The oil and gas industry remains an economic driver for the Kenai Peninsula Borough. In a presentation at the KPEDD Industry Overview Forum on April 24 by President and CEO Kara Moriarty, demonstrated the significance of the industry on the economy.
In 2022, primary companies directly employed 4,105 workers in Alaska, 3,402 of whom were Alaska residents, accounting for 83% of primary company employment. The workers in Alaska earned $1.1 billion in wages.
The oil and gas industry has Alaska’s highest economic multiplier. Every 1direct oil and gas job supports 15 additional jobs in Alaska.
In 2022, primary companies directly spent $4.6 billion with more than 1,000 Alaskan vendors, including but not limited to construction, transportation and warehouse, and retail.
The total economic impacts of the oil and gas industry in 2022, including multiplier impacts, accounts for 69,250 jobs and $5.9 billion in wages.
“Clearly, we remain an economic driver, no question.” Kara Moriarty said.
While the Kenai Peninsula reviews its economic future, new employment statistics will be available in August 2025.
Joining President Moriarty for a brief conversation about the oil and gas industry’s impact was Bruce Jackman, the General Manager of Kenai Refinery, and Trudi Hallett, the Kenai Asset Team Leader from Hilcorp Alaska.
Hallett remarked the economic growth in recent years has grown and Hilcorp has been able to double their well work and drilling capabilities. While her sights on focused on the near term, she says, they are still planning for the long term.
Jackman explained that the refining industry has seen similar progress to the oil and gas industry, however, the overall dependency on the industry is changing, possibly due to the increase in electric vehicles. Jackman noted that the Kenai refinery is the only one that still produces gasoline, the fuel that moves Alaska.
Jackman and Hallett shared the same sentiment of being in favor of LNG imports, stating they want everyone to succeed. Hallett spoke out, saying, “Any source to reach that energy gap, we’re all for it.”
