HARD TIMES FOR OIL FIELD SUPPORT INDUSTRIES.

• Author: JONES, PATRICIA

The past year has been tough on those who support oil field development on the North Slope. But with record-breaking oil prices and new ownership of Prudhoe Bay resources, relief is in sight.

Alaskan oil field contractors-- they're a resilient bunch. Many created strong, vibrant companies from scratch, based on the flow of oil from Prudhoe Bay starting less than 30 years ago.

Many of these same business owners have weathered dramatic boom and bust cycles in their workloads--swings oftentimes caused by the varying market price paid for North Slope crude oil.

And most recently, these same oil field contractors have endured another challenge-watching and waiting the last 18 months as ownership of the North Slope oil and gas assets bounced back and forth like a practice ball at Wimbledon.

"We're still going through a time of transition, and we're not going to see a lot of relief and anxiety lessening for contractors until the ownership issue is really settled," said Karen Cowart, general manager of The Alliance. "There's still a couple months of uncertainty as to how active the owners will be."

Her Anchorage-based organization represents more than 350 different companies and more than 29,000 workers in Alaska's oil support industry, a field that has faced substantial job losses in recent months.

Job Cuts in Support Industry

According to Cowart, Alliance members report cutting 3,000 jobs to 4,000 jobs since the last surge in Alaska's oil industry-in 1997.

Sagging crude prices in late 1998 started the work slump among contractors who provide a whole host of services to North Slope oil producers.

Then came the BP Amoco-Atlantic Richfield merger, announced in April 1999, and the slump in service work grew even larger and longer as negotiations between the oil companies and federal government officials lasted for months.

Collectively, Alaskan contractors rejoiced when the merger closed this spring and Phillips Petroleum took over ownership of Arco Alaska's North Slope assets.

The cheers weren't necessarily for the company that came to the plate to buy Arco's assets in Alaska, but simply that the deal was done and that the industry would start to move forward again.

"It's been a terrible time for the industry," Cowart said. "Quite frankly, there's been no new work ... as a result of the merger and the changes in price."

Cowart's industry organization isn't the only one noting substantial job losses in the oil field service industry. State employment numbers tracked by the Department of Labor also indicate a decline in oil industry...