V. SOCIOECONOMIC IMPACTS 



Offshore oil and gas development is commonly divided into five 

 major activities: exploration, establishment of onshore base of opera- 

 tions, (including equipment fabrication), production, transportation ^and 

 processing. The area of base operations generally is the center of 

 major socioeconomic impacts, although construction and operation of 

 new refineries, if required, have the largest long-term effects on a 

 community or a region. OCS development results mainly in the creation 

 of new employment, which in turn creates secondary employment and growth. 

 Capital investment, rather than employment, is more associated with 

 exploration, production, transportation and processing activities. 



Employment generated by OCS development was assessed for the 

 Atlantic Coast. The total number of jobs was projected from develop- 

 ment plans and these figures were used as a basis for estimating secon- 

 dary employment and demand for new development and services. The OCS 

 Task Force conducted an exhaustive study of the characteristics of 

 oil-related labor in the Southern California region. Socioeconomic 

 impacts from new jobs created in OCS development could not be 

 accurately estimated because not all the jobs generated by oil and gas 

 operations were filled by new residents. Also, not all imported labor 

 for OCS-related projects remained in the state long enough to generate 

 demands for new housing, services, and secondary employment. Further, 

 new offshore service companies would not tend to locate in California 

 because the state already has a large offshore service industry capable 

 of meeting the demands of OCS development in the region. 



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