A floatilla of tug boats

A floatilla of tug boats

Shell study details $1 million economic benefit for Port Angeles from Polar Pioneer oil rig

PORT ANGELES — City officials estimate approximately $1 million was injected into the Port Angeles economy while the Polar Pioneer was in the Port Angeles Harbor this spring, according to a report released by Shell Oil.

The report, Economic Impacts in Puget Sound of Shell’s Alaska Exploration Program, was prepared for Shell Exploration & Production Company and the Alaska Chamber by the McDowell Group.

[ This story accompanies “Shell report says Alaska oil exploration program brings $172.7 million to Puget Sound communities,” https://www.peninsuladailynews.com/article/20150920/NEWS/309229999 ]

The report includes a short section on Port Angeles.

“Port Angeles offers the first deep-water port to vessels entering the Juan de Fuca Straits,” it says.

“The port can handle vessels up to 1,200 feet in length and 35 feet of draft.

“Local services include topside repair and maintenance, fuel and lubrication sales, provisioning, and heavy lift cranes.

“While the port is known best for its log-handling capabilities, activity related to Shell’s Alaska-related efforts were welcomed as Port Angeles has been actively trying to diversify the local economy.

“In [mid-April] the Blue Marlin, a 738-foot heavy-lift ship, arrived in Port Angeles with the Polar Pioneer and a number of support vessels.

“After the Polar Pioneer was unloaded close to the port, topside work was conducted in preparation for transport to Seattle and eventually Alaska.

“The Polar Pioneer was in Port Angeles for 26 days before moving to Seattle.

“In that time, more than 130 workers connected with Shell’s activities purchased hotel rooms, bought meals, rented cars, and spent money with local businesses,” a comment attributed to Nathan West, city community and economic development director.

“City officials estimate approximately $1 million was injected into the Port Angeles economy from spending with more than 20 businesses.

“Businesses affected included local clothing stores, restaurants and bars, hardware stores, and water transportation services.

“One local business owner with a restaurant reported he had to increase the number of hours worked by employees, saying “We are delivering 150 to 300 lunches per day.”

“Sunset Hardware, a local hardware store, reported “thousands of dollars in sales” for various supplies needed to work on the drill rig,” a comment attributed to a King-5 television report.

“A local hotel was able to book 130 rooms for 26 days for a total of 3,380 rented rooms.”

The report refers to a local charter and tour operator, which was All Points Charters & Tours, which provided transportation for workers.

The report continued to say that one unnamed local official noted the spending was unanticipated.

The official was quoted as saying that “having this additional economic activity in our shoulder season before tourism traditionally picks up was a great surprise for our small businesses.

“Having just a few thousand dollars extra in sales for many local businesses is the difference between an average month and a record month.”

The report said that taxes paid by workers and other visitors “flowed to local, county, and state coffers through bed taxes, sales taxes, and port fees.

“The Port of Port Angeles generated $52,000 from dockage and security fees, equipment rentals, and storage leases,” the report said, attributing the comment to West.

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