN TRAVEL 800 MILES FROM THE ARCTIC TO THE SEA. IT RESHAPED ALAS- KA’S ECONOMY, POLITICS, COMMUNITIES, AND
IDENTITY — FOREVER LINKING THE STATE’S FU- TURE TO A RIBBON OF STEEL STRETCHING FROM THE NORTH SLOPE TO PRINCE WILLIAM SOUND. Nearly five decades later, TAPS remains one of the most ambitious infrastructure projects ever built — and one of the most consequential for a single state. In the fall, The Alyeska Pipeline Service Company celebrated the 19 billionth barrel of oil flowing through TAPS, another his- toric milestone that has helped define the State of Alaska's past, present and future. “As we celebrate this operational land-
mark and look forward to the 50th anniver- sary of TAPS operations in 2027, we remain focused on the long-term future of TAPS,” said John Kurz, Alyeska’s President & CEO. “We’re encouraged by the momentum and innovation embodied in work around the North Slope, where production is increas- ing at existing fields, game-changing proj- ects like Pikka and Willow are coming on- line imminently, and bold new exploration and development efforts are continuing. "That work, paired with an environment of support and action from federal and state
TEMSCO Helicopters, Inc PO Box 5057 Ketchikan, Alaska 99901 Phone 907-225-5141 • fax 907-225-2340 • www.TemscoAir.com
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www.AKRDC.org
ALASKA RESOURCE REVIEW MARCH 2026
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