GETTING THE GOODS TO Alaska's Oil and Gas Industry.

• Author: PARMELEE, CATHERINE
• Position: Statistical Data Included

Oil-field support providers help oil producers and make a dynamic impact on Alaska's economy.

A study on Alaska's oil and gas industry released this year revealed the industry spends $2.1 billion annually in the state-about equal to the State of Alaska's general fund spending ($2 billion). The Economic Impact of the Oil and Gas Industry on Alaska-the first statewide study that captured oil and gas employment and spending impacts-was commissioned by the Alaska Oil and Gas Association and the Alaska Support Industry Alliance. Research was conducted by Information Insights, based in Fairbanks, and The McDowell Group, based in Juneau.

Key findings showed the oil and gas industry spends $1.7 billion on goods and services in the state. Payroll expenditures pump another $4 million annually into the economy. Industry standards demand top quality performance products for that money, and Alaska's oil-field service providers are measuring up. Consider the Alpine oil field located on Alaska's North Slope, which started up in November 2000.

"Alpine was one of those projects that support contractors in Alaska had to step up to the plate," said Dawn Patience, spokesperson, Phillips Alaska Inc. "There were lot of firsts involved."

Some of those firsts included horizontal drilling; road-less development (creating ice roads for winter use); and enhanced oil recovery, a process that creates a solvent that sweeps oil out of rock better than water, explained Mark Ireland, Phillips' subsurface manager.

"The Alpine field continues to be a real bright spot across the industry, especially for Phillips," Patience continued. "Doyon Drilling, for example, has hit 98 percent of its target in the Alpine reservoir."

Doyon Drilling, along with a few other oil-field service providers, show how they get the goods to Alaska's oil and gas industry, as well as meet the demand for quality performance.

AIRGAS

The largest distributor of gases and welding supplies in North America, Airgas is relatively new to the Alaska marketplace. The company opened its doors in the state in 1996. Its main warehouse and distribution center is situated in Anchorage; branches are established in Kenai and Fairbanks.

Airgas is also the third largest distributor of safety equipment in the nation, and that's a big part of what the company is about in Alaska. Aggressively moving forward as one of the premier suppliers for safety equipment, Airgas has established strong alliances with Nabors Alaska Drilling, Doyon Drilling and others who support BP Exploration (Alaska) Inc. and Phillips in the state.

Airgas represents a full line of respiratory protection, gas detection and other personal protection equipment, such as hardhats, chemical suits, gloves and more. "Some of this equipment is very technical and the end users need to know when and how to operate (the items)," said Mike Stoddard, safety sales leader. "So we train them."

With the assistance and guidance of toolpushers and supervisors, Airgas helps others in the petroleum industry design safer apparatus, such as retractables (lifelines) for use when someone is climbing up and down on an oil rig or platform or around cellars or derricks. They also provide egress (exit) signs, logos for hard hats, flame-retardant coveralls and more. The company will also do walk-throughs on drill rigs with the drilling companies who work for BP or Phillips. Airgas is there to help identify lack of signs; eye wash stations; fall protection; respiratory, hearing, eye protection and so on, as well as supplying sound-level monitoring equipment. The main purpose is to assist and to recommend the appropriate safety protection in all categories with the client safety team.

For example, VECO recently completed BP modules for Northstar, and Airgas helped from ground to finish with welding training-how to handle compressed gases, handle torches safely, respiratory protection, fall protection and more. "It was an ongoing request from the Port of Anchorage to assist in their new hire and awareness training class," Stoddard said.

Training levels are designed to customers' needs, and for the most part, training is free. Airgas also utilizes its manufacturers regularly for competent or certified training requirements.

"We're definitely a customer-focused company," said Mark Bradley, general manager. "We're strive to meet the needs of our customers."

Airgas tries to work as an unpaid employee for its customers, helping with the planning and development of their safety programs. "It's all a significant part of what we do," Bradley said.

The company's growth curve has been rapid since its arrival in Alaska. Beginning as a startup operation in 1996, Air-gas has increased annual sales to $10 million in 2000. "Our sales have grown steadily each year," Bradley said, "And we're still on a development track."

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