As the campaign for governor enters its final days, both candidates are focusing on the future of Alaska oil. That is a good thing, because as Gov. Parnell admits, “oil remains the backbone of Alaska’s economy” and that backbone is weakening rapidly.
By now, most are familiar with the basic statistics. Oil provides roughly ninety percent of state government general fund revenues and is responsible for one-third of the Alaska jobs.
Most also are familiar with the fact that oil production from the North Slope is down more than two-thirds since its peak in the late 1980s, and continuing to decline at a fairly rapid rate.
What many are not aware of, however, is how rapidly the decline is occurring. Continue reading
|Gas (Valdez LNG)
|Gas (Bullet Line)
(netback reference for L48 gas)
Beginning with prices posted on September 10, 2010, this page started including the “Henry Hub” price effective for the same day. The reason for including that price is explained at “Reason for Adding the Henry Hub Price,” http://bit.ly/dj6oEo. The remaining prices represent estimated values, netted back to the field level, for Alaska North Slope (ANS) oil and gas marketed through various options, based on closing prices for the relevant markets on the indicated day. For an explanation of the basis for all of the estimated netback values, see “Basis for Estimates of Alaska North Slope Netback Oil & Gas Values (rev. Sept. 6, 2010),” (Sept. 6, 2010) http://bit.ly/cNqYw5. Beginning with the week ending September 24, 2010, the estimated values are posted weekly, based upon the closing prices for Friday of the relevant week.