Shell Puget Sound Refinery’s Economic Contributions

DATE: September 08, 2006 11:35:13 PST

Local Refinery Produces More Than Fuel

Washington’s five major petroleum refineries produce more than 20,000 jobs and nearly a billion dollars in personal income for Washington State. The following describes how 1,725 direct refinery jobs affect the state economy.

Jobs:

Petroleum refining is a high-wage industry, paying its employees in Washington State an average of more than $80,000.
According to a 2003 refiners survey, the five major refineries employed 1,725 employees in 2003, paying them an average annual wage of $80,357, about twice the Washington State average.
The average wage in Skagit County was $28,662. The average wage at the four Skagit/Whatcom county refineries in 2002, by comparison, was $75,861.
These jobs have a total employment multiplier of 11.68, meaning that each direct refining job generates an additional 10.68 jobs in the state, for a total employment effect of 20,148 jobs resulting from the five refineries.
Washington’s petroleum refiners regularly rely on contract workers. In 2003, refiners paid contract workers nearly $165 million, an average of $118,296 per worker. Ninety-eight percent of these 1,393 workers came from within Washington State.

Refinery jobs and their income spur additional jobs in upstream industries that supply crude oil, contract labor for plant maintenance and repair, and office supplies and equipment to the refineries.

Taxes:

The five refiners paid $226.5 million in state and local taxes in 2003, a 33 percent overall increase from 2001.
The refiners paid $12.8 million in property taxes in 2003 and $2.3 million in regulatory fees.

Safety:
Petroleum refineries have an excellent worker safety rating and contribute generously to the communities in which they are located.
In 2002, refineries averaged just 11.1 injuries or illnesses per 10,000 full-time workers. This low rate compares with an average of 72.4 per 10,000 full-time workers for nondurable goods manufacturing.

Community Involvement:
The five refineries and their employees contributed $775, 000 to various community causes in 2003. The firms themselves contributed about 69 percent of this, with the balance provided by firm-sponsored employee giving.
Statewide and National Impact:
Today, Washington’s refineries make up 3.7 percent of the nation’s total refining capacity.
With this state accounting for 2.1 percent of national petroleum consumption, in-state refineries produce quantities more than sufficient for Washington’s needs.
Washington’s refineries produced 583,100 barrels per day and more than a dozen different products in 2003.
Gasoline accounts for about 50 percent of the refineries’ total $7.3 billion in output value in 2003. Diesel oil and jet fuel are next, accounting for 24 percent and 13 percent, respectively.
Nearly 61 percent of Washington refined product is used within the state.

Source: Washington Research Council Special Report, July 29, 2004. "Washington State's Petroleum Refining Industry Economic Contribution"

Download the full WRC report by clicking here . (requires Acrobat Reader)

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Jobs:	Petroleum refining is a high-wage industry, paying its employees in Washington State an average of more than $80,000. According to a 2003 refiners survey, the five major refineries employed 1,725 employees in 2003, paying them an average annual wage of $80,357, about twice the Washington State average. The average wage in Skagit County was $28,662. The average wage at the four Skagit/Whatcom county refineries in 2002, by comparison, was $75,861. These jobs have a total employment multiplier of 11.68, meaning that each direct refining job generates an additional 10.68 jobs in the state, for a total employment effect of 20,148 jobs resulting from the five refineries. Washington’s petroleum refiners regularly rely on contract workers. In 2003, refiners paid contract workers nearly $165 million, an average of $118,296 per worker. Ninety-eight percent of these 1,393 workers came from within Washington State. Refinery jobs and their income spur additional jobs in upstream industries that supply crude oil, contract labor for plant maintenance and repair, and office supplies and equipment to the refineries.
Taxes:	The five refiners paid $226.5 million in state and local taxes in 2003, a 33 percent overall increase from 2001. The refiners paid $12.8 million in property taxes in 2003 and $2.3 million in regulatory fees.
Safety:	Petroleum refineries have an excellent worker safety rating and contribute generously to the communities in which they are located. In 2002, refineries averaged just 11.1 injuries or illnesses per 10,000 full-time workers. This low rate compares with an average of 72.4 per 10,000 full-time workers for nondurable goods manufacturing.
Community Involvement:	The five refineries and their employees contributed $775, 000 to various community causes in 2003. The firms themselves contributed about 69 percent of this, with the balance provided by firm-sponsored employee giving.
Statewide and National Impact:	Today, Washington’s refineries make up 3.7 percent of the nation’s total refining capacity. With this state accounting for 2.1 percent of national petroleum consumption, in-state refineries produce quantities more than sufficient for Washington’s needs. Washington’s refineries produced 583,100 barrels per day and more than a dozen different products in 2003. Gasoline accounts for about 50 percent of the refineries’ total $7.3 billion in output value in 2003. Diesel oil and jet fuel are next, accounting for 24 percent and 13 percent, respectively. Nearly 61 percent of Washington refined product is used within the state.