Energy Development on Alaska ' s North Slope : Effects on the Inupiat Population

M UCH OF THE RESEARCH examining the effects of energy development on Indian and Eskimo groups con~ eludes that such resource extraction projects bring few real bene~ fits to local communities. Reviewing the impact of the Navajo Tribal Council's leasing of oil, natural gas, helium, and coal to energy corporations, Robbins (1978) argues that these sales have improved the economic position of only a small group of tribal members. This appears to be due primarily to the fact that total energy industry employment is quite small compared to the total Navajo work force. In 1977, these industries employed 1800 Navajo workers, 600Jo of the total industry employment. Such a high proportion of Native American employment in energy projects is quite unusual. Anders (1980) points out that during a period of intensive energy development, reservation unemployment actually increased for the majority of tribes that are members of the Council of Energy Resource Tribes. Yet, even where Indians gained employment, these Navajo jobholders represented less than 30Jo of the work force. Thus, the effect of energy employment among the Navajo was to create a small elite of high wage earners. While few Navajos have been directly employed by the energy industry, the Navajo tribal government has received revenues from energy-related royalties, rents, leases, and bonuses. Indeed, 700Jo of tribal revenues derived from mineral leasing, a situation that places the tribal government in a weak bargaining· position when its interests may call for canceling leases or refusing to negotiate new leases (Ruffing 1978). Again, however, the payments have not been large ($16.3 million in 1977) and reflect prices that are far below fair