Hello! We want to model the impact of the drilling of new oil and gas wells to a state economy. We had planned to enter the total cost of the new wells into an industry change event for sector 37 (Drilling oil and gas wells). Would this be appropriate? Or would we need to do an analysis by parts approach instead, where the construction purchases are modeled through an industry spending pattern, the labor income through an industry change event, and direct effects calculated independently?
I also have a related question about how to interpret direct effects in this sector. From this post, it seems that direct output for construction is the cost of the building, even if the inputs to create the building came from outside the study area. Is the same true for oil and gas drilling? I.e., would direct output be the cost of drilling the well, even if some of the inputs to drill the well came from outside the study area?
Finally, the same link above says that any "at the site" construction employment would be considered direct employment, even if some of those workers are non-local. Would the same be true for oil and gas drilling? Oil and gas drilling often requires a non-local, specialized workforce.
Thank you for your help!
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