Community Effects 



An exploratory drill rig is supported from temporary service bases 

 which are discussed in Section 2.3.1. The primary onshore effect to the 

 community from exploratory drilling oil is through employment and wages 

 generated. 



Employment : Personnel requirements for semi-submersible rigs may 

 include 3 people onshore, 36 men on the platform working in each of 4 

 crews, 30 contract service personnel working in each of 2 crews, and 10 

 marine personnel. The total employment, therefore, is 217 of which 102 

 are on the rig at any one time [20]. Other employment estimates per rig 

 for the Mid Atlantic region fall as low as 113 employees [21]. Variation 

 in employment per rig varies with the type of equipment, rather than the 

 nature and location of the frontier area. For the Mid Atlantic lease 

 sale, 80 employees (37 percent) were estimated to be hired locally. An 

 additional 87 individuals were estimated to maintain temporary local 

 residences while the drill ships worked on site. The remaining 50 

 individuals would commute home during the seven days they were off duty 

 [20]. 



Total earnings for the 167 employees operating a semi-submersible 

 drilling rig, who reside in the local area, both temporary and permanent, 

 is estimated as $3,300,000, while those who left the area (50 employees) 

 earn approximately $1,000,000. 



Induced Effects : The money going out for wages will have a 

 multiplier effect when it enters the local economy to purchase goods and 

 services. An average exploratory well takes approximately 3 months to 

 drill to a depth of 14,000 feet, but variables such as weather conditions 

 and sediment characteristics influence the length of time. Therefore, 

 the total effect on the local area depends on how many wells are drilled 

 both at one time and in total. In a promising field several rigs might 

 operate at the same time. If a single coastal port is much closer to 

 the offshore field, then supporting activities will concentrate at one 

 location, but if several ports offer similar advantages, then the total 

 effect may be dispersed over a wider area. 



The effect on a local community may be less than it might 

 initially appear. Many temporary residents will send portions of their 

 earnings home. In addition, during the seven-day off period, they may 

 leave the local area for extended time periods. From the perspective of 

 the local community, these individuals require virtually no services. 

 Therefore, any local expenditures are positive as they are offset by 

 negligible public costs. In addition some local employment opportunities 

 are provided. 



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