2.1 FACTORS OF INFLUENCE 



In the implementation of an OCS development system there are a 

 number of important spheres of interest. In this section we discuss 

 four of these. The first three--community (indirect) effects, living 

 resources, and regulatory factors--are to be covered in detail in separate 

 reports of the OCS project series (Volumes 2, 3 and 4). They are covered 

 here only to the extent necessary to provide a background for the 

 descriptions of specific OCS projects. The section concludes with a 

 discussion of industry decision factors. 



2.1.1 Community Factors-- Indirect Effects 



The key factor in assessing community effects is employment. The 

 total number of individuals to be employed is the summation of direct 

 employment (the facility project under consideration), indirect employment 

 (working for other companies that support the facility project), and 

 induced employment (employment generated in other sectors of the economy 

 such as school teachers). (Indirect and induced employment are addressed 

 in detail in Volume 3 on community effects.) 



Critical matters to consider in employment are: (1) the different 

 requirements of construction and operation employment, (2) the interrelated 

 timing of employment opportunities for individual projects, and (3) the 

 percentage of employees who are new regional residents. For many projects, 

 such as refineries and pipelines, construction and installation require 

 large labor forces, while operating employment is much lower. For other 

 facilities, such as platform fabrication yards, the operating force may 

 exceed the construction labor force. 



During construction and operation, a percentage of employees will 

 also be new residents to the area. Those who are current residents will 

 not require substantial changes in local services, while new residents 

 will require service from the public and private sectors that had not 

 been demanded previously. The number of secondary and induced employees 

 needed because of the new direct employment is difficult to predict. A 

 number of factors affect the relationship to direct employment; the size 

 of the community before the project, income of workers, length of 

 construction phase, and distance from metropolitan areas are the most 

 important. As a general rule, from 0.3 to 0.9 secondary workers are 

 needed for each new construction worker, and from 1.1 to 2.3 secondary 

 workers for each permanent employee [6], while induced employment on 

 OCS-related industry is projected to be at least 1.2 for all direct and 

 indirect workers. 



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