development of the Santa Barbara Channel, and those that will be required 

 to develop oil potentials of Sales 35 and 48, will be built in Southern 

 California shipyards if this is less costly than transporting rigs from 

 the North Sea area. Two of the five shipyards in the Southern California 

 region, the Todd in San Pedro and NASCO in San Diego, are capable of rig 

 construction. Both are booked for at least the next year with contracts 

 for vessel construction, but the others have the capacity for vessel and 

 rig subassembly and repair work. However, industry has demonstrated a 

 strong tendency to build the necessary platforms outside of the Southern 

 California area. At least 12 of the 16 platforms installed in State or 



Federal waters offshore California were constructed in part or in whole in 



4 

 northern California or in the Gulf area. 



Additional facilities are expected to be constructed in the target 



areas identified by the OCS Task Force to accommodate production from 



Sales 35 and 48. Processing and storage will have to be developed in 



the San Diego area to accommodate production from finds in the southern 



tracts of Sale 48. However, the economic analysis of the Task Force 



indicates that the net number of jobs and secondary development will 



5 

 probably be insignificant in both the region and local economies. 



The OCS Task Force is currently re-examinijig employment and socio- 

 economic impacts of Lease Sale 35, based on the tracts actually leased 

 and new development in the Santa Barbara Channel. A description of this 

 work, which is under contract to a public interest economic analysis 

 firm, appears in Section VI. 



79 



