State economist: ConocoPhillips layoffs have broad reach

In wake of the announcement by energy company ConocoPhillips that it may cut about 120 jobs in Alaska, a state economist says the damage will be big.

The Alaska Dispatch News reports that Alaska Department of Labor and Workforce Development economist Neal Fried said Wednesday that he would not have been shocked if the number of layoffs announced was higher.

Alaska oil prices have dropped more than $28 per barrel over the last year, cutting into revenue for energy giants like ConocoPhillips.

Fried says beyond the actually energy employees that will lose their earnings, many contractors who work with ConocoPhillips for its repair and construction work in the oil fields are also at risk.

Despite the impact, Fried says Alaska has weathered dips in oil prices and energy job disappearing before.